Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1920-12-24
UHEARTH $500, OOO
COAL CRAFT RING
Former Federal Officer and Rail-
road Chiefs Are Accused.
ARMY OFFICER ALSO NAMED
George H. Gushing of the American
Wholesale Goal Association Tells
Senate Committee of Profits
mS:nting Into Millions.

Washington, Dec. 22.-Startling ex-
posues duplicating ring of govern
menS officials in bituminons coal deals
in whice ,aey are charged with hav-
ing made enormous profits mounting
into millions We're made before tile
Calder committee of the senate which
began an investigation of coal prof
iteering in the effort TO fix respSnSt-
bility for the prevailing high prices.
The SENSATIONAL revelations were
made oy George II. Gushing. manag-
ing director of the American Whole
sale Coal association, a witness be-
fore the committee.
Gushing gave TO the committee in
secret session the names of two gov
eminent officials, one of whom was
connected with the railroad Admins
tration and the other an army officer,
whom he accused of using their posi-
lions to reap exorbitant profits on
purchases of coal. One of them and
associates secured a profit of S600000.
The committee was also informed
by Gushing that number of other
names of government officials who
We're in the ring and reaped large
profits will be furnished by him.
Accuses Government Officials.
Cushings admission of the part
played by government officials in the
profiteering game fell upon the com
mittee with dramatic suddenness.
He had been describing to the COM
mittee The manner in which coal men
protited and added nonchalantly:
But they could hardly be expected
to do otherwise with government Off
cials themselves also making big prof
its in the business"
The statement brought senator Ken
son, member of the subcommittee,
erect.
what is this you say about gov
eminent officials?" he inquired sharp
ly.
Cushing hesitated. Then realizing
the gravity of the situation he re-
Quested that his remark be exnunged
from the record
what revelations / would offer the
committee would neither point moral
nor present a solution he stated.
But upon the insistence of the com
mittee he agreed TO divulge his III Or
nation in private and secret session
was Immediately called.
Names Army Officer.
Afterward it was learned that Cush-
ing had furnished the committee with
information to the effect that group
of government officials had organized
a pool for engineering big deals in
coal. He gave the name of former
official of the railroad administration
who left the employ of the govern
ment three months ago and an army
officer also. He promised the CON-
mittee the names of Others as soon
as he could examine his records,
Gushing said that the officials did
not profit at government expense. but
that they were in position by virtue
of their connection with the govern
ment to know that enormous profits
could be made in coal. and they went
into the business ION the side He
said that 10 one deal that he knew of in
which 10000 tons were involved the
officials had made a profit of $3.50 a
ton.
According to the witness large con-
sumers with the prospect of coal fa-
mine had approached the officials ask
ing rcief. They were unable to do it
through the government but realizir.s
that big profits could be made if they
could supply the needed fuel they or
ganized a pool to buy up huge stocks
and meet privately the demands that
reached them through official chan
nels.
On one occasion Gushing testified
he was approached by an official of
this group seeking 100000 tons who
offered him commission of % cents
a ton If he could fin the order.
Al the conclusion of the hearing
Senator Calder, chairman of the sub
committee, said that. the former Off
ciai of the railroad administration
whom Gushing named in his disclos-
IRE, would be summoned before the
committee at once and the others
would be called as soon as their ideii-
tity is known to the committee.