The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-23
sna. IN any way affect the coal indus

try.
IN this attempt they were partly sue
cessful. 1t was shown from documentary
evidence In the files OF the association,
which the committee had acquired by
subpoena, that its officials were lnstru-
mental in blocking an attempt last sum
rller to have the Presid ent revive the
fuel Administration that the associa
ton had paid the salaries OF several
statisticians of the Geological Survey.
amounting in all to about $4,000, TO pub
Ilsh reports weekly on coal production
and that the forms of these reports were
changed at the request OF member OF
the associn ton located in Illinois.
It was disclosed from their records
also that the association had formed
the governmental relations committee,
on which operators, wholesalers and re-
tailers in coal were represented for the
purpose Of watching legislation; that
they Endorsed and opposed various bills
that they presented their views to COM
mittees in hearings, and above ALL that
they were at all times opposed 10 any
legislation for governmental regulation
OF the coal industry.
The committee delved fully into the
financial accounts of the association.
disclosing that in three years 1t has
collected about S1,250.000 to support
its Washington Office and that 1t now
has a balance of S250,0 all its funds
being raised by subscriptions among the
operators.
Asked to explain why they located
their headquarters in Washington rather
than in some coal centre, Vice-President
Morrow said it was partly to avoid pos
sible jealousy among their members,
which he said would be aroused If they
were in a coal centre. and partly because
20 ms nv Governmental agencies
In Washington like the Interstate Com
rnerce Commission. the Federal Trade
Commission and others whose activities
are of vital interest TO coal operators.
Morrow Edges Out of Trap.
Mr. Morrow admitted they had drafted
some OF the priority orders issued by the
!. c. c. because they believed 1t was for
the general good of the situation. which
they insisted justified alarm and called
for Government action. All efforts on
the part Of the committee. however, TO
wiring an admission from Mr.. Morrow
that they wanted these priority orders
TO release coal men from their contracts
were met with flat denials.
He said operators scrupulously kept
their contracts so far as they could and
at the same time comply with the pri-
GRITTY orders Both Morrow and Col
FcIl1 duIllllcu llltTe WdS
on the part of many coal men, but
denied that the coal association either
encouraged II, was responsible for 1t or
could have prevented it. The function
of the association, it was stated. was en-
tirely outside the realm of prices
Many letters in the files of the as
sociations were read into the record by
Senator Kenyon, Iowa, showing that
the coal operators fear Government
l. a.,
of the coal industry and that they are
making a fight against it.
Mr. Morrow used the incident Of coal
purchases by the Shipping Board to
Illustrate what he termed the evils OF
Government management of private in
dustry. He said the Shipping Board
did not have the foresight to make
contracts for coal and was forced to
pay as much as s21 a ton for II be-
cause of panicky conditions.
THE purchasing agent OF the Snip
ping Board did not even take the trouble
TO walk into our office to see If we
could help him." said Morrow, and, OF !
course, did not try to make contract |
''Ihen it was advantageous to hays a
contract, was it," asked Senator Edge
1T was" replied Mr.. Morrow.
fIIow was it them asked Senator
Colder, that the Publ Utilities Com
contract, coul6s .sot get coal and WAS
reed to sdy in tie open market
..,rha- was because Of The breakdown
~ sransportatior said Mr.. Morrow.
why do you always fall back on
tho transporta ton breakdown to ex-
plain something in which it seems to
lie committee the coal operators are
10 blane?" asked Senator Edge.
III don't" replied Mr.. Morrow. II am
trying to explain the situation to you
50 you will know more about the coal
situation than you seem to after study
ing 1t all summer"
well, up 10 date" commented Senator
Edge, 1--WE seem to have proved what
you viii not admit--that coal costing
So or 81 a ton TO produce was sold az
a!rh as $50 ton to helpless consumers"
Later Senator Edge strongly intimated
that he as well as others on tn commit
tes strongly Incline to rigid Govern
mental control Of fuel
Unusual conditions require unusual
remedies said Senator Edge. "ard I
arn certain we are in an unusual period
now Some solution must be found
either by private operators. or by the
Government IL private concerns fall. TO
prevent coal worth 81 q ton being sold
at $22 ton"
why Injunction Was Issued.
When the committee asked why the
association had enjoined the Federal
Trade Commission from getting informa-
ton from the operators as TO the cost
of production, sale prices and so on. Mr..
Morrow said they had no objection to
furnishing II, but that the commissions
order would have entailed a change in
the bookkeeping which the internal rev.
enue bureau required in making income
tax returns Furthermore, he said. they
wished to test the extent Of the power OF
the commission.
When the committee adjourned to-day
Il was with the expectation of meeting
tomorrow Mr.. Morrow asked aermis-
sion to make further statements regard
ing the work OF his associe tion. The
committee does not expect 10 disclose
the names of profiteering Government
officials until after Christmas. when
these officials will be summoned as wit
uesses. with possibly others yet to be
named.
READING COAL co. WINS
100000 CULM BANK