F
EDERAL control of bituminous mine prices—long vigor- ously advocated and as violently condemned—again beeame a reality last year with the enaetment of the GuiTey-Vinson act. This measure, suceessor to the outlawed Bituminous Coal Conservation Act of 1935 and the NRA price-control system in 1933, passed Congress and was signed by the President in April.
Although the National Bituminous Coal Ćommission established under the law was sworn in on May 17, no minimum price schedules were pro- mulgated until Nov. 30.
A t that time, the Ćommission an- nounced prices effective Dec. 16 for all producing fields east of the Mis- sissippi River and for Iowa. Arkan
sas and mines in Haskell, Le Florę and Seąuoyah counties, Oklahoma, were covered in a schedule published Dec. 9 to become effective Dec. 27.
Prices fo r all other producing dis- tricts except the Dakotas were pro- mulgated Dec. 16 to be effective Jan.
3, 1938. Action on Dakota prices was withheld pending a decision whether
coal produced in those two States is subject to the act, whieh specificady exeludes lignite.
Before the Ćommission could enter the price-determination stage of its
1 These districts are: 1— Eastern Penn- sylvania, inciuding Maryland, and Grant, Minerał and Tucker counties, West Vir- ginia; 2— Western Pennsylvania ; 3—
Northern W est Yirglnia, inciuding mines in Nicholas County served by the Balti
more & Ohio R R . and north: 4— Ohio ; 5— Michigan ; 6— West Virginia Pan-handle; 7— N RA Southern No. 1 field, covering principally low-volatlle opera- tions of W est Virginia and V irg in ia;
S— N RA Southern No. 2, coverlng prin
cipally high-volatile operations of the Virginias, eastern Kentucky and parts of Tennessee and Inciuding Buchanan County, Virginia, low-volatile field; 9—
Western Kentucky; 10— Illinois; 11— In- diana; 12—-Iowa; 13— Alabam a; Dade and W alker counties, Georgia, and Marlon, Grundy, Hamilton, Bledsoe, Sequatchie, White, Van Buren, Warren, McMinn and Rhea counties, Tennessee;
14— Arkansas and Haskell, LeFlore and Seąuoyah counties, Oklahoma; 15— K an
sas, Missouri, Texas and coal-produdng counties in Oklahoma not included in District 14 ; 16— Northern Colorado ; 17— Southern Colorado and New Mexico counties not included in District IS ; 18— Grant, Lincoln, McKinley, Rio Arriba, Sandoval, San Juan, San Miguel, Santa Fe and Socorro counties, New M exico; Arizona and California; 19—
Wyoming and Idaho ; 20— Utah ; 21—
North and South D akota; 22— Montana' 23— Washington, Oregon and Alaska.
work, however, it was neeessary to organize district boards fo r the 23 producing districts1 named in the law, set up statistical bureaus in each district and establish classifica- tions fo r each code-member mine.
Initiative in classification, proposing base prices and in coordinating prices of competing districts into eommon markets rested with the producers’ district boards. In many eases, failure of these boards to agree upon eompetitive relationships and, in some instances, dissension within a district on proper classifica
tion compelled the Ćommission to take over the job of reconeiling views.
The first formal public hearings of the Ćommission were held in Ju ly to consider proposed standards of classification. Taking their cue from an order of the 1935 Ćommission, district board spokesmen generally testified that these standards should include: (1) Chemical analysis, (2) physical characteristics, (3) plant- performance characteristics, (4) m arket history and sales experience, and (5) yalues as to use. This last proposed standard, whieh was not a p a rt of the 1935 order, immediately became a storm center, with union spokesmen denouneing it as a deviee to give favored consumers—partic- ularly the railroads—special advan- tages. Defenders of the use standard
82 C O A L A G E — Vol.43, No.2
stoutly insisted it was necessary with questions of marketing policy whieh become pertinent when mini
mum priees are proposed and coor- dinated.”
F o r purposes of coordination, the law groups the 23 produeing dis- triets into ten Minimum-Price Areas (see Coal Age, May, 1937, p. 225). territory. No produeing district, of course, has priees to all areas. In clusive of freight-rate adjustments and indm dual exceptions. F o r eaeh market area or group of such areas named in the minimum-price Sched
ule of a district, there also is a desig- price must be increased—subject again to the 35c. maximum—suffi-
Specific modifleations fo r individual mines, sizes or areas fu rth er com- plicate the sehedules. Since the sehedules were announced, the Com
mission has been deluged with com-
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S4 C O A L A G E — Vol.43. No.2