Evening star., 1936-05-19
Nv the Associated Press.

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The purposes of the "bituminous
coal conservation act of 1885," in
Solyed in these suits, as declared by
the title, are to stabilize the bituminous
coal-mining industry and promote its
Interstate commerce; to provide Tor
cooperative marketing of bituminous
coal: to levy tax on such coal and
provide for a drawback under certain
conditions: to declare the production,
distribution and use of such coal to
be affected with national public
interest; to conserve the national
resources of such coal; to provide
for the general welfare and for other
purposes The constitutional validity
of. the act is challenged in each OF
the suits.
BY the terms of the act, every
producer of bituminous coal within
the United States is brought within
Its provisions.
Section /, among other things,
further declares that the production
and distribution by producers of such
coal bear upon and directly affect
ulation of production and distribution
imperative for the protection OF such
commerce; that certain features con-
nected with the production, distribu-
ton and marketing have led to waste
of the national coal resources, dlsor-
rarfzation of interstate commerce IN
such coal, and burdening and OBJ
str,1cting interstate commerce therein;
that practices prevailing in the pro-
duction of such coal directly affect
interstate commerce and require reg
ulstion for the protection OF that
commerce; and that the right OF mine
workers to organize and collectively
bargain for wages, hours of labor.
and conditions of employment should
he guaranteed in order to prevent
constant wage cutting and disparate
labor costs detrimental to fair inter-
state competition. and IN order TO
avoid obstructions to interstate COM
merce that recur in industrial disputes
over labor relations at the mines.
These declarations constitute not
enactments of law, but legislative
averments by way of nducement
to the enactment which follows.
Fact-Finding Powers
Confined on Commission.
The substantive legislation begins
with section 2, which establishes In
the Department Of the Interior ma
tional bituminous coal commission,
to be appointed and constituted as the
Upon this commission is conferred the
power to hear evidence and find facts
upon which its orders and actions
may be predicated.
Section provides: "There is hereby
imposed upon the sale or other dis
posal Of all bituminous coal pro-
duced within the United States an
price at the mine, or in the case of
captive coal, the fair market value
Of such coal at the mine. such tax,
subject to the later provisions of this
section, to be payable to the United
States by the producers of such coal,
and to be payable monthly for each
calendar month, on or before the first
business day of the second succeeding
month, and under such regulations,
and in such manner as shall be pre-
scribed by the commissioner of in
ternal revenue: Provided, that in
the case of captive coal produced as
aforesaid, the commissioner of in
ternal revenue shall fix a price
therefor at the current market price
for the comparable kind, quality and
size Of Goals in the locality where
the same Is produced: Provided fur
ther, that any such coal producer who
has filed with the National Bituininous
Coal Commission his acceptance of
the code provided for in section 4 of
this act, and who acts in compliance
with the provisions of such code, shall
be entitled to drawback in the form
of credit upon the amount of such
tax payable hereunder, equivalent to
80 per centum of the amount Of such
tax, to be allowed and deducted there
from at the time settlement therefor is
required. In such manner as shall be
prescribed by the commissioner of in
ternal revenue. Such right or benefit
Of drawback shall apply to all coal sold
or disposed of from and after the day
of the producers filing with the COM
mission his acceptance of said code in
such form of agreement as the COM
mission may prescribe. No producer
shall by reason of his acceptance of
the code provided for in section 4 or
of the drawback of taxes provided in
section 3 of this act, be held to be
precluded or estopped from contesting
the constitutionality of any provision
OF said code, or its Validity as ap-
plicable to such producer"
Minimum Price-Setting Powers
Given to Each Board.
Section 4 provides that the COM
mission shall formulate the elaborate
provisions contained therein into a
working agreement to be known as
the bituminous coal code. These pro-
visions require the organization of
% coal districts, each with a dis
trict board, the membership of which
is to be determined in a manner
pointed out by the act. Minimum
prices for coal are to be established by
each Of these boards, which is author
lied to make such classification of
Goals and price variation as to mines
and consuming market areas as it may
deem proper.
In order to sustain the stabiliza-
ton of wages, working conditions and
maximum hours Of labor, said prices
shall be established so as to yield a
return per net ton for each district
In minimum price area. as such
districts are identified and such area
Is defined in the subjoined table des-
ignated minimum price area table,
equal as nearly as may be to the
weighted average of the total costs,
per net ton. determined as herein
after provided, of the tonnage Of such
minimum price area. The computa-
tion of the total costs shall include |
the cost of labor, supplies, power,
kax