Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-01
COAL MEN AGREE
ON AUDIT POINTS
Merchants Names to Be
Kept Out of Report and Per-
centage Clause Is Dropped.

AS a result of an agreement en-
tered into yesterday afternoon be-
tween local coal dealers and the
Senate District committee, the way is
now clear for the committee auditor,
II. A. A. Smith, to proceed during the
recess of Congress with his study of
the coal prices that prevailed in
Washington last Winter.
Adoption of the agreement. which
sets forth the information the audi
tor will be furnished, was followed
by an announcement from Chairman
Capper that the committee had cam
ceIed the subpoenas issued to a
number of dealers.
The agreement grants the request
of the committee for access to the
books and records OF a. sufficient
number of dealers to show what the
situation was generally in the Dis
trict last Winter. On the other hand,
two of the objections raised origi-
nally by the dealers have been met.
They contended that to consider per-
centage of return on invested capital
would result in unfair comparisons
between dealers, and that the opening
of books to the auditor by certain
dealers would reveal trade secrets
to competitors.
Secrecy Made Possible.
The committee decided to omit re-
turn on invested capital and to permit
the auditor to designate the dealers
from whom he gets information as
MIR. A - Mr.. b" and Mr.. c." The
text of the agreement follows:
MIR. Whiteford, Mr.. Beck and Mr..
HAYNES on behalf of the retail coal
merchants of Washington have agreed
that there shall be furnished to the
auditors of the Senate committee on
the District of Columbia by merchants
to be hereafter named statements
taken from the books of the SAID
merchants which will show for their
coal business for one year ending
March 81. 1926. or June 80, 1926, the
inventory tonnage and value OF coal
on hand at the beginning of the year,
classified if practical; tonnage and cost
of purchases during the year, lnven-
tory tonnage and value at the end OF
the year, tonnage sold and the amount
realized thereform during the year
and all expenses incurred In connec.
ton with the operation OF the coal
business. such expenses and sales to
he classified in accordance with the
books of accounts with such detail as
NAV be available to support the gen.
eral expense items for the purpose
of determining gross and net pronts
in total and per ton on the coal nam
died during the year.
ITO verify the correctness or theSe
statements full and free access at the
offices of the merchants will be given
RI all books and accounts. invoices
and voucher registers, including sucn
accounts in the general ledger, trlal
balance and balance sheets from
which items appearing on the state
ments submitted may have been taken.
nav rolls and any other data bearing
on such items which may be requested
for the purpose The auditors deslg-
mated by the Government to examine
the books and records of the coal mer-
chants shall be permitted to OBTAIN
from either the merchants or the ac-
countants employed by the merchants
any information which may be re-
uuired to explain entries in the BOOKS
from which figures wer- taken and
appeared on the statements submit
ted u the Government auditors.
The foregoing agreement is made
upon the understanding that the re-
port by the Government auditors to
the Senate committee for each mer-
chant shall be made under letter deslS-
nation, so as not to disclose the 1den-
tity of the merchant.
The coal merchants request that
copies of the statements furnished
the Senate committee will be also fur
nished to the coal merchants in so far
as such statements pertain to such
merchants.