New-York tribune., 1920-10-05
Edison Co. of
Brooklyn and
Others Indicted
Profiteering and Hoarding
Coal Charges Against
Corporation; Officials
and Other Firms Accused
Allege p. S. C. Was Duped
Inflated Price of FuelAlleged
10 Be Basis of Rate Raise:
Commissions Were Paid

The Brooklyn Edison Company, Inc,
was indicted yesterday by the Federal
Grand Jury for profiteering and for
noarding coal, and was charged with
conspiracy to violate the Lever act.
Others indicted jointly with the Edi-
son Company on charges of violating
the Lever act are the Adelphia Coal
Company, Inc, the B. J. Lynch Coal
Company, Inc, Walter f. Wells, vice
president and general manager of the
Brooklyn Edison Company, and Harry
?. Wood, its operating engineer in
charge of all coal transactions.
The evidence on which the grand
Jury returned the indictments to Judge
A. N. Hand in the United States Dis
trct Court was submitted by William
Nc Murtrle Speers, special assistant at
torney general
It IS charged that the Brooklyn Edi-
son Company paid unnecessarily high
prices for its coal and by reporting
10 the Public Service Commission that
because of these high prices it was
necessary to increase rates for electric
light and power, gained from the Pub
lie Service Commission, the right to
charge more for its service
Charge Contracts Double Need
1t is said that the Brooklyn Edison
Company required 1000 tons Of coal a
day. The boarding Indictment charges
that in July the company had arranged
for or had contracts for more than
double its coal requirements for eleven
months.
ut was the duty Of the Brooklyn
Edison Company" the indictment says,
to procure coal required for the con-
duct OF its business as cheaply as pos
slble and to truthfully report to the
Public Service Commissioner, rs its ex-
penditures in coal, only such amounts
as it has actually and of necessity dis
bursed, and to what extent it had paid
more for coal than was essential"
1t is charged that the Brooklyn Edi-
son Company bought coal from the
Adelphia Coal Company and from other
coal companies who paid commissi ons
to the Adelphia Coal Company These
commissions are said to have been
largely in excess of the fair and rea-
sonable value of any services rendered
by the Adelphia Coal Company, and in
such instances the Adelphia Coal Com
pany would give no services to the
Brooklyn Edison Company.
The Adelphia Coal Company, accord
ing to the indictment. split the COM
mission with Harry P. Wood and other
persons whose names are unknown.
Sl9,322 Paid in Four Months
The indictment describes certain
money payments by the Brooklyn Edi-
son Company to the Adelphia Coal
Company. 1t says that between Decem
Der 8, 1919, and April 5, 1920 the
Adelphia Coal Company deposited to
its credit in the Liberty National Bank
checks drawn by the Brooklyn Edison
Company for S19,322.
Mr.. Wood is alleged to have visited
the Offices of the Adelphia Coal Com
pany on several occasions and to have
received $1,000 on November %, 1919
On December II, 1919, the Adelphia
Coal Company is said to have drawn
check for $4,000 in favor of the
Chatfee Coal Company and on May 26
1920, a check for S4,394 in favor of
Weston Dodson g. Co.
The Adelphia Coal Company is nor
named as defendant in the proiiteer-
Ing charge, but appears in connection
with the other defendants The indict-
ment charges that the Lynch Coal Com
pany entered into contracts for the
purchase Of coal in Pennsylvania
Maryland and West Virginia and OBJ
tanned priority transportation permits
through the Brooklyn Edison Com
pany, the latter being a public utility
1t is alleged that the coal on reaching
tidewater was not delivered to the
Brooklyn Edison Company, but used