Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1920-12-22
is
Revealed in
Coal Probe
Government Officials Are
Charged With Rakeoff of
Millions During Recent
Shortage of Fuel.
Names Are Kept Secret
BY ARTHUR SEARS HENNING.
Chictro Trtbune-Omaha Bee Leased Wire.

By ARTHUR SEARS HENNING.
Chictgo Tribune Omaha Bee Leased Wire.
Washington. Dec. 2l.-A sensa-
t:onal scandal, involving ring Of
government officials, In a rakeoff
Of millions of dollars in coal trans
actions during the recent fuel short
age, was Unexpectedly uncovered
today by the senate coal investiga-
ing committee.
George H. Cushing. general man
ager of the American Wholesale
Coal Dealers association, inadvert-
emily disclosed in his sworn testi-
mony before the committee, that
government officials taking advan-
tage of advance information on the
tuel stringencies obtained i'll their
confidential positions, declared
| themselves i'll on the coal price
boosting and Cleaned up" millions.
The committee Immediately deter
mined to go to the bottom of the
charges.
Mr.. Gushing told the committee
OF one instance in which government
officials closed a profit Of $675,000
on the sale of 450,000 tons Of coal.
He stated that he was offered
share amounting to over 100000 to
participate in the deal but declined.
There were many other such in
stances, he told the committee.
To Reveal Names
Much of Mr.. Cushing's testimony
was given behind closed doors and
was not made public. He furnished
the committee with the name of the
ring leader. said to be dollar-a-year
man. The committee expects to IS
sue subpoena for this man. Mr..
Cushing will return to the witness
stand probably tomorrow. armed
with papers that will enable him to
furnish the committee with the names
OF other government officials who
drew down huge profits in coal. The
committee plans to make thorough
investigation and reveal to the coun-
try the names of all officials engag-
ed m the coal deals.
Members of the committee, after
hearing Mr.. Cushings testimony IL
secret session. explained that the
coal handled by the ring was no,
sold to the American government
and they doubted therefore whethe'
any graft prosecutions could be in
stituted. The coal was sold it wa.
said, sometimes to American con
sinners in regions where the short
age was acute and sometimes to for
eign governments who were badl,
in need of fuel for their shipping
and industries.
The practice of the ring was to ge.
secret orders from persons and con-
Germs badly in need of coal, enter
into negotiations with coal dealers
with whom they usually offered TO
share their profits, and then deliver
the coal at price about $l.50 ton
i'll excess of the purchase cost. The
officials were in position to obtain
information as to coal needs and
give assurances to their customers
of their ability to get the coal by
reason of their position, it was
4 stated.
Revelations Accident.
Mr.. Cushing's revelations slipped
out accidentally. He was asked to
give list of those who took profits
in the handling of coal from the
mine to the consumer. He stated
that profits were taken by the min
crs, the operators, the railroads,
wholesale dealers, retail dealers, etc.,
and then to the surprise of the COM
mittee, added: "And officials of the
United States government who got
into the coal business"
Instantly the committee was on
the alert. He was pressed by SEN
ator Kenyon of Iowa to furnish
more light on this charge. He stead
lily declined to do so.
you know that government Of
fcials secured profit in the hand
ling of coal?" asked Senator Ken
yon.
Eyes, I do" replied Mr.. Cush-
ing. But there is no good digging
in the graveyard. My undertaking
days are over"
| 2 When the committee insisted on
further information, Mr.. Cushing
finally agreed to answer questions
behiad closed doors. The commit
tee accordingly went into secret ses-
tTurn to Page Two. Column One.>