Omaha daily bee., 1919-03-21
KENNEDY GIVES
TESTIMONY IN
INVESTIGATION
Fuel Administrator Defines
Different Kinds of Coal and
Tells of Commissions
and Profits.
From a Staff Correspondent.

Lincoln, Neb., March 90. l..
Kennedy, federal fuel administrator
for Nebraska, was on the stand to
testify to matters relating to the
coal situation in Nebraska and the
status of the National Supply COM
pany and also E. E. Howell, as coal
purchasing agent for the board.
Mr.. Kennedy defined semi-an-
thracite coal, the kind sold the state
institutions by the National Supply
company, as being in the class with
bituminous coal and that only a
commission of Is cents per ton
could be charged by the jobber. He
knew of no ruling made by the fed
eral fuel administration, that April
!, 1918, jobbers should sell at the
government price fixed at the mine
and take their profits between the
price they purchased their coal for
from the operators and the govern
ment price.
Dealings With Retailers.
Mr.. Kennedy's attention was call
ed to, a ruling of this character in
an official government publication
and he then stated to the committee
that most of his dealings had been
with retailers.
He interpreted the rulings as
found in the government publication
to be that if the National Supply
company owned coal which it had
purchased at less than the govern
ment price at the mine it could take
the profit represented even if it
were Is cents, or $l25 per ton, but
it could not charge the purchaser
the jobbers profit of IS cents per ton
in excess of the government fixed
price.
Asked whether Mr.. Howell, OF E.
E. Howell & Son, could sell coal at
retail prices to the state from his
own yards and collect his COM
mission of S cents per ton, Mr..
Kennedy replied that it would de-
pend on whether the deal was made
with Mr.. Howell as an individual
or an organization.
Mr.. Kennedy promised the inves-
tigating committee that if it prepar-
ed a question as to the various mat
tiers involved in the selling of coal
to the state which would involve a
refund of any overcharges on profit
or commission account he would
submit it to the proper officials con-
nected with the coal administration
at Washington.
As to Geneva School.
During the morning session ST.
perintendent McAuley of the Girls
Industrial school at Geneva was on
the stand and he testified in sub
stance that he had IS subordinates
employed at the girls school and
that only one of them was an Of
ficia1 under Miss Lydia Mcmahon,
former superintendent, and that
only one of the former personnel
of the employees of the institution
under the deposed superintendent
regime had voluntarily resigned.
Asked if all had been discharged
for cause, he replied that they were.
He testified that he had discharged
Engineer Melcher for advancing
money to two girls, Margaret Fritts
and Therese Cotton, last November,
and aiding the girls to escape from
the home. He had discharged Fire
man Surber because he had found
him to be a drinking man and ad-
dicted to the use of dope.
Miss Manners, former secretary,
was let out because of bad manners,
being disrespectful in language and
inattentive to duties, he alleged.
McAuley admitted that he had
tried to get rid of Miss Hurst, ma
tron, but that the board had over
ruled him. Miss Hurst was one of
the women whose appointment
George Weidenfeld testified had
been dictated by Commissioner
Mayheld.
Asked what fault he had found
with Miss Hurst, the superintendent
replied: "She was uncongenial. |
found her a yerv silent woman"