The Owosso times., 1920-11-12
SOFT COAL DOWN
TO $5.75 A TON
GRAFT ENDED
Trade Believes Market Will
Go Even Lower Soon
PROFITEERING BROKEN
Crusade Of Department Of Justice
Has Principal Effect.
From the New York Herald.

! Has ITlnClpdl CIIeCI.
From the New York Herald.
/ In the bituminous coal trade the
burden of greed, graft and attendant
extortionate prices, under which the
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 former lev
els.
Soft coal, which until Saturday had
been selling at the mines at such
fancy prices as SO and $40 ton, fel
on Monday as low as $3.50, and yes
terday's prices at the mines were
quoted at $5.75 to 81 ton, accord.
ing to grade and quality. These rates
were confirmed not only by represen-
tatives 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 Black
Diamond, a leading organ Of the coal
trade, at 29 Broadway.
Among coal men the opinion was
expressed that the market will go
even lower in the immediate future.
Government officials will not be sur
prised to see soft coal at the mines
selling soon at SIS ton. 1t always
has been held by the Department of
Justice that when that goal shall have
been attained they will regard the
primary purpose of the Government
investigation and it's incidental prose-
cutions as having been achieved. They
do not expect prices to fall below SIS.
Many of the evil conditions exist
ing in the soft coal trade which later
were taken up by the Federal officials
were exposed through an inquiry con-
ducted by The New York Herald.
Buyers Are Discriminating.
"For the first time in many
months" said high authority, who
did not wish to be quoted by name,
buyers have begun to exercise dis
elimination in making their purchas-
es. / have even heard today of some
soft coal offerings having been re-
jected because they contained too
much non-combustible stuff and were
not up to grade. The time has gone
by when eager buyers were content
to pay ruinously for anything that
looked like coal. That is a healthy
symptom"
In the opinion of the trade, the
backbone of the speculative campaign
of profiteering, bribery and corrupt
practices which has maintained prices
at artificial heights has been broken
by a combination of causes. First
in Importance among them probably
has been the reformatory crusade
waged by the Department of Justice.
By the vigor with which it has been
conducted it has enlisted the active
aid and cooperation Of the Interstate
Commerce Commission, Of the coal
carrying railroads, the big whole
salers as represented by the Whole
sale Coal Trade Association of New
York, and, somewhat more tardily,
the aroused interest and pledged
support of the mine operators repre-
sented in the National Coal Associa-
ton and in the Cleveland conference
of soft coal operators of the country.
Government inquisitors found
months ago that the first task con-
fronting them was to convince scep-
teal officials of the Interstate Com
merce Commission, of the coal carry
ing railroads and of the country's
public utilities corporations that the
system of graft by which the public
was being mulcted in millions week.
ly had extended it's tentacles right
into the sacred places of their organ
izations. The higher officers of these
concerns at first were disposed to dis
such reports. They be-
gan to be convinced, however, when
Federal indictments were filed against
the Brooklyn Edison Company and
other local corporations and individ-
uals and when one of those individ-
uals pleaded guilty and revealed his
knowledge to Department of Justice
prosecutors.
Necessary to Wake Them Up.
1t was necessary to wake up all
They had to be convinced
Of what the Department of Justice
already knew that extortionate
prices were due primarily to graft
and to evil practices which began at
he mine mouth, which tainted with
bribery the system of car distribution
and which resorted Systematically to
.he padding and forging of car per-
nits and to the diversion of public
service priority orders.
1t was necessary also to bring