Evening Republican, Volume 22, Number 121, Rensselaer, Jasper County, 23 May 1919 — WATSON REVEALS INEFFICIENCY [ARTICLE]

WATSON REVEALS INEFFICIENCY

STORY OF COAL ORDERED FROM INDIANA OPERATORS. Washington, May 21.—An extraordinary case of interdepartmental inefficiency in the government has been made public through Senator Watson, who is endeavoring to Obtain payment to the Indiana coal trade bureau for 8,060 tons of coal ordered by the government from various Indiana On this coal, demurrage and freight charges amounting to $92,820 or much more than the value of the coal, have been run up through the negligence and mistakes of various government departments- Although the coal was finally delivered to the railroad administration, payment is being refused until the demurrage and freight charges have been paid. In other words, the railroad administration expects the Indiana coal operators to give it the coal and then pay many thousands of dollars for the privilege of giving the coal away. The story of this coal in brief follows: On December 28, 1918, the United States fuel administration requistioned from thrteen of . the largest coal companies in Indiana, 8,600 tons of lump coal for the camp quartermaster at Ft. Benjamin Harrison. Presumably this coal was ordered for the war department. The order was promptly filled by the operators. After the coal had left the mines it was learned that the war department had not ordered the coal- The fuel administration hastily canceled its order, and the camp quartermaster refused to receive the coal at Ft. Benjamin Harrison. In the meantime the coal had arrived and was placed on a side track at the fort. In all, it amounted to 145 carloads. The coal operators then requested information as to what was to be done with the coal. They were informed that the fuel administration was negotiating with the railroad administration to take the coal. But so slow is the process of government red tape that it was March 10 before the railroad administration took the coal and distributed it to five railroadsThe operators' asked the fuel administration to advise them to whom invoices for the coal were to be sent, but were informed that the railroad administration would let them know promptly about the invoices. But while the coal was on the sidetrack from about January 1 to March 10, demurrage charges of $84,820 had been run up in addition to SB,OOO freight charge# for shipment of the coal from the mines to the fort. Before paying for the coal the railroad administration demanded payment of the demurrage freight charges. The operators having delivered the coal according to instructions, did not feel inclined to pay the demurrage. The fuel administration complained that it had no money to pay the demurrage, and said the mistake was made by the war department, and not by the fuel administration. The war department in turn denied knowing anything about the order.- . ~, .. ,

Then the railroad administration was appealed to by the fuel administration, to strike off the freight and demurrage charges, and for a while it appeared the railroads would do this on behalf of the almost bankrupt fuel administration. The question was finally handed to Henry B. Spencer of the railroad administration who flatly refused to pay for the coal until he knew where the demurrage was coming from. In the meantime, the railroad administration s legal advisers had decided that it would be legal for the railroad administration to strike out the charges for demurrage and freight. Spencer who obdurate, and said tne railroad administration would not pay, so Senator Watson is going to Director General Hines with the case, to see whether something can not be done. ~ Probably the most unusual thing about the case is that if the operators had refused to supply the coal they would have been subject to prosecution, fine and imprisonment, under the Lever act for failure to supply the coal. Therefore, it appears that the operators had the choice of being fined and imprisoned under the Lever act for not delivering the coal, or of losing a good many thousand dollars, plus the value of the coal, by carrying out orders. “It is a heads-lose-and-tails-you-win proposition with us,” say the operators. But they hope to get it straightened out in the end.