Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-05-04
Claim Frame-Up
Against Consumer
in Soft Coal Trade

Indianapolis. Ind, May "a crihi-
nal partnership between soft coal OPP
orators. miners and retailers mas eA-
listed for many years. according 10 ths
charge of the government in It's anu
trust prosecution which began In the
Federal court here today.
The indictment is directed at 226
persons and corporations and is in five
counts, each charging violation OF the
Sherman antitrust law.
Among the individual defendants are
John L. Lewis, president of the United
Mine Workers of America; d. b.
Wentz, president of the National Coal
Association. many others of both Or
CARNATIONS and some of the most
prominent operators in the country.
The miners officials under indict-
ment number SO, the operators, retail
ers and their employees IS; the cor
porate defendants 80. The defendants
reside in six states-Missouri, Hi
nos, Indiana. Kentucky, Ohio and
Pennsylvania. Taken as whole the
indictments charge: First, restraint
of trade; second restraint of COM
merce; third, restraint of trade and
commerce; fourth, conspiracy to mo-
nopolize, and fifth. monopolization.
The indictment is estimated to contain
$4,000 words, one paragraph OF which
says: THAT at various joint confer
ences, miners and operators agreed
and arranged that they were partners
in the mining, production and distrupu-
ton of bituminous coal in the several
states, and that they should and would
aid and assist each other in their plans
and efforts to increase wages, increase
prices. create shortages and limit pro-
duction and distribution; that btu
minous coal should not be sold at any
; time for a price that did not at the
time yield a profit to the operators;
that whatever increase of wages of
miners should be agreed upon, should
be added to the price of coal; that COM
petition among operators should be
eliminated by organization among
operators and such other methods
and means as would be effective there
for; that the means of increas-
ing the cost of production and the
price of coal was by closing down and
keeping idle the coal mines"
The indictment also attacks the ia
nous "check-off" system of paying
union dues of miners by which the
operators virtually act as a collect
ing agency of the union by withhold
ing part of the miners wages and
paying this to the union.
The 1920 coal shortage, according to
the indictment was manufactured by
the operators "as part of the general
plan of conspiracy"
By refusing to contract for future
deliveries except for a price which
would be the ruling price at the time
of delivery" the operators are charged
with having erected spot" market
last year, their alleged plan being ito
create scarcity of available coal and
cause a high and excessive price"
The operators are charged with OBJ
tanning priority coal shipment orders
from the Interstate Commerce Com
mission, which diverted 10000, 600 tons
of coal from the normal market
places, mainly by shipments OF West
Virginia, Tennessee and Kentucky coal
to New England and the Northwest
This diversion, in part. is alleged to
Rave effected contract deliveries.
caused immediate purchases at high
er prices and drove consumers into
distant markets and so disturbed con-
ditions that local shortages were
created and industries forced to sus-
pend work.
In respect to the 1920 coal situation
the indictment charges that there was
NO shortage of available coal in the
United States during that time"
Various other acts are charged by
the long indictment as a part Of the
conspiracy including allegations of
fixed territorial limits for an upera-
tors sales. the promotion of strikes.
the private agreements of operators to
maintain uniform sales contracts. the
breaking of contract deliveries, the re-
1usai to sell direct to consumers and
also to retailers who were NOT mem
bers of the retailers association. and
the imitation of prices, especially bv
pretended sale and distributiopn
through sales agencies Separate onlv
In name from the operating and pro-
auction companies
The indictments were returned last
February 25, after an almost con+in-
uous investigation by the government
for Is months.