The New York herald., 1921-01-21
COAL MEN HERE IN
PLOT TO BALK u. S.
MPROFITEER WAR
Dept. of Justice Secrets OBJ
tanned by Trickery,
A. w. Riley Says.
SENATOR'S GET PROOF
Association Secretary and
Washington Lawyer
Are Accused.
TESTIFIES TO RETAINERS
Body of Wholesalers Comprise
Worst Element in Trade,
Is One Charge.
TEsTIFIES TO RETAINERS
speoioI Despatch to THE NEW YORK HERALD.
New York Herald Bureau.
Washington, ID. c., Jan. 20.

New York Herald Bureau.
Washington, ID. G., Jan. 70.
Grave accusations against the ac-
tivities of officers, members and legal
counsel of the Wholesale Coal Trade
Association Of New York were made
to-day by Armin w. Riley of New
York, special coal investigator for the
Department of Justice, before the Sem
ate Committee on Manufactures, In
hearings on the Calder bill for Federal
regulation of the coal industry.
He charged among other things that
Gibbs L. Baker Of Washington. said te
be counsel for the association. had
accepted retainers for services: that
from time to time he had sent certain
sums Of money, which Mr.. Riley inti-
mated were a portion Of these retainer
fees, to Charles S. Allen. secretary OF
the association.
He further charged that Allen on
various occasions had recommended
the employment of Baker in such
cases on the ground that the latter
was sitting in" with the Department
Of Justice in conferences designed 10
check profiteering in coal, ostensibly
to cooperate with the department In
its work, but really to obtain informa-
ton that would be instrumental TO
operators charged with profiteering in
avoiding convictions on the charge.
The hearinv was brought to ura-
matte halt by the demand of Senator
Reed (Mo.) that the proof of his allega-
tions be furnished. Opening his brlef
case Mr. Riley took a number of papers
and also a bundle of what he said were
"cancelled checks" and prepared to put
them into the record. But before doing
so he said:
IF these proofs are made public l
think the committee should know that
it may interfere with investigations now
being made by the Grand jury.
Gives Proof in Private.
sI have no desire to interrupt the
course of Justice" said Senator Reed.
'.and am sure that the committee does
not. But | think I speak for the COM
mittee when say these charges are too
grave to be passed by. and | suggest
that this witness be permitted to fur-
nish the proof to us privately
The committee at once agreed to this,
retired with the official stenographer.
The witness and his evidence, and be-
hind closed doors saw what was said
later to be complete proof of the allega-
tions made by Mr.. Riley In open ses-
sion. What the nature of this proof was
the committee did not disclose. IT re-
quired nearly an hour behind closed
doors before the members again re-
turned to the chamber.
THE committee probably Will not
make this evidence public" said Sena-
tor Reed after the hearing, but you
may say from me that | think the
charges are sustained by the evidence
furnished to the committee"
In addition to the specific charges m
volying the counsel and secretary OF the
association. Mr.. Riley charged that the
organization persistently had trieu TO
block at every possible point the efforts
he and his associates were making to
obtain information from the New York
coal trade to check prohteering.
AS to the New York association. Mr..
Riley said he considered that 1t repre-
sented the worst rather than the best
elements In the New York coal trade
and that because of the practices OF the
ORGANIZATION members who lid not APP
prove of them had resigned in consid-
erable numbers.
Prohteering Is Disclosed.
The charges against the association
and those connected with II followed
testimony showing specific Instances oi
profiteering in the anthracite trade
from which New York. Long Island and
some New England consumers had
suffered during the coal panic last year
In one case that of a Pennsylvania
anthracite company which ne was moi
permitted to divulge. the company re.
ceived. he said. from $14 TO SIS tor
for coal T. o. b. the mines, some oi
which sold for from SIS to SIS ton.
He contrasted this price with the lis
prices of anthracite companies which hs
considered were selling at a fair price a.
the mines Their prices did not exceed
$3.50 a ton at the mine for the same
period that the concern he referred x
obtained SIS. He also furnished the an
thracite prices fixed by the Fuel Ad
rninistration at its highest point. show
ing that their prices did not exceed =
a ton.
The committee asked why he did ne
furnish actual prices as TO the cost o
production. to which he replied that h
was prevented from doing so by opor
ators themselves who refused to furnisl
their costs. ALI sorts of distractions. h
said. were put in the way of himsel
and his assistants. many OF them lega
IA character.
DeScrlDlnk OtneT pTaCtlceS Dy antnTa
cite operators which he regarded a
against public Interest Mr.. Riley re
ferred to the Arm of Madeira, Hill g. Co
In Pennsylvania, which he said had soil
coal OF the same grade TO different Gus
toners at different prices. ranging from
as low as 50 a ton to as high as tii
lie said Mr. MADEIRA, the operator In tn
hrm. was member of the so-calle
"Fair Price Committee" In Pennsylvania
an organization OF operators created Z
stabilize prices OF coal. He said MI
MADEIRA had personally admitted TO hin
~ had sold In this way to different Gus
toners.
lie absolved a large proportion OF th
wholesale coal trade IN New York fftr
charging excessive prices and said 'hA
10 per cent. of the anthracite sold q
New York had been sold at sfS.T5 a 10
delivered at the same time that III
Pennsylvania operators were getting 81