New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-07
ia Coal Firms
Indicted Under
Anti Trust Law
$34,OOO,O0O Extra Profits
for Pool in Year, U. S.
Grand Jury Finds
Inquiry Will Continue
ONLY One Phase of Industry
So Far Taken Up-Other
Action Expected
Inquiry Will Continue

One hundred and seventy-four cor
porations and individuals, alleged 10
have been combined in huge coal
trust which has existed for three
wears and which has united to wiring
S34.OOO.OOO in extra profits from coal
consumers during 1917, have been IN
dicted for violation Of the sherman
antitrust act by Federal grand jury
in this city.
knowledge Of the sweeping action
was not revealed until yesterday al
ternoon, when Federal Judge Van
Fleet opened the sealed indictments
which the grand jury had handed to
him late Monday
The indictments accuse 100 corpora
tions, all engaged in the production
and sale Of coal in the South, East and
Middle West, and sixty-five individual
officers of these corporations.
The men inGioted-many Of whom
are millionaires living in the South
and Middle West-will be given ten
DAYS to appear in person before the
Federal Court here and plead their
cases. If they have not appeared at
the expiration of that time bench war
rants will be issued. and they will be
brought to New York in the custody
Of United States marshais
But or, phase OF the great coal in
dustry in the United States is covered
in the indictments. This is the class
of coal known as semi-btuminous,
which is mined entirely in West Viz
ginia and in Virginia, and in the pro
duction and sale of which all the cor
porations and men indicted are en-
gagged. The coal is used largely by
steamships, railroads. schools, hos
pitfalls and big business buildings in
this city.
Other Indictments Expected
Investigation into alleged criminal
operations of trusts in other branches
of the coal industry will be continued
by Frank VI. Swacker. Robert P.
Stephenson and Oliver p. Pagan, who
acted for the government in the pres
sent case. Other indictments are eX-
pected TO follow soon.
The indictments opened yesterday
were two. The frs. names 1903 cor
porations and ifty-fve men. 1t charges
that these parties produce and sell
22,000,O00 tons of. the 35,000,000 tons
of mi-bituminous coal mined an
nually in West Virginia and in Vir-
ginia. and that they had combined to
eliminate competition and raise the
price to consumers.
Although there is no mention of il
in the Indictment, Mr. Swacker said
that he expected to prove that meet
ing Of the leaders in the combination
was held in the Waldorf Astoria Hotel
about the middle of January and plans
for increased profits were laid then.
At that time the cost Of production
had gone UP % cents ton. Mr.. Swack-
er said. although the mine price of coal
remained at SIPS. According TO evil
dence which he intends to introduce at
the trial. an agreement was reached at
the Waldorf conference TO raise the
price TO S. a ton, making "a clear profit
of $3.50 ton plus whatever profit
there might have been in selling at
CLIO. Inns agreement, IT. Is oil@6SN'
was 20 take effect on April 1.
1t is stated in the indictments that,
although the price Of the semi-bitumi-
nous coal IS already SO ton at the
mines, purchasers Of spot coal" are
paying much more than the con-
tract prices. According to the Federal
officials, prices in Boston went as high
as S13. The alleged unlawful agree
. Il f.4sr, pnf
remain in effect for three years. Mini
mum prices were TO be fixed, 1t is al
legged, at stated intervals, and members
Of the combination were TO MAINTAIN
uniformity of terms with their Gus
TONERS.
Pooling Agreement Charged