Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-07-13
The Tax on Coal.
Boston Herald)

anthracite coal industry of that state
two taxes that ultimately will have to
be paid by Massachusetts, coal buyers
and the consumers of anthracite in %
other states BY the terms Of the
Williams bill which went into effect
on July every ton is subjected to a
tax of II per cent. IF its value when
ready for shipment or market; the ton
in this case is the long ton Of %
pounds; the coal is ready to ship when
it has been mine d. washed or screened.
BY the terms Of the Fowler bill which
goes into effect in few weeks coal
owners or operators must pay to a new
commission a tax of > per cent. of the
market price Of AL coal and tho com
mission is to spend the money TO pre-
vent and eliminate" the danger of
surface subsistence resulting from
past or future mining operations"
awarding damages ~ individuals and
the like, the commission will - an eX-
tensive bureau and its three members
arc to have $4,000 each and expenses a
year. Finally the kohler bill, intend
cd as remedial legislation, makes it
unlawful TO mine coal SO that the sur
face may collapse.
In many states vigorous protests
have followed the passage Of these
hills. one congressman dcnounCes
this aggregate levy 81 8! per cent. as
a tax on coal bins and declares that
consumers in al the - states affected
viii have to pay it. Some men IN the
a. ~, Il al, = 80
fears OF househoIdcrs by arguing that
tho producers will absorb these taxes.
That is not likely. and one editor of d
coal trade journal publishes the opin-
ion that the producer cannot absorb
the constantly increasing costs Of pro-
dUction \ large number of anthra-
cite operators them selves oppose these
measures ON the ground that they are
class legislation inasmuch as they do
mot affect the bituminous industry.
One large producer claims that the
Fowler and kohlcr acts will compel
the companies To eXpcnd millions
and possibly To discontinue IN the
Scranton district. and former Judge
OF Wikesbarre thinks the legislation
means u general Curtailment of an
thracite mining. All these things. if
they como. to pass, mean inevitably
that the householder must pay more
TOR heating his house.
But--are these taxes constitutional?
The attorney general of New York. the
corporation counsel Of Duf3Io. the
Chamber OF Commerce of Syracuse
declare they are not. \ New York
congressman wants the attorneyg gen
eral of the United States to start pro-
ccedings for the notification of these
laws. Has state the right to levy
tax which is IN effect an expert tax
and violation of section 70 IF article
of the United States constitution?
Can Congress prohibit the interstate
transportation of coal on which a
special state tax has been imposed"
Various questions of this kind are in
volved
Twice before Pennsylvania has tried
to tax coal in some such manner. both
times without success. III 1913 the
keystone Legislature passed an act
with which the present Williams i
per cent. act is almost IDENTICAL
year or so later the state courts de-
cIared the ACT unconstitutional. In
1915 the Harrisburg Legislators tried
it again, but for some unexplained
reason that act. very similar to the
earlier ono, was never enforced
But the coal producers protted by
that 1919 Legislation in spite of its I'M
constitutionalitv When the act went
into effect the producers began to pay
the tax into the state treasury. while
protesting its legality; when the state
courts passed upon the law the opcr-
ators collected back from the Pennsyl-
Vania treasurer the moneys they had
thus paid in: to their biggest and most
powerful Gust CmerS they related
enough to make up for the increased
charge they hal made in passing on"
the tax; but there was NJ way. at least
10 easy way. for them to reimburse
the small buyers, and the ultimate
consumers. purchasing one or FIVE tons
at time. never got back the extra
money they paid to fill their bins while
the increased tax-absorbing charge
was thus assessed on them.
These coal taxes must mean : lot to
every New Engiander Massachusetts
alone burns 100000 tons of domestic
anthracite year. Theoretically these
new laws will add so cents a ton TO the
price he pays; practically the addition
will be 40 cents At least; probably it
will be so cents. That would make
the total addition to Massachusetts,
consumers from one and two-thirds ~
two and one-half millions of dollars
annually, That fact justifes Atty
Gen. Allen in using every means in his
power to secure ultimate judgment IS
to the constitutionality of this Iepisla