Evening star., 1943-07-06
HouseunitDea|s
Death Blow 10
Guffey Coal Act
Committee Tables
Resolution to
Extend Law
By the Associated Press.

By the Associated Press.
A death certificate for Govern
ment regulation of the soft coal
industry, under the Guffey BIZ
luminous Coal Act drafted seven
years ago in an administration
effort to stabilize the coal indus
try, was signed in effect today by
the House Rules Committee.
BY majority vote, the committee
tabled a stop-gap resolution to ex-
tend the acts life beyond its present
August % expiration date until JAM
uary l.
Chairman SABBATH said the Rules
Committees decision meant that the
stop-gap resolution could not be
brought up before Congress leaves.
probably later this week, for sum-
mer recess. The lawmakers plan to
return in September. after the act
has expired.
"Of course he added. "the Speak
er could have some one bring it up
in the House under suspension of
the rules, but I doubt he will do
that"
Suspension of the rules requires a
two-thirds majority.
Notwithstanding a plea by Presi-
dent Roosevelt, the House Ways and
Means Committee yesterday reject
ed. 13 to IL, a bill that would have
extended the stabilization machinery
for two years after the end of the
war.
Spokesman of the United Mine
Workers and persons claiming to
represent big majority of coal pro-
ducers, urged the setup be continued.
However, opponents raised the
question as to need for the act since
the Government. as result of the
recent coal strike, had taken over
the mines. They contended also
that the act had resulted in higher
coal prices.
The act, written in 1887, provides
machinery for system of minimum
prices at the mines, on a regional
basis, with the view to preventing
price cutting, and to stabilizing the
industry in which many producers
are reported to have found difficulty
making ends meet.
President Praises Act.
Mr.. Roosevelt, in letter to
Chairman Doughton of the Ways
and Means Committee, said that
both the industry and the miners
would feel on more solid ground
if they had the assurance that they
and the country would have the ben
eflts that have been demonstrated
under the Coal Act.
The whole coal situation is so
unsettled t...t it would be helpful
# any phase of it could be definitely
concluded. 4 I am again con-
cerned about the failure to extend
the Guffey Coal Act and / hope the
Ways and Means Committee will
find it possible to conclude its hear
ings and report the bill favorably."
Argued Representative Cooper,
Democrat, of Tennessee, on the pur-
pose of the act
Il ask you if the coal industry has
more trouble in this industry than
In any other in the country"
Laws Controls Prices.
Operator spokesmen have testified
that they like the law because of its
price stabilizing features. Repre-
sentatives of the miners also have
asked continuance as helpful to
their pay envelopes.
A 1-cent ton tax is levied under
the law and the proceeds 60 to de-
fray expenses of price control, The
Bituminous Coal Division, which ad-
ministers the law under the In
terror Department, has about 1900
employees.
McGranery Plea Fails.
In a last-minute appeal, Repre-
sentative McGranery, Democrat, of
Pennsylvania went before the Rules
Committee in an effort to get an
extension on the grounds that ad-
verse action would discourage ex-
pansion of wartime coal production.
Arguing that the measure even
tually would have to be revived for
postwar use. he told the committee
bluntly. You're going to have
another coal act whether you like
1t or not"
"As I understand it, observed
See GUFFEY, Page 2-xJ