The Hartford republican. (Hartford, Ky.) 18??-1926, 1920-12-24
VOL. xxxIII
u. S. OFFICIALS in
ON COAL PROFITS
-'High-Ups" Charged With
Scooping Millions In
Deals.

WdsninbtOn, Dec 1is-bApoSuieo
duplicating ring OF government Of
ficials in bituminous coal deals in
which they are charged with having
made enormous profits mounting in
{ TO the millions were made today be-
fore the Calder committee Of the
Senate which began an investigation
of coal profiteering in the effort to
fix responsibility for the prevailing
high prices
The revelations were made by
George II. Gushing. manager-director
of the American Wholesale Associa-
tion, witness before the committee.
Cusing gave to the committee, in
secret, the names of two government
officials, one Of whom was connected
with the railroad administration and
the other an army officer, whom he
accused of usngnc-iifid
accused of usng their positions to
reap exorbitant profits on purchases
of coal
Pool Organized.
Cushing's admission of the part
played by government officials in the
profiteering game fell upon the COM
mittee with dramitic suddenness.N
Gushing had furnished the committee
with information to the effect that a
group OF government officials had or
ganized a pool for engineering big
deals in coal. He gave the name Of
a former official of the railroad adj
ministration who left the employ of
the government three months ago and
an army officer also.
Cushing said that the officials did
mot profit at government expense.
But that they we're 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
profit of $3.50 ton.
On one occasion, Cushing testified,
he was approached by an official of
this group seeking 400, 900 tons. who
offered him a commission of % cents
a ton II he could fill the order.
Senator Calder, chairman of the
subcommittee, said that the former
official of the railroad administra-
tion whom Cushing named in his dis
closures would be summoned before
the committee at once. i
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 assigned car orders,
priorities and the like. until no pur-
chase of coal was dependable"
To quiet the buyers, Gushing de-
elared that between April and July
his organization issued repeated state
ments saying that the coal supply
was sufficient to meet the demand
and there was no reason for alarm,
but the buyers ignored them and the
Spad rush for coal went on.
Illustrating the situation, the wit
ness said that Henry Ford sent. four
agents into Kentucky field to OBJ ,
tain coal They were unknown to
one another and in their eagerness
to get the fuel they NEEDED they bid |
the price up to $11 ton.
Against these influences the
wholesalers-and all others were
helpless unless there was, or could
be built up in the trade combina-
ton of producers and wholesalers
powerful enough TO set aside the
law of supply and demand" Cushing
asserted. There was no such combi-
nation. Such thing was impossible.
Therefore the individual wholesalers
and the others were without governs
ling influence.