Evening star., 1926-03-27


than was outlined in the beginning
and that no effort has been made to
deprive the Government auditor of the
books for verification of these state
ments.
Mr.. Smith told the committee that
from one dealer he got access
everything he requested and thi.>
another case he obtained a 12-month
statement, but that after the state
ment was completed a question arose
as to whether the amount of capital
investment should be disclosed.
Mr.. Whiteford interrupted to de-
clare that the capital invested has
no bearing on strict profit and loss
statement.
Mr. Whiteford insisted that the
question which is really involved was
what profit per ton was made by the
coal dealers here. and that these fig
ures were available to the committee.
Wants Investment Figures.
Senator Neely said that ne believed
it necessary to know what money was
invested If correct view of the profits
was to be had.
1--WE proceeded to carry out just
what we had agreed upon with the
Sclu w i0
information shows what profits were
made and that one dealer did not
make any profit at all"
Mr.. Smith, the auditor furnished the
committee by the, controller general s
office, said he had not received all the
statements he had expected. He said
that six companies were TO furnish
statements and that three only had
been furnished.
In reply, Mr.. Leland, auditor for the
coal dealers, said he understood Mr..
Smith had not asked for them, but
that he had gone ahead and made
preliminary report to the committee.
Mr.. Smith declared that he had made
request for the statements and that
he felt entirely justified in making
preliminary report to the committee
to learn what further steps the COM
mittee wished taken.
"On the total tonnage handled it
does not show that the prices nave
been excessive" replied Mr.. Smith.
FavOrs Auditors Conference.
Mr.. Leland contended that there had
been some kind of an agreement and
that there should be a conference of
auditors before a report was made to
the committee.
Have you been able to determine,
Senator Glass asked Mr.. Smith,
whether the coal dealers of Wash
ington are charging excess prices for
coal?"
That's what we were asked for,
said Mr.. Leland. Representative
Rathbone asked Mr.. Smith If he
thought the Government auditors
had been given sufficient information:
The latter replied, NO" and added
sV,f
ing capital invested and information
from a larger number Of companies.
Are these companies ready TO fur
nish additional information asked
Mr.. Rathbone.
Mr.. Whiteford replied the dealers
had agreed on the information to be
furnished and that they had spent
considerable money on furnishing IT,
and added: THE committee will
have to make a definite statement of
what it wants and then we will con-
slider it.
Urges Giving Data Asked.
Senator Glass said that he could
not see how it would help the stu
alton to learn what the invested cap
ital was, but he insisted that Mr.
Smith should be given full lnrorma-
tion that he desired.
He interpreted a remark made by
Mr.. Smith as a desire to learn
whether there had been any rebates
made in connection with the coal
producers. Mr. Smith said that he
made no charge of rebates because
he had no information, and Mr. lie
land insisted that if there had been
any rebates they would show up in
the cash books, to which Mr.. Smith
had access.
.sThe coal dealers in their own inter
est {" said Senator Glass, should fur
nish every bit of information to this
auditor of the committee, who is dis
interested
Mr.. Leland related to the committee
an incident which he said led him to
believe that the Government auditors
on the job have not had a wide eX-
perience with business. This was hot
" resented by Mr.. Smith, although
Mr.. Leland denied that he was refer
ring to Mr.. Smith, himself.
Senator Glass said that if the coal
dealers considered that the Govern
ment auditors were not competent
they should say so. He added, how
ever. that if the dealers refused to
furnish all the information desired,
''you will not be in the happiest pos
ture you could wish.''
Mr.. Smith insisted that in order to
be in a position to determine the
profits and losses of the dealers he
must have information showing not
only the profit per ton of coal but the
net return on capital. invested. He
said that he wished to be in a posi-
ton to know all the facts.