The New York herald., 1921-02-26
NDICT 226 COAL
MEN And MINERS
FOR PRICE FIXING
Operators Associations and
Union Officials Charged
With Conspiracy.
SIX STATES COVERED
Mutual Aid in Increasing
Prices. Wages and Strikes
Alleged.
SIX STATES COVERED
PRODUCTION IS LIMITED
Fictitious Shortage and Man
ipulatiOn of Spot Market
on Deliveries Charged.

INDIANAPOLIS. Feb. 25.-Cooperation
between coal operators and miners in
six States to force high prices for soft
coal by restricting production was
charged to-day by a Federal Grand
Jury indictment returned in court
here. Two hundred and twenty-six
defendants, including 127 operators
and miners and SO operators associa-
tions or companies, were accused Of
conspiracy to violate the Sherman
antitrust law The defendants live
in Missouri. Illinois, Indiana, Ken
lucky. Ohio and Pennsylvania.
Judge A. B. Anderson. who received
the indictment. set May for arraign-
ment, and in issuing capiases for ar
rest of the defendants he fixed the
bond of each at $4,000. Names of all
defendants. except twelve, were made
public by District Attorney Van Nuys.
Prominent operators, including Thomas
T. Brewster. Edward c. Searls. Johnson
Dering. Phil Penna and William X.
Kavanaugh, and high officials of the
United Mine Workers Union. including
its president John l.. Lewis, and secre
tsry, William Green, were among the
defendants. The National Coal Associ-
alton was among the corporate defend
ants.
The Indictment covers specifically the
last three years in the coal industry, and
follows an investigation that has been
conducted almost continuously the last
eighteen months by agents of the Fed
eral Department of Justice. The charge
Ia made by the indictment that at va
rious joint conferences the miners and
operators agreed to be partners in min
ing and distributing coal, and that they
would aid one another in plans to in
crease wages, increase prices, create
a shortage and otherwise limit produc-
ton and distribution. Creation of fic-
ttious market prices and the provoca-
ton Of miners strikes by operators also
was charged by the indictment.
The charge Is made that the agree
ments entered into between the oper-
ators and miners provided that coal
should not be sold al any time for "
price that did not yield profit TO the
operator; that increases of wages t.
miners should be added to the pri e
of coal: that competition among oper-
ators should be eliminated: that no
coal should be sold below the cost Of
production and that the means of in
creaSlnS cost anu III lHt
price of coal should be by closing and
keeping idle the mines.
Creation OF high and fictitious ma arlSet
prices" for coal was brought about by
the operators. according TO the indict-
ment by an agreement following suspen-
sion Of the national fuel regulations In
February 1919, not to contract for the
future delivery of coal and not to sell
coal unless they were able to obtain
To ny ahOye fhp nriCn that |
had been fixed by the National Fuel Ad-
ministration.
Another charge is made that the oper |
ators by a concerted plan made various
reporting to the mine bureaus of the sew
eral States and TO the Government that
there was no market for coal and that
this plan caused tho price TO increase
until Il was higher than the prices fixed /
and maintained by the National Fuel |
Administration prior to It's suspension.
Regarding the activities OF the Ma
tional Coal Association. the Indictment
charges that this organization Is engaged
in marking out zones into which coal
may be shipped and that reports on
production and prices in each zone
enable operators to govern the supply
and price of fuel.
The indictment charges that in the
plan TO increase the price of coal the
operators refused TO sell fuel to any one
not member of the Retail Coal Dealers
Association and allied organizations
and that they refused to sell coal 10 any
one for purposes beyond their imme-
diaie needs. thus preventing the storage
OF coal for future use.
Another plan for increasing fuel prices.
Il is charged. was 20 sell IL through
sales agencies which were separate In
name only from the operating and pro-
ducing companies. Profits were thereby
incrca sed. the indictment says.
The operators also created the spot
market. the indictment charges, by
agreeing to sell coal only for mmedi-
ate delivery at prices agreed upon at
the time of delivery. In carrying out
their plan TO cause a scarcity OF coal
the Grand Jury said the operators pub
lished broadcast during 1920 articles
pointing out that there was shortage
OF coal and urged people to purchase