The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-23
MIDDLEMAN TESTIFIES
Robert S. Feeney Says They
Also Keep Idle Great Vir-
Gin Coal Tracts.
FAvoBITISM Is CHARGED
Sl4 a Ton is Pronounced Rea-
sOnable Retail Price in
New York City.

Testifying before Harry e. Lewis,
District Attorney Of Kings county, in
Brooklyn yesterday. a coal dealer one
OF the class Of so-called "middlemen,"
placed large share Of responsibility
for the limited output and the high price
OF anthracite coal squarely upon the
broad shoulders OF what District Attor-
ney and witness both spoke of as 'the
Morgan interests"
This witness. Robert S. Feeney. active
vice-president of the Seller Coal Com
pany of 90 West street stated that
company operators" control from 10 to
80 per cent. of the national output and
also control the major portion of the
virgin or unopened anthracite bearing
coal lands. and that 'in the background
stand the Morgan interests"
Favoritism Is Charged
1t appeared in evidence also that the
big producing companies have certain
favored middlemen to whom they sell
their output. The company of which
Mr.. Feeney is an officer is unable to
buy company" coal for its customers
and is forced to deal exclusively with
Independent operators On the other
hand. according to the testimony, the St
George Coal Company OF 149 Broadway
advertises its ability to deliver coal from
the D.. l.. w Coal Company, the
Philadelphia and Reading Coal and
Iron Company and the Lehigh Valley
Coal Sales Company.
The president of the st. George Ccal
Company is George Baker St George,
grandson of George Z. Baker Sr. Its
secretary and treasurer is l.. V. Ber-
mingham. who is a brother OF John F.
Birmingham, president OF the D.. l..
& W. Coal Company. The latter is
acting at present as chairman of the
committee to whom the operators dele
gated the task of apportioning and
shipping to New York city emergency
relief coal to meet the present crisis.
The anthracite carGoes coming through
under his orders are placed on sale to
needy consumers in small lots, but at
price higher per ton than that charged
their regular customers by Burns
Brothers. and higher than is pro-
nounced "reasona bic" by the report of
the Joint committee of the Real Es-
tate Board OF New York. the Building
Managers and Owners Association.
the Advisory Council of Real Estate
interests and the municipal Board. OF
Health.
at one stage OF the hearing, DO you
know anything about the coal operators
having planned favoritism with regard
10 the distribution OF coal?" the witness
replied:
''Of course it is a generally known
fact that they have certain classes or
business that they normally send their
coal to-" Mr.. Feeney. under further
Interrogation. explained that virtually
10
through their sales organizations. have
certain preferred customers among the
middlemen.
For example. what operators DO
this?"
IAN the big ones-P. and r.. D., l..
and w. williams & Peters who DIS
tribute the Pennsylvania coal. and
I,ehlgh Valley IL is a case OF friend
shin. purely a social arrangement. but II
affects the whole fabric Of the CONNER
cial world It Is no different In the coal
business than in any other line OF busi-
ness"
Morgan Power Explained.
After the examination had brought out
that the companies control 20 70 so per
cent. OF the total output and also the
major portion OF the virgin. unopened
mines. Mr.. Feeney said There lies the
fruit OF this whole thing. The Govern
,nent Is well aware OF it, or should be-
because Of the extensive efforts they
have made to find out the facts. II
anybody wants TO get right down and
help the situation, IL Is a case OF In
creased production OF the unopened. vir-
gin coal which is controlled by the brig
companies
when YOU say companies control
what do you mean?" asked the District
Attorney.
.They are controlled by the Philadel-
phia and Reading"
us IL true that virtually all The com
many virgin mines and the company coal
output are controlled by the Morgan
interests"
1T Is generally understood that IN the
background stand the Morgan Interests
f. r. Stotesbury chairman o. the Board
OF Directors OF the Reading company
is the senior member OF the firm ~ u ~
Morgan & Co. That Is the company
which controls tho Philadelphia and
Reading. The Reading company u the
holding company for the Coal and Iron
Company. II controls the largest single
lot OF the virgin mines. 10 also Is
we'll known fact that the Morgan inter.
ests have financed no Erie .Railroad.
which controls the Pennsylvania Coal
Company. They have a lot Of virgin
acreage"
Calls s1f Reasonable Price.
After some further Interrogation pis-
trlct Attorney Lewis asked the witness
what he thought a reasonable price Tor
domestic anthracite coal at the mines
would be at present Mr. Feonoy re-
piled ~ think to-day the compan .oa
price--Ss10--is n reasonable one" An
analysis OF freight and other costs
showed that this should bring The New
about Sl4 ton.
O. A Mclaughlin, counsel for ths
Seller Company, explained that he hat
been blsquoted as having said that
Gustav Seller, president Of tho COMPANY
lad gone to Maine on n shooting trip