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of the coal as received by the consumer the brunt of the proposition is thrown upon the dealer who should make conservative allowance for probable variations in establishing the contract standard.

In certain instances bidders have submitted samples of coal with bids. with a view to using the results of analysis and test as a contract guarantee. In such cases, under the stress of competition in quality, as well as price of the coal, it is to be expected that a sample would be of exceptional rather than average quality. In other instances, in which the contract liability assumed in stating heating values has developed a lack of knowledge of the performance of the fuel on the part of the bidder, the contract standard is so underrated as to result in a continuous increase in price by the payment of premiums.

In conclusion it seems proper to emphasize the importance of bringing about a better understanding between the producer and the consumer, in order that the coal operator may understand how to market his product directly or through a local dealer with reference to the intrinsic value to the user, i. e., the thermal and economic values of the fuel.

The general application of this specification depends upon the co-operation between the mine operator and the dealer, so that the operator may receive the benefit from high quality and stand for the loss due to shipment of inferior coal.

The success of this method also depends in a large measure upon the knowledge possessed by the mine operator or dealer of the characteristics of the coal handled and upon the ability to control the variations in quality due to methods of mining and cleaning.

That the plan is entirely feasible when entered into by both parties. with a full understanding of the conditions is evidenced by a large number of government contracts which have recently been secured upon this basis, in which the nominal price per ton does not exceed that charged for similar deliveries made without specification.

SPECIFICATION AND PROPOSAL FOR COAL TO BE SUPPLIED TO UNITED STATES PUBLIC BUILDINGS UNDER CONTROL OF THE TREASURY DEPARTMENT.

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Sealed proposals will be received at this office until 2 o'clock p. m... . . 190....for supplying coal to the United States...

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..building

The quantity of coal stated above is based upon the previous annual consumption, and proposals must be made upon the basis of a delivery of 10 per cent more or less than this amount, subject to the actual requirements of the service.

Proposals must be made on this form, and include all expenses incident to the delivery and stowage of the coal, which must be delivered in such

quantities, and at such times within the fiscal year ending June 30, 190, as may be required.

Proposals must be acompanied by a deposit (certified check, when practicable, in favor of..... ) amounting to 10 per cent of the aggregate amount of the bid submitted, as a guaranty that it is bona fide. Deposits will be returned to unsuccessful bidders immediately after the award has been made, but the deposit of the successful bidder will be retained until after the coal shall have been delivered, and final settlement made therefor, as security for the faithful performance of the terms of the contract, with the understanding that the whole or a part thereof may be used to liquidate the value of any deficiencies in quality or delivery that may arise under the terms of the contract.

When the amount of the contract exceeds $10,000, a bond may be executed in the sum of 25 per cent of the contract amount, and in this case, the deposit or certified check submitted with the proposal will be returned after approval of the bond.

The bids will be opened in the presence of the bidders, their representatives, or such of them as may attend, at the time and place above specified. In determining the award of the contract, consideration will be given to the quality of the coal offered by the bidder, as well as the price per ton, and should it appear to be to the best interests of the government to award the contract for supplying coal at a price higher than that named in lower bid or bids received, the award will be so made.

The right to reject any or all bids and to waive defects is expressly reserved by the government.

DESCRIPTION OF COAL DESIRED.*

Bids are desired on coal described as follows:

Coals containing more than the following percentages, based upon dry coal, will not be considered:

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The coal shall be delivered in such quantities and at such times as the government may direct.

In this connection, it may be stated that all the available storage capacity of the coal bunkers will be placed at the disposal of the contractor to facilitate delivery of coal under favorable conditions.

After verbal or written notice has been given to deliver coal under this

*Note-This information will be given by the Government as may be determined by boiler and furnace equipment, operating conditions, and the local market. Note. All coal which will pass through a 1-inch round-hole screen.

contract, a further notice may be served in writing upon the contractor to make delivery of the coal so ordered within twenty-four hours after receipt of said second notice.

Should the contractor, for any reason, fail to comply with the second request the government will be at liberty to buy coal in the open market, and to charge against the contractor any excess in price of coal so purchased over the contract price.

SAMPLING.

Samples of the coal delivered will be taken by a representative of the government.

In all cases where it is practicable, the coal will be sampled at the time it is being delivered to the building. In case of small deliveries, it may be necessary to take these samples from the yards or bins. The sample taken. will in no case be less than the total of one hundred (100) pounds, to be selected proportionally from the lumps and fine coal, in order that it will in every respect truly represent the quantity of coal under consideration.

In order to minimize the loss in the original moisture content the gross sample will be pulverized as rapidly as possible until none of the fragments exceed 1⁄2-inch in diameter. The fine coal will then be mixed thoroughly and divided into four equal parts. Opposite quarters will be thrown out, and the remaining portions thoroughly mixed and again quartered, throwing out opposite quarters as before. This process will be continued as rapidly as possible until the final sample is reduced to such amount that all of the final sample thus obtained will be contained in the shipping can or jar and sealed air-tight.

The sample will then be forwarded to the Chief Clerk of the Treasury Department, care of the storekeeper.

If desired by the coal contractor, permission will be given to him, or his representative, to be present and witness the quartering and preparation of the final sample to be forwarded to the government laboratories.

Immediately on receipt of the sample, it will be analyzed and tested by the government, following the method adopted by the American Chemical Society, and using a bomb calorimeter. A copy of the result will be mailed to the contractor upon the completion thereof.

CAUSES FOR REJECTION.

A contract entered into under the terms of this specification shall not be binding if, as the result of a practical service test of reasonable duration, the coal fails to give satisfactory results due to excessive clinkering, or to a prohibitive amount of smoke.

It is understood that the coal delivered during the year will be of the same character as that specified by the contractor. It should, therefore, be supplied, as nearly as possible, from the same mine or group of mines.

Coal containing percentages of volatile matter, sulphur, and dust

higher than the limits indicated on page 2, and coal containing a percentage of ash in excess of the maximum limits indicated in the following table will be subject to rejection.

In the case of coal which has been delivered and used for trial, or

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which has been consumed or remains on the premises at the time of the determination of its quality, payment will be made therefor at a reduced price computed under the terms of this specification.

Occasional deliveries containing ash up to the percentage indicated in the column of "Maximum limits for ash," on page 4, may be accepted. Frequent or continued failure to maintain the standard established by the contractor, however, will be considered sufficient cause for cancellation of the contract.

PRICE AND PAYMENT.*

Payment will be made on the basis of the price named in the proposal for the coal specified therein, corrected for variations in heating value and ash, as shown by analysis, above and below the standard established by contractor in this proposal. For example, if the coal contains two (2) per cent, more or less, British thermal units, than the established standard, the price will be increased or decreased two (2) per cent accordingly:

The price will also be further corrected for the percentage of ash. For all coal which by analysis contains less ash than that established in this

*Note. The economic value of a fuel is affected by the actual amount of combustible matter it contains, as determined by its heating value shown in British thermal units per pound of fuel, and also by other factors, among which is its ash content. The ash content not only lowers the heating value and decreases the capacity of the furnace, but also materially increases the cost of handling the coal, the labor of firing, and the cost of the removal of ashes etc.

proposal a premium of 1 cent per ton for each whole per cent less ash will be paid. An increase in the ash content of two (2) per cent over the standard established by contractor will be tolerated without exacting a penalty for the excess of ash. When such excess exceeds two (2) per cent above the standard established, deductions will be made from price per ton in accordance with Table I.

Proposals to receive consideration must be submitted upon this form and contain all of the information requested.

190..

The undersigned hereby agree to furnish to the US... building at.... ...the coal described, in tons of 2,240 pounds each and in quantity, 10 per cent more or less than that stated on page 1, as may be required during the fiscal year ending June 30, 190, in strict accordance with this specification; the coal to be delivered in such quantities and at such times as the government may direct.

Price per ton (2,240 pounds).
Commercial name of the coal..

Name of the mine or mines..

Location of the mine or mines.

Name or other designation of the coal bed or vein.
Size (indicate information which will apply)—

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$.

Run of mine....
Square

Jopenings

Screened, through........inch and over........inch Round

Data to establish a basis for payment:

British thermal units in coal as delivered....

Bar screen

Ash in dry coal (Method of American Chemical Society)—per cent. It is important that the above information does not establish a higher standard than can be actually maintained under the terms of the contract; and in this connection it should be noted that the small samples taken from the mine are invariably of higher quality than the coal actually delivered therefrom. It is evident, therefore, that it will be to the best interests of the contractor to furnish a correct description with average values of the coal offered, as a failure to maintain the standard established by contractor will result in deductions from the contract price, and may cause a cancellation of the contract, while deliveries of a coal of higher grade than quoted will be paid for at an increased price.

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Under what law (State) corporation is organized.

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