New-York tribune., 1921-01-08
Palmer Gets
Facts in Army
Coal Abuses
Calder Tells Senate That
All Evidence of Unfair
Profits Will he Given to
the Attorney General
Inquiry To Be Broadened
Anthracite, Lumber, Next;
Kenyon Puts War Dept.
Losses at $3.5OO.OOO
From tn. 7rsoune's Washington sur>ou

WASHINGTON. Jan. T. Senator
Calder. chairman OF the Senate coal in
vsstigating committee, told the Senate
during general debate on coal to-day
that his committee had submitted to
the Attorney General evidence OF
prohteering in coal sold to the govern
nent by private companies. He said
the Department of Justice would in
vestgate the prices paid by the gov
ernment for coal last summer and fall.
Senator Kenyon Joined Senator Cal
der in deuunciation of the coal
profteers.
If the whole American people have
been robbed in the purchase of coal as
the government has been. Senator Ken
yon said, it was a robbery of hun
dreds of millions OF dollars.'
Senator Calder announced the COM
mittee would next investigate the an
thracite. situation. Later on it intends
TO go into building material, and
especially lumber. in response to
questions Of Senator Smoot, Senator
Calder indicated there would LIE an IN
quiry into retail coal prices on anthra-
cite in the District of Columbia begin
ming next week. Senator Smoot said
it was being sold in the District for
$3.50 a ton delivered.
War Department Loses Millions
Discussion of coal was begun by Sen
ator Kenyon, who called attention TO
inaccuracy of reports that the War
Department had been mulcted of ST.
800 900 He said it was S3,5O0,000. H
took up testimony showing that the
War Department paid on an average
1oY all it bought in the spot market
SIP ton, whilo the navy corr
mandeered Goa! 1or from S4.35 to $40:
The pay for navy coal Will be adjusted
before the Court Of Claims. and Sena-
tor Kenyon pointed out that it was to
the advantage of those making claims
tor more pay for navy coal before the
Court Of Claims that the War Depac.-
ment had paid so much.
The Navy Department, trying to
save money on coal will be compelled
10 bear the burden of the mistake-to
put 1t mildly-of the War Department."
aaid Senator Kenyon.
Senator Pomerene wanted TO know il
the War Department was charged
higher prices by the same operators
who sold elsewhere at lower prices.
We were lot able to tie up rroduc-
ion costs in all cases with selling
costs" said Senator Calder This we
intend to do later, so far as we can.
Canton Offered Coal at 90 Cents
Senator Pomerene, commenting on
the fact that Colonel D B. Wentz got
80 cents q ton as purchasing agent,
said that Canton, Ohio, before the war,
had invited commercial interest. to
come there because they could buy coal
for 80 cents a ton and that Cleveland
operators had testified in grand jury
il vestieaton prior to tie wcr they
- y 70 ~
ton.
II answer to questions of Senator
Mclean, OF Connecticut. Senator Cal
der said the War Department asked
bids last May. arc received bids OF
about $50 but rejected them On the
ground that they were too high Later
TIE department. got no bids for the sup
The Secretary Of War refused to
commander" said Senator Calder.
and the Interstate Commerce Commits
sion refused to grant priority orders
that would put the department on the
same basis as public utilities go
There must have been supply ot
coal in the hands Of operators thst
vas not contracted for when Colonel
Wentz bought for the War Depart
ment.' said Senator Pomerene. "Why
didn't he get contracts instead Of buy
ing in the spot market"
Bureau of Mines Pays $3.50
Senator Calder thought the Wa
Department was at fault in this and
he pointed out that when the Bureau
Of Mines, which buys 100000 tons for
different departments had to have
coal Il called on the operators to get
the coal.
And they got it for about $3.50"
added Senator Calder.
Senator Sutherland, OF West Vir-
s.nia, took the floor to object because
The committee was proce eding "to
Jump on the poor coal operator" Ref
erence to the poor coal operator" PFC
voked Senatorial smiles. Senator
Sutherland insisted that the committee
which was named to go into housing
and building material was unfairly
singing out the coal men.
Sometimes you can't catch all the
robbers at once" said Senator Kenyon.
You have to take them one by one"
Senator .Sutre defended the coal
operators against tae chang. of prof
iteering more than did merchants in
other lines Of business. He thought
that in fairness to the coal men al.
ne facts should be brought out.