Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-12-22
Government Revealing Coal
Price Rottenness and Graft
BY Associated Press.

By Associated Press.
Washington. Dec. 22.-George Fl.
Gushing, managing director of the
American Wholesale Coal Associa-
ton. was recalled today by the sen
ate coal investigating committee
when open sessions were resumed.
and entered n denial that coal men
had planned" the series OF govern
ment statements and actions which,
he said caused a coal shortage panic
this year
Some OF the coal men got the higk
prices" he said. but / want to ab-
solve them from bringing about the
steps which five government organ-
iZations took that caused the panic
Did your association ask the in
terstate commerce commission for
priority orders ?" asked Senator Ken
yon, republican,, of Iowa.
NO, we were lighting that" Mr..
Gushing replied.
j. ID. a. Morrow, vice president of
the National Coal Association repre-
Scnting mine operators. testified thcre
was no need to fear another short
age now.
1t took a world war, a national
coal strike and railroad tieup to
bring about last summers shortage"
he said.
The coal associations income was
something over 100000 this year.
the witness told Senator KENYON. and
1t had secured over 81 900. 900 dur
ing the last three years." by assess
ments on members.
Denies Prices Were High.
Asked if his association attempted
to Influence legislation" Mr.. Nor
row said only by furnishing infor-.
nation to members about pending
bills and arranging for the presenta
ton OF facts to committees"
In long discussion about prices,
Mr.. Morrow denied that prices for
coal had been generally high. Re-
minded by Senator Kenyon that
Chairman Benson had stated that
bunker coal at Norfolk was costing
the shipping board $3.50 a ton. the
witness said one reason for that was
that the board did not make con-
tracts for its coal like ordinary con-
sumers.
81 think the way the shippsag board
bought it's coal was as inexcusable
& cement as l ever saw the witness
dl Jared.
TI.nu;ty Knew What Was Going. On
Just what was your association
doing with Mr.. Tumulty, secretary to
the PRESIDENT" asked Senator KEN
yon, after reading section Of q.
speech made by d. B. Wentz. presi-
dent OF the. coal association. tosopera-
tcrs. referring to constant Tisitss
made to the White House by it's of
ficers.
The witness recounted the action
taken by the Interstate commerce
commission and other government
agencies during the coal shortage
last summer and said that, having
in mind that the administration was
interested in all this and would be
glad to know of action that was be-
ing taken to- meet the conditions,
President D. B. Wentz, of the coal
association. and I went to Mr.. Tu-
multy from time to time to advise
him upon the situation and the inter-
state commerce orders. We kept Mr..
Tumulty currently informed" he
added.
you were fighting the idea that a
fuel administration might be neces-
sary." Senator Kenyon commented.
YES. we thought the fuel admin
istration couldn't be installed in time
to met the emergency and that the
existing agencies could meet the ser
vice." was the reply.
Questioned by Senator Kenyon, Mr..
Morrow said the coal association was
taking legal steps to 'enjoin the fed
eral trade commission from collect
ing statistics on coal production
prices and profits; to enjoin the in
terstate commerce cimmission from
enforcing assigned car" orders, and
to help in the defense Of members
facing prosecution for violations of
the Lever law.
Washington, Dec. pa sensa-
tional scandal. involving ring of
government officials in q rakeoff OF
millions Of dollars in coal transac-
tions during the recent fuel shortage,
was unexpectedly uncovered yester-
day by the senate coal investigating
committee.
Georre Fl. Gushing, general man
ager of the American Wholesale Coal
Dealers Association. inadvertently
disclosed in his sworn testimony be-
fore the committee that government
Officials taking advantage Of ad
vance information on the fuel string
encies obtained in their confidential
positions declared themselves in on
the coal price boosting and cleaned
up millions. The committee i'm
mediately determined to go to the
bottom of the charges.
Witness C.fered Share.
Mr.. Cushing t"ld the committee OF
one instance IN which gov ernment Of
flcials cleared profit of s675.00o on
the sale OF 5000 tons Of coal. He
stated that he was offered share
amounting to over $4,000 to partci-
pate in the deal but declined. There
were many other such instances, he
told the committee.
Much of M;. Cushing's testimony
was given behind CLOSED docs and
InI:on Troonc