Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1914-12-10
ANTHRACITE COAL TAX
LAW BEING TESTED
Three Companies Out Of so Pres
ent Cases to Test Constitu-
tionality of Act

The acid test of the law is being
applied to the anthracite coal tax of
1918 in the Dauphin County Court to-
day, three coal companies out of sixty
having been selected to present cases
which will raise the constitutionality
of the act. Some time ago an action
In equity was argued, but 1t is UNDER
stood that it will be abandoned and
the three cases submitted to-day taken.
The cases are in the form of appeals
from the settlement of the Auditor
General and State Treasurer and are
being defended by Attorney General
John c. Bell and Deputy Attorney
General W. NJ. largest, with Auditor
General Powell and Corporation Clerk
Hale Hill. There is a brilliant array
of COUNSEL for the companies and some
municipalities which would benefit
from the return of the coal tax If up
held are also represented. Dauphin
county is largely interested in the out
come of the case. as it means big pay
ments to each district because of coal
mined in the Lykens Valley.
The companies making the appeal
are ST. Clair, Aldan and Plymouth Coal
Companies. The Aldan was put on
first. showing the tax assessed at
$1,IS2. sc. based on the coal mined and
value when prepared for market be-
tween June 2S and December 81. 1t
was contended that the act is uncou-
stitutional because 1t taxes one of q
kind of a commodity; that only four
teen of thirty-siX townships in Luzerne
county, for instance, mine coal, yet all
Will share in the return of the tax; that
there are kinds of anthracite coal and
that the company already pays capi-
tai stock tax. This company in the.
six months covered shipped 1907
tons. The State objected to the state
ment. but 1T went in. 1t was also con-
tended that the Sullivan county coal
used to be classified as hituminous,
but is now anthracite. w. S. Snyder
Clarence Is. Miller and John 7. Ohm
sted are the company attorneys.
The Company's Side
X. NJ. Smith, general manager of
the Aldan, was the first witness He
has charge of the operations at Aldan,
near Nanticoke. and testified that there
is no broad line between anthracite
and bituminous Goals: that almost all
of the company's coal is sold out OF
the state and SO per cent of it, all
small sizes, sold in competition with
bituminous. The production is sold
through agents. 1t was sought by Mr..
Snyder. counsel for the company, to
show that in January. when the reporg
on value of production OF coal is made,
that practically all of the coal was out
VI the Sldte anu COulu not ne assessed.
He denied with emphasis that the
prices are fixed monthly and said that
the prices were regulated by demand.
When Mr.. Smith left the stand Mr..
Snyder declared that the act could not
stand because ii was special legislation
and no newspaper had printed notice
of intention, to present the act. Nine
counties mine anthracite and ii was
charged that in none was there any
publication. The State let it go in, but
Deputy Attorney General Hargest said
no one could go behind the Governors
signature anyway.
7. Ellsworth Davies. of Scranton. an
anthracite expert. testified that there
is no difficulty in getting market prices
of coal.
st. Clair Heard
The appeal of the ST. Clair Coal
Company came next. The company
tax was given as S7,769.S1 and it was
admitted that the company mines an
thracite only. Frederic w. Fleitz, with
j. II. Torrey, eX-Judge +. w. Wheaton
and Major Everett Warren. repre-
sented the company and said that
when the tax settlement was made 8,
protest was filed. He also contended
that when the tax was imposed some
of the coal was outside of the State
and that the requirements preliminary
to enactment of local laws were not
followed, thus making the act uncon-
stitutional.
This case was on at noon.