Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-02-08
COAL PROBE DELAY
IS SEEN IF DEALERS
BLOCK AUDIT PLANS
Retailers Confer Today With
Counsel on Status Under
the Law.

Should the retail coal merchants de-
eide at their conference with counsel
this afternoon not TO submit their
business records to any but a board
of commercial accountants for a COM
plete audit, the Senate District COM
mittee is without information as to
what step 1t will take, Senaor Capper.
Chairman and leader of the investiga-
ton Of local retail fuel prices, de-
clared today.
Although the committee has been
authorized to issue subpoenas, definite
refusal Of the merchants to deliver
their books to accountants from Con
troller General McCarI's Office might
result in a long and expensive legal
controversy for the Government.
Roger j. Whiteford, who has been re-
tanned by the dealers. is of the opin-
ion that the courts would not compel
the merchants to open their books for
partial examination.
Assumed Acquiescence.
Senator Capper said he and the com.
mlttee members had proceeded with
the audit on the assumption that the
Washington dealers would not fight it.
The committee chairman said testi-
IL
had given him the impression that the
Governments auditors would be given
free access to the dealers books.
In the meantime the retail dealers
prepared for their general meeting at
$3.50 o'clock this afternoon In the Of
fees of the Retail Coal Merchants
Board of Trade. Mr.. Whiteford and
private counsel will meet with the
merchants and advise them as to their
status in the courts on the problem.
Admittedly, there is an overwhelming
sentiment against a partial audit, to
be conducted by accountants from any
Government bureau.
The position taken by the coal mer-
chants Is that they would offer no
resistance to thoroughgolng audit
conducted by a recognized firm of
commercial accountants, or a general
investigation to be placed in the hands
of a board of Washington business
men. They have declared definitely,
however, that it would be unfair for
Government auditors to be told to
seek merely figures on cost prices,
shipping and delivery expenses and
selling prices.
Much to Be Considered.
1t was pointed out that these fig
ures would give no consideration to
bad debts, shrinkages, the varying
profits on different grades of coal
and considerable other matter, which
can be obtained only 10y carefully
auditing every item in the ledgers
and arriving at an average monthly
profit or a net profit for the entire
year. On the other hand, there are
one or two large dealers who have
expressed themselves as willing to
submit to the kind Of audit ordered
by the Senate District committee.
Senator Capper pointed out today
that the information the committee
requested the controller general
Office to obtain Is to cover the full
year of 1925 and the first month of
this year. He said he realized It
would not be fair to take the figures
for a few months alone and that
specific provision accordingly was
made that the data cover an entire
year.
The District committee today re-
ceived a telegram from Roderick
Stephens of the National Retail Coal
Merchants Association. which fol-
lows:
ITO permit Government fuel yards
to sell coal to public at cost, as pro
posed by Senator Howell, would be
equivalent to q subsidy to coal con-
sumers. Government cost accounting
n