Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-12-22

was not made public. He supplied the
committee with the name OF the ring
leader. said to be dollar year
man. The committee expects to- Issue
a subpoena for this man. Mr.. Cush-
| ing Will return to the witness staEd
probably tomorrow. armed with
| papers that will enable him to fur
nish the committee with the names
/ OF other government officials who
drew down huge profits in coal. The
committee plans to make thorouSh
| investigation and reveal to the coun-
try the names of all officials engaged
In the coal deals.
! Prosecution to Be Difficult
Members of the committee. after
hearing Mr.. Cushing's testimony in
secret session. explained that the
lscoal handled by the ring was not
sold to the American government anG
they doubted. therefore, whether any
graft prosecutions could be Instituted.
The coal was sold. 1t was stated
sometimes to American consumers i'm
| regions where the shortage waS acute
and sometimes to foreign govern
ments who were badly IN need of
| fuel for their shipping and indus
| tries.
| The practice Of the ring was to ee.
secret orders from persons and con-
Germs badly n need of coal, enter
into negotiations with coal dealers,
with whom they usually offered to
share their profits. and then deliver
the coal at a price ahont sl5o a ton
in excess OF the purchase cost. The
officials We're In positions where they
were able to obtain information and
/ give assurances by reason OF their
positions, It was stated.
Drops Like a Grenade.
Mr.. Cushing's revelations sIipped
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 miners, the
operators. the railroads, wholesale
dealers. retail dealers. etc, and then,
TO the surprise OF the committee add
ed, and officials of the United States
government who got into the coal
| business"
Instantly the committee was on the
| alert. He was pressed by Senator
Kenyon. Iowa, to furnish more light
on this charge. He steadily declined
to do SO.
GU know that government ofn-
cials secured a profit in the handling
| of cOal?' Senator Kenyon asked.
Yes, l do" Mr.. Gushing replied.
But there is no good digging in the
graveyard. My undertaking days are
, over"
Rail and Labor Officials, Too.
~ When the committee insisted on
further information Mr.. Gushing final
i ~ agreed, to answer questions behind
closed doors. The committee accord
ingly went into secret session. where
Mr.. Gushing proceeded to back I'D his
charges with additional testimony.
He charged that railroad officials
and labor leaders who had to do with
the handling OF coal also managed to
get rake off" frequently. All these
levies, he explained, helped to raise
the price OF coal to unprecedented
| heights.
Another sensational feature of the
investigation was the production of
evidence showing how the American
| Wholesale Coal Dealers, Association
| succeeded in thwarting the campaign
instituted last summer by the depart
| ment of justice against profiteering
operators.
! Senator Calder, New York, chair
man of the investigating committee,
brought forth a telegram sent by Mr..
Gushing to members Of his organiza-
ton advising them not to answer the
questionable sent out by the depart
ment OF justice for the purpose of OBJ
tanning information about operators
prices. The department wanted the
wholesale coal dealers to give the
! names Of the operators from whom
they bought their coal and how much
/, they paid. Mr.. Gushing wired to the
| wholesale dealers on July 80, 1920:
/ Am advised by competent counsel
! you need not answer department of
| justice questionnaire. Important you
/, do not disclose name Of operator or
his price, as it will prove detrimental
business only If you choose to do so.
Please disseminate"
| Mr.. Gushing admitted sending the
| telegram.
| Il didn't want members Of our as
sociation to become informers on op-
orators who supplied them with the
coal that kept them in business" he
explained.
Didn't Like Threat Of Prison.
| When Senator Edge wanted still
further explanation Mr.. Gushing re-
piled that the department Of Justice
had told him they were going to put
our members in the federal peniten-
tiary."
"And you wanted to keep them out
of the penitentiary?" asked Senator
Kenyon.
'T wanted to keep members out of
the penitentiary so there would be
enough of them left to pay my sal
ary," answered Mr.. Gushing.
The witness added that the coal
: dealers did not want to run the risk
! of prosecutions because there was too
much uncertainty about the meaning
of the reasonable price" clause or
/ the Lever act. He also said Attorney
General Palmer admitted to him af-
/ terward that the department Of JUS
tice had exceeded its authority In
sending out the questionable.