New-York tribune., 1920-12-01
Lewis Proves
81 Profit in
Coal at Mines
Brooklyn Prosecutor Gets
Waybills of Middlemen
Showing Fuel Costing
So. 10 Is Resold at $3.50
Invoices Cover 9.OOOTons
Company Product Delivered
As Independent Supply;
Collect Highest Price

District Attorney Harry K. Lewis, of
Brooklyn, who has been investigating
the high price of domestic coal, yes
terday obtained direct evidence of
wholesale profteerng in the anthracite
mine regions of Pennsylvania whereby
middlemen purchased coal for $50 a
ton and resold it for $3.50 a ton. The
evidence consists of waybils, invoices
and other documents and is supported
by the testimony of a local coal whole
saler who appeared before Mr.. Lewis. .
The evidence was imme mediately turned
over to United States Senator William
NJ Calder, chairman Of the Committee
on Reconstruction, who has already
threatened the coal industry with gov
eminent control. 1t will be used by
the committee in its investigation into
anthracite coal, which begins Saturday
in the Engineering Societies Building.
Copies of the evidence also will be
forwarded to Attorney General A.
Mitchell Palmer.
According to District Attorney
Lewis's information the profteering
was carried on upon large scale up
to short time ago. 1t involved chang
ing invoices, he says, so that company
coal, which sold at $50 at the mines,
was made to appear as Independent
coal, which sold at various prices up
to SIS a ton.
Has Invoices on 5000 Tons
The waybills and invoices obtained
by Mr.. Lewis concern a cons ignment
Of 5000 tons of coal sold to Rubel
Brothers, Brooklyn retail firm, in
September and October. They were
used by the District Attorney yester-
day in reexamining Z. R. Brevoort,
head of the firm of Frederick A. Potts,
of l43 Liberty Street, who has acted as
broker for Rubel Brothers for some
time.
Mr.. Brevoort was confronted with the
waybills showing that in two instances
the coal sold was originally bought
from the Lehigh and Wilkes Barre
Coal Company, one of the so-called
company operators whose coal retails
at $s1O ton at the mine. Mr. Bre-
voort's firm paid $3.50 for this coal.
The record OF his testimony shows
the following:
Queston-lf they charged you SIG
for that coal you have been imposed
upon. Answer-No. cur price here is
SIG, but that includes commission. If
it was Lehigh and Wilkes-Ba coal
there is apparently something radically
wrong in the shipping.
Q.-Iou had conference with your
rfS, far m nd
you found out that that coal was pur-
chased by you from w. j. Healey, of
Wilkes Barre, Pa, and you paid $3.50,
car B. & O., forty-seven tons stove.
From that waybill it appears the
shipper is Lehigh and Wilkes-Barr
Coal Company: At appears so.
Company Coal Costs $50
OFF it is Lehigh and Wilkes Barre
coal it is company coal sold at not to
exceed $50 ton. 1t that right?
Ayes.
Q-I also call your attention to
waybill car 5l5S6 C. r. r. of N. j. Sep
tcmber 80, 45 tons. That waybill is
also from the Lehigh and WilkesBarre
Ccal Company. That was purchased by
you from whom? A-From W. J.
Healey, of Wilkes-B Barre, Pa, and we
paid Sl5.62 for it. We sold it to Rpbel
Brothers for S16
Q-That being Lehigh and Wilkes
Barre coal according to the waybill. it
should have been sold to you for ap-
proximately $50. A-That is a hard
question to answer. don't know what
the Lehigh and Wilkes-B Barre af.illia
tions are.
Q--You know the Lehigh and Wilkes
Barre company mine. Ayes.
Q-The companies were selling at
$50 f. 0. b. mines, and this coal, if
1T was Lehigh and Wilkes Barre coal,
should not have been billed at Sl5.62.
Is that right? A-That is right.
The governors of all the New Eng
land states, and Governor Miller
of this state have been invited to at
tend the opening meeting of the Calder
Committee Saturday, when it, begins
its investigation of the anthracite sit
uation.