The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-11
MORE CONFESSIONS
DUE IN COAL GRAFT
Employees Of Men Higher Up
Will Not BE Scapeg0atS for
Them, Is Belief.
EXT0RTI0N IS CURBED
Wholesalers Have Limited
Profits Since Palmer Opened
War on Them.
EXTORTION IS CURBED

L lOIltS NluCt L dlHlCI OpNiiNu
War on Them.
Government officials Of the Depart
ment of Justice who are familiar with
the bituminous coal trade scandal will
not be surprised If the example set by
Harry p. Wood, late operating engineer
of the Brooklyn Edison Company. in en-
tering plea of guilty to the indictment
against him and becoming a witness for
the Government. should be followed by
others whose activities in the alleged
conspiracy extending from the mines to
.tidewater have been under investigation.
Many who have been cogs in this huge
wheel of graft and extortlon are now In
q condition of panic Like Mr. Wood,
they are not disposed to become scare
goats for men higher up who garnerc'i
the lion share Of the eXtortionate prot
its eXacted by pyramiding sales and like
devices at the expense Of the overbUr-
dened consumer. Through the Federal
District Attorney expects TO press the
charges to the limit against the corpo-
rations who fail to plead guilty. 1t may
be said that the imposition OF fines and
fail sentences against offenders was not
the primary purpose of the inquiry be-
gun months ago by special representa-
tives of Attorney General Palmer. It's
first objective was to check extortion.
its primary purpose was to protect the
consumer and to restore soft coal prices
to something approximating rational
standards.
More indictments Expected.
1t was soon found that repeated re-
sales. or pyramiding, by wholesale soft
coal dealers and spectators constituted
an important factor in boosting prices.
1t was not long also before the Govern
ment Investigators uncovered the tran
of Wholesale graft and bribery extend
ing all the way from the mines of Penn
sylvania, Indiana and West Virginia TO
tidewater at New York harbor Pur-
chased favoritism in car distribution at
the mines fraudulent use of priority ship
ment orders through collision between
profiteer spectators and dishonest en-
ployees or officers of public service cor
porations for the expediting of coal ship
ments--these and many other abuses
were revealed. AS an inevitable conse-
uuence there have been indictmnts UNI
der the Lever act There are likely to
be more of them in this and In other
Federal districts But they are incidental
to the main purpose aimed at--the re
duction of the cost of coal by Topping
off the crushing burden of graft bribery
and profteerlng. all of which In the end
fell upon the bruised shoulders OF the
ultimate consumer.
In achieving that paramount purpose
the Government investigation has been
to a large extent successful There was
a time when the spot price OF soft coal
at tidewater. with all these Illicit and
extortionate additional costs piled upon
It. rose to S2225 a ton. II can be
bought now at from So to SIG, and Off
cials of the Department OF Justice OK
press the hope that ere long II VIII drop
TO 50 or $40 ton. lalle
william, McNurtrie Speer and Maxwell
Mattuck. the Immediate representatives
OF the Attorney General. when they
undertook their task. mapped out a
systematzed programme OF procedure
One OF the first Of their efforts was TO
enlist the aid and cooperation of leSiti-
mate and honest wholesalers in the
crusade against spectators and prof.
iteers. Scores Of more or less irrespon-
slhle men. whose names never had been
heard IN the coal trade. had invaded the
held-espacially that of export coal-to
which they were lured by promise OF
abnorn1allv huge profits. To hold such
men in check and TO discourage excess
sve resales among older established
wholesalers, most of the reputable men
engaged in the trade came into line
when the Acknowledgement summoned
them to toe 1t Loyalty.
Cnmpaign started i'm August.
There was held in the Whitehall Club.
II Battery place on August "a last,
highly important meeting of representa-
..~ba1ccaIa soft rOgl trade
From this city we're Gibbs L. Baker,
general counsel and Charles S. Allen.
secretary Of the Wholesale Coal Trade
Association of New York and George
w. Dexter, John w whitley and NJ v
Burns. representative traders Harlow
G. voorhees, and NJ r. Ramsay we're
present TO represent the Philadelphia
wholesale trade. and Benjamin II. Read
that Of Baltimore At that meeting Mr..
Allen. the secretary, read "A letter al
dressed 70 him by Attorney-G General
Palmer. In which the Attorney-Genera'
said:
81 have your letter OF August IA. In
which you ask for an expression of my
opinion as TO the adequacy OF certain
measures proposed 10 be taken BY mem
bers of your association in an effort 70
reduce the number Of resales OF blum
nous coal between the producer and me
consumer. / do not consider that am
in a position TO express an opinion as TO
the adequacy OF the particular mea sures
under contemplation.
"I am glad 70 enclose herewith for
your information a copy Of n circular
letter Of instructions which Is being sent
20 all United states ATTORNEYS. with a
view TO the institution of prosecutions
where the price of coal 20 the consumer
Is enhanced by repeated sales thereof
in such manner as TO constitute a
violation Of the Lever act
"You will. Of course. understand that
the Department viii look with favor
upon efforts by dealers 70 eliminate the
employment Of repeated sales as means
Of enhancing prices In violation Of the
Lever act"
The enclosure 20 which the Attorney
General referred, cmbodying his special
instructions 10 "Au United states At
torneys" throughout the country, said
"In connection with previous instruc'
tions To investigate and institute prose
BUTTONS In cases where unreasonably higf
prices have been eXactod IN the sale o'
biturinous coal you are Instructed e
investigate cases where the price 20 the
consumer has been enhanced through re.
peated resales by persons successfully
buying and selling the same coal ana &C
institute prosecutions against such per-
fons where the facts warrant for cngag-