Evening star., 1940-05-22

M# ~ tive bodies, and
deprecated judi
Charles G. Ross. cial interference.
beyond the strictest limits, with the
work Of administrative agencies.
ALI this In the decision this week
upholding the constitutionanty Ut
the Bituminous Coal Act, passed by
Congress In 1887 as q substitute
for the invalidated Gufiey Coal Act.
Justice Douglas read the opinion Of
the court, which was concurred In
by all his colleagues except one.
Justice McReynolds briefly ex-
pressed his conclusion that "the act
under review is beyond any power
granted to Congress"
The coal act was passed for th0
regulation of the soft coal industry,
whose history, In the words of Jus.
tice Douglas, has been written in
blood as well as ink" Administra-
ton is through . commission, acting
In conjunction with, but overtop-
ping, boards of coal producers who
accept the code provisions of the
act. The heart of the act is the
right OF the commission to fix prices,
minimum and maximum. A penalty
tax Of 1917 per cent Is imposed on
sales by producers who do not sub.
scribe to the code.
A New Textbook.
The comprehensive opinion by
Justice Douglas Is q textbook of the
philosophy by which the court, since
the fateful spring Of 1887, has been
guided.
Challenging the validity OF the
coal act, the company bringing the
suit contended, among other things,
that the 1914 per cent tax was not .
tax but q penalty. OF course, said
Justice Douglas in effect, 1t Is q
penalty. Clearly" he said, this
tax is not designed merely for reve.
nue. purposes. In purpose and effect
1t Is primarily sanction to enforce
the regulatory provisions Of the act.
But that does not mean that the
statute is invalid and the tax unen.
forceable. Congress may impose
penalties In aid Of the exercise Of
any Of its enumerated powers.
And again, with respect to the
powers of Congress over the trans
actions in or directly affecting inter-
state commerce:
The fixing Of prices, the pro.
scription Of unfair trade practices,
the establishment Of marketing
rules respecting such sales Of btu
minous coal constitute regulations
within the competence Of Congress.
80" What is true Of prices Is true Of
the attachment Of other conditions
to the flow Of commodity In inter.
state channels"
Fifth Amendment Not Sullied.
The company contended that the
act violated the Fifth Amendment.
No, said Justice Douglas, for price
control is one Of the means available
to the States and to Congress In
their respective domains for the
protection and the promotion Of the
welfare Of the economy"
The company argued that since no
question Of health or morals was
involved. and for other reasons. the
act was not an appropriate exercise
OF the legislative power.
Justice Douglas in reply reiterated
the doctrine which today Is shaping
50 much of the courts thought on
constitutional questions-the doc.
trine brilliantly urged by Holmes
and Brandeis. that the States and
the Federal Government should be
given wide latitude for experiment.
Those matters" said Justice
Douglas, relate to questions of
policy, 10 the wisdom Of the legisla.
ton and to the appropriateness Of
the remedy chosen-mAtters which
are not our CT ncern. II We endeav.
ored to sprraise them we would be
trespassing Ola the legislative do
main. And If We undertook to nar.
row the scope Of Federal interven-
ton, as suggested by the appellant
Che cral company involvedD, We
would be blind to at least 20 years Of
history
Can Modify Sherman Act.
Between what the Government
may do III the realm of price fixing
and what private indust~V may do
there is . sharp distinction. Two
weeks earlier In the Madison oil,
case, the Supreme Court held that
price fixing aU eements are unlawful
under the Snt rman Act. no matter
whst might re the showing Of com.
pstttive abuses which the agree
ments wee designed to eliminate.
Had the coal industry acted on It's
own to TX prices 1t, too, would have
run afoul Of the Sherman Act. But
Congress mas the right to step in.
Certainly" ruled Justice Douglas
what Congress hs forbidden BY
the Sherman Act 1t can n odify. It
mas do so by placing the machinery
OF price-nx,nT In the hands Of public
agencies It is not powerless 10
take steps In mitigation Of what In
Its judgment are abuses of cut
throat competition" -
The N. r. A. was knocked out
partly on the ground that 1t carried
an invalid delegation Of power
delegation run riot" Justice Carr
doso said. In the instant case, the
coal company argued that the coal
act was unconstitutional for the
same reason.
Stops Short Of Details. -
What Justice Douglas said on this
point might conceivably have been
said with the current debate over
the Logan-Walter bill, and the whols
subject Of administrative law, In
mind: ~
THE effectiveness Of both tho
legislative and the administrative
processes would become ENDANGERED
II Congress were under the consti.
tutional compulsion Of filling In the
details beyond the liberal prescrip.,
ton here. Then the burdens Of
minutiae would be apt to clog the
administration Of the law and de.
prive the agency Of that fiexibility,
and dispatch which are its salient
virtues. sss
Nor" added the court, "is there
Tin the coal act) an invalid delesS.
tt0n At flidicta1 S%0Unp Tsa ha1A xSaAk