The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-23
Col. Wentz, Who Made $75,-
900 as Purchaser for War
Office, Says Warnings
Were Ignored.
BIDDING WAS PANICKY
Calder Suspects Big Graft
When He Hears of Ship
ping Board Paying
SIG to $21 a Ton.
LOBBY IS INFLUENTIAL
Coal Men Spend Large Sums,
Influence Legislation and
Even Stopped Revival of
Fuel Administration.
New York Herald Bureau.
Washington. ID. c., Dec. 22.

Special Despatch TO THE NEW YORK HERALD.
New York Herald Bureau.
Washington, ID. c., Dee. 90.
Coal profiteering by operators. whole
salers and retailers was stimulated by
buying orders for several million tons
of coal under a contract approved by
the Secretary of War, which cost the
Government at least S. a ton more
than was necessary, it was disclosed to
the Senate Reconstruction Committee
by D. B. Wentz, president of the Ma
tional Coal Operators Association.
Col. Wentz told the committee also
that while he had no personal knowl-
edge OF the facts he had understood
for some time that Government Off
cials had gone into the coal business
In the recent coal panic and had joined
the other profiteers. He could not dis
close the identity of these officials, he
said, but promised to be Of any service
he could to the committee. which al
ready knows the name Of one dollar
year official who with others made a
profit Of s675,ooo on one deal alone.
Part of the coal ordered purchased
by the Secretary OF War was under
contract with Col. Wentz, who said he
was authorized to pay as high as sf1 n
ton. with a commission to himself or
| so cents ton. He admitted he cleared
about s75,o on the deal. having
bought 10000 tons OF coal for the
| Quartermasters' Office out of possible
! 275.0o0 tons the contract allowed him
to purchase. Other purchasing agents.
he said, were also in the market at the
same time, and II was estimated from
statistics furnished to the committee by
the Department that the total purchases
OF coal in a free market ran into the
millions OF tons at from $3.50 to s11.5o
ton.
| Says Warnings Were Unhecded.
! The purchases were made, he said.
/ after he had attempted to dissuade army
officials from going into the market
when they had no contract and when
profteering was rampant, due to panic
over a possible coal famine.
Senators were shocked at the dis
closure and severely criticised the De-
partment for what they deemed reckless
| HdSlg Oh tIoNtTDltltDI ILIlub. also
were Inclined at first to criticise Col.
Wentz for handling tho deal because
earlier he had testified that he was
able TO cell coal at his own mine at
from s3.20 to S3.s7 a ton at profit.
The earlier testimony had showed
that the United States Shipping Board
also bought coal in a free market at
from SIG TO s2i ton. Col. wentz wa
asked IL he had acted as purchasing
agent for this deal. but denied It.
! This thing seems very queer" said
! Senator Calder. New York, chairman OF
the committee. somebody is making \
! tremendous profit. for you have already
/ told the committee coal could be sold
at a fair profit at S3.S7 a ton, yet YOU
bought at s11 a ton for the Government
and made commission Of so cents a
ton for yourself. II seems queer to us
and queer TO the country"
Col Wentz said he failed 10 see how
he could be criticised. for he sold no
coal TO the Government had none that
he could sell TO It. and that he merely
! executed contract as a purchasing
agent given him by the War Depart
ment because its officials thought he
was responsible"
Seeking 90 Correct Evils.
'This committee is trying to work out
n solution to correct just such evils AZ
you have described" said Senator Cali
der. There IS n tremendous outcry
against it all over the country"
1T is bad FOR the country" answered
| Col Wentz. Il told an agent OF the
! department this when no called at my
Office asking for n large quantity OF
\ coal. and urged him not 70 buy. saying
I that the price would go down that the
/ coal could be bought cheaper. that he
I should buy only for immediate needs un-
I'll coal market conditions were stabil-
he'd.
But tho Secretary of War felt that
he had to acquire a substantial amount
OF bituminous coal and had issued in
structlons that II must be bought at
once. delivered 10000 tons"
How much would the department
have to pay for that coal now7" asked
Senator Edge. New Jersey
"They could get high graS oi
coal now at the rri e atort
tom ans-'cfei cri weuta.
Prior % tt reld ncr nf rot W.rt
the comniittee tH0 tlrtMilr PLAYED t,A
National nyni Assyc'eicr 0d lFiat NtW
spent the dat cue roMInN n ~. Nor
row. vice pfe@acni oi TIC association.
in an eifor snow that the association
had inspired the issuance Of priority or
ders on coal By the Interstate Com
mcrce Commission for the sake OF enabi-
ing operators and others 10 break con-
tracts. and thus make more money The
committee sought TO show also that ths
association has a powerful lobby, ex-
ercising great influence upon legislation
before Congress and likewise trying to
control acts OF executive departments
"a