New-York tribune., 1920-11-10
Coal Bought at
$50 Sold for
$40 by Dealers
District Attorney Lewis Re-
yeals New Evidence of
Profteering i'll Brook
lyn; Facts Go to Palmer
Anthracite Pool Shown
Inflated Prices Result of
Tactics of Combine of
) Per Cent of Operators

Two important leads in the investiga-
non into coal profteering have been
uncovered and will be developed by
district Attorney Harry Il. Lewis of
Brooklvn in the course of his inquiry
INTO the exorbitant prices Of domestic
coal in that borough. Mr.. Lewis will
forward to Attorney General Palmer to-
day the evidence he already has OBJ
tanned, with the request that action be
taken against those guilty. The new
leads are:
First-Some dealers have been pur-
chasing exclusively the so-called COM
rany coal-coal produced by the rail
road controlled operators for an aver
sge price of $50 ton at the mines
and retailing it at the prevalent local
prices, which range as high as $40
ton
Second The present high prices for
anthracite coal to the consumer have
been forced upon the community by the
rrofteering actions OF small element
g. independent operators, estimated at
rot more than 5 per cent OF the entire
hard coal Troduclng concerns.
In his examination of the invoices Of
Rubei Brothers, a Brooklyn retail firm.
Mr.. Lewis says he found that this CON
cera had purchased during the first
three week Of October 4,5o7 tons OF
company" coal at $50 a ton and 5.2O4
tons Of independent coal at an average
price OF Sl5.69 at the mines According
70 current CUSTOM Rubel Brothers had
added the two prices together. divided
them by two. ana used the result as a
basis for the retail price Of the entire
976i tons.
Dealers tc Be Summoned
1t WAS discovered yesterday that
some loca, dealers have been purchas-
jng "company' coal at an average price
Of only $50 ton. but charging the
average retail price prevailing in the
ctv. Some Of these dealers are to be
requested t. appear before Mr Lewis
With their accounts.
The e.76l tons Of coal purchased by
Rubel Bros. vas obtained through the
wholesale house OF Frederick A. Potts
& Co. OF lt2 Liberty Street. This
frrl. however. merely acted as agents
takirg TIE usual. comm ssion as per
nitted By the late Fuel Control Board
E. Z. Brevoort, Of this firm, viii be
subrrna by Nj Lewis to-day and
will ne requested TO furnish the names
q the independent operators who
CHARGED is nigh IS S15.69 q ton at the
mines
Investigation yesterday showed that
so far a. the domestic consumers of
anthracite coal are concerned. very
few benefited by the average rate Of
$50 ton charged by the "company'
operators Nh. Lewis is determined to
ascertain the reason for this
Il was also learned that the whole
sale houses in this city dealing in
anthracite coal decided on Novem ber
10 advise their clients not to pur-
chase any further coal from the prof
teerlug independent operators. This
decision was reached a the time that
climax came in the bitumlnous prof
iteerine situation. Should the advice
be carried out, it viii mean that the
minority of anthracite producers will
he compelled 10 bring their prices
down to the level of the other opera
tors
Extra Profit for Retailer
Another phase Of Mr.. LeWis's inves-
,ga.ion shows that the retailer has q
considerable leeway of profit III hand
Ing his coal The coal sold at the
mines is weighed in long tons of 2,240
POUNDS, but it is retailed by the short
ton Of 1000 pounds. According to the
Investigation made by the experts of
the Federal Fuel Administration dur
ing the war. ) per cent was an ample
figure to allow for shrinkage between
the mines and the consumer. This
leaves i surplus of 112 pounds Of coal
10 every ton as leeway for the retailer
The production Of anthracite coal IN
this country is approximately $4,000, ,0OU
long tons Z year
Coincident with the decisions of the
local wholesalers to advise against the
purchase OF speculative coal. it was
discovered that these firms have a fail
practices committee, Of which William
II. Lewis, of NJ. A Hanna & Co.. i.
chairman. h. r. Brevoort and John w
Whitley, Of Whitley e. Kemmerer, also
are members. This committee viii
make report to c. Lowry Humes, the
United States Assistant Attorney Gen
eral who is investigating the anthra
=