Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-06-29
Capital II stumbling Block


After these preliminary had been
disposed of ana the flare up between
senator Nicely and MIR. WhitefOrd had
subsidized the session became less
formal as the dealers and committee
members sought 10y numerous queries
% ascertain just what details the COM
miltee wanted that the dealers had
not been willing 10 furnish
This discussion developed the fact
hat the real stumbling block which
caused the committee to subpoena the
dealers was the item of capital in
Nestment. The dealers insisted that
factor would not help the committee
in asCertaining whether the per ton
profit on coal WAS reasonable and
would lead 10 unfair compa risons he
tween dealers.
The committee members replied
they We're not accountants. but had
gained the impression from Auditor
smith that he coufd not make a fair
report 10 the committee on the
reasonahlenesS of coal prices without
some knowledge of the capital in
vestment of the dealers.
Try to Agree on Plan.
A. the session drew TO a close all
OF the committee members told the
dealerS il would be to their own ad-
vantage to try ana reach an under q,
standing with the committee on the
furnishing OF information, and the
dealers responded by expressing a
Willingness to try To agree with
Auditor Smith on some plan that
would not involve invested capital.
Attorney Whiteford suggested that
perhaps a conference today between
Mr. Smith and the dealers might
result in peaceful understanding,
aud the committee agreed.
Chairman tapper announced jhat
they should report the results of
the conference to another meeting
of the committee at O'Clock tomor-
row afternoon. In the meantime the
Sllbpoenas remain III effect, with the
expectation that if an agreement re-
suits from the conference today the
subpoena proceedings VIII be
:, ha ndoned,
The flare up between Attorney
AVhiteford and Senator Nicely grew
ont of colloquv concerning the price
of West Virginia coal. Senator Nicely
had stated that his only interest was
70 ascertain whether there had been
any profit eerins in coal in Washing
on. Mr.. Whiteford retorted he thought
Senator Nicely would be interested in
unal increased So ton III November"
Senator Nicely denied that assertion
= nd replied that coal could be obtain
81 from West Virginia for about $3.50
a ton and indicated the retail price of
such coal was around Sli or SIC.
Attorney Whiteford responded with
the assertion that that statement Is
untrue" After a mementarN pause
Senator Nicely rttaliated by declaring
10 Mr. Whiteford ''You'r 4 liar
Order. Order!
As chairman Capper called for
n,&1er Mr.. Whueford rose in his place
al the table aud declared he had eX-
rueoted that the intellectual contrIbu
iaon TO the hearing by the Senator
from West Virginia would he 10 make
such remarks.
This brought from Senator Nicely
The retort that he did not propose
20 be talked to that Way by shNster
lawyer"
Senator Capper continued To de
n,and order and Mr.. Whlteford con
tinued. declaring he did not intend to
he insulted while appearing as coun-
sci before the committee. He warned
senator Nicely TO be careful.
When the teellnS- between tne TWO
men WAS at it's height Senator Glass
Jumped up and brought the incident
80 A close He said the Senator from
West Virginia had been a little too
curt" but that Mr.. Whiteiord had
shown improper demeanor toward
members of committee before which
he was appea ring. He said Mr..
N-hlteford had imputed that a. state
ment by Senator Nicely was not true
and that the Senator from West Viz
ginia had made the same reply IN
palmer language. lie suggested that
both should withdraw their remarks.
Both Withdraw Remarks.
Senator Nicely announced that he
was perfectly willing to withdraw
what he had said. and Mr.. Whiteford
promptly followed by withdrawing
MS statements
Those who testified during the
hearing were j. Maury Dove. ir.;
". w. Griffith, Fred Hessick and
A. p. Woodson. Wallace -. Blick had
been subpoenaed. but was out of the
city and did not receive il. The
secretary of the firm appeared and
said he would wire Mr.. Blick. AT
the request of Attorney Whiteford
the committee accepted a physician s
certificate showing that Miss Mar
gsret Grace of the firm of r. j. and
At. c. Grace was i'll and could not
appear.
4 A0-ct the dealers ga xeA-suhstana ls