Evening star., 1935-09-15
D. c. COURT TO GET
GUFFEY COAL ACT
Injunction Suit viii Be Heard
Before Justice 0'Dono-
uhue Tomorrow.

The first legal skirmish on the con-
stiesssonality of the Guffey coal act,
which was challenged "a hours after
the measure was approved by Presi-
dent Roosevelt, will occur tomorrow
morning in District Supreme Court.
Justice Daniel w. ODonoghue who,
on occasion. has occupied the ma
tional spotlight for decisions favorable
to the New Deal, will be on the
bench. The problem before him will
be whether to grant a temporary in
junction to prevent enforcement of
the law against the Carter Coal Co.
of this city.
At the counsel table are expected
to be Assistant Attorney General
John Dickinson, erStwhile University
of Pennsylvania professor and Assis-
tant Secretary of Commerce. now in
charge Of the antitrust division OF
the Department of Justice, and Fred
erick H. Wood. dapper New York at
torney. who successfully argued the
Schechter N. r. A. case before the
United States Supreme Court and
now represents James Walter Carter,
president OF the carter GO.
Brief Hearing Expected.
Indications yesterday pointed to a
rather brief hearing, with neither side
going very deeply into the merits of
the case. which probably will be dis
cussed when the plea for permanent
injunction comes before the court at
later date
1t Is understood the Government
will avoid almost completely constitu-
tional issues. conflning its argument
to an attempt to show the action is
premature and there is no present
need for relief
Lending weight to this argument Is
the fact that the taxing provisions of
the law cannot become effective be-
fore November l at the earliest. and
consequently the plaintiff Is in no i'm
mediate danger Of loss through such
assessments
Will Claim Injury.
1t was pointed out by New Deal
ofnclalS that the plaintiff cannot tell
at this time whether the provisions of
the code for the bituminous coal in
dustry, authorized in the law. will be
injurious to it, since the code has not
yet been formulated. The petition
states the interests OF the plaintiff
are in danger because of operation Of
the projected code.
The act, officially designated the
bltuminouS coal conservation act of
1885, provides code of fair competi-
ton. with hour. wage and price fixing
regulations and establishes a commits
sion to administer the code and set
quotas for soft coal production. This
commission has not yet been ap-
pointed.
A fat IS per cent tax is levied on
gross sales. but a drawback of 90 per
cent Of this levy Is provided for
producers subscribing to the code and
confning their output to the quotas
set for them.
COnfiscation TO be Charged.
Attacking the law, the injunction
suit characterizes it as an attempt by
the Federal Government to regulate
intrastate commerce by means of a
penalty tax and to make it obligatory
on coal companies to join the CODE
Attorney Wood has said he will con-
tend the law cannot be upheld as an
exercise of the Governments taxing
power. since Is per cent gross tax
is confiScatory and in violation of the
fifth amendment to the Constitution
in that it would deprive the Carter
Coal Co. Of its property without due
process Of law. 1t Is argued for the
plaintiff that its business is entirely
intrastate and consequently the Guffey
law cannot be supported against it
under the interstate commerce clause
Of the Constitution.
In addition to an injunction against
Government officials, the suit asks
the court to restrain the company. it
self, from subscribing to the code Suing
as a stockholder, Carter states that
the directors Of the company have
voted to enlist under the code, because
Of fear Of consequences, then though
they believe the law unconstitutional.