The Washington herald., 1920-12-22
Federal Ring Made Har-
vest From Fuel Shortage,
Cushing Asserts.
REVEALS ONE NAME
TO SENATE BOARD
Wholesale Director Tells
Of Fake Reports Played
At Profit.

government officials in bituminous
coal deals, in which they are
charged with having made big prof
its, were made yesterday by George
II. Cushing. managing director of
the American Wholesale Coal AS
sociation, before the Calder Senate
committee. The committee began
an investigation OF coal profiteering
in an effort to fix responsibility for
prevailing prices.
Cushing's revelations had an
electrifying effect on the hearing
which up to that time had made
tedious progress. His admission Of
the part played by government Of
ficials in the profiteering game fell
upon the committee with dramatic
suddenness. He had been describ-
ing the manner in which the coal
men profited. and added nonchal-
antly:
Accuses Omcials.
But they could scarcely be ex
pected to do otherwise with govern
ment officials themselves also max
ing big profits in the business"
The statement brought Senator
Kenyon. a member of the sub-com-
mittee. erect.
what is this you say about gov
ernment officials?" he inquired
sharply.
Cushing hesitated. Then realizing
the gravity of the charge he re-
quested that his remark be ex-
plunged from the record
Upon the insistence of the COM
mittee he agreed to divulge his in
formation in private, and a secret
session was called. ,'-r
Gives One Name.
Afterward zit was learned that
Cushing had furnished the commit
tee with information to the effect
that a group of government oficials
had organized a pool for engineer
ing big deals in coal. He gave the
name of one man, former official
o. the Railroad Administration, VINO
left the employ of the government
three months ago. and promised the
committee the names of the others
as soon as he could examine his
records. One of them, he said. was
an army officer.
Cushing said that the officials had
not profited at government expense,
but that they were in a position, by
virtue Of their connection with the
government, to know that enormous
profits could be made in coal, and
they went into the business ION the
side" He said that on one deal
that he knew of, in which 100000
tons were involved, the officials
had made a profit of s1.50 ton.
According to the witness, large
consumers, with the prospect of a
coal famine, had approached the
officials. asking relief. They were
unable to do it through the govern
ment, but, realizing that big prof
it's could be made il they could sup
ply the needed fuel, they organized
pool to buy up huge stocks aud
meet privately the demands that
reached them through official chan.
nels.
offered Commission.
On one occasion, Gushing testi-
fed, he was approached tby an Off
cial of this group seeking 400, 900
tons. who offered him a commission
of 25 cents ton IL he could fill the
order.
At the conclusion of the hearing
Senator Calder, chairman Of the sub
said that the former
official of the Railroad Administra-
tion whom Cushing named in his
would be summoned be-
fore the committee at once, and the
others would be called as soon as
their identity is known.
In open session Cushing held that
the "alarmist statements issued by
various government departments a
year ago in which coal famine
was predicted" were responsible in a
large degree for the present high
prices. These statements which he
said were sponsored by the Rail-
road Administration, the Interstate
Commerce Commission and the
United States Geological Survey,
created a virtual panic.
Bid Against Selves.
Alarmed users of. COAL" he said,
gave the wholesalers commissions
to go out and buy coal for them
and then sent their own purchasing
agents into the fields to compete
with them. Contracts upon which
they relied were set aside by as
signed car orders, priorities and the
like, until no purchase of coal was
To quiet buyers. Cushing declared
that between April and July his
organization issued repeated state-
saying that the coal supply
was sufficient to meet the demand
and that there was no reason for
but the buyers ignored them
and the mad rush for coal went on.
The witness said that Henry
Ford sent four agents into a Ken.
lucky field to obtain coal. They
were unknown to one another, and
in their eagerness to get the fuel
they needed they bid the price up
to 81 a ton. Similar cases were
recorded repeatedly elsewhere, ne
asserted.
Coal Men Helpless.
Against these influences the
wholesalers-and all others-were
helpless unless there was, ,or could
be built UP in the trade, a combi-
nation Of producers and wholesalers
powerful enough ito set aside the
law of supply and demand" Cush-
ing asserted. There was no such
Such a thing was i'm
possible. Therefore. the Individual
CONTTNvlrn nv nAcr rua