The Liberal democrat. [volume] (Liberal, Kan.) 1911-1924, 1920-12-02
Lever Act Held Constitutional in Case
Wherin Coal Operators
Fought Examination
we're CHARGED wI1H PROFITEERING
Big Concerns Did Not Relish State
Diggin Into Private Revords to
Determine As to Whether. or Not
They Were Engaged in Profi-
teering on Coal Prices.

The constitutionality of the lever
act, war time measure, was upheld
Wednesday by Federal Judge Arba
S. Van Valkenbourgh in ruling
against 10 Kansas coal companies,
who fought examination ITO their
books by the grand jury in prof.
teering probe.
Judge Van Valkenburgh's ruling
supersedes similar opinion by the
supreme court in case now pending.
This morning the grand jury start
ed the probe of the companies priv
ate office records to ascertain if
the price of coal in Kansas City, with
reasonable operating expense taken
into consideration is exorbitant. At
torneys for the companies indicated
they would submit to Wednesdays
ruling without an appeal.
Judge Van Valkenburgh in effect
said that the grand jury would not be
given full sway in deciding general
principals of the Lever act and re-
turning bills on that basis, but the
jury would be given certain court
instructions as to construction to be
placed on the law.
His decision was in answer to a
petition seeking to restrain the dis
trict attorney from demanding the
companies to throw open their books
for scrutiny by the government
forces. This action was taken after
eight Washington Investigators were
brought here by Francis M. Wilson,
former district attorney, who insti-
tuted the probe on numerous CON-
plants of exorbitant prices.
Facts and figures revealed in the
grand jury's inspection of the COM
panies will form the basis of whether
+ true bills be returned against the
S18 companies; also as to whether a
smore sweeping investigation into the
price of coal to Kansas City consum-
ers fill follow.
Sam o. Hargus, acting district at
torney, and Arthur ]. Devlin of the
department of justice at Washington
announced the investigation will be
thorough and complete, both in fair.
ness to the consumer and the coal
companies.
Retailers, jobbers and operators
are involved in the investigation.
A fine point of distinction was
drawn by Judge Va Valkenburgh in
upholding the Lever act in his reply
to an argument by Attorney John H.
Lucas, associate council for the COM
panies. Congress has not the sole
power to declare the Lever act in
valid, as it has in declaring state
of war, was the effect of his ruling
on Attorney Lucas point. Attorney
Lucas had based his argument on the
Knox resolution. multiplying certain
war time measures, which went thru
under the presidents veto. That the
nation still remains in a state of wal
echnically was another point brought
out.
"The presumption of the validity
of the Lever act must be indulged.'
said Judge Van Valkenburgh, who
pointed out that case in supreme
court had not been decided.
'sThere is much to fear in the pre-
vailing impression of the people il
the coal companies books are with
held. For the companies to throw
open their records in this particular
case, however, will have a mos
wholesome effect"
Mr.. Hargus, district attorney
wired Judge Van Valkenburgh rul
l.