The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-10
MILLIONS MADE
BY GRAFTERS IN
COAL DEALINGS
Startling Revelations Are
Expected to Involve
High Personages.
PLOT WAS WIDESPREAD
Indictment of Brooklyn
Edison Mere Surface Bub-
ble' of Upheayal Due.
THOUSANDS FOR BRIBES
Systematic Sales of Priority
Orders Reported Made by
Public Utilities.
THOUSANDS FOR BRIBES

stands on the brink Of revelations
which threaten to shake X, just as
the disclosures made by Charles e..
Hughes more than a decade ago
shook the world of life insurance, from
centre to circumference. That was the
statement made yesterday by a re-
| liable informant who knows much Of
what has been going on beneath the
| surface.
The indictments returned last week
by Federal Grand Jury against the
Brooklyn Edison Company. Inc, along
with its general manager, and it's coal
purchasing agent; Of the B. j. Lynch
| Coal Company, Inc, and the Adelphia
! Coal Company. Inc, are mere surface
bubbles indicating the magnitude of
the upheaval that threatens.
The Department of Justice knows
the violations OF the Lever act in the
| instances named in those indictments
are not exceptional. 1t knows profits
Illegally reaped through the perversion
OF priority orders for the shipment of
J soft coal have mounted into the tens
of millions of dollars within recent
months.
Guilt Has Been General.
| It knows the Brooklyn Edison Com
| pany is not in an isolated position. for
many other public utility corporations
in other sections of the country, THE
I HERALD in reliably informed. have been
! guilty Of abuses Of the priority privi-
| leges granted by the Public Service Com
, mission. They. too, stand In danger of
Federal prosecution in their respective
districts unless they speedily show
works meet for repentance"
| Underlying the indictments already
| found lies conspiracy which has had
I Its ramifications all the way from the
/ soft coal mines OF Pennsylvania and
West Virginia, along the lines of the
coal carrying roads, more particularly
! the Pennsylvania, tho Baltimore and
Ohio. and the Philadelphia and Reading
Railroads. clear down to tidewater at
| New York Harbor
At every point that long trail is
marked with graft and bribery. There
was an official employed by one OF the
coal roads who recently has been
] dropped from It's payrolls. He was
known as a car distributor. One of his
chief functions was to apportion justly
: the coal carrying rolling stock of his
road to the several producing mines
located along the line.
At times when industries were clamor-
/ Ing for coal and the mines were clamor-
I ing for cars in which to carry their
output. this mans job was a vital one.
Enormous profits were being made in
the sale and resale of soft coal, largely
for foreign export, and operators used
L.It. 4.
shipments. The railroad man referred
! to has admitted that. in addition to his
! legitimate pay. he had been for months
/ receiving $3.50 week as compensation
for his services in diverting empty cars
to certain mines, and thus favoring
them above their rivals.
Thus the system OF bribery began Ht-
orally at the mines mouth. But, even
with the cars on the spot and ready for
/ loading, they could not have precedence
I'm transit unless guaranteed preference
under the priority permits issued for
coal legitimately destined for public
utility corporations, such as transporta-
ton light, heat and power companies.
And just at that point came in the
alleged connivance between coal COM
panies engaged in export shipments at
colossal profits to themselves and GER
tain representatives of the public utility
corporations The latter sanctioned. un-
der the abuse of priority permits, ship
ments OF coal In amounts from double
TO quadruple the quantity needed TO
meet their actual daily needs. AS soon
as that surplus fuel had reached tide
water the real purchaser took II Off the
hands of the public utility corporation.
indemnifying the LITTER for the freight
charges paid for expeditions delivery
from the mines.
Brfhes Amounted TO Thousands.
with coal for export selling at tide
water at times during recent months an
hixh as S22.25 n ton. what cared the
prosperous operator for the few paltry
thousands he was compelled to drop as
brlbes along the line to grease the rails?
There was one instance with which
some members OF the Tldewater Coal
Exchange probably are not unfamiliar.
A certain fairly large operator, who in
the matter of coal exports was Keen TO
make hay while the sun shone,' oven
though New England industries were
having 10 shut down for lack OF fuel
and soft coal famine threatened the
Great Lake ports. had snug little ac-
cumulation OF 100000 tons which he had
MANAGED, by methods such as those
indicated, to get delivered 10 him at the
mInes. He seemingly stood IN" also
with the car distributor But his chances
for huge profits were lost uniesE he
could set the coal through speedily TO
tidcwater for export and, alas, he had
no priority certificates
But he was a resourceful person. Hs
made q deal with an official OF certain
public utilities corporation who agreed
TO divert TO the transportation Of the
SPECTATORS coal the prioritles that could
he legally used only for the public well
fare SO they made a partnership agree
ment The speculative operator fur
nishcd the coal. and the falthless ofiicer
OF the public utility corporation supplied
the priority orders under which the fuel
came through with comparative speed.
The latter afterward contended that they
had agreed to split the profits OF the deal
"nfty-fifty" but that the speculative
Continued on Second Pooe.
Tho 0reenbrisr. Wonderful AUTUMN days.
Americas Best Bath Establishment. Over