The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1920-12-24
UNE ARTH 100000
COAL CRAFT RING
Former Federal officer and Rail-
road Chiefs Are Accused.
ARMY OFFICER ALSO NAMED
George n. Cushing of the American
Wholesale Coal Association Tells
Senate Committee of Profits
Mounting Into Millions.

Washington, Dec 22.-Startling ex-
pOSures duplicating a ring of govern
ment officials in bituminous coal deals
in which they are charged with hav-
ing made enormous profits mounting
into millions were made before the
Calder committee of the senate which
began an investigation of coal prof
iteering in the effort TO fix RESPONSE
bility for the prevailing high prices.
The sensational revelations were
made by George III. Gushing, managing
director OF the American Wholesale
Coal association, a witness before the
committee.
Gushing gave to the committee in
secret session the names of two gov
eminent officials, one of whom was
connected with the railroad admins
tratiOn and the other an army officer,
whom he accused Of using their posi-
tons to reap eXOrbitant profits on
purchases of coal. One of them and
associates secured profit of $600,OO0
The committee was also informed
names Of government officials who
were in the ring and reaped large
profits will be furnished by him.
Accuses Government Officials.
Cushing's admission of the part
played by government officials in the
prOfiteering game fell upon the COM
mittee with dramatic suddenness. He
had been describing to the committee
the manner in which coal men protited
and added nOnchalantly: but they
could hardly be expected to do other
wise with government officials them
selves also making big profits in the
business
The statement brought Senator Ken
yOn, a member of the subcommittee,
erect.
what is this you say about gov
eminent Officials?" he inquired sharply.
the gravity of the situation he re-
quested that his remark be eXpunged
from the record
"What revelations | would offer the
committee would neither point a moral
nor present a solution" he stated.
But upon the insstence of the COM
mittee he agreed to divulge his infor-
nation in private and a secret session
was Immediately called.
Names Army Officer
Afterward it was learned that Cush-
ing had furnished the committee with
information to the effect that a group
of government officials had organized
a pool for engineering big deals in
coal. He gave the name of a former
official of the railroad administration
who left the employ of the govern
ment three months ago and an army
officer also. He promised the commit
tee the names of others as soon as he
could examine his records.
Gushing said that the officials did
not profit at government expense, but
that they were in position by virtue
of their connection with the govern
ment to know that enormous profits
could be made in coal, and they went
into the business "on the side" He
said that in one deal that he knew of
in which 10000 tons were involved
the officials had made profit of $1.5O
q ton,
According to the witness large con-
Sumers with the prospect of coal
famine had approached the officials
asking relief. They were unable to do
it through the government but realizing
that big profits could be made If they
could supply the needed fuel they or
ganized pool to buy up huge stocks
and meet privately the demands that
reached them through official chan
nelS.
On one occasion Gushing testified
he was approached by an official Of
this group seeking 100000 tons who
offered him commission of % cents
ton if he could fill the order
At the conclusion of the hearing
Senator Calder chairman of the sub
committee, said that the former OH
cial of the railroad administration
whom Gushing named in his disclos-
IRE, would be summoned before the
committee at once and the others
would be called as soon as their iden-
tity is known to the committee.