Evening star., 1926-03-27
COAL INVESTMENT
ASKED Of DEALERS
Committee Decides Data on
Capital Is Necessary to
Full Inquiry.

The Senate District committee will
request the local coal dealers to sub
nit the amount of this capital in
vestment as we'll as the results of
operation for the IL months ending
March 81, Chairman Capper an
nounced today.
The motion of Senator Neely,
adopted by the committee at the
close of the two-hour session with
the coal men yesterday afternoon,
directed H. A. A. Smith, committee
auditor, to request five of the deal
ers 10 give him access to any IN
formation deemed necessary in for
mulating his report as to the rea-
sonableness of prices. but did not
specify the disputed item of capital
investment. In the course of the
meeting Roger J. Whiteford. coun-
sci for the Coal Merchants Board
of Trade had taken the position that
the invested capital had nothing to
do with a purely profit and loss
statement and was not necessary to
determine the reasonableness of the
prices.
Invested Capital Needed.
Senator Capper stated today, how
ever. that a majority of the commit
tee felt it was essential to have the
invested capital as well as the results
of the past IL months in order to
form definite conclusions. Senator
Capper said he would write a letter
to Auditor Smith some time today or
Monday, outlining specifically the new
information the committee has de-
cided to ask for.
1t was pointed out today that the
tn tn Go
ures from five dealers was to give
the committee a representative pic
ture OF the coal situation generally
and not with a view to centering the
price inquiry on any particular group
of merchants.
Fl. A. A. Smith. the auditor for the
committee, testified yesterday that
from the information collected thus
far, on per ton basis, there had been
no evidence of profiteering.
Just before Senator Nicely made the
motion which the committee adopted
a suggestion had been made and con-
CURED in by Mr.. Smith, that if the
dealers would give figures for IL
months ending March 81 his task
would be simple.
Sees Months Delay.
Referring to this suggestion, Roger
j. Whiteford, attorney for the Coal
Merchants Board of Trade. said the
dealers themselves would have to de-
eide whether they would open their
books on the basis suggested. He
pointed out that with the year ending
on April /, it would probably be a
month from that date before much
could be gathered from the books.
Differences of opinion between
Government auditor as to whether the
amount of capital invested by a coal
dealer in his business should be made
available in connection with the fig
ures as to the price of coal developed
at the opening of the meeting.
Chairman Capper explained the
meeting was a result of the report
Of Mr.. Smith, who was designated to
collect from the coal dealers the fig.
ures requested by the committee re-
lating to the retail price of coal dur
ing the past year. Senator Capper
declared the report was quite un-
satisfactory to the committee in that
1t did not enable us to form any
conclusion"
Plan Already Outlined.
Mr.. Whiteford told the committee
that at the meeting February 10 Mr..
Leland, one of the accountants en-
ployed by the dealers, outlined a plan
for providing the committee with profit
and loss statements for 1925 that
would give the committee the infor-
nation 1t desired.
Mr.. Whiteford stated that follow
ing the meeting of the committee
that day the two auditors represent
ing the dealers met with the Govern
ment auditor and made arrange
ments for preparing these profit and
loss statements.
Mr.. Whiteford said 1t was explained
TO the Government fauditor at that
time that many dealers close their
books on April 1 annually, In which
cases it would be difficult to get a
statement on the calendar-year basis.
According to Mr.. Whiteford, the Gov
ernment auditor agreed that in such
cases he would take the profit and
loss statement for the nine months of
1925, from April on, provided he was
given the figures for the preceding
IL months.
Mr.. Whiteford then asserted that
the dealers submitted profit and loss
statements covering even more detail
/ Continued on Page 3, Column 81