The New York herald., 1921-01-07
SENATOR'S BARE
SECRET DATA OF
G0UGNG IN COAL
Production Cost Sheets
Show at Least One Taking
$6 a Ton Profit.
PROSECUTION SOUGHT
Senate Committee to Refer
Pennsylvania Case to the
Attoney-General.
LEGISLATION SUGGESTED
Publication of Profits of Oper-
atOrs Sought as Matter Of
Public Interest.
LEGISLATION SUGGESTED

Special Despatch to THE New YORK HnRaLD.
New York Herald Bureau,
Washington, ID. c., Jan. 6. %
A complete chain of evidence dis
closing the identity of at least one
coal corporation which made an actual
profit of Sc a ton on coal sold to The
War Department last autumn was dis
closed to-day by the special commit
tee investigating the coal situation.
The name of the company was given
by the committee as the Watkins Coal
Company, situated in the central
Pennsylvania hituminous coal district.
According to Senator Kenyon Gowa),
who was conducting the hearing. these
facts in the transaction will be re-
ferred to the Attorney General with
view to prosecution under the pro-
visions of the Lever Fuel Control act.
Production Cost Found.
The names Of all companies which
sold coal to the War Department
through Col. Wentz. purchasing agenf
for the department and also president
of the National Coal Association, were
furnished to the committee by Col
wentz, with the price that each was
paid. Only in the case of the watkins
Coal Company was the cost OF produc-
ton ascertained This was shown to DC
sS.25 a ton, while the selling price was
1925 a ton.
The production cost was obtained BY
comparing data commandeered by the
committee from the records OF the Ma
tional Coal Association as to production
costs for bituminous coal by 496 coal
operators from January to October. ls2o'
The production costs OF the watkins
Coal Company were disclosed In TINS
data, while its selling price to the war
Department was shown by the detailed
statement furnished to the committee
voluntarily by Col. Wentz.
That evidence was more startling TO
the committee for the reason that JUST
before II was developed Col. Wentz had
shown the average ton margin at the
mine OF the 4s6 operators was II cents.
The disclosure of these profits, which
were characterized by committee MEM
bers as Outrageous and shocking" i'm
mediately were followed by suggestion
from Senator Kenyon that law should
be passed at once requiring puphcation
of profits made on coal. with heavy
penalties for failure to comply. IL Is
understood generally that such legisla-
ton is being drafted by the committees
experts under committee direction.
No Knowledge of Cost.
Col. Wentz had denied persistently all
knowledge of the production costs OF the
companies from which he had purchased
coal and convinced the committee that
he was without that knowledge. The
production costs Of other companies who
| sold coal to the department are to be the
subiect of further investigation by the
committee either through records now In
their possession or by the testimony OF
officials of the companies.
The committee questioned Col. Went>
severely as to the part he played In the
transaction. which involved the purchase
of nearly 1000 900 tons of coal at an av-
erago price of about 50 a ton. He
nroyed to their satisfaction that his rec
crd was clear. He was forced to a re-
luCtant admlSSDn tndl Ae iNbofNeN @'S
profits of the Watkins Coal Company as
un5ustifiable.
II can neither account for It nor JUS
t,fy t." said Col Wentz when pressed
for his opinion. 'I will add that It Is
more than the companies manage have
been receiving. I suggest you call the
officers of the company about it.
"I think we will. as well as officers OF
scne of these other companies" replied
Senator Kenyon. land / think also tha.
we will call the matter to the attention
of the Attorney General"
Testimony regarding activities OF the
National Coal Association, already COW
cred in previous testimony. was gone
over again at some length. Emphasis
was given to the functions to be per-
formed by the Governments relations
committee of the association. of which
Col Wentz is a member.
Opposes Regulation.
He frankly admitted they purposed to
keep Congress advised as to facts OF the
coal industry from the viewpoint or the
operators and that they are opposed to
Government regulation.
would you have any objection,
asked Mr.. Kenyon, Ito a law that would
make public the profits OF operatorsr
Decidedly" replied Col. Wentz. Il