Evening star., 1934-09-04
COAL MEN UNITE
|NDEFY|NG N. R. A.
Entire Retail Fuel Code Au.
thority Resigns in Price
Dispute.
BY the Associated Press.

BY the Associated Press.
N. r. A. confronted a threat of
mass defiance from the Nations coal
dealers today.
The dispute that resulted in resigna-
ton of the whole Retail Fuel Code
Authority was over the method of
determining Americas cost Of keep
ing warm this Winter.
No N. r. A. code now provides for
price e-flxing, but some do have the
provision that II ruinous price wars
are going on, an emergency in a
particular area can be declared. The
minimum price is then determined
on the basis of lowest reasonable
profit" of representative" concerns.
An emergency has been declared in
several areas, and the question is
whether the minimum price is to be
settled within trade areas, or in
Washington by N. r. AS Research
and Planning Council.
Reference of Prices Ordered.
Hugh S. johnson two months ago
ordered proposed prices referred first
to N. r. A. before becoming effective.
The resigning code authority wrote
him that the code "as now emascu-
lated by N. r. A." was "a futile
thing"
Their designations last night fol-
lowed conferences with the deputy
administrator, with the divisional ad-
ministrator, and with G. A. Lynch,
administrative officer and highest
Blue Eagle executive they were able
to reach.
BY each the authority members
were told that the johnson order
would not be revoked. Asserting 80.-
900 dealers were affected, the COM
plainants said in their letter of res
ignation:
"The last hope for effective results
has just been destroyed by the an
nouncement that the provisions Of
this code may be modified at will by
N. r. A. without prior notice to
or consent of the industry"
Order Prompted by Complaints.
"It is our view that the code and
the act provide a specific and orderly
method of modification, and the ad-
ministrator may not on his own in
itiative arbitrarily impose amend
ments."
N. r. A. officials rejoined that john
sons order had been prompted by
numerous complaints in areas where
minimum prices had been set up,
notably in st. Louis and Cleveland.
They said the prices had been fixed
without considering a sufficient num-
ber of firms, and that both dealers
and consumers had complained that
charges were too high.
Members of the Code Authority
were: Roderick Stephens, New York,
chairman; Milton E. Robinson, jr.,
Chicago, vice chairman; Clarence v.
Beck, st. Louis; william A. Clark,
Boston; Charles M. Farrar, Raleigh,
N. c.; Edward B. Jacobs, Reading,
Pa, and John McLachlan, Pull
man, III.
The highlights of the letter Of
resignation follow:
IF the fundamentals Of code are
to change with changes Of viewpoint
and changes Of personnel who utterly
AhSA A1A0CA oOdA1uAIlS Va II1C PIOUlClt1S
Of the industry, then this truly Is q
government Of men and not govern
ment of law.
"Vacillating policies, constant de-
lays in securing decisions vital to ad-
ministration, and disregard of clear
understandings originally entered into
with this industry at the time the
code was approved, make it evident
that there is no hope for effective ad-
ministration or enforcement. To con-
tinue to attempt to function under
these conditions is impossible.
"The National Code Authority and
divisional code authorities have uni
formly accepted their responsibilities
in sincerity and good faith. They
have attempted to function in spite
Of constant obstacles and disappoint-
ments.
Upon N. r. A. must rest the full
responsibility for this outcome"