The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-12
GRAFT IN COAL
ESTIMATED AT
S912,OOO,OOO
Trade Expert Apologies
for 'COnseryativeness' OF
His Calculations.
SENATOR'S GET FACTS
Calder Committee Finds
Building Delay Results
From Fuel Juggling.
SYSTEM IS REVEALED
Government Finds HOW Price
of 81 at Mine Was Boosted
to 1913 a Ton.
SENATOR'S GET FACTS
SYSTEM IS REVEALED

Since the recent indictment OF
public service corporation and TWO
coal companies and two individuals in
This Federal district in connection with
the orgy Of profiteering, graft and bril-
berry that since last April has held at
its mercy bituminous coal consumers,
THE HERALD has asserted that the ag-
gregate cost of that orgy had mount
ed into the tens Of millions"
The estimate. it appears. was much
too small. A coal trade expert testi-
flying not long ago before Senator
William NJ. Calder's committee on re-
construction and production placed the
figure at no less than 1872. 900, 900, and
he apologized for being so conserva-
tive.
Senator Calder when he and his COM
lnittee undertook to probe general con-
ditions affecting the building and nous
ing situation. had no idea his committee.
as mere side product, was destined TO
uncover one of the most fragrant cases
of profiteering In business history of this
or any other country The committee
had not been long engaged upon Its
quest before it found that one OF the
most battling obstacles to building con-
struction of any kind was the inability
of builders to obtain delivery of build
ing materials. chiefly cement, lime. lum-
her, steel and roofing material. Whole
salers who had accepted orders and were
anxious TO deliver said they could get
no cars"
The New York Senator found on in
Quiry that the Interstate Commerce
Commission had issued orders that all
flat and open top cars must be refused
10 shippers OF building materials and
should be used exclusively for the ship
ment OF coal. He learned also that
very large proportion of these ears, In
stead of coming from the mines, as the
commission had intended, loaded with
coal that had been sold under regular
long term contract commitments to such
priority American consumers as the rail-
roads themselves, trolley lines, electric
light and power companies gas and
rapid transit subway companies, had
been diverted in some mysterious man
her into the hands of gangs of specu-
lators either ut the mines or in transit,
and these spectators. by such methods
as they well knew how to use. hurried
them generally toward tidewater points,
though also at times toward many Of
the larger centres of industry where n
coal famine threatened at the moment
How Prices Were boosted.
The normal or regular price OF this
tract commitments, usually made with
regular customers annually, was about
S4 ton. 1t cost on the cara at tidal
or other interior ports. generally speak
ing. about 81 a ton. But once this coal
fell into the hands OF the spectators
its price at tidewater, rs evidence taken
by the Calder committee shows. ranged
between SO and S23 n ton. the average
being about Sl7.
II should not be supposed that in
every instance the INSCRIPTIONS snccu-
Iators rcaped this advantage through
fhe cupidity and connivance Of the pro-
ducer al the mine. though evidence Is
conclusive that there has been much
of that kind of greed displayed by the
mine operator as well az by the coal
speculator. G. Andrade. Jr., president
of Andrade-Eyre, Inc, and also OF the
Wholesale Coal Trade Association OF
New York, told a HERALD reporter yes
rerday that far too much OF this sort
OF treachery still was being practiced
at the expense OF the regular contract
customers and OF the public. though It
had been checked perceptbly since the
crusade OF the Department OF Justice
had begun 20 yield appreciate results.
Mr.. Andrade, who was one OF the first
to appeal to Attorney General Palmer
T. attack this intolerable situation and
who has furnished 90 tho prosecuting
officers. William McMurtrio Speer and
Maxwell <. Mattuck. much of the in
formation on which they have proceeded.
asserts that in nunberless Instances
loaded cars. trainloads Of coal that had
started from the mines under priority
orders as fuel destined for the railroads
themselves or for the use OF public ser
vice corporations. literally had been
stolen while on the rail- the way bills
being destroyed and the coal diverted TO
- 10
that the subordinate railroad men who
co.ntenanced or connIved at this fraud
we're well paid FOR their deception.
TO return to testimony taken by the
Calder committee. the coal expert men,
rioned who was Intercepted by Senator
calder was the chairman OF delega-
.tion of men who had been sent by each
Of the New England states 20 Wash
ington 10 cndeavor to do something 90
force the just delivery OF coal 20 their
industries and public utilities under
regular long term contract commitments
with the mine operators which. In ac-
cofdanco With custom, were made early
each year.
His estimate indicated that IN Tho
Kew England section, including New
York. there had been purchased spot
coal from such spectators by public
service corporations and manufacturers
of all kinds to an aggregate OF $4,000
900 tons at prices which would average
not less than So ton In excess Of pre-
Vailing net contract prices az point OF
delivery. That means that II these fg-
urcs bc trustworthy the nationwide
holdup has netted the coal spectators
not less than SSi2.O00,0 900.
uyIan Pledges Ala az CITY.
Mayor Hylan in o letter yesterday t.
Francis G. Caffey. United states District
Attorney. preferred the aid OF tho Cor.
poration Counsel and tho attaches Of BIS
Office. the Commissioner of Account.
and the detective force OF the city IL
any possible way that you can utiliz,
their services IN running down thos,
conspiring TO violate the Lever act o,
any other law that ls being violated
which has any bearing on the coal mo
nopoly
"The coal combination. IL seems &,
mo-" said tho Mayor. 'is endeavoring {,
mulct tho people Of the city for cxorbi
cant prices for coal. and forcibie actor