The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-18
QUERIES ARE IGNORED
Federal Officers Rebuffed
in Attempts to Delve Into
High Prices.
LIMIT PROFIT TO 10 P. c..
% Wholesalers Agree Also to
Curtail ReSales-More
Emergency Fuel.

Armin w. Riley. special Assistant
Attorney General. announced yester-
day on his return from Washington
that he intended to summon before the
Federal Grand Jury two OF the largest
distributors Of anthracite coal in the
metropolitan district. These are Burns
Bros, of 60 Church street, who have
an enormous trade with city apart
ilent houses, office buildings and ho-
tells, and Madeira, Hill & Co, producers
and wholesalers, of 143 Liberty street,
whose senior member, Percy c. Ma
deira, has just been appointed a mem
Der of the newly constituted fair price
Committee of the Anthracite Coal
Operators Association.
Mr.. Riley's purpose is to compel
Riley is at the head of the so-called
Federal Flying Squadron" which was
long active in the suppression Of
proflteering in sugar and other food
stuffs.
Both these firms" said he, have
refused information to my agents con-
corning the cost and sources of the
anthracite they handle. / will sub
pGna them and have their books
seized and impounded by the Federal
Grand Jury"
Madeira, Hill & Co.. the Federal agent
said, refused access to their books under
advice of counsel.
Michael f. Burns. president of Burns
Bros, when told of Mr.. Riley's state
ment, said:
Burns Continues Defiant.
1.-TWO of those agents did come TO see
me. 1 gave them a lot of information,
too. but when It came to asking me
from whom we buy our coal and what
we pay for 1t declined to open up our
books. We're playing the game on the
square; selling coal as cheaply as any
man in New York and striking a price
based on our average costs. So far as
Germs Burns Bros, the Government
nent is welcome to any information we
have-as welcome as the flowers in May
but when IL comes to revealing the
affairs Of others, well. I'm Irish and I'd
hate like hell to do anything that would
look Ike informing.
Then, after a momentary pause. Mr.
Burns added: Not that I know any
thing particularly to inform about, you
understand" Waving his hand sum
marily. he closed the interview with the
words They'll have to take me before
the Grand Jury"
While in Washington Mr. Riley con-
ferred with Attorney General Palmer.
with his chief assistant. r. Lowry
Humes, and with William McAfurtrie
Speer. Assistant Attorney General for
this district. They systematized plans,
Mr. Riley said Mr.. Humes will inves-
tisate especially conditions and prices
at the mines; AIR Riley will wage q
campaign against extortion, graft and
bribery by keeping an eye on the rail
routes. while Mr.. Speer VIII cooperate
with local emergency relief measures
and will prosecute conspiracy, graft,
improper car assignments. forgeries or
sales of priority orders and like Of
fences.
About twenty-five representative New
York anthracite wholesalers responded
yesterday 10 the call for n meeting In
the Whitehall Club. They ratified two
propositions as a means to drive an un-
desirable element from the trade by linn
iting profits and resaies.
a resolution unanimously adopted
reads: That tl.is meeting recommends
to the Wholesale anthracite trade that
the maximum gross margin of profit on
any sale shall not exceed 10 per cent.
upon the price at the place of sale"
Speaking for John F.. Bermingham's
emergency relief committee. Arthur f.
Rice. commissioner of the Retail Coal
Dealers Association, said: within the
last forty-eight hours cargoes containing
from $50 10 700 tons each Of emergency
relief anthracite OF domestic sizes have
been delivered at dealers yards on the
East and Harlem Rivers.