STATEMENT OF JOHN J. HICKEY, WASHINGTON, D. C., REPRESENTING THE MANUFACTURER'S ASSOCIATION OF CONNECTICUT

Senator NEELY. You may proceed.

Mr. HICKEY. My name is John J. Hickey, Southern Building, Washington, D. C. I am attorney for the Manufacturer's Association of Connecticut, general office at Hartford, Conn.

The association opposes the enactment of S. 1417, although it appreciates the unfortunate plight of both the anthracite and the bituminous coal industries at the present time.

The purpose of this bill is the subjection of the bituminous-coal industry to regulation by the Federal Government in which the authority to regulate will include the power to fix minimum and maximum selling prices of bituminous coal; prescription of the quantities that may be produced and sold in each district, and, allotment of the quantity or tonnage of coal which may be mined at and shipped from single mines. This will be very extensive regulation and control of private business, the production, selling, and buying of a commodity which is used by a majority of the companies engaged in manufacturing activities.

When the National Bituminous Coal Commission fixes the wholesale selling price of bituminous coal, as is proposed in section 4, part II, of title I of this bill, it will thereby fix the buying power which must be paid by the manufacturers who buy the coal. Some of the manufacturers in Connecticut sell their products in Canada, Europe, and in many foreign countries in competition with manufacturers in these foreign countries who will buy coal at prices beyond the reach of the proposed National Bituminous Commission. In the light of this competition we do not welcome the fixation of minimum selling prices for bituminous coal produced in this country.

The Manufacturers Association of Connecticut approves reasonable regulation of those who are engaged in performing public services, such as railroads, electric light and power companies and the corporations that are given authority by the States to condemn and take over private property. But it objects to the extension of regulation to private business activities such as the ordinary buying and selling of commodities in common use like coal. If the Federal Government may properly assume regulation of the mining, selling, and buying of coal, it may with equal propriety assume regulation of the production, selling, and buying of oil, coke, ore, limestone, and pig iron and the regulation may be extended without limitation into the manufacturing and other private business activities. The proposal in S. 1417 is a departure from our plan of regulation which in the past has been confined largely to corporations performing public services and functioning under the exclusive franchises which would enable them to exact extortionate charges for their service if they were not regulated by the Federal Government or the States.

We doubt that bituminous coal can bear the tax proposed in the bill and retain its fair share of the markets in competition with oil. The State of Pennsylvania, for several years, imposed a tax on anthracite but was compelled to discontinue the tax because anthracite could not bear such taxation under the competitive market conditions. In the end, as we see it, the whole cost of this proposed regulation will

become an additional burden on the taxpayers generally. Instead of increasing the duties of the Federal Government, we believe that the effort now should be in the opposite direction. There should be a reduction of the costs of the Federal departments, commissions, and bureaus with purpose to reduce taxation and balance the Budget.

The Code of Fair Competition of the Bituminous Coal Industry is a temporary measure which should be fully tested during the present business emergency and no permanent measure of the character of S. 1417 should be enacted at least until it has been demonstrated that the code has failed in very important respects and then the action taken, if any, should be based on the experience gained in administering that code.

Senator NEELY. From what field do those plants obtain their coal supply?

Mr. HICKEY. About 60 percent of the supply comes from what we call the Northern Field in Pennsylvania, and about 40 percent comes from the field in West Virginia.

That concludes my statement, Mr. Chairman.

Senator NEELY. It is very short and very much appreciated. Is that all you wish to say, sir?

Mr. HICKEY. That is all.

Senator NEELY. Do you wish to file an exhibit or brief?

Mr. HICKEY. No.

Senator NEELY. Thank you.

STATEMENT OF GEORGE W. DOWELL, DU QUOIN, ILL., REPRESENTING THE PROGRESSIVE MINERS OF AMERICA

Mr. DOWELL. Mr. Chairman, as a representative of the Progressive Miners of America, a voluntary labor organization in the bituminouscoal industry, with approximately 40,000 members in the State of Illinois, as well as members in West Virginia, Pennsylvania, and Kentucky, I have been authorized to write your committee protesting the recommendation or passage of what is known as "Senate bill No. 1417," or the Bituminous Coal Conservation Act of 1935.

For your information, the Progressive Miners organization in membership far exceeds any other labor organization in the coal industry in Illinois; and, if the miners of Illinois had been or should now be given a preference as to the choice of their organization, without coercion, intimidation or other unlawful methods, the Progressive Miners of America would have been and would still be the only organization in the bituminous coal mining industry in Illinois. An honest investigation will substantiate this statement.

The Progressive Miners of America, in Illinois, have a contract with the Coal Producers' Association of Illinois, which was entered into in 1933, to expire March 31, 1935. The Coal Productrs' Association of Illinois is a voluntary coal operators association, composed of practically all of the coal operators of Illinois, except utility-owned companies.

The passage of the bill mentioned herein would, in our opinion, be the means of eliminating all of the independent operators in the coal industry, not only in Illinois, but the entire country, and would

throw out of employment the major number of employees in the industry. The plan of setting up boards upon the tonnage basis would give the utility-owned mining companies and the strip mining companies the right of representation upon the different boards and commissions; and the same rule would give the United Mine Workers, with a minority membership in Illinois, a right of representation on the boards and commissions in Illinois. Therefore, it can be readily seen that under the allocation of tonnage, and with the desire of the United Mine Workers organization to be the only labor organization in the industry, that it would eliminate the independent operators and his or its employees from the industry, and would legalize the greatest, monopolistic combination known of in this country.

The Progressive Miners of America have, since the enactment of the N. R. A. and the promulgation of the bituminous coal code thereunder, had much experience with a set-up similar to the one provided for in the bill now pending before your committee. Under the bituminous coal code there were 7 boards, 1 known as the "National Bituminous Coal Labor Board", composed of the 6 chairmen of the divisional bituminous coal labor boards, and 6 members each of the employees and employers, sitting in an advisory capacity. The 6 divisional bituminous coal labor boards were composed of 3 members each, 1 a presidential appointee, supposed to not be interested in the mining industry, 1 each from the employees and employers. The entire set-up being dominated by the public-utilityowned coal companies who employ the fewest number of persons, and get out the greatest tonnage.

The United Mine Workers by reason of its affiliation with the Federation of Labor secured the employee member, although its membership in Illinois and Pennsylvania is in the minority. Therefore a controversy between employers and employees involving the determination of who were the chosen representatives of the employees had to be presented first to the Divisional Bituminous Coal Labor Board. By reason of the composition of that Board, any independent organization did not receive justice. An appeal from that Board to the National Bituminous Coal Labor Board was of no avail to the appellee, as the Administrators of the code favored the big, utilityowned companies, the United Mine Workers of America, and the Federation of Labor. The Progressive Mines of America, in Illinois, although they were in a minority, were denied representation on the Boards. Thirteen thousand striking miners, asking for an organization of their own choosing, as provided for in the public policy of the Norris-LaGuardia Act, and as provided for in the N. R. A., and the Coal Code, were denied same, with the result that strife, violence and turmoil has reigned supreme in the mining industry since August 1932. If the bill now pending before your committee should be passed by Congress, it will only increase unrest, turmoil, dissatisfaction, discontent and will wreck the mining industry.

I am only pointing out to you a few of the defects of the bill, and ask that you permit some representative of our organization to appear before your committee and testify relative to the situation in Illinois, and the effect that the passage of this bill would have on the mining industry from the employee's standpoint.

STATEMENT OF HENRY W. WILLS, PHILADELPHIA, PA., REPRESENTING THE PHILADELPHIA BOARD OF TRADE

Mr. WILLS. I, Henry W. Wills, secretary of the Philadelphia Board of Trade, 258 Bourse Building, Philadelphia, Pa., am duly authorized by the executive council of that organization to appear before you and present on its behalf certain suggestions with reference to Senate bill no. 1417.

Before submitting for the record the formal memorial, adopted and subscribed to at the regular stated meeting of the executive council, February 18, 1934, in which the Board of Trade presents its conviction with respect to this proposed legislation, it is proper that you be advised of the board's action under date of August 28, 1931, anticipating these very problems presented in this proposed legislation and from which I quote:

We would submit as fundamental that American achievement, politically and economically, is grounded in time-honored recognition of the great truth, viz.: Government of the people, by the people, and for the people is possible only if representatives, freely selected, legislate for all. That principle is fundamental, so essential to the life and welfare of every man, woman, and child in these United States, without exception, that we gladly pledge ourselves and all that we have to its maintenance.

Strict adherence to certain economic principles, these same principles dictated by the immutable law of supply and demand, must be recognized also as primarily essential in reestablishing trade and manufactures in this country on a more prosperous plane.

The seriously unbalanced trade relations throughout the world today are obviously influential factors in precipitating the economic problems now besetting our American business. These problems, naturally, must be met and solved by strict application of sound economic principles.

To provide the greater availability of a foreign market for merchandise surpluses as they may unavoidably occur, it is suggested that such manufacturing capacity which exists in excess of that required to supply the domestic trade should be written off.

Such a policy necessarily contemplates rehabilitation of individual industry. If it be agreed that an industry, by virtue of its admitted inability to operate successfully, and after a fair and impartial survey has been made of the same, is entitled to a special dispensation under our national antitrust laws, then this Board of Trade recommends the law be amended promptly in such manner as to permit established control of that industry and its activities, free to exercise its own initiative without interference from Federal or other governmental agencies so long as it observes the law.

Any policy, 'other than that which bases its purpose upon the practical encouragement of individual initiative, thrift and enterprise would aggravate the unfortunate conditions complained of and impose upon our citizens the vitally menacing and almost insuperable economic dilemma now confronting certain European nations as the result of policies adopted.

Hence in presenting to you herewith its convictions concerning Senate bill 1417, the Philadelphia Board of Trade is pursuing a record of consistency. Those convictions are presented in the following memorial:

PHILADELPHIA BOARD OF TRADE,
Philadelphia, February 19, 1935.

To the Honorable the Senate and House of Representatives in Congress Assembled: This memorial of the Philadelphia Board of Trade respectfully represents: That H. R. 4661 and S. 1417, being proposed legislation identical in purpose and designed to authorize purchase of marginal coal lands, making appropriations for same, etc., have been thoroughly considered by this body and their provisions emphatically disapproved for the following reasons:

That such a policy, viz: Purchase by the Government with the taxpayers' money appropriated from the Federal Treasury of such marginal coal lands

would, if authorized, prove economically unwise, being a waste of public funds and an unjust discrimination against those citizens whose investments have been made in privately operated coal lands, subject to increased taxation, labor costs, and other operating charges as a necessary consequence of such unwarranted disbursement of United States Treasury funds;

That such a policy, if approved, would fix a precedent the logical conclusion of which, sooner or later, is the nationalization of all coal lands in the country, a step which obviously should appeal to responsible citizens as entirely un-American in its concept and economically impractical in its effect upon industry and commerce;

That creation of a National Bituminous Coal Commission, another provision of these bills, is deemed altogether unnecessary to the executive functions of the Federal Government and if enacted must prove merely another in an already too complicated and economically prodigal bureaucratic system;

That the tax provisions included in these measures referred to, viz; 25 percent on the sale price of all bituminous coal mined in the United States, the same naturally subject to additional local taxation, would constitute an assessment against that commodity almost prohibitive of trade and tend to force the prospective consumer to a utilization of other fuel for industrial and household purposes, which in effect would be decidedly undesirable from the standpoint of public economy, industrially and economically;

That while there is admittedly need for proper regulation of the industry as a whole, in the mining and distribution of coal, it is the conviction of this board of trade that the same may be accomplished more effectively and economically by proper and satisfactory agreement within the industry itself, to the end that the immutable laws of supply and demand shall govern prices, as ultimately they must and will in any event; that the Government retire from active competition with private enterprise and that individual initiative be permitted its normal functions as primarily essential if actually a national industrial recovery is to be realized;

Therefore, your memorialist, the Philadelphia Board of Trade, respectfully opposes enactment of the legislation referred to, viz: H. R. 4661 and S. 1417 for the reasons presented.

Attest:

THE PHILADELPHIA BOARD OF TRADE,
GEORGE L MARKLAND, President.
I. W. WILLS, Secretary.

Senator NEELY. The subcommittee will now adjourn until tomorrow at 10:30. We shall meet tomorrow in room 335 in this building.

(Whereupon, at 9:15 p. m., the subcommittee adjourned until the following day, Saturday, Mar. 2, 1935, at 10:30 a. m.)