Evening star., 1920-12-05
STARTLING CHARGES
MADE IN SENATE'S
LOCAL Investigation
|$17,0O0,000 in Excessive
Prices Said to Be Charged
in New England and N. Y.
ADMINISTRATOR ALLEGES
SEVEN FIRMS IN CONTROL
Charges Cost to Public Was
Raised More Than Increase
in Miners Wages. 3
By the Associated Press.

by the Associated Press.
NEW YORK, December 4.-Startline
testimony regarding alleged profiteerinS
in anthracite coal prices was given
here today at the opening Of the in
vestigation of the United States Sem
ate committee on reconstruction ana
production into the hard coal indus
try.
Outstanding features of the testi-
mony were: New England states ana
New York are each taxed $17,000.o0o
annually in excessive coal prices
Company producers are selling coal
at So fob. mines, while 'fndependt
ents" are charging SIS ton.
Coal prices were raised from 81 to
SLIGO a ton last April in "anticipa-
tion of wage increases to miners."s
which finally only cost the operators
from IS to SO cents a ton.
Twenty-Five big coal concerns in
New York and other eastern cities
are selling coal at mines from $40 to
SIS ton, when a fair price would be
$3.50. e
Control Hard Coal Output.
Seven anthracite companies control
about IS to so per cent of the entire
hard coal output.
While the output of Independent
producers is only rs per cent Of the
entire anthracite production. mora;
than 40 per cent of the hard coal -
being sold on the market at "eaced-
sive Independent prices"
Eugene Huffman, fuel administers
tor for Massachusetts,, in appearing
before the committee to protest
against his state being made the
dumping ground" for Independent
anthracite coal at Excessive. prices,v
testified that New England was being
| taxed $17,oo0.0o0 in excess OF the
fair price" charged by comrany. prs-
ducers. New York consumers were b<-,
ing similarly taxed.
Wholesalers. AdministrAfor Hnlfs
man added, also were iugea1ng prfess
by selling to each other, taking 81 =
ton profat. Most Of the time the coal
never changed hands," he said, "only
paper transactions"
Il 4AS WlAASSS 00CAat tuSI6 were III.
dications that company coal was be-
ing sold at independent prices. He
also produced a list Of twenty-five
firms selling coal at from SO to $1s
a ton at the mime fair price for
which. he said. had been fixed at $3.50.
Had "Cennoa Price,"
W. H. Williams. vice president Of the
Hudson Coal Company and the Dsla-
ware and Hudson Railroad Company.
denied that the company coal opera
tors had a common price," explain-
ing that while they had an association.
they never discussed prices.
Under examination by Senator Wal
ter E. Edge. he stated prices had been !
raised last April 81. $40 and $1.eea
ton-prices varying on sizes-in AN
ticipation of wage increases to min
ers," but he could not remember"
what the miners wage advance hna
cost the company.
When Senator Edge asked II n
wasn't true that the wage increaAe
had only increased the cost OF pre-
duction about As to so cents q ton.
Mr.. Williams said he could produces
figures to Justify the increase" H
said the cost Of materials and other
things had to be considered in the in
crease. s.,
The witness said the operatorA
would be 100000 or 100000 in the
hole" if the miners got the addition
al increase Of approximately Is per
cent which they are now demandinEs
you mean you will be out thaS
much on your net profits you ara
now getting"' remarked Senator
Edge.
No Coal Famine.
Mr.. williams said there was no
coal famine in the country. but there
was coal panic" adding, If the
people would stop buying, the price
of coal would break overnight"
The witness said the companies
were willing to cooperate in every
way to solve the present situation.
but could not get together because
of the federal antitrust laws.
The only Independent producer to
testify was T. r. Schumacher of the
East Boston Coal Company. with
mines at Kingston, Pa, whose failure
to recall answers to the commit-
tees questions brought from Senator
Edge the command that his booka
be subpoenaed."
Schumaker admitted he had raised
his prices from $8.75, +. o. b. mines. to
SIS a ton since last April. adding that
he was disposing of some coal at the
lesser price. When Mr.. Schumacher;
said the profits Of his company for.
last year were only $2.400 Senator
Edge ASKED him how much income
tax his concern had paid.
Two thousand dollars" replied the
witness after some study.
"Sure about that:" asked Mr.. Edge.
adding. did you cheat yourself!" i
Failing to receive an explanation.
Senator Edge closed the hearing, res
marking to the witness, "Well. we
will have to look at your books"
Senator William NJ. Calder, announceds
that the committee would hold its
next meeting in Washington at tho
"call-of the-chair.s ~