New-York tribune., 1918-05-29
"Con6scation," Big Dealer
Calls Fuel Administra-
tion's Ruling
Firm Hit for$1,000,0 900
Capital Is Frightened and
Coal Famine Will Result,
One Prediction

The bituminous coal interests of this
city were greatly concerned yesterday
hy rerort from Washington stating
that about one hundred jobbers and
wholesale dealers here have been or
dered by the fuel administration to re-
fund sums aggregating several million
dollars because of alleged invalidity Of
contracts for btuminous coal entered
into before August 21, 1917, and car
ried out since tI.at time.
When the rews reached several OF
the biggest jobF,.ng companies the opin-
ion was expressed that the refund, or
the greater part of it, would never be
paid.
at is confiscation pure and simple
said one big dealer. "When the order
comes for us to refund we will protest
and carry the matter to the courts.
That is the only way fair readJ Just7
ment can be made. When all the facts
and circumstances are aired 1T Will pc
shown that the fuel administration IS
at fault for issuing orders that it's Of
ficials and administrators themselves
were unable to interpret"
One Firm Hit for $1,000,000
With the announcement of the fuel
administrations sweeping order Tor re-
firms had been hit hard, one having
been ordered to refund $1,000,000 and
another 100000. These are said to be
the two largest penalties, the others
ranging from $4,000 to $50O000.
According to Charles S. Allen, secre-
tary of the New York Wholesale Coal
Trade Association, some of the jobbers
were successful in having the orders
rescindcd.
"Previous to August 21, 1917" said
Mr.. Allen, when the fuel administra-
tion was created, many coal jobbers
had contracted with mine operators to
purchase coal at prices ranging from
So to SIS and more ton at the mouth
ident fixed the price for bituminous
coal at 81 ton at the mine. On Oc-
tober 6, 1917, the Fuel Administrator
issued number of rules governing
the handling of coal, one of which pro-
vided that jobbers who had contracted
to purchase coal at price in excess
of So a ton at the mines would not
be permitted to sell the same above
that price, regardless of the contract
price at which it had been purchased
".l'his ruling was rescinded on No
vomber 10, and it was provided that
coal contracted for at a price in ex-
cess of, that fixed by the President
might be, sold at the contract price,
plus Is cents ton, jobber's commits
sion, provided the contracts were sub
mitted to the state fuel administrators
and approved by those officials as
bonafide and enforceable at law. Many
of these contracts were filed with the
state fuel administrators and received
their approval and the coal was moved
forward under this arrangement, be-
in. paid for at the contract price and
sold at the very narrow profit of Is
cents a ton.
Subsequently these contracts were
vised by the contract department of
the fuel administration. In many in
stances they were held to ,ba not bona
fde and enforceable at law and peremp-
tory orders were issued by the fuel
administration to the jobbers to re-
fund the difference between the con-
tract price plus fifteen cents and 50
per ton plus fifteen cents, the fifteen
cents in each instance being the job
ber's commission authorized by the
orJo,.O