The New York herald., 1921-01-07
TRAIL OF GOUGING
IN COAL TRACED
Continued from rtrst Page.

ment. to the army, to the navy and to
all the people OF the country. II seems
to me clearly that II is charged with
public interest. You already have shown
that comparatively few men now con-
troll It. compared with the number tha,
use coal
You can rest assured that what you
have said in some OF the letters you
have sent out. that Congress is giving
attention to this matter. Is true. You are
going 10 be met with the question OF
whether a basic industry like this is
charged with public interest The rail-
roads took the same attitude years ago
that the coal men are taking now-why.
do not know. You may be able TO
avoid regulatory laws. but doubt it.
You may rest assured this committee
and Congress do not purpose to have
people robbed by the extortionate prof
lts OF greedy coal profteers"
In explaining why coal operators re-
FUSED to make bids for coal for the
army when 1t was in the market for
contract coal. Col. Wentz said 1t was
due TO the fact that the coal year Of
the mines and the fiscal year of the
Government are not the same and that
by the time the Government goes into
the market for it's coal operators have
made their contracts for the season.
He severely criticised the practice of
the department. but said operators were
not to blame, because they had to make
their contracts on that basis Coal OPP
orators. he said. prefer to sell to private
buyers rather than to the Government
because with the Government the oper-
ators cannot make bids on known fixed
costs of production.
Asked why he had bought only about
1900 tons of coal for the War Depart
ment after he had a contract authoriz-
ing him to buy N5,0C0 tons, he said he
Thought II was not desirable for the
department to store coal in excess OF
current requirements" and showed that
by not so buying he had given up an
opportunity to make more than $1,000
on his commission. which at that time
was fifty cents a ton.
He disclosed that he now has another
contract to buy $1,000 tons OF coal for
the War Department and that he has
bought part of it at from $2.75 to S3.6+
a ton. with a commission OF per cent.
He added that he was buying this coal
from many Of the same companies which
last year sold at 50. He could not ex-
plain, he said. why there was this diff
ference and added that he believed the
mines were now losing money on the
Government sales.
Tne testimony developed tnaJ durl1S
the time that coal was selling as high
as sl5 a ton the Bureau of Mines had
arranged by negotiations with the
National Coal Association OF obtain coal
from operators at from si.25 to $3.50
a ton. Col Wentz had denied that
the association ever had anything to
do with the commercial side of coal.
He said if such n thing happened 1t
was before he was president of the
association.
He furnished to the committee a
list Of coal companies in which nc
is interested either as president, direc-
tor or stockholder These included the
d. b. Wentz Company, the Stonaga
Coke and Coal Company. the Lehlgh
Coal Company. the Maryde Company
the Upper Lehigh Coal Company, the
Midvalley Company, Raven Run Com
pany, Royal Coliery Company and sew
eral others. These, he testified. have
some interlocking directorates. are capi-
talized at a total OF several million
dollars and are operated in part by
the same organization.