The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-04
Trade Believes Market Will
Go Even Lower in I'M
mediate Future.
PROFITEERING BROKEN
Crusade Of Department OF
Justice Has Had Prin-
cipal Effect.
RAILROADS ARE AROUSED
Government Officials Expect
to See Bituminous Sell
. for S. at Mines.
RAILROADS ARE AROUSED

| burden Of greed. graft and attendant
public has staggered for months. Is
believed to have been lifted. Prices
yesterday took significant drop. The
| best authorities are confident they are
| not destined to return to fsrmer levels.
Soft coal. which until Saturday had
been selling at the mines at such fancy
prices as 50 and $40 a ton, fell on Mon
day as low as $3.50. and yesterdays
prices at the mines were quoted at
from 1913 to 81 a ton, according to
confirmed not only by representatives
Of the Federal Department OF Justice
who have been In close touch with all
phases Of the situation but also at the
Eastern office Of the Block Diamond. a
leading organ Of the coal trade. at 20
Broadway.
Among coal men the opinion was ex-
pressed that the market will go even
lower in the Immediate future. Gov
eminent officials will not be surprised
to see soft coal at the mines selling
soon at Sc ton. II always has been
held by the Department of Justice that
when that goal shall have been at
tanned they will regard the primary
purpose OF the Government investiga-
ton and its incidental prosecutions
as having been achieved. They do'not
expect prices to fall below S5. ~
Many of the evil conditions existing in
the soft coal trade which later were
taken up by the Federal officials we're
exposed through an inquiry conducted by
THE New YORK HERALD.
Buyers Are DISCRIMINATING.
Tor the first time In many nlon-hs."
ss.id high authority. who did not wish
to be quoted by name. buyers have be-
gun TO exercise Discrimination In making
their purchases have evep heard to-
aay Of some soft coal offerings having
been rejected because they contained too
much non-combustble stun and were
not up TO grade. The time has gone by
when eager buyers we're content to pay
rrlnously for anything that looked like
coal That is a healthy symptom"
In the opinion Of the trade. the back
bone of the speculative campaign Of
profteering. bribery and corrupt prac-
tees which has maintained prices al
artificial heights has been broken BY q
combination of causes. First In impor-
tence among them probably has been
the reformatory crusade waged by the
Department OF Justice BY the vigor
tss. -. t@ Lo ra1 IL ho-
enlisted the active aid and cooperation
OF the Interstate Commerce Commission.
Of the coal carrying railroads. the
big wholesalers AZ represented by the
Wholesale Coal Trade Association Of
New York and. somewhat more tardiiy,
tho aroused interest and pledged sup
port of the mine operators represented
In the National Coal Assocls tion and In
the Cleveland conference OF soft coal
operators OF the country.
Government inquisitors found months
ago that the first task confronting them
was to convince sceptical officials OF tho
Interstate Commerce Commission, of tho
coal carrying railroads and Of the coun-
try's public utilities corporations that
the system OF graft by which the pub
lie was being mulcted in millions week
ly had extended It's tentncles right into
TIE sacred places OF their organizations
The higher officers OF these concerns
AZ first were disposed 10 dscontnuance
si.ch reports They began 10 be con-
vinced, however. when Federal lndct-
ments were filed against tho Brooklyn
Edison Company and other local cor
porations and individuals and when one
OF those individuals pleaded guilty and
revealed his knowledge TO Department
OF Justice prosecutors.
Necessary Co Wake Them Tn.
II was necessary 20 wake up all con-
cerned They had 10 be convinced OF
what the Department OF Justice already
knew--that cxtortionate prices were due
primarily 10 graft and 20 evil practices
which began at the mine mouth. which
tainted With bribery the system OF car
distribution and which resorted sys-
tenatically 60 the padding and forging
Of car permits and 70 the diversion Of
public service priority orders
II was necessary also TO bring strong
trade pressure TO bear against the
"enowbirds' and the "fy-by-nisht" spec
uiative element that had engrafted itseif
upon the industry.
There was a time not very long ago
when the coal carrying railroad officials
were incredulous. They did not believe
II when they we're told that their car
distributors were selling them out and
taking individual bribes as high ae
$500 week from favored operators
and shippers. Hut the Pennsyivania
Railroad within the last few days has
modified It's previous attitude of incrcd-
uiity. Several OF It's incrimlnated en-
ployees. including car distributors. bave
been dismissed from It's service. In the
cases Of some. because OF lack of legal
evidence OF guilt. the law cannot reach
them. There is reason to believe like
action may be taken soon along the
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