The Washington herald., 1921-01-21
COAL PRICE RISES
DESCRIBED BY U.S..
AGENT AT HEARING
Madeira-Hill Co. Charged
With Arbitrarily Dou-
bling Rates.
A SECRET HEARING
Riley Accuses Lawyers of
ColIusiOn in U. S.
Inquiry.

Specific instances Of the excessive
cost of coal at the mine and the
charge that. so-called cooperation
between a New York coal associa-
tion and the agents of the De-
partment of Justice had been used
Tor the benefit of the coal associa-
ton members was introduced before
the Senate Committee on Manu-
lecturers holding hearings on the
Calder coal bill yesterday by A.
W. Riley, special assistant to the
Attorney General
Riley testified that three anthra
cite coal companies-onIy one OF
which. Madeira-HIn, and Company,
Of Philadelphia, he called by name
had charged from Sl4 to SIS a
ton for anthracite coal at the mine
during the latter part of last fall
when the shortage and demand
were both atftheir height. He am
Plihed his statement in regard to
the operations of Madeira-Hnl and
company by testifying that his in
vestigatIOn disclosed that this COM
pany charged for the same coal at
the same time SO a ton in one case
and Sl4 a ton in another.
Hear Evidence in Secret.
Accusations which Riley brought
against Charles S. Allen, secretary
of the Wholesale Coal Trade As
sOciation of New York, and Gibbs
L. Baker, Of Washington. attorney
for the association, caused the COM
mittee to go into executive ses-
sion for the purpose of hearing his
evidence. He stated that to give
il in open session would prejudice
possible action by a Federal grand
jury.
Prior to the retirement of the
committee. however. the witness had
stated that the Wholesale Coal Trade
Association. which had offered to CO.
operate with the agents of the De-
partment Of Justice in running down
excessive prices within the industry,
had given "1ip-service" only and
that in reality Messrs. Allen and
Baker had used the conferences
that they had with government
AGENTS to their own purpose.
Pressed by Senator James A.
iced. os Missouri. to explain in de-
tail what he meant by such a
charge. Riley said:
Explains Their "CO-OperatiOn.-
The procedure was this: Mr.. AL
In and Mr.. Baker had offered to
cooperate with the government in
an effort to reduce prices within
the coal industry. They were con-
with agents of the government at
which conditions within the coal
trade were discussed. In these con-
.rences MI Allen and Mr- Baker
would learn facts that had been
gathered by government agents.
For instance: That the price
,.barred by suCh-and-s a man
rIarad him in the class where in
yestfgation should be made. When
such information was disclosed Mr..
Allen would go to this coal man
and tell him that the government
Vas about to investigate him and
suggest that he retain Mr.. Baker as
attorney. as Mr.. Baker was in close
touCh with what the government
was doing and would be able to
handle his case in an efficient man
ner.
What was the first thing that
Mr. Baker would do when these
men then came to him." Senaor
Kenyon asked.
He would get a large retainer.
the witness sOlemnly answered,
while thS committee and spectators
laughed.
shows Original Checks.
senator Reed pressed for further
information. and Riley produced a
number of papers that he said were
,.rfrinaI cheeks from coal men to
T.ker. but none. of the names was
dfsclosed during the open session
~ the committee.
Evidence as to the Madeira-Hin
nd Company operations was
thought into the hearing during
testimony on what Riley character
I'D as the most notable instances
or righ charges for anthracite coal.
Two other companies were men
toned. but these. through agree
,r,nt Of the committee, were only
rafarred to as companies A and B.
In his testimony the witness com
rcd the prices charged by these
..ompanies with the circular prices
,barped in the anthracite field.
,rbirb. he said. he would assume
TO be fair.
Hs called the attention of the COM
rr,ittee to two facts in connection
,,,itb The Pennsylvania situation. The
at that the Department of Justice
bad been estopped from any real
action under the Lever act in Penn
s,,Ivania due to the decision of the
District court that it was uncon-
.tf+utfonal in its application to
,roateering, and that, secondly. the
pannsvlvania coal men had, as he
,armed II, attempted to get an i'm
,,,unity bath" by seeking to obtain
from the Department of Justice an
agreement that nothing which the
onerators produced before the so
lied fair practices COmmittee-set
nm within the trade to see that over
,barges were not made-should be
rsad against them by the govern
ment.
Coal Head Was Witness.
Percy c. Madeira. president OF
MADEIRA Hill and Company, was
bairman Of the fair practices COM
,,.ittse the witness testified.
PiIev introduced in evidence a
,1niIation of figures from mines
towned and controlled wholly or in
a-t bv the Madeira-H and Com
- which showed that during Sep
ton,ber, October and November. when
tLc circular price for domestic sizes
of coal ranged between s7.fO. 10
a. SO a ton (. o. b. the mine, the
-.