Show Bruckart's Bruckart 5 Washington Digest Dige t Weakness o of Unsound Legislation Does Not Remain Concealed Long Old LI RA Is Str Striking n nIng Example of Careless Lawmaking ing Ing Now Nov Comes Cornes Up U the Unworkable Conditions of Guffey Law That Has Cost Coal Industry Millions l By WILLIAM BRUCKART Service National Press Bid Washington D. D C. C W WASHINGTON Unsound Unsound and md unworkable un un- workable laws have a way of concealing con con- coaling their weaknesses for lor varying varying varying vary vary- ing lengths of time lime It seems to be betrue betrue e etrue true however that those weaknesses weaknesses weak weak- nesses like ones one's sins will be found out This This is especially true of written written written writ writ- ten laws that arc predicated upon a formula of how things ought to be bedone bedone bedone done rather than upon the basis of ol known O acts and customs and living conditions of the people who makeup makeup make up our nation Take the old for e. e example Its glaring weaknesses and impossible ble prescriptions were discovered rather soon b by the persons and businesses businesses businesses busi busi- nesses who had to abide by the terms of that law It was not so long however before most of us who had discovered disco that the artist sketched the original design of the blue eagle had made a mistake You will recall of course that the design design design de de- de- de sign had 13 feathers in one wing and d 12 in the other That was vms bound to make the bird fly in a circle and how true it was of the law itself itsel I Even then there were many persons persons persons per per- sons who believed the law was not given a sufficient trial before the Supreme Supreme Supreme Su Su- Su- Su preme court mowed it down Among those who held a conviction conviction conviction tion that would work was Senator Guffey the Pennsylvania New Dealer It is the same Senator Senator Senator Sena Sena- tor Guffey who attempted to destroy destroy destroy de de- de- de stroy politically all Democrats who disagreed with President Roosevelt Roose Roose- velt tried velt-tried tried to read them out of the party in a radio address Senator Guffey with the aid of John L. L Lewis and the C. C I. I 0 O. O pushed through congress the so- so called little Guffey-little coal law The coal industry was divided in sentiment sentiment about the bill as I remember remember remember re re- re- re member the legislative battle but Senator Guffey won There came about a national bituminous coal commission with power to fix prices with power to compel a lot lotof lotof lotof of other things including the right of punishment under other laws if it a coal mine owner should commit the horrible crime of selling below cost costin costin costin in order to get rid of his coaL Guffey Law Cost the Coal Industry Many Millions The first law so enacted was mowed down by the Supreme court just the same as the original and big brother Senator Guffey tried again And so for two years or thereabouts there has been a law lawin lawin lawin in force that applied the same principles principles principles prin prin- of regimentation as to the coal industry and during that time according to official reports the soft coal industry has lost mon mon- ey It lost in 1937 and it lost about last year the coal commission has reported Naturally the coal mine owners are not taking this loss without a squawk It is not a great deal more than a chirp however because the production of coal dropped from tons in 1937 to tons in 1933 1938 That is pretty rapid reducing even if the industry were really fat In consequence of this and other conditions affecting labor and property property prop prop- erty Representative Allen a Pennsylvania Pennsylvania Pennsylvania Penn Penn- sylvania Democrat has introduced in the house a bill to reconstruct the Guffey Jaw law His proposal would eliminate the price fixing it would eliminate the special tax on the coal industry for upkeep of the high powered powered powered pow pow- ered but more or less futile coal commission and it would place the industry again on a basis where its individual mines would be competing competing ing fag for public patronage instead of inducing bootlegging of coal I mentioned above that the industry industry industry indus indus- try had lost money Well you and andI I as b buyers ers and consumers of coal not to mention the thousands ot of great manufacturing p plants ants using coal also lost money because of the Guffey Gurrey law We lost money because of the price conditions We would be penalized in a big way if the coal commission commission- could ever have accomplished the almost insurmountable insurmountable insurmountable mountable job of establishing a set of federally fixed prices It would have cost us money because we would pay the price that was fixed and that price would have to b be high enough to allow a profit forthe forthe for forthe the lowest grade and most inefficient inefficient mine operator An Another ther Tug of War Between Coal Miners and Operators One ol ot the llie reasons the mine owners owners owners own own- ers lost mone money mone was because many who vho supported the law were convinced convinced convinced con con- vinced it would me mean increased wages for the workers The United Mine Workers of America headed by Mr Lewis believed so and two years ago they demanded and obtained obtained ob ob- tain d an increase of 10 per cent During the debate on the bill in congress congress congress con con- gress gress it was talked freely that the miners could get a wage increase and it could be passed on to the con con- sumers umers This would be true it was said because the coal commission would fix the prices and the selling price price as fixed by law would have io to be above production costs Certainly labots labos wage Wl is a part of or pro pro- n costs and the public would not feel it The contract then negotiated expired expired expired ex ex- recently and a new one is now being considered in the regular tug tuf of war that occurs between miners miner and oI operators every two years Ir 10 the meantime however things happened happened hap hap- to labor in the soft coal conI mines As I mentioned above there was a a decline in production of coal It figures figures fig fig- ures out at 22 per cent That obviously obviously obviously ob ob- ob- ob means that while labor obtained obtained ob ob- an increase of ot tenth one-tenth inthe in ir inthe the rate of pay it worked only four- four fifths as much time according to the records available to me I fail to see where labor gained from the law Moreover from the federal relief relief re re- re- re lief Bet authorities I learn that living conditions and buying power among the persons living in coal mining areas have declined almost in direct ratio to decline in production of coal With respect tc to the added taxation placed u upon on the owners of the mines the surface indications and the original declarations of or supporters support support- ers of the law have proved to be quite misleading The law required the industry to pay a a tax of one cent centa a ton and to meet assessments to cover the expenses of boards that were set up in the various regional areas It Is easy to calculate that the one cent tax raised on tons produced last year But that figure does not show the extra assessments that were paid to boards nor does it reveal reveal reveal re re- re- re veal that every mine owner had to hire extra clerks in the company offices to take care of all of the various and sundry reports that the national commission and the regional regional region region- al boards saw fit to require Simply Became an Added Expense e Borne by Industry Again it was WIS expected that these I costs and taxes would be absorbed absorbed- I a nice word for concealing the facts from the consumers consumers in in the selling price that was to be fixed axed But as asI asI asI I reported earlier the commission never quite got around to fixing the prices under the current law Hence the hundreds of tho thousands ands of dollars which the laws law's sponsors said would be passed on simply became became became be be- came an added expense borne by bythe bythe bythe the industry The law has another feature which 1 you and andI I as Individuals do not feel directly It is another one of those concealed things The law specifies that no con contract can be signed between between between be be- tween operator and consumer to last for more than 30 days That ThaMs is to say no price can be quoted for more than 30 days in advance That may not appear important but it itis itis itis is highly important The practice of large users of coal is to enter into a contract for a supply supply supply sup sup- ply of coal to last for example for fora a whole years year's operation Having such contract the owner of the manufacturing manufacturing manufacturing man man- establishment for in instance instance instance in- in stance will be able to know what his fuel costs are when calculating the price of the goods he manufactures and sells Fuel costs are important and it therefore becomes plain that large users of fuel have an unknown factor in their expense item for a ayears ayears ayears years year's plans What do they do Th They y have to estimate that item and they take the maximum that they can expect to pay for coal coal coal- and users of their product have to pay that added amount whether in breakfast food or harvesting machinery machinery ma ma- chinery or railroad freight rates That one feature of the law alone has las completely disorganized the coal industry Coal Operators Are Left With Supply in Sizes Not Needed The day 30 limit also has had another another another an an- other effect When a mine owner could make a years year's contract or a number of such contracts he knew whether it was lump coal or stove coal or slack that his customers needed Without a contract the big buyers naturally shop around to get the lowest price A mine operator therefore may sell to one firm one ne month and the next month some other mine will supply the coal The result is that one mine may find itsel Itself it itself it- it self sel with hundreds of tons or even thousands of tons of lump coal when all that can be sold in a given month is slack or stove coal Well it is the ordinary practice in hi business busin ss that if too large a stock stockis is ison on hand prices are reduced to induce Induce In in- duce someone to buy But not so in inthe inthe inthe the soft coal industry under the Guffey Guffey Guf Gut fey law If It the price is reduced below below be be- low the actual cost of mining costs approved by a bunch of accountants sitting here in Washington the law steps In not in-not not the Guffey law but two other laws They are the federal trade commission act and the Rob Rob- inson Patman act Under either one of these laws the mine operator who cuts prices belo t costs becomes tagged as a ve very y bad boy who must be punished by fine or imprison imprison- ment So the unwanted coal lies ties in piles beside the mine crumbling and becoming of less value daily as the weather takes its tolL tolLe e 0 Western Newsy Newspaper Union |