The New York Times/1916/11/22/Coal Inquiry by Grand Jury
COAL INQUIRY BY GRAND JURY.
District Attorney Intimates That He Expects Early Indictments.
The Grand Jury announced its intention yesterday of immediately starting an investigation into the coal and food situation with an idea of fixing the responsibility for the present inflated prices. The jurymen expressed a willingness to sit all next month if District Attorney Swann thought it necessary.
District Attorney Swann and Assistant District Attorney Markewich will go before the jury this morning with evidence obtained from a score or more dealers in the city, but Mr. Swann refused to divulge the nature of this evidence, though he said he expected to get one or more indictments.
Michael Burns, President of Burns Brothers, coal distributors, conferred with Mr. Markewich for several hours yesterday. He charged present high prices to speculators, who, he declared, had brought up quantities of coal from the so-called independent mines when coal was selling at a low figure and were now reaping enormous profits.
“Mr. Burns told me,” said the District Attorney, “that these scalpers purchased the coal for as low as $5 a ton and hoarded it in the neighborhood until the present scarcity arose.”
Mr. Burns said he had recently been compelled to purchase several thousand tons of coal from speculators, which he had sold to his customers at a loss. When asked by Mr. Swann to divulge the names of these men Mr. Burns refused. “I do not want to be an informer,” was his comment. Mr. Swann immediately caused a mandatory subpoena to be served on the coal merchant requiring him to appear before the Grand Jury tomorrow. Subpoenas have been sent to a score of other dealers.
Leonard M. Walstein, Commissioner of Accounts, came out yesterday in favor of a municipally operated coal market such as are maintained in Terre Haute, Ind., and other Western cities.
Assistant District Attorney Markewich, who has also been investigating the unprecedented rise in prices of live poultry, examined several representatives of that business yesterday, as the result of which he said he learned that the producers and Western shippers have not been demanding any higher prices than they did six months ago. From this it was apparent, Mr. Markewich said, that the law was being violated by the local distributers. He said he probably would call several dealers before the Grant Jury today.
Joseph Hartigan, Commissioner of Weights and Measures, increased yesterday his force of Inspectors investigating the alleged practice of small dealers in selling short-weight coal. Three dealers were arrested yesterday, all charged with selling coal of short weight. The Inspectors also arrested a grocery, charged with selling a basket of potatoes for $2.50, representing the weight to be 60 pounds, when it was really only 54 pounds.
Investigations had shown, the Commissioner said, that some dealers were using two scales, one honest and the other not. Where there was any question or where the customer looked like a person who would “kick,” the honest scale was used. In a majority of sales, however, the crooked scale was used, he said.