The Washington herald., 1920-12-23
PALMER MAY
Be SUMMONED
In COAL QUIZ
Committee Is Told u. s.
Paid $11 for Coal
Mined for $3.50.
PROSECUTIONS MAY
FOLLOW TESTIMONY
Wentz Testifies He Got
Commission of SO
Cents a Ton.

mer before the Senate inNestlsdIihe
committee and steps looking TO-
wards the prosecution of Govern
nent officials alleged to have made
big profits in the wild scramble
for coal" stood out yesterday as
possible developments in the SEN
ate's inquiry into coal profiteering'
The committee had its experts
working on two important lines Oh
inquiry into George H. Cushing
testimony as it convened again TO
hear the coal operators side of the
story from J. d. A. Morrow, vice
president of the National Coal As
sociation.
Cushing said, among other things,
that the 500 wholesale dealers be-
longing to the wholesale Coal As
sociation upon his advice disregard
ed an attempted investigation into
their business by the Department
of Justice, and that Attorney Cen
eral Palmer approved of CushinG's
advice to the coal dealers.
Huge Profits.
Evidence of big profits in sales
of enormous quantities of coal to
the United States government was
when it was shown that on pur-
chases made for the quartermaster
department of the army during the
past three months coal which cost
$3.50 a ton at the mine was sold to
the government for $li a ton plus
a commission of so cents a ton to
the several purchasing agents.
Senators Calder, Edge and Ken
yon criticized Col. j. b. Wentz.
president of the National Coal AS
sociation. and of the StOnesd Coke
and Coal Company, who was the
principal purchasing agent and who
furnished the evidepce to the COM
mittee.
wentz Paid Royalty
Col. Wentz told the committee
that the contracts were made at
the suggestion of Secretary Baker,
who believed a shortage in the BIZ
luminous supply was imminent and
demanded immediate delivery of at
army's needs during the present
winter. with a commission of fifty
cents a ton to Col. Wentz for acting
as the purchasing agent.
The witness declared that none
of the coal which figured in the
transaction was bought from any
of tRe companies in which he is
interested.
When asked by Senator Calder if
he did not think the government
paid a pretty steep price Col. Wentz
replied that the government de-
manded large quantities for imme-
diate delivery and this made the
price higher.
J. d. \. Morrow, vice President of
the association was examined by
the committee as to the activity of
the members of the association re-
Gardfng proposed legislation. He
admitted that some measure had
baen endorsed and others con-
dCmned.
The witness was asked to ex-
IIain the payment by the associa-
ticn of $500 a month to the Geolo-
Gical Survey to continue its reports
on coal production. He said that
Congress failed to make appropria-
tiOn tor this worn and so with the
consent of Director Smith the asso-
citation contributed the necessary
FUNDS until an appropriation was
made.
Senator Kenyon asked Morrow
why the association had gone on
record as favoring the amendment
of the Sherman antitrust law, and
the retention of the Lever food and
fuel control act. Morrow explained
that the coal dealers wanted the
Lever law continued to prevent a
dispute with miners over wages at a
time when it was necessary to keep
the mines going in order to prevent
shortage this winter. TheS
wanted the Sherman law amended,
he said, to allow the Standardization
of grades and qualities of coal about
the legality of which there was
some doubt.