The daily banner. (Cambridge, Md.) 1897-2008, 1920-08-26
PREDICT BIC DROP
IN PRICE OF COAL
F,anSW2ep.Hg C2mpaignAgainst
Alleged PF5titesrs'
EFFECT ALREADY EV|DIdT
Production Costs Are Barred by De-
partment of Justice-Quotations at
Baltimore Tumble.

Washington. Aug. 26.-ForecaSt of
tumble in coal prices was made hy
department of Justice officials coin
u nj with the announcement of re
u'Vcd activity" in. The campaign
AGAINST coal profiteers.
With production on the increase,
prediction was made that the coal
l'aIkrt would follow sugar prices i'll
- break in the near future.
Prices already have dropped in l:al
t'lnoip where the federal agents start
eA TO ss;t!ier evidence against an al
'"cA1 rcmhinatinn of dealers who
ire dee Jared TO have h,tusted prices
'-s":ifg!i repealed resiiieS A Sinlilar
h'l.srll on prntireerS has been ordered
AT Hampton Roads. one nj the largest
i'';n1rrin2 stations IN the eastern sea
l".1rd. Complaints have come ire
pGently from there and from Balti
more IL was said
Alth"ugii interior points have re-
ported exofbitant coal prices in many
ms anceS il WAS stated that fhr '';a-
grant violations" of the Lever law
were confined largely to the Atlantic
coast The department will press its
invest CATIONS at all points, however
as q part of the program outlined
Monday, when the attorney genera!
instructed all United States ATTORNEYS
10 deIve into the coal price situation
more deeply on titp basis of infornh
zion that pyran. ding of prices had
been accomplished thrnusii inter-tr"d"
sales
The departments hands are tied ~
Philadelphia by a conrt order restrain
ing the United States attorney from
prosecuting profiteers under the Lever
law. which was held to be uncon >titu
tiOnaI by the court there Bu the
court will not stay the gathering Of
evidence according 10 H. s. Mitchell.
special assistant to the attorney gen
-ral. who is directing the campaign.
Mr. Mitchell believed public senti-
lnent had begun 10 react against coal
prnfiteeTs to the extent that II would
force n lowering of nridPs. The break
in quotations at Baltimore, together
with expected reductions at other
points. was expected TO mean II real
benefit TO the consumer.
Federal reserve board officials re.
norted Indications also Of an impend
ing drop I'm the coal market Their
Information was THAT transportation
conditions with respect to coal had
improved and better distribution
therefore, was being had. This of
itself, in the opinion of department of
Justice officials. should mid the price
reduction movement
The announcement by the depart
ment of justice ~ the proposed drive
against the alleged coal DrOtiteerS fol
lowed publication by the federal trade
commission of findings on ;tn investi-
CATION showing that West Virginia
coal, costing $40 :, ton delivered al
Hampton Roads, was beiEg sold at
prices ranging as high as $50 ton.
Mr.. Mitchell said. owever. that he
had not seen the commissions report
and that the departments announce
ment was a second step in the pro
gram indicated when instructions
were sent TO all United States dis
trict attorneys Monday ordering them
to watch closely for enhanced prices
ms result of pyramiding coal quota
tions through resales.
Department officials indicated their
intention of asking ''the limit of the
law, AS a penalty where convictions
of coal pFofteering is obtained. They
declared they expected to uncover
some fragrant violations Of the Lever
act in the tidewater Investigations.
The concentration on ttdewate>
ports should not he accepted as mean
ing that the prosecution of coal proti
teeFs would he siackened in Other
parts of the country, 1t was said: The
broAdened Investigation will mean a
more rigorous Investigation in all sec
lions. but for the present the depart
ment's attention is to he directed
principally at the numbering ports, Il
| vas added.
The trade commissions report said
thai the average cost of coal at The
mines In West Virginia was $40
ton With respect to the Baltimore
and Hampton Roads deliveries. thf
freight would increase the cost about
SO a ton, 1t was said.