New-York tribune., 1921-01-21
Chief of Flying Squadron
Tells Senators Dealers
Here Offered to AidHim.
Then Warned Profteers
Assails Counsel
OF Wholesalers
Says He Obtained Big Fees
to Defend Accused After
He Sat in Conferences

From The 7ribNne's Washington Bureau
WASHINGTON, Jan. 2G.-Profteer-
ing in anthracite coal in New York City
and elsewhere was given an airing to-
day before the Senate COMMITTEES OF,
Manufactures in hearings on the Calder
bill for regulation of the coal industry.
Armin w. Riley, Special Assistant
Attorney General, who is charged with
the handling of coal profteering cases,
was before the committee and his testi-
mony made it plain that New York
consumers had been the victims of
profiteering Moreover, he put much of
the blame at the door of the coal
operators. He testified that since the
fuel administration had ceased con-
troll prices of coal have gone up ma
terially.
The witness told of the operations
OF representatives of the Wholesale
Coal Trade Association of New York
and declared they were obstructing the
activities of the Department of JUS
tice. In effect he said they were
douhle-crossing the department by
pretending to cooperate with the de-
partment in hunting down profiteers
and at the same time warning con-
Germs under investigation.
he also brought out that Percy C,
Madeira, of Madeira, Hill e. Co.. of
l43 Liberty Street, New York. is head
OF the Fair Practices Committee" of
anthraclte operators in Pennsylva mia
despite the fact that the company has
Deen selling. coal at 50 ton at the
same time it has charged $14 q ton
to other customers.
Charges Leak in Conferences
In reference to the Wholesale Coal
Trade Association of New York, of
which Charles S. Allen is secretary and
Gibbs l.. Baker is general counsel, Mr.
kiley caused something of a sensation
by declaring that after the association
had professed desire to cooperate with
the Department of Justice in stoppine
the protiteers and after Mr.. Baker and
Mr., Allen had been sitting in In con.
ferences of coal men and Department
OF Justice representatives, the infor
nation thus gained has been exploited
to warn concerns under investigation
and 1T has been suggested to them tc
employ MIR. Baker as counsel.
Mr.. Riley said Mr.. Baker had de.
nanded handsome retainers and he
charged that in some instances part OF
the money had been paid over to Mr.
Allen.
Mr.. Riley had certain checks and
ether docume ents bearing on this matter
which. he presented to the committee in
executive session. He was excused
from offering them in open session be-
Lo
III New York City might be affected il
he did so.
"The high prices in anthracite coal
are not due, as the coal operators
would have US believe. to speeulators
in that commodity" said Mr.. Riley
"Our investigations show that .oa.
was being sold last year in New York
Long Island and some New Ensla..d
places, at from 500 to $25 short ton,
which l regard as extremely high. In
most cases the distributor was not
getting the profits. His costs averaged
about $18 a ton. We traced the coal
Pennsylvania anthracite operators. dis
closing that during October and No
vember anthracite coal was sold f. o. b.
the mines. in the amount of about
IS 900 tons, at from S13 to SIS ton
One company sold at from $14 to SIS a
ton f. o. b. the mine"
Withholds Names of Firms
Senator La Toilette asked for the
name of this company, but Mr.. Riley
said he would prefer not to give
names. He said some had given n
formation cheerfully and others had
placed every possible obstruction in
the way In some cases injunction
proceedings had been begun.
"It has been repetition Of -he pic
ture of Eliza crossing the ice," the
witness said. "The coal operators
we're Eliza, we were the blooihounds,
The baby was the excessive profits on
coal, and the cakes of ice were the
various tactics they employed, jumping
ON one to the other"
"And the Constitution was the Ohio
Shore" Senator Reed observed amid
laughter.
"Our contention is that the crime
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