The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-19
Col. Wentz Says Producers
Are Ready to Cooperate
With Government.
INQUIRY IN BROOKLYN
District Attorney Calls Up
Dealers After Report of
High Price Conspiracy.

nous coal trade-and they are becom-
ing as gossipy of late as q women's
bridge whist club-were pricking up
their ears yesterday over story OF
the neat little killing" just made by
one of the speculative number of their
brotherhood. The tale. whichs The
New YORK HERALD took the trouble to
verify, concerns a deal made Friday
by one of those speculative coal buc-
cancers who carries his best business
resources directly under his hat.
BY reason OF his having ''the right
dope" and at the cost solely of few
minutes conversation over the long
distance telephone. he bought and i'm
mediately resold 10000 tons OF BIZ
luminous coal, which he never had
seen, and in the transaction turned
net profit of just 100000.
1t seems pity the real identity OF
this bituminous Napoleon of finance
must be cloaked under an alias. But
for the purposes OF this narrative its
three principal characters must be
designated respectively as Messrs, Smith,
Brown and Robinson.
Smith is an operator who had n fine
lot OF COAL Part of it recently arrived
at tidewater and the rest on the rail
OIL IOult u Que VI TIC uOIlH <hbiiANlN
ports OF New York, Philadelphia or
Baltimore. He had expected to be able
TO ship it advantageously, mainly for
export, but the vessels upon which he
had relied had been delayed. He was
confronted by the costly probability Of
having his coal tied up at tldewater
with no chance to dump it into cargo
ships for an indefinite period. Such an
emergency would mulct him with heavy
II ft-r1cr .nlal nd nf "a
newly adopted rules of the Underwater
Coal Exchange, moreover, a penalty of
10 cents a day ton is imposed for
failure 10 dump coal credits promptly
within forty-eight hours after service !
OF notice from the Commissioner to do
So These charges If incurred threatened
TO eat up Smiths prospective profits.
Profit Was SII Ton.
Browns predicament was precisely the
reverse of that of Smith. Brown had |
his ships ready to load and steam away, |
but he had suffered hard luck in the
non-arrival of his coal from the mines
at tidewater. There had been the usual
excuses-trafflc congestion. labor short
age and what not-and he was menaced
with the enormous costs of having 20
hold his vessels cargoless in port for an |
indefinite period.
That was the knot which the btu /
minous Napoleon of finance cut with a |
single stroke Of the telephone transmit
ter and at n net profit of 100000 for |
his mornings work. He happened TO
be aware of the predcament of both
Sraith and Jones. Therein he saw OPP
portnulty reckoning him with capital
O-or several of them with other nu-
merals ali gned in their van. He called /
Smith by long distance.
This is Robinson" said. he What |
can you let me have $4,000 tons of btu
minous at for immediate delivery no
thirty days transaction, but cash on the
nail7"
Smith saw his opportunity to unload
without loss or course he knew moth
ing OF Browns troubles Making
quick calculation, he replied:
IT can sell you 10000 TONS standing
or rolling strictly cash. at So a ton"
you're on" said Robinson. and the
deal was closed after a little further
conversation concerning the ports at
which about 10000 OF the 10000 tons
already had arrived. Then Robinson
called Up Brown. Brown grasped at the
chance 10 get his needed cargoes. Two
thirds Of the fuel Robinson had 10 offer
was standing" that is. already at tide
water. and the remainder was rolling"
switch in trade parlance means on the
rail en- routs for the tidewater port.
where ocean carriers eagerly await its
arrival.
II can let you have the 30. 600 tons al
Si7 ton" was Robinsons offer. IL
was a stiff price. but Brown closed the
deal
Within the time II took several tele-
phone operators to get the required con-
nections he had bought at IS a ton Cat
the mine) and sold at SIT. His freight
cost him trihe less than 81 a ton to
tidewater. Call II "a for the sake OF
round numbers and his total costs. ex-
elusive OF telephone charges were about
$40 ton at tidewater. leaving him a
clear profit OF 81 ton. or $4,000 on
the 5000 tons
And how would Brown come out on
his Goa, export venture after having
bought at 81 ton? Well. wholesalers
estimated that IL his cargoes we're bound
for Mediterranean ports. where the pre-
vailing rates being paid last week were
from $3.50 20 s32 ton for American
coal, he would still stand to make a
profit Of from $4,000 to $4,000. In
the French Atlantic ports the current
price was S29.75 a ton
Concerning the attitude OF the Ma
tional Coal Associatlon--the producers
toward Acknowledgement Palmer. as
evinced in its meeting here last Wednes-
day, Col y. y. Wentz. president OF the
.@1o''ihNipitf AtttEIdDNtu yesterday from /
Philadelphia 70 THE New YORK HERALD
'"rhe directors OF the National Coal
Association at their meeting In New
York on Wednesday. October 10, went
on record by resolutiAn condemning i'm
proper practices in the distribution OF
bituminous coal The board OF directors
by resolution directed me as president
OF the National Coal Association TO con-
fer with the Attorney General in con-
necton with unreasonable prices for
bituminous coal. and Immediately upon
receipt OF his telegram which was re-
fcrred TO In your story of the nth.
wired the Attorney General advising
that l would ask FOR an appointment
with him on the 18th or eth TO diDcuss
the subject OF his telegram which you
referred 20. and ! have asked for an
appointment on the 18th.
District Attorney Lewis OF Brooklyn.
who Is anxious to determine whether
there Is conspiracy among coal deal
crs 10 maintain present high prices IN
that borough. summoned several coal
dealers 20 HIS office Yesterday and
questioned them. It was reported that
information had reached the prosecutor
tint there was some sort Of combine
among dealers. but Mr.. Lewis refused
TO discuss tho subject