xt7wwp9t2q46_29 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/mets.xml https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61.dao.xml American Liberty League 37 linear feet archival material English University of Kentucky This digital resource may be freely searched and displayed. Permission must be received for subsequent distribution in print or electronically. Physical rights are retained by the owning repository. Copyright is retained in accordance with U. S. copyright laws. For information about permissions to reproduce or publish, contact the Special Collections Research Center. Jouett Shouse Collection (American Liberty League Pamphlets), No. 32 "The Bituminous Coal Bill: An Analysis of a Proposed Step toward Socialization of Industry," April 29, 1935 text No. 32 "The Bituminous Coal Bill: An Analysis of a Proposed Step toward Socialization of Industry," April 29, 1935 2013 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61/59m61_32/Am_Lib_Lg_32_001/Am_Lib_Lg_32_001.pdf section false xt7wwp9t2q46_29 xt7wwp9t2q46 Pamphlets Available I * ak
ir
Copies of the following pamphlets may
be obtained upon application to the
League’s national headquarters:
Why, The American Liberty League?
Statement of Principles and Purposes
’ American Liberty League-] ts Platform x
An Analysis of the President’s Budget Message `
N. R. A.—Its Past, and Recommendations for
the Future _
Analysis of the $4,880,000,000 Emergency Relief
Appropriation Act.
Economic Security-—-A Study of Proposed Legis-
zaim * ·k *
The Bonus-An Analysis of Legislative Pro-
posals
Infiation—Possibilities Involved in Existing and
Proposed Legislation
Tl? Thirtgr LHou; Week—Dangers Inherent in A 1
*00080 00*0 0ll00 I1 Ana sis of a Pro osed 1:
The Perzdinjgf Bankin§lBil1—A lgroposal to Sails- Y P S cp
ject t e ation’s onetary tructure to t e · · ·
The Holding Company Bill——An Analysis of
Proposed Legislation IYldu$tI°Y
"What is the Constitution Between Friends?"—
Speech by James M. Beck _
Where Are We Going?—Speech by James W.
Wadsworth
Congress at the Crossroads—Speech by Jouett .
Shouse
Price Control—An Analysis of Experiments and
Recommendations for the Future · ég yc
Yesterday, Today and Tomorrow~—A Review of Y
Factual Analyses issued by the American Lib-
erty League and a discussion of the Legisla- E'. ‘;”fQ~. M
tive Situation. ’*"*¤i*¤**`
The Labor Relations Bi1l—An Analysis of an Tfy Le"
Undesirable Measure
Government by Experiment—Speech by Dr.
Neil Carothers
How Inflation Affects the Average Family-
Speech by Dr. Ray Bert Westerfield
The AAA Amendments——A Study of Proposals
Illustrating a Trend Toward Fascist Control
of Agriculture and other Industries '
Pcgiticizal Banking—Speech by Dr. Walter E. . AMERICAN LIBERTY LEAGUE
pa r National Headquarters
* NATIONAL PRESS BUILDING
· WASHINGTON, D. C.
AMERICAN LIBERTY LEAGUE
NATIONAL PRESS BUILDING
WASHINGTON, D. C. * *
.,%. Document N0. 32:
4 April. ross
r The Bituminous Coal Bill
. uk
The Bituminous Coal Conservation Bill
(S. 2481), now before the Senate with a favorable
‘ report from its Committee on Interstate Com-
merce, represents a step toward socialization of
industry. The menace in the measure is so great
as to outweigh any possible benefits.
Objections and dangers include the following:
1. Complete government control of the bitumi-
nous coal industry as proposed would be entirely
inconsistent with American principles.
2. Federal regulation of mining would be in
defiance of numerous court decisions interpreting
the commerce and revenue clauses of the Con-
stitution.
3. Failure of the plan to solve the problems
» of the industry would be followed logically by
1 government ownership and a heavy burden upon ”
the taxpayers.
4. Designation of the industry as being
affected with a public interest would encourage
_ similar action for other equally important in-
dustrial groups.
5. Control of prices would mean a perma-
nently higher price level which, if maintained
l successfully, would divert a large volume of
business to competitive fuels.
6. Recovery would be retarded through higher
prices charged to industries forced to use coal.
‘ 7. Control of production would disrupt exist-
ing market relationships as well as inflict injury
upon portions of the industry not favored in the
allotment of tonnages.
8. Granting of power to one labor organiza-
tion sufiicient to tie up the entire industry at will
would be unfair to the public.
' 9. Expenditure of $300,000,000 in the acquisi-
tion of a bituminous coal reserve would not solve
the immediate problems of the industry and
’ would encourage a raid upon the Treasury.
10. Creation of two new permanent boards
and 21 district boards would expand further the
ever-spreading governmental bureaucracy.
Terms of Bill
The bill declares that the mining and distribu-
tion of bituminous coal are affected with a
T 3
national public interest and that the general itgtlvrggenoatoatitnitgguriiililnlprhlstlrriiltsrgnadmgtiininletngg
welfare of the Nation requires that the industry oi ovenoanaoity tor coal nroduetion in the
be regulated. It is further maintained that all industry
production and distribution of bituminous coal The sum oi $300 000 000 is annro rieted for
bear upon and affect interstate commerce and the purposes of Titie il Three str eent 5o_
render regulation imperative for the protection Y year bonds Would he issued to this? amount for
of such commerce, that excessive facilities for use in exohange for Coal nronerties and for serie
production have led to practices and methods to obtain necessary cash
that waste the coal resources of the nation and To provide funds ior`the administration of
hurdoh and vbstruct lhtorotato oommoI`oo» and the coal reserve the relocation and rehabilitation
that the right of mine workers to organize and oi miners Who have iost emnioyrnent by reason
bafgam collectively for Wages, hours ot lahor of the acquisition of coal properties by the gov-
and oohdltloho ol olhploylhoht Sh¤¤1d be guaI`ah· ernment and for the creation of a sinking fund
teed in order to avoid obstructions to interstate for the nayment ot interest on and the retn,e_
oornnloroa ment of the bonds a tax is levied on all bitumi-
A National Bit¤mi¤¤¤S Coal Cornrnloslon or nous coal mined in the United States The tax
hluo members alopolhtod by tho Proslooht is is four cents per tontin 1935 7 3 cents in 1936
‘ created in the Interior Department with juris- 8_7 eents in 1937 6 9 oents’ in 1938 and 32i
diction over production and marketing. The cents in 1939 and ’eaoh year thereafter `
Commission would make allotments of tonnage No lands heid in the reserve would he nnned
‘ and fix prices with the aid of 21 district boards. soid or ieased for mining exoent unon the order
A Bi¤¤mi¤¤_¤¤ Coal L¤b¤r B¤¤1"d_<>f tnroo of the Commission after a hearing and a finding
members appolntoo by tno Prss1ds¤¢_1¤_¤r¤¤’¤<=d that such mining, sale or lease is in the public
mbthe ltalsor Department with jurisdiction over interest,.
la or re a ions. · · ·
o<>¤diu¤¤¤ prescribed i¤ the Aa w<>¤1d be assrtggsgtivtiggg $1 till; aigganlaalllsiiatlilihiilig
formulated in a code, which must be subscribed make the measure one Whieh p ro ori should
to by all producers. Code members are exempt Originatc in the House or ge Iresgntetives
from anti-trust laws. Enforcement of the code Nevertheiess S 2481 was re ortedp on A rn ii
is facilitated by a tax of 25 per cent on the sale irorn the Senate Committee gn interstetepoonn
Prloo or fair lnarkot Valnaot ooal_at tno minor merce, which ordinarily does not have jurisdic-
99 Por oont or tno tax nolng ronnttod to Pro" tion over revenue or appropriation measures and
ducsrs who oornply with tno Aot· is on the Senate calendar A similar bill Itl R
Title II of the bill creates a National Bitumi- 4661 is nendins before the House Cornnnttee on
nous Coal Reserve "for the purpose of conserv- Wayg and Means
ing the nation’s bituminous coal resources, to `
promote the economical production of coal, to Constitutionnlity
prevent and eliminate the evil of excessive and , _ _ _
wasteful production, to assure future supplies Mlnlng of ooal ls oloarly outaldo tho range of
of coal in time oi oeaee and War, and to promote I authority of the Federal government. _The_courts
the future interstate and foreign commerce of have nnllorrnly holol_ that Produotloh _1S hot
the United Statesy commerce as the term is used in the Constitution.
The Seeretary oi: the Interior, upon annrovai A declaration by the Congress that the bitumi-
of the National Bituminous Coal Commission, is non? ooal lndustry lo alrootoo With a hatloual
authorized to purchase, or acquire by condemna- pubhc lntorost ono a tuttnor assortlon that all
tion nnoeeedines, eoni lends, nronerties end rnin_ inroduction and gistribution of bituminous coal
ing rights. The desirability of the acquisition of Jgigsulgig an o' ect llitgrstoto oommomo dv not
properties would be considered from the stand- standpoint measure Va 1 mm a constltutlonal
point of conservation, effect upon the employ- ‘ . . . . .
ment of labor, cost Of coal to the consumer, The recent decision bsrUn1ted States District
4
Judge Charles I. Dawson at Louisville, Ken- thiitdtigvonlgetlglause gf the CooSl'l}°lll’loll· The
tucky, holding unconstitutional the Kerr-Smith li.?1 ISY O lg regu etory devloe le doublillll‘
Act for the regulation of tobacco production, is C 8 dllirggoh Igor; mhthe Qhlld Lsbsr Tex
pertinent in connection with the language used bose 1% e t sr t .e llexmg power must
in the Bituminous Coal Biuu etluse Ito enforce a police regulation properly
"It is the plainest kind of an attempt to ac- , V? m i° o control of the elieoee Elllolioelllellll
complish an unconstitutional purpose by the pre- 0 regu etoliy pliovlelolle sf the pending blll le
tended exercise of constitutional powers/’ said manifestly the Sole purpose sf the 25 per oellll lle‘X·
Judge Dawson. "The garment used to hide the hillhe allotment of tomlegee to llllllee below
naked unconstitutionality of the Act was fabri- t. sr customary Output would Pemllll eollflSee·'
clated from the taxation and commerce clauses of mon sf property Wlthool due ploeeee sf law-
t e Constitution; but neither congressional reci— . .
tations of purpose, nor the formal dress of a Govcliinmcnt Ownorehlp
statute, is conclusive upon the courts/’ · The bill definitely tends toward Socialistic
Judge Dawson held that the Congress had no control of industry. For the present, at least,
authority to control production, which he said ownership of mines in active operation would
was an intrastate business. While admitting a remain in private hands. Every phase of pro-
reluctance on the part of the courts to invalidate duction and distribution, however, would be
an act of a coordinate department of govern- under the control of the government. Eventually
ment, Judge Dawson said that if the act itself without doubt this would lead to government
showed "subterfuges were resorted to to circum- ownership. If prices were reduced sufficiently
vent constitutional limitations, no judge who re- to satisfy consumers, the owners, faced with
spects his oath to support and defend the Con- continued losses but powerless to dictate policies,
stitution will hesitate to strike it down, it would be glad to sell to the government. Rigid
matters not how great may be the demand for control, which prevents the full exercise of pri-
such legislation/’ v_ate initiative, is contrary to American prin-
Judge Dawson continued: "For nearly 150 01pleS of government. Ownership of industry
years the Constitution has been the fortress be- bY the government would be 3 complete depar-
hind which the individual citizen has found ture from the Syetern under Which the nation has
security against all dangers inherent in a repre- Pi`0sPe1‘ed-_
sentative government based upon popular suf- A llellll-ile beginning of 3 Pi`0gi`3¤1 of govern-
frage. Its worth has been tested by time and ment Ownerehlp is involved in the scheme for
proved by gxpgrigncg and it must, not bg djs- ·the creat1on of a National Bituminous Coal
carded or weakened to meet the exigencies of Rese1`Ve·
the moment.’ ·
The bill provides that every corporation en- _ A Pubhc Interest
gaged in mining bituminous coal "which ships The bill 3S first introduced, besides declaring
its coal in interstate commerce either directly or iili3t the p1`0d110t10n 3nd distribution of bitumi-
through a subsidiary or an agent, or which uses bells libel 3i`e affected with 3 national public
the mails or other means of communication in liiieieelb also 3ssei`ted that the general Welfare
interstate commerce to dispose of such coal," bl llle beiibii i`eeliiii‘eS_i§l13i> the industry be
shall file with the Commission its acceptance of regulated as 3 Piiblie utility- AS reported from
the Act. the Senate Committee the bill omits the designa-
It is obvious that no coal—producing company lllell cf elle iiilliieiiy as *3 Piiblie utility altliollgll
of importance can escape the effect of the bill. ll leellee leeeelle Wby ll? Sllbllld be i`egiil3ted·
If the use of the mails makes an individual or There is no reason to classify the bitu-
corporation subject to Federal regulation, it minous coal industry as a public utility
means that no manufacturers, merchants or and to ignore anthracite, oil, lumber and
farmers are immung_ V&1‘i0l1S &g1`iCl1].U1I`3]. iI1dl1St1`i€S 8.1’C
The taxing feature invokes the authority of e*liiellY essential-
6 ‘ 7
The bituminous coal industry is not "affected Competitive fuels have made serious inroads
with a national public interest" as the term is upon the coal industry. The plight of the indus-
understood in a legal sense. If it were, regula- try is being aggravated by the use of government
tion would be within the province of the states money for the development of electric power by
rather than of the Federal government. the Tennessee Valley Authority and in other
The Supreme Court of the United States in r areas. Even now there is pending legislation for
the case of Charles Wolff Packing Company vs. an extension of the activities of the Tennessee
Kansas Court of Industrial Relations 13 years { VallieyhAutho1ritydinra field directly co·mpetitive
ago said: ‘ wit t e coa in us ry.
"It has never been supposed, since the adop- it Twenty-five years ago it was the fact that
tion of the Constitution, that the business of the water power eould furnish electricity cheaper
butcher, or the b-aker, the tailor, the wood- than coal. This situation has changed, and the
chopper, the mining operator, or the miner was efficiency of a pound of coal 1n producmgran
clothed with such a public interest that the price electric unit has increased more than one-third.
of his prciduct or his wages could be fixed by 'lgorday, 1n nrianyicaieies, eleiztrricity caii lr:-iet gen-
Si;3/gg rg u 3,{;j0n_" GTB. G II1OI‘6 C Gap y I`Ol1g G USG O 1 uml-
In thi decision of the Supreme Court in the ` nous coal than through the use of water_ power.
Appalachian Cgglg Cass in 1933 there was no The present adm1n1strat1on 1S encouraging the
suggestion that the industry was affected with a development of water power. The bill tends to
niational public interestilor poesessed any of the fardriitate its disrélacemeriit of crroal. d b
c aracteristics 0 a pu ic uti it . e coa pro ucers ave een squeeze e-
If there be any justification fgr special treat- tween demands for l0We1‘ priees t0 meet com-
ment of the coal industry, it can only grow out petition of other fuels and demands for higher
of the necessity of conserving coal by prevention wages. Their costs have been otherwise increased
of waste. Necessity for such conservation is by the general advance in prices of materials ‘
extremely doubtful. If there should be such due to thetNRA.
necessity, then it would be the duty of the coal- It is a certainty that enactment of the pending
producing States to oonSoI`Vo the supply- bill would mean an increase in costs in the pro-
Tnete is notntng in tne inherent natufo of ooal duction of coal. Prices would have to be ad-
or in the_ conduct of the coal business that g1V§3S vancsd if the owners of the coal properties are
_]ust1ficat1on for declar1ng the mdustry a public to reeeive an ededuete return en their invest-
utility or affected with a public interest any more . merit The higher prieee Would result in er de_
than in the case of any_ other producer or manu- ereese in eerieumptieri by reason Oi ir greater
facturer of a commodity of general use. The diversion Or the bus- es t th f i Th-
problems in the marketing of coal are no dif- I ld · tl?} S to F ard us S` Tris
ferent from those which abide in the wholesaling M Kim; mqulm a’ 213 atmen fi pm uc mn' . B
I and retailing Of other commodim r tégaii $éif§3eZi2“ stilfiiiiéir '§?§i222ii,’Zuf§1¥£
necessary to make the smaller production profit-
Compatitiva Fuels able. Eventually either the price structure would
break down or losses would have to be absorbed
The situation with respect to competitive fuels by the government- _
furnishes one of the chief problems of the coal The passage of tnle 1aVY Would oonnplotely
industry. The pending bill offers no solution onset tnat Part of our foreign wmmerce which
whatever _of this problem except as it tends in IS earned under the American nag Many Ships
the direction of a government subsidy to meet new burning Goa} would have to Pay increased
losses incurred by reason of the necessity of prices for their coal, or go to the expense of
selling coal at prices low enough to meet com- changing their engines for oil consumption, and
petition of 011, gas and water power. the measure would have a great effect in driving
the American iiag from the seas.
8 9
Costs SO Csnsumsrs 18, 1933. Enforcement has proved impossiblrj:.
n. i . The pending bill invokes the taxing power o
Higher prices to consumers would be un- · · -
avoidable because of the special taxes imposed 2'f11gr§n€$§3?5I1Sg1;’ Crgggiugvlglrrdthgugiriiruigug 11%
by the bill, greater unit costs due to limitation would be drmcurr to Obtain 100 pur cunt uurrr_
sf ¤rssss’ss s» s highs rsss sf sslssss ssssss pliance nnnenn an army nr enforcement agents.
by reason of such limitation, establishment of a as Minimum and maximum prices Would bu Hrxed
1SbS11 111011011 3117 W1?1 sswssits. 11111ErS 11,;iSgS mu by district boards subject to the approval of the
S1`S®SS1Sr1Sg§1 §SS.S. rSSSD11S1111S 111S 1 SS 1S11 S11 Commission. The minimum price would be the
SSSSS S SS S S1 111r111S 1`S 1S11· rd b bl es average production cost of 90 per cent of the
SmSdS 1;SSSrS1.Sh SS11S11mS1SrS WO11 . S ,01111S bS tonnage of a district, excluding that 10 per cent
1’,;1.rS]‘0’S1 r 11 S r1g 51 .p1`1SSS 1111`1r1§1g S S11 ' represented by the highest cost mine production.
Sé1dudS b11SdS' 1150 Sy SSSSh1 TSS mS;1“ S11 The production cost would 1nclude labor,_sup—
S1 CS d 1511 S11 S1 S1 111;% W Sr1sr°1r’S1` r1SSSu 1211 plies, power, taxes, insurance, local administra-
11SéS St S SVS1SSS1111S S S1` S S SS SS SSS Y tion, sales and all other direct expenses oi pro-
111 ,ri1rS€1Sgrurh_OadS are among the important groups duction, but not including depletion, depreciation
r1§111S11.WS111%1SSi gr1S‘(1;rS1 1r1r11"r 1§11`SS‘11Y r111%S1` 11}*1 0r[l;Sd2i·Si·Sii1les and regulations prescribed by the
1Sgm1§SuS bSS .S S S Sdur;11 SS;gSu%01u0%1S1' Commission the district boards and marketing
11SS‘r? SQ.]; .SS11 111S1`SSSSir Y S r b.> . S’11' agencies of producing Helds serving competitive
1111% ,6 S 1Sr€;SSSSru1§31 S %1”1§S Sr r)S111111r1r)%1;rS markets would agree upon fair competitive trade
t1c(iSthe(i·ali1E1bIads;.Sniounte,dStSo 41SSi:e1i1St1sSger nens ssssss snr, fsf ssspgilglvs was in such
. . . . · markets. W en approve y t e ommission
ggrégt S§r1113rS;;SSrS1€1,11g;n1;1r1§1rrS1’5;V§€r1rS(§111r;VS;1r1g?;_€;1g; such_fair competitrve prices arr)d practices would
EES S;;S2r11};€i‘11rS1S;‘S11rOSrS ?ir11;STOi1r1ré1 Ffgggpg bS’11liIddd1i§ri1 S11°“1d 11118 11111 industry, which would mean the United Mine
.· . _ u Workers of America. ‘
mg? “11r_1£h1;1r1;’ (;S€7n;§S%1}SSrhSrS'rSr?r11_SO1;d;SF;1%;1g‘i S The boundaries of the 21 districts are fixed in
1 companies and other large industries. Theiprod- the 1’111‘
ucr olr(r;lrresrehmin?r_is Lrrrsrid by the owners and is Production Control
Sitguigs inc eeSn1§“nr1$ne n§r£~13`E.1L@113Eei’ 1e1r11i£“§‘1£§? gsntggl sf psssgsgrglrhss gsi lrgsn qgisgsplgs
dustries. The effect of the bill would be both Em S; d Srp§§SSS d- bSi1lS' Wir S ,3;
to rncrease production costs in these mines and timp S {h1 S (§1S1r.111g 1 r 1f pSS§Sr* S11k
to interfere needlessly with management or in- SSW S1.p1`S. 11S 1S11 SS11 1`S WS11 111S S 1
itugrutuu industrial grOupS easier to maintain nxed prices.
` Production control is contemplated under the
_ bill through maximum allotments of tonnage by
Pr1cc Control the National Birzuminous Coal Commission. The
.` llt t db df hifth 21
Prices have been fixed under the Bituminous dis(tri]d§di S WSU S ma S Or SSC O S
Coal Code, which became eifective September The district boards would Hx tonnage allot-
10 11
ments for the different mines from the quota
assigned to the district by the Commission. prior to the NRA were for small districts. The
No code member and no one desiring to be- public was spared the danger of nation-wide
come a member of the code would be allowed to strikes. The NRA Bituminous Coal Code re-
open a new mine except upon a finding of the stored a wage contract covering the entire in-
Commission that the market requirements justi- dustry, with the result that it was necessary
fied such action in the public interest. rt recently for the administration to intervene to
The production allotments would involve many prevent a general strike.
difficulties. There would be opportunity V for i Opposition by the producers to the labor pro-
political favoritism. Injustice would be done , vieiene ef the biii nae been ieee marked than
both respecting individual companies and pro- " would have been true except for the price control
ducing districts. provisions. The government would undertake
Market relationships have been built up over I to maintain prices high enough to absorb any
the years on the basis of competitive conditions added Wage bests-
ano transportation facilities. Consumers have The privilesee eeeured ie ersenired ieher under
preferences for different kinds of coal. They requirements fer the eede ere mneh mere ter'
often buy coal from one area when other coal reeehins than in the iamene Seetien 7ia) ef the
might be available at a less distant point. Rival NrRA· Beeidee euerenty ef the right ef eeiiee·
producing districts have fought for advantage tive bargaining end asshranee against interfer-
through freight differentials and differing labor enee by embievere end eemleeieien ee te eem·
costs. pany unions, the bill gives statutory sanction to
The bill would apply economic planning to the the nueierity rnie- A rnineritY» even ef 49 per
problem of coal distribution. The tonnage allot- Cent ef the vverhere» Weuid have ne erendins in
ments by districts and mines would attempt to eeiieetive be~rge·ining· Agreements ee re heure
substitute arbitrary factors for natural laws. end Wages between the nredneere er mere then
The demonstration under the AAA of what takes tvve‘thirds er the ennuei netienei tennege ene
place in such circumstances should be too fresh the rebresentetives ef mere then ene'nair the
in the minds of members of tho Congross to per.- mine workers would be binding upon all the code
mit similar experimentation to be applied to the members-
bituminous coal industry. The plight of the cot- er the three members ef the Bitnminene Geei
ton textile industry is a gage in pojnt_ Board one would be an impartial person with
no nnancial interest in the industry or connec-
. k tion with any organization of em loyees one a
Labor Reietrens representative of the producers anld one ai repre-
The labor provisions required to be included in s sentetlve ef the. Orgemzed empleyeee each .°r
nhs Bituminous Coal Code are Such as to assure whom might retain his respective interests while
the t’United_ MineH§lVorkers of America a domi- e ee the Berra
i nan posi ion. e intention is to facilitate
wage contracts covering the entire industry. A Coal Reserve
With such contracts the onion would be able The prepeeed expenditure ef $$00,000,000 fer
effectually to shut Off all mining oporatjons in a the acquisition of a National Bituminous Coal
strike. The United Mine Workers had contracts Reeerve hae net been ehewn te he feeeihle er
or this kind during the World war and for a deeirehie- There ie ne preeeins enierseney in
few years thereafter; Ihvarjahbr tho organiza, respect to the conservation of coal. In the hear-
tion was successful in forcing concessions when ings berere the Senate Cemmittee ene Witness
it had power to make good a throat to dsnrivo cited a Federal Trade Commission report which
industry and trio railroads of than Sonics of eeeeried ther 7,000 yeere Weuid he required ie
fuel. Eventually the effort to maintain Wage exhaust the known coal resources of the United
rates at a level higher than was jnstjnod by sX_ States while another witness estimated from data
isting conditions collapsed of its own wasnt, ef the Bureeu ef Minee end eeelesieei Survey
Such wage contracts as existed in tho poriod just that bituminous coal deposits are sufficient to
12 last for 510 years. In its decision in the Appa-
~ 13
1
lachian Coals Case the Supreme Court said that of the Bituminous Coal Labor Board also would
"the supply of coal is virtually inexhaustible." 1 1`0001V0 $12,000 00101100 01111 111011111 110V0 @110 001110
The problem of the bituminous coal industry A 1100010111 111 1110 0PP01111111011@ of 011 ‘~111111111@0d
is one of excess capacity rather than actual ex- number of emP10Y000· _
cess production. Coal cannot be stored easily B0@11 @110 110W 0g0110100 W0111d 110 of 0 P01'·
It has been customary to produce only suiiicient 111011011@ 01101f00@01‘- ·
for the market demands. The creation of a coal 1 The 21 d1St1‘10t b001‘dS_W0111d 113VG p0W_01‘ to
reserve would not affect production and there- 1 "0PP0111@ 01110010 110111 @11011 0111711 11101111101`0111Pi to
fgrg wguld have ng in§uen(;e upon prj(3eS_ I HX l3l'l€1I' l',€I‘II1S and COII1p€I1S&li1OI1, JDO pI'OV1dG fOI`
The plan would open the Treasury doors to 1`0P01‘@0, 01111 to 0111P10Y 011011 001111111@@000» 0111*
owners of land now lying idle and subject to P10Y000, 01`111@1`0@01`0 0110 0@1101` P0100110 110000001`Y
taxes. Politically favored owners would be able to 0f100@110@0 1311011 purposes?
{,0 make a handggime pr0§t, af, the expengg gf All}Og€‘bl1€I‘ 'lil1€1`€ would be l'»l1011S8.I1ClS of BBW
the ggvernmgnt_ gOV€I`I1II1€I1l3 €II1plOyG€S.
Available evidence indicates that $$00,000,000
vsiouldl not be sufficient to do what is. contem- _1 American Principles
p ate . _ _ _ _
The project would contribute to the increased BY 1@0 P1`100 11X111gi_ P1’0d110@1011 001111101 01111
cost of coal by reason of the tax to pay interest 1 other 1'0g1110@01`Y P1`0}’1010110i @110 11111 g000 _001}11@01`
on and retire the $300,000,000 of bonds and to 1 to 0111 0Y0@0111 of _P11V0@0 111d110@1Y W11010111 111d1·
iinance the rehabilitation and relocation of labor l VK11101 1111@10@1V0 10 a11oW5-=d 11‘00_P10Y,_011d g0V·
thrgwn gut, Of gmplgymgnt the withdrawal gf j €1`I1IIl€I}'l'i2il 1I1`li€I°f€I`€I1C€ Wllill bl1S1I`1€SS 1S to
mines from operation. 0 1111111111}1111· _ _ _ _
The States Would Suffer IOSSES to ` A. Sl`»3ib1l1Z8il]lOI'1 COI1dllDlOHS IH `l`ill€ b1lQuIIl1I10l1S
tex lands shifted to government ownership. West t¤a1 mdustry 10 h1s111y_d€s1rab1t- 00ms ¤¤a1 pro-
Virginia witnesses estimated before the Senate dtttrs 1101/'0 g11{011 @11011 011PP01@ to @110 P011d111g
Committee that the effect might be to reduce n 11111 m dsspsratlon, b$—>11tvms that a s¤1ut1on of
by almost 25 pet- cent the amount of tax funds t tht pr¤1>1sm by the m<1ust}‘y 1tst1f is h¤ps1sss-
available in that State for the support of local T110 80V01`11111011@ has 001[1@1`11>111>0§I1 to @1110 S1@110-
· governments and free Sennnla L tion through its competition with the coal in-
Just what might be done in the rehabilitation 1 d110@1’Y 00 W¤11 00_111 other Ways-_1f @110 g0V01`11·
and relocation of labor is not specified in the 1 11101111 W911111 10110111 110111 00_111P0@111g W1@11 1@ 0110
bill. It is conceivable that the purpose might yl 111@01`101`111g W1@11 1@» P1`1Y0@0 111€1110@1`Y W0111d 110V0
• be to readjust mining operations so as to re- 1 8·_ b01@€1‘ chance to res1st the movement for so-
lease more than 100,000 workers. Sole authority j 01011Z0@1011· _ _ _ _ _
is vested in the President. In a single sentence j, T110 1101101113 1111110 P01‘111011011@ 10g1010@1011· The
the Congress would delegate to him power to do 0901 P1`01010111 10_0 P01`@ 01 @110 P1’00011@_01¤01t‘§0¤0Y
anything he pleases with these people, · §@110;1011& The lndustéry by itskozvn iniiiiativehhag
A eve ope a coopera IVC mar e ing p an w IC
Gcvernmenc Bureaucracy received court approval 1n the Appalachian Coals
Th·e bill makes a very substantial addition to Ceisigehas not been demonstrated that the only
ihe {ready bust geverigneee bureaucracy The solution of the coal problem lies in complete gov-
O¥V°;mIefgyg‘§§ee1ee Wee require a eme army ernnDienta_l pontrol. It hea?) not been showiiidthat
. · p . . . po 1 1ca in er erence an ureaucracy cou im-
The mee members ef the Naelenel Bleummeue prove matters. The evidence indicates that posi-
Coal Commission would receive salaries of tive in·m.i€S both to the) indust d ,0 th
$g2,000 each. The Cogmission wogld‘ have au- public rlmuld result ry an O e
t ority to appoint a ecretary an necessar ' - · · · · ,
clerical and other assistants" without regard tee b€g;1hE;XI1Qe;§Sli;§S ileiligprxege 1¤1t1¤11V¤d1av<=1¤¤t
provisions of civil service laws and without a Surrender Of Americgng lem .1°‘i°1’ eee 1¤V¤v¤¤
restriction as to salaries. The three members ` up mclp es'
14