The evening world., 1921-01-06
WAIVED S1O1,OOO
PROFITS FROM j. S,
SAYS COAL BUYER
Col. d. B. Wentz Says His
Firm Made Only $4,000
on War Dept. Purchases.
Especial to The Eycniur worldJ


WASHINGTON, Jan. 6.-R. G..
Guthelm, manager Of the car service
section OF American Railway Asso-
citation, told the Calder committee
to-day Of his efforts to provide cars
fer transportation to the Lake re-
glon before the close OF navigation.
He explained the circumstances lead
ing up 10 the issuance of preferential
orders by the Interstate Commerce
Committee. order No 10, which has
come in Tor considerable discussion
curing the hearing, was drawn by the
coal men and after slight modifica-
ton was put into effect.
Col. ID. b. wentz, who has been men,
toned in previous testimony as hav-
ing contract by which he is alleged
TO have realized $75, 900 for buying coal
for the War Department on a com
mission basis, took the stand and asked
90 be permitted to read a preliminary
statement. He disclaimed any con-
nection with the army since he was
mustered out in 1919.
Tho wentz Company OF Philadelphia
has no anthracite mines, but the wit
ness testified that he is also President
OF the Stonega Coal & Coke Company,
with bituminous mines in Southwest
Virginia and Harlan County, Ken
tliclky. He is a director, he said in
the Lehigh Coal & Navigation Com
pany, one OF the big anthracite carry
ing companies in Pennsyiavia. He is
an officer Of the westmoreland Coal
Company. a soft coal organization in
Pennsylvania, and a director in seve-
raj other coal companies.
Col. wontz filed with the Committee
a letter from the chief or the pur-
chasing service of tine army, author
izing the Wentz Company 20 pur-
chase not to exceed 275,OOO tons OF
coal to be delivered to the army at
designated points, the price TO be not
higher than S11 per ton at the mines.
He read into the record figures show
ing the range Of prices running from
S4.67 TO $945 per ton. He said the
wentz Company got $4,000 commits
SONS and waived 100000 which
could have been obtained by taking
| full advantage of the contract.
Senator Edge wanted TO know why
the War Department was unable to
get bids from other coal companies
before making the Wcntz contract.
The witness said the contract form
of the War Department was not a
commercial contract and was not at
tractive. He testified the War De-
partment usually entered the market
some three months after the coal
year begins and after all the big coal
companies have contracted for their
output. He declared this was un-
busihesslille and that Congress
should take steps 10 reform the De
partment's purchasing system.
Col Wentz insisted that the alb
normally high spot prices in the
Eastern territory up TO Aug. l were
due TO n 25 per cent. shortage in
production. He recalled the strike
in the bituminOus regions lasting
from November, 1919, to Jan. /, 1920
as one of the initial causes of de
moraiization in the coal situation
during the last year.
Senator Kenyon questioned the
witness about reports that the coal
operators in some instances insti-
gated strikes in orier to limit pro-
duction. Col Wentz said he had
gone into these charges and found
them groundless.
On the basis OF figures obtained by
the committee. Senator Kenyon as.
serted that twenty-one OF the coa'
a companies had earned as high as A
per cent, OF their capital. Col Wenti
insisted 1t was not fair to base the
calculations on n one-year period. HJ
thought the proper method was Il
figure the profits on a tive-year basis
There were years, he said when the
bituminous operators were unable Il
realize any profits.
T--st.H--r.