The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1903-07-12
COAL DEALER SAYS
HE WAS FROZEN OUT
John Kennedy Complains of
Commissioners.
POOL OF SIXTEEN DEALERS
1t Existed Two Years Ago and He Be-
heves Does Now So Far as District
Contracts Are Concerned.

Johh hennedy, coal dealer said yes
terday morning that two years ago there
was combination of sixteen prominent
coal dealers in Washington which
pooled 90 cents on every ton of coal
sold to the District government and to
all the Federal departments. The pool, he
asserted was formed in order to keep
the dealers from undertaking each
other and bringing the profit on the
coal sold to the Government down to
starvation figures. Each member, there
fore. bid what he thought he could. and
tackled on SO cents extra for each ton.
The 5O-eent pool was to be divided
among the sixteen members of the com
bine, each member of which received his
full share, whether he received a Govern
ment contract or not
Bid Lowest by $4,000.
Two years ago Mr.. Kennedy made a
bid for the District government coal at
figures that were $4,000 less than the BID
which was accepted by the Commission
ers. He states that he went immedi-
ately to Commissioner Mcfarland and
demanded an explanation. Mr.. Macfar-
land. according to Kennedy, said that
the Commissioners were empowered by
law to reject any bid.
Mr.. Kennedy then brought suit against
the District for 100000 He found
however. that Mr.. MacfarIand was right
in saying that the Commissioners could
reject any bid If they saw fit. He there
fore dropped his suit, but went to Mr..
mcfarland again and asked him If the
Commissioners would reconsider his bid
IL he. Mr.. Kennedy. should prove that
there was coal combination in Wash
ington which was pooling 80 cents on
every ton sold to the Government.
Mr.. Macfarland's Reply.
Mr. mcfarland is alleged to have re-
piled that since Mr.. Kennedy had seen
fit to sue the District, the Commission
ers would not enter into any further
relations with him
In the recent call for bids for the
District government coal supply, Mr.
Kennedy says he again put in a bid
which was less than the accepted bid
by $4,000 or more. The reason given
for rejecting Mr.. Kennedy's bid was that
he did not specify a special vein of coal.
Neither did the successful bidder. 3"
said Mr.. Kennedy. 4 mentioned
Schuylkill coal in my bid and he Read
Ing coal. There was no talk Of a special
mine in either bid. / do not know IL
there is pool on coal sold to the Gov
probable. As for the other pool.
would be willing TO swear to It,"
Mr.. Macfarland's Statement.
Mr.. mcfarland stated yesterday after
neon that he remembered one John
Kennedy as a bidder for coal contracts
to supply the District, but denied ever
having talked with him concerning a
pool among local dealers.
This is the first time 1 have ever
heard it intimated." said the senior
Commissioner. that coal pool ever ex-
listed. II Mr.. Kennedy's statement is
true I would be glad TO know 1t. that
the Commissioners may be guided in the
future. When the late Commissioner
Ross was on the board, the coal con-
tracts came within his jurisdiction, and
only heard Of Mr.. Re Eledy's dealings
unoficially.
This year we received a bid from
John Kennedy. jr., who, ] understand
Is a son Of the Mr. Kennedy in ques-
ton. We learned. however. that John
Kennedy, IT., was not a coal dealer. and
we were convinced also that he would
have been unable TO perform the contract
had il been awarded him.
AS far as the pool is concerned, I
know nothing OF it. but will be glad to
receive at any time information concern
In, q