Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-02-10
COAL AUDIT BASIS
AGREED BY SENATE
BODY AND DEALERS
Obstacles to Inquiry Remov-
ed at Brief ParIey-FuII
Data to Be Revealed.
PRIVATE ACCOUNTANTS
TO AID McCARl'S STAFF
Will Prepare Profit Statement to Be
Used in Official Study of
Prices Here.

An amicable agreement was reached
by the Washington retail coal mer-
chants and the Senate District com
mittee at conference this morning
AS to the manner in which government
investigators should obtain data that
is expected to determine whether or
not profiteerine has been practiced by
the fuel dealers
The agreement was attained with lii
tie trouble and within less than an
hour after the conference began.
Under the terms of the arrangement
regularly certified commercial account
ants are TO be employed by the coal
dealers TO work out uniform profit
and loss statement for Ave or six.
both large and small. coal companies
in the District of Columbia This basis
is then to be used to determine the
profits and losses of the merchants for
the entire year of 1925.
McCarl Auditors to Act.
Although the uniform statement is
to he prepared entirely by the com
mercial accounta auditors from
the Office of Controller General Nc
Carl will sit in when the task of work.
ing out a definite statement for the
year of 1925 Is begun. it was stated.
1t also was agreed thar the Govern
ment accountants should nave the
privilege Of confirming. rom The
books OF the dealers. the figures in
cluded in the profit and loss sh-et
The coal dealers were represented
by w. w. Griffith. chairman of the
legislative committee of the Retail
Coal Merchants Board of Trade: Le
roy King. one Of the city larger deal
ers; Jesse e. Suter. managing director
of the Retail Coal Mercha nts' Board
of Trade, and Roger J. Whireford
retained as counsel for the coal mer-
chants Harry T Peters. public ac-
countant and auditor. ami Glenn ~
Leland of the firm of Beck & Leila nd
certified public accounta nts. also ac-
cornpa MED the dealers.
Full Committee Present.
The full Senate District committee
sat in the conference. with Senator
Capper presiding. The dealers ex-
planned after the meeting that Mr.. Pc
ters and the firm of Beck & Leila nd
already serving as accountants for
most of the local coal dealers. would
dH1l6 tnS ldSh VI UP tnS
profit and loss sheet and also assisting
in the determination of profits, to-
gether with the Government auditors
when that phase is reached.
Senator Capper explained after the
session that these commercial account
ants were entirely in the employ of the
dealers and that the auditors from the
controller generals Office would carry
on their work for the Government w
4. A Smith. chief Investigator attach
ed TO Mr.. McCarls office represented
the controller general at the confer
ence. and the Senate District commit
tees end of the investigation has been
placed in his hands so far as the ex-
animation of. the books is concerned
Both the committee members and
the dealers felt confident after the
hearing that lasting amicable
agreement had been reached Senator
NJ. NJ. Neely of West Virginia. who
took an active part in the public
hearing during the earlier phases of
the coal investigation. expressed salts
faction with the plan and he and
Senator Capper agreed that it should
not require more than 10 days or two
weeks to get the information the
committee is seeking. Senator Capper
added that the committee and the
dealers had agreed as to what this
information should be.
Procedure Is Outlined.
According to Senator Nicely. this
information is to take into consider
alton all of the items that enter into
the cost. handling and final sale per
ton of bituminous coal He explained.
for instance, that If dealer handled
1900 tons of coal. the profit and
loss sheet should show all data per
tanning to the entire lot and not to
scattered tons. Senator Neely said he
thought the proposition OF the coal
dealers was an entirely fair one and
that no objection had been raised
to It's acceptance by committee mem
bers. The merchants, he said, were
una nimously for 1t.
The question of the legality of the
Senate District committee using Con.
troller General McCarl's auditors for
the work was raised by member of
the committee, 1t was said. This
Senator pointed out that there was no
real law authorizing the committee to
use the controller generals staff. The
coal dealers. however, waived this
technicality, for the present at least.
and said they were not so much con-
cerned over who conducted the audit
as to how 1t was conducted.
Committee Status Cited.
The question as to legality revolves
around the law passed in 1921 Great.
ing the controller generals office. in
which 1t is stated that he NAV make
Investigations and reports, ordered
by either house of Congress or bv
any committee of either house hav
Ing jurisdiction over revenues. ap-
preparations or expenditures 1t was
pointed out, according to those who
attended the conference. that the Sen
ate District committee, having no
jurisdiction over revenues, appropria
tions or expenditures" had no author.
ity under the law to use the con
troller generals office for the inves
tigation.
1t is not believed, however. bv those
representing the coal dealers that any
further controversy will arise. the
dealers and the committee members
expressing themselves as satisfied
with the result of the conference. The
meeting was in executive session and
statements as to what transpired were
made by both sides afterward