The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-12
ADMITS GOUGING
AS COAL SLUMPS
Brooklyn Dealer Will Confess
Names and Facts on PrOfi-
teering to L. S. Inquiries.
BIG STAFF INVESTIGATES
Emergency Fuel Issue Decided
On to Benefit HOusehOlders--
Operators Are Blamed.

Under continued insistence of Fed
eral authorities and public demand for
more reasonable charges. the wall OF
high prices which has kept coal from
the consumer started to crumble yes
terday. A slight break in figures was
followed by the announcement of two
organized efforts-one by coal oper-
ators and the other by the wholesalers
to crush factors which are keeping
prices high. Both movements are at.
tributed to the fight that Government
| authorities are making and one was
regarded by a Federal official as 'tht
| operators answer TO the threat OF
Senator Calder to bring about Fedora
control of the mines"
Meanwhile announcement came from
two sources that information tending
to show where proflteering has flour.
ished was forwarded to Attorney.
General A. Mitchell Palmer. District
Attorney Harry f. Lewis of Kings
county made it known that at leasi
| one big coal man in Brooklyn has de-
clared himself ready to make a clean
breast of names and evidence of coal
gouging In that borough.
The Attorney General took advan-
tage of the weakening front by order
ing a new citywide investigation into
the purchase and sale Of anthracite
coal and has augmented his investi-
gators here with agents from other
districts.
A further drop in prices and some
startling developments within the next
week were forecast yesterday.
Coal Inquiry IL started.
The days main developments we're
Armin w. Riley. head Of the De
partment OF Justice Flying squad
ron" acting upon instructions from
Attorney-General Palmer. began an In
vCstigation extending into every bor-
cIgh TO determine whether there Is PROF..
iteerng in anthracite coal here in vlo
lAtion Of the Lever act. His augment ID
STAFF of investigators began their work
yesterday.
y
conducting an investigation at the
mines. and prices ascertained 70 have
been paid there will be compared wltr
the prices charged in New York. Other
Information obtained at the mines tend
irg to throw Light on possible Illegal
or exorbitant selling processes here will
be- used in similar manner I'm connection
with the New York investigation.
z Harry E. Lewis. District Attorney OF
Kings county. announced that he
has obtained evidence OF prohteering in
III ooklyn and that he has forward "A
That evidence TO the United States Dis
tiict Attorney IL was announced from
Mr.. Lewis's office also that testimony
v'll be forthcoming next Monday fron>
a man prominent among coal dealers re
vcaling the names OF individuals and
concerns charging excessive prices
a Leroy w. Ross. United States Attor
ney IN Brooklyn. has forwarded %
Attorney-General Palmer. with recon-
u cndation for court action. a list OF pur .
crasers Of coal at exorb tant prices from
the mines. the names Of the operators
from whom the purchases were made.
tho prices and other data. Mr.. Ross Is
o. tho opinion that the greater part ot
tlc proflteering is by mine owners rather
than at the delivery end OF the trans .
'tlon.
= A committee OF operators. headed by
J. F. Birmingham. president OF the
delaware. Lackawanna and Wester~
Ccal Company. with the cooperation %
tie retail dealers organization an1
William M. Speer. Assistant Unite 1
Sta tes Attorney General formulated "A
plan to insure sufficient hard coal at
lower than present prices for the small
co suner. That arrangement. which A.
expected to go into effect within feS
days. will provide emergency coal" IN
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