New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09
Kenyon Presents 2 Bills.
One Providing for OPP
GRAFTON of Industry
by the Government
Jail FERN Sought
For the Profteers
Maximum Gain Set at SOC
a Ton i'm Drastic Inter.
state Trade Measure


WASHINGTON, Oct. s.-Govern-
ment regulation of the coal industry
ioomed up again to-day as a serious
question before Congress. Senator
Kenyon, chairman of the Committee on
Education and Labor, introduced two
ollls dealing with such regulation One
provides penalties for profiteering and
the other calls for comprehensive
regulatory law to be known as the
Federal coal act, based on the theory
mat coal is charged with a public use.
Inc bills went to the Committee on
Manufactures, and strong efforts will
be made to have them reported. Thew
"lll have the backing of a number of
members of the agricultural bloc.
The general regulatory bill. which
Senator Kenyon offered is much the
same as the Calder bill of the last Con-
gress, under which the President would
be auth oriZed to take over and ope~ate
coal properties.
The bill to prevent proftecring in
coal has been framed in the light of
the decision of the Supreme Court
knocking out the profteer;ng provi-
slons of the food and fuel control act.
The court held those provisions uncon-
stltutional on the ground they were
too indefinite. Senator Kenyon sets
forth in the bill a scale of profits and
provides that sales yielding margins
in excess of the rates fixed i, the bill
shall be prma facie evidence of prof.
teering.
Facing New Fuel Crisis
Senator Kenyon said he had offered
the bills because the country was fac
ing another serious fuel situation the
coming winter, that supplies of coal in
the bins of consumers were low, and
that there is danger of another expert
encc on the part OF consumers such as
they had last year, when prices scared
to high points in the spot market in
New York and every important center
in the United States where there is
heavy coal consumption. He predicted
that inside of sixty days there would
be demand from many quarters on the
part of the public for action bv Con-
gress, and said the time for that body
to act is now.
1t is expected coal dealers and pro-
ducers will fight the bills to the last
ditch, just as in the last Congress
they succeeded in blocking the Calder
bill. In that Congress there were pro-
tracted hearings before the Senate
Committee on Manufactures and also
before the Interstate Commerce Com
mittee. Efforts will be made by the
advocates of legislation this year to
prevent long hearings. 1t is assumed
the coal interests will again ask ex-
tended hearings.
The bill with relation to profiteering
is drastic one, providing fine and
Imprisonment penalties for its viola
ton. The first section provides:
That it is unlawful for any person,
firm, partnership, assoc ation or corpor-
alton engaged in interstate commerce
in coal to protiteer in coal, and any
person, firm, partnership, association
or corporation convicted of violation
of this act shall be fined not less than
500 nor more than $4,000 for the
first offense, and for eacn succeeding
offense the punishment shall be by
fine of not less than $1,000 and by i'm
for the person convicted of
not less than ninety days nor more
than five years.
Profteering Defined
Other sections define profiteerng as
cxacting "eXcessive or unreasonable
prices" If a coal operator makes more
than so cents on ton on the first 900
tons of fuel he sells in any month, more
than 35 cents ton on the next 1000
tons and more than 80 cents ton on
all additional tons, he is a profiteer
under the provisions of the bill. The
dealers limit of profit on the first 49,
900 tons he sells is 40 cents a ton, and
25 cents a ton on additional sales. FIX
ceptions to this are when the dealers
aggregate annual sales exceed 10000
tons, in which case his profit is limited
to 1872 cents n ton, or on royalty
contract, where sales exceed 200 tons
a month, in which case his limit Of
profit is 10 cents a ton.
Under the coal control bill, which
provides for a general system of coal
regulations, exhaustive data and re-
ports would be obtained on the coal in
dustry by the Federal Trade Commits
sion. The measure contcmplates thor-
ough publicity as to profits and other
details of the coal business. The COM
mission would be authorized to decide
when a coal fuel emergency existed and
the Presidents functions then would
be called into operation through an
Executive proclamation. During the
period of control the President would
be empowered to fix prices, take over
and operate mines transport and sell
coal. He also would have power to fix
miners wages. which would be "rea-
sonablc living" standard.