St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-03-29
FACTS COMING OUT.
The Coal Committee Unearth-
ing the Methods of That
Bureau"
Dealer Worthingham Tells
the Inside OF His Men,
berShip.
John Norton Explains How He
Was BulldoZed Into
Coming in.
Testimony Showing the EX-
iStenee of a CaSt-IPOn
Combine.

The committee engaged In the Inquiry
into the coal combine is moving forward
with determined strides. 1t was stated
at the meeting held at the Astoria hotel
last evening, and which continued TAX
Ing evidence until late hour, that adj
ditiOnal prosecutions will be begun
straightway against every man known
to be Identified with the conduct of the
coal bureau. A large mass of additional
testimony was taken last night. Mime
apolis contributed the larger quota of
witnesses. 1t was more than evident
that all = with one exception - were
somewhat embarrassed, and this fact in
dueed Mr.. Walsh to remark that it is
certain that the combine has strong
grip on the retailers of the Twin Cities.
The one exception noted was E. Worth
ingham, of Minneapolis. He testified
without reservation, and to the commit
tee expressed qualification thereat.
How Perry coined.
B. l.. Perry, of Minneapolis, was first
sworn. He is a member of the firm of
Perry, Leavitt & Sons, coal dealers of
that city. The firm handles approx
mately from 90 to 100 tons of coal a
month. Witness met Rhodes at his
Office last September. 1t was shortly
after witness began the business.
Rhodes solicited the witness to sign the
list of members of the bureau. Follow
ing in the line that had been esta6-
lished by other witnesses, Mr.. Perry
deemed his membership onlyas matter
of securing information, but after stat
ing that he had beer buying from the
Lehigh company he conceded that he
had been advised by this company Ito
join the combine If we wanted to get
any more coal" The established price
was to be maintained if witness was to
receive coal to sell. This was the I'M
derStanding.
AT this juncture Mr.. Walsh turned
the witness over to Mr.. DOnnelly. Mr..
Perry then reiterated that the Lehigh
company had stated that unless wit
ness Joined the combine he could
probably not get coal to sell. Rhodes
mad never told him that he must main
tain the price.
You say you have received no letters
from Mr.. Rhodes?"
Il think we got one short letter." and
the witness produced the letter. 1t was
merely an inquiry if the witness had a
coal yard. Then Mr.. Perry handed over
list OF the members of the bureau, to-
gether with a stated circular.
''Do you know one Charles L.
JerOme?" asked Mr.. Walsh.
Yes, sir; he was a sort OF claim
agent for the Minneapolis & st. Louis
road" At this point Mr.. Walsh intro
duced letter from Mr.. Jerome stating
that he had asked MI. Perry if he could
cut prices. and that Mr.. Perry had eX-
plicitly replied that he could not cut for
the reason that he had been forced to
join the combine in order to buy coal,
and witness conceded that he might
have said so, but cOulddt recall the
language.
James A. Jelley. of Hastings, next
testified that he is the manager of an
agricultural business in that city for
John j. Rhodes. The latter at one
time called witness to st. Paul to do
some detective wOrk--that is, to see If
he could buy from the coal dealers. He
bought two tons from the Pioneer Fuel
company for SIT. He called upon other
dealers but bought no coal. Rhodes
instructed him to dispose of this coal
and he did so. He sold it to E. w. Bon
ham for S14. Rhodes told witness that
he was getting statistics. and that this
method was the only way to complete
it. Mr.. Jelley visited three or four
companies in Minneapolis. but did not
succeed in getting an offer of coal for
less than $3.50.
a Witness That Talked.
Emery Nottingham, Minneapolis
dealer, testified that he is a member OF
the coal association and also of the
bureau of coal statistics. Rhodes called
upon him about last September, and he
anticipated the call One of the agents
of the fuel company from which wit
ness bought coal had told him that
Rhodes was going to call on him. This
agent had told him that he had better
| JON the bureau. The witness told the
agent that he did not think well OF
| that sort of business. When Rhodes
| called witness said to Rhodes that he
didn't want to join, and Rhodes per-
| Sisted that it would be best for witness
| to Join the association.
Il asked him if he meant TO say that
could not get any coal if did not join,
and he said he didn't mean to say that,
| but that he would make it difficult for
me to get coal and make it unpleasant.
| But Mr.. Kendall. who came with
| Rhodes, did say to me, you had better
! join or | won't be able to sell you any
! coal!' They finally succeeded in con-
vincing me and paid my S25. l gave a
| check
Witness had received letters and cir.
! culars from Rhodes, but he had lost
them. Mr.. Kendall is the agent of the
| Northwestern Fuel company. Mr..
| Worthington understood that he had nc
| right to undersell the fixed prices, and
he never made cut. While ne was not
told so in so many words he had the i'm.
preston that ii he undersold he could
get no coal He then testified to the
| old association. and said that after his
deposit bad been returned him by c.
Nee. Reeve he felt that he was lib
Grated from the contract that he had
signed, but just az soon as he joined
the bureau he realized that he
was again bound. He had plade
less money since joining than before
He had given away S25, and since then
he had only got 81 off the retail prices
Prior to that he could buy from S1.25 t.
| S1.75 off. Just as soon as the retail
price was raised the wholesale was
raised more, and the profits were conse
queutly reduced. When Reeve wa;
chairman be furnished the prices. Wit
ness had bid for coal contracts, bu
| since he had been member of the
bureau he had been unable to get con-
| tract. Rhodes had sent him circular:
giving him D ices at which he might
bid, but there was no money in it.
"Do the retailers feel that they will
make more money if we break this com
bine?" asked Mr.. Walsh.
well, don't know; have heard il
| intimated that they are going to run u:
all out; then it would hurt u.s." was the
frank reply.
Mr.. Nottingham thought he knew
| almost all of the retailers in MinneapO-
| lis, and he did not know of one that is
not member of the bureau.
TerrOrized Into Joining.
John Norton, another Minneapolis
dealer, had paid S25 for memb ershiI
! in the bureau, and he buys from
4 II.