Montana labor news., 1938-05-26
Goal Commission Asks
People 10 Inform III
OF Local Goal Prices

WASHINGTON.-In an effort to
measure the effects of price-fixing
John Carson, Consumers Counsel
to the National Bituminous Coal
Commission, has started a nation
wide mail survey into prices paid by
the domestic consumer of bitumin-
GUS coal.
The commission established mini
mum prices at the mine for all btu
minous coal produced east of the
Mississippi River and in Iowa and at
subsequent dates announced prices
for other producing districts.
In announcing the prices, the
commission said that the prices to
the householder would be generally
lower, while railroads and industrial
buyers would be compelled to pay
higher prices, more in line with the
cost of production. Under the terms
of the Guffey-V inson Act which
established both the commission and
Consumers Counsel, the country is
divided into twenty-three producing
districts. The weighted average cost
of producing a ton of coal has been
established for each district and pro-
ducers are forbidden by law from
selling coal below this price.
In spite of the commissions n
nouncement that domestic Goals
would be sold at lower prices than
heretofore, reports have been e
ceived from all great bituminous
areas that prices are higher. News
papers in some instances are carrying
advertisements of retailers that in
creased prices are necessary because
of the commissions action in in
creasing minimum prices at the
mine.
Railroads and other large con-
sumers of bituminous coal have Sc
cured from the federal courts orders
suspending the prices fixed by the
commission for coal they buy. Mr..
Carson contends to the commission
that this creates an unfair discrim-
nation against domestic and indus
trial consumers who have not
sought relief through court action.
Any action taken must result in
revision of the entire price structure
and therefore the survey by Mr..
Carson of the effect of prices takes
on added Importance and the price
information is essential that he may
more adequately protect consumers.
One point emphasized by petition
ers for the suspension is that the
commission in establishing prices
failed to hold a public hearing,
thereby depriving consumers of the
due process" provision Of the Con-
stitution.
Producers who, prior to establish
ment of prices by the commission
showed an earnest willingness to CO.
operate with the commission, have
in several hundred instances de-
manded downward revisions, claim
ing that the prices + too high and
if allowed to stand will further dis
organize the industry, which for the
past twenty-five years has been all
ing.
In all there appears a great feel
ing Of dissatisfaction and %controver-
sy particularly over the methods
used by the commission in price
establishment. Mr.. Carson has con-
tended from the first that if the
public was to have any confidence
in the act, and without that, he
claims, it cannot succeed, the COM
mission should and must approach
the great task of price regulation in
such manner as to eliminate opposi-
ton and criticism. He believes that
if before the prices became effective
the consumer had been given an OPP
portunity to examine proposed
prices and to be heard much of the
present strife would have been
avoided.
Mr.. Carson has endeavored to adj
wise the commission of the public
reaction to the steps taken SO far
and in making his price survey he
hopes to be able to present to the
regulatory body a definite cross
section of opinion which may be of
great benefit to the industry, the
consumers and to the commission.
Public officials, heads of institu-
tons, civic leaders and retail coal
men have signified their willingness
to cooperate with Mr.. Carson in
checking the price the ultimate con-
sumner is paying for coal.