Evening star., 1938-02-11
By WILLIAM S. TARYER.

time being all price fixing by the Ma
tlonal Bituminous Coal Commission.
the United States Court of Appeals to-
day granted temporary Injunction
to 209 major railroads, three coal COM
panles and the city of Cleveland
against application of minimum coal
prices so far as it affects them.
The order. which struck a severe
blow at one of the New Deals pet
projects, was signed by Justices Har-
old M. Stephens. Justin Miller and
Henry w. Edgerton, all appointed BY
President Roosevelt No date for a
final hearing has been set.
The courts order will affect almost
all coal sold to railroads throughout
the country, and the Coal Commission,
it was learned. considered issuing an
order to suspend the entire minimum
price schedule.
Without prejudice to an ultimate
ruling the court continued. I'VE are
unable at the present stage of the
proceedings to conclude that the right
of review sought is clearly without
foundation"
The court quoted a section of the
Coal Act providing that no order
subject to review" should be made
without notice. hearing an issuance
| OF findings of fact
The railroads and the coal COM
panies contend they were not con-
suited before minimum prices were
fixed No language of the Coal Act
or any necessary inference to be
drawn from it supports the conten-
ton Of the Coal Commission that the
act contemplates a giving of notice
and holding Of hearings only after the
issuance OF price orders. the court
declared
The commission made no comment
Immediately. but coal men expressed
doubt that the remainder of the mini
mum price structure would hold up il
producers were allowed to sell rail-
road coal at any price they chose.
5000 Concerns File Suit.
Shortly after the courts ruling in
| the appeal by the railroads. some 5000
New York concerns, comprising the As
| sociated Industries of New York State
and representing investments totalin-
about s4000,000000, petitioned the
Court of Appeals to declare void mini
mum coal prices for the State of New
York. The allegations in the New York
| petition were similar in principle to
those in the proceeding by the rail-
roads.
| The Associated Industries contend
| ed in its petition that it was deprived
Of due process of law by the comn1i.;-
sion's price-fixing procedure in tina
interested parties were denied an op-
| portunity to be heard.
Through Attorney Wilbur La Roe.
jr., the association told the court its
members consumed approximately 12.-
OOO,0 900 tons of coal annually and that
the increased prices ordered by the
| Coal Commission would cost associa-
ton members about s5.500,O0O a year
The 209 railroads had contended the
advanced prices set by the commits
sion would cost them $4,000. 900
| yearly.
'No Public Hearing"
The decision to stay the price -fxin"
orders was announced in an opinion
| by the entire court, which said alle-
cations by complainants and conces-
slons by the commission make 1t ap-
pear that minimumsprice orders were
issued and made effective without
notice of hearing. without affording
hearing to interested parties, and
that if the orders are invalid, they
(the complainants) are suffering ir-
reparable and continuing damage"
Considering these circumstances, the
court declared, denial of temporary
relief would be extraordinary" un-
less the ultimate right of review by
the court. which the railroads claim,
is clearly without legal foundation.
Roads Clearly Aggrieved.
The railroads achieved status of
"aggrieved parties" under the section
Of the coal act permitting appeals from
orders to the Court of Appeals by filing
petition with the commission re-
questing suspension and review OF the
minimum price edicts. it was stated.
The petition to the commission was
in the name of the Association Of
American Railroads, the American
Short Line Railroad Association, the
members Of both organizations and
the consumers counsel. Unless 1t can
be shown that the injury claimed by
the railroads is not of "a legally recog-
nizable type" the roads clearly are
aggrieved persons under the act, the
opinion stated.
The opinion of the court concerned.
besides the railroads, the Saxton Coal
Mining Co., the Enos Coal Mining Co.
and the st. Louis g. O'Fallon Coal Co..
all of which sell large percentages Of
their product to railroads.
The court stated that its order
should be effective also as to the city
Of Cleveland, which contends the