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The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1939-1949, April 13, 1939, Image 3

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W. April 13. 1939
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images Washington Digest ' . '
Weakness of Unsoynd Legislation
Does Not Remam Concealed Long
Old NRA Is Striking Example of Careless Law
making; Now Comes Up the :Unworkable Condi
tions of Guffey Law Th at Has Cost Millions
WNU Sonic; National Press Bldg, ‘ WM“ 0.0.
WASHINGTON - Unsound and
mum-table laws have a. way of con
cell!“ their weaknesses for vary
,“ mm; of time. It sems to be
me. however, that those weaknesses
like one’s sins. will be found out.;
m 3 especially true of written‘
13'; that are predicated upon a
mm]: of how things ought to be
' (one rather than upon the basis of
known-acts and customs and living
conditions or the people who make
up «If nation.
"m the old NRA, for example.
1, glaring weaknesses and impos
sm prescriptions were discovered
nther scan by the persons and bus
-1355 who had to abide by the
mm or that law. It was not so
1933, however, before most of us
( wavered that the artist who had
5 zetched the original design of the
the eagle had made a mistake. You
til recall. of course, that the de
-5 ;n had 13 feathers in one wing
and 12 in the other. That was bound
to make the bird fly in a circle, and
how true it was of the law, itself!
Even, then, there were many per
sons who believed the law was not
given a sufficient trial before thei
supreme court mowed it down. '
Among those who held a convic
tion that NRA would work was
Senator Gutfey, the Pennsylvania
New Dealer. It is the same Sena
tor Galley who attempted to de
m, politically, all Democrats who
Need with President Roosevelt
—tried to “read them out of the
party" in a radio addrws.
Senator Gufiey, with the aid or
John L.. Lewis and the 0.1.0., push
ed through congress the so-called
Outta-little NRA coal law. The
cool industry was divided in senti
ment about the bill. as I remember
the legislative battle, but Senator
Gutiey won. There came about a
notional bituminous coal commis
lim, with power to fix prices, with
power to compel a lot of other
things, including the right of pun:
ishment, under other laws if a coal
mine owner should commit the hor
rible crime of selling below cost in
order-togetridol'his coal.
Gite, uw cm the Coal
My Menu Millions
The first law so enacted was
moved down by the Supreme court
Just the same as the original and
his brother NRA. Senator Guffey
tried again. And so for two years,
or thereabouts, there has been a
In in iorce that applied the same
maples of regimentation as NRA
to the coal industry, and during
thet time, according to official re-j
m the soft coal industry has lost
money. It lost $37,000,000 in 1937.
and it lost about $60,000,000 1331:
M, the coal commission has re-
Nam-ally, the coal mine owners
Irenottakingthisloss without a
Squawk. It is not a great deal more
than a chirp, however, because the
Froductlon or coal dropped from
“3.000.000 tons in 1937 to 3Q,000,000
m in 1938. That is pretty rapid
taming. even if the industry were
W (at. '
In consequence of this, and other
conditions affecting labor and prop
eny, Remesentative Allen, a Penn
sylvania Democrat, has introduced
in the house a bill to reconstruct
the Guffey law. His proposal would
eliliiinate the price fixing; it would
eliminate the special tax on the
coal industry for upkeep of the high
Md. but more or less futile coal
commission, and it would place the
Nutty again on a basis where
“5 indiVidual mines would be com
peting for public patronage instead
°1 inducing bootiegging of coal._
I mentioned above that the in
dmty had lost money. Well, you
”I‘l I. as buyers and consumers of
Remember The
Co m m u ni ty
Sat. April I 5
Start Yt'outr :l‘urks Right
Fishing Tackle
coal,not to mention the thousands
,of great manufacturing plants us
ing coal, also lost money because of
Vthe Guffey law. We lost money be
‘cause of the price conditions. We
would be penalized in a big way if
the coal commission could ever have‘
‘accomplished the almost insur-l
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 be
high enough to allow a profit for
the lowest grade and most ineffi
cient mine operator.
Another Tux of Wu- Between
Coal Miners and Operators
One of the reasons the mine own
ers lost money was because many
who supported the law were con
vinced it would 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 ob-‘
tained an increase of 10 percent.
During the debate on the bill in con
gress it was talked freely that the
miners could get a wage increase
and it could be passed on to the
consumers. This would be true, it
was said, because the coal commis
sion would fix the prices and the
selling price, as fixed by law, would
have to be above production costs.
Certainly, labor’s wages is a part of
production costs, and the public
would not feel it. .
The contract then negotiated ex
pired recently and a new one is now
being considered in the regular tug
of war that occurs between miners
and operators every two years. In
the meantime, however, things hap
pened to labor in the soft coal
mines. As I mentioned above, there
Was a deline in production of coal.
It figures out at 22 percent. That
obviously means that, while labor‘
obtained an increase of one-tenth!
in the rate or pay, it worked only
four-fifths as much time accord
ing to the records available to me. I
fail to see where labor gained from
the law. Moreover, from the feder
al relief 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 produc
tion of coal.
I With respect to the added taxation
. placed upon the owners or the
mines, the surface indications and
'the original declarations of support
.ers of the law have proved to be
"quite misleading. The law requir
ed the industry to pay a tax or one
cent a ton and to meet assessments
to cover expenses of boards that;
were set up in the various regional}
areas. It is easy to calculate that‘
[the one cent tax raised 83,00,000 on
$342,000,000 tons, produced last year.
But that figure does not show the
extra assessments that were paid to
the regional boards, nor does it 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 re
gional boards saw fit to require.
Bringing X“Big City” SeCurity
To Your Personal
Our membership in the Federal Deposit In
surance Corporation enables us to bring to you
“Big City” security. We are able to offer you
100 per cent insurance on your account up to
$5,000.00, exactly the same protection that is
, given by the largest bank in the United States.
This insurance is provided without the rou
tine of signing an application, nor is any fee
charged for it. The protection is yours auto
matically when you open an account here.
' Every banking service is available to you
here. We invite you to make this your Banking
The First National Bank
Member Federal Deposit Insurance Corporation
ms§666 Maxun " unfihiéfiiiiée‘féf- 'EB'c—fiwneposigo;
IE2??? “menjwefi
lEXpeqse porno by lndutty
again. it was expected that these
costs and taxes would be absorbed
—-a nice word for concealing the
facts from the consumers—in the
selling price that was to be fixed.
But. as I reported earlier, the com
mission never quite got around to‘
fixing the prices under the current‘
law. Hence, the hundreds of thousJ
ands of dollars which the law’s
sponsors said would be passed on
simply became an added expense
borne by the industry.
The law has another feature
which you and I, as individuals, do
not feel directly. It is another one
of those concealed things. The law
specifies that no contract can be
signed between operator and con
sumer to last for more than 30
days. That is to say, no price can be
quoted for more than 30 days in ad
vance. That may not appear im
portant, but it is highly important.
The practice of large users of coal
is to enter into a contract for a
supply of coal to last. for example.
for a whole year's operation. Having
such contract, the owner of the
manufacturing estahlishmeut, for
instance, will [be able to know what
his fuel costs are when calculating
the price of the goods he manufacts
ures and sells. Fuel costs are im-;
portant. and .it therefore becomes]l
plain that large users of fuel have;
an unknown factor in their expense
item for a year’s plans What do‘
they do? They have to estimate that '
item, and they take the maximum
that they can expect to pay for coal
-—and users of their product have to
pay that added amount whether in
breakfast food or harvesting ma
chinery or railroad freight rates.
That one feature of the law alonel
has completely disorganized the
coal industry. 7 l
Coal Opes-atom Ame Left With
Supply in Shea Not Needed
The ”day limit also has had an
other effect. When a mine owner
could make a 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
month and the next month, some
other mine will supply the coal. The
result is that one mine may find it
self 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
is on hand. prices are reduced to ln-‘
duce someone to buy. But not so in
the soft coal industry under the
Guffey law. If the price is reduced
‘below the actual cost of mining,
costs approved by a bunch of ac
countants sitting here in Washing
ton. the law steps in—not the Gut
fey law, but two other laws. They
are the fedral trade commission act
and the Robinson-Patman act. Un
der either one of these laws, the
mine operator who cuts prices below
costs becomes tagged as a very bad
boy who must be punished by fine
or imprisonment. So, the unwant
ed coal lies in piles beside the mine,
crumbling and becoming of \ less
value daily as the weather takes its
I ghefrg Blossom: Draw Thongs
Washington, D.C.—'l'he Capital’s
famous blooming cherry trees encir
cling the Tidal Basin drew 8. rec
ord crow over the week-end. Po-
Ilice estimated that 26,000 motor cars
,crossed Flood Gate Bridge. with
50,000 persons strolling along foot
paths. 1
Bank Account
m M (VASE) commas
Circulating Library to
Be Used in‘ H. H. Club
The Horse Heaven Home Economics
Club met Wednesday with Mrs.
Ada'ryacke andspentabusyday
in spite of the dusty weather. Miss
Steiner gave demonstrations on the
making or yeast breads using tlw
butter rolls and Dixie Rolls as the
basis for coffee cake. pecan rolls.
;etc. Mrs. Bonnie Henson reported on
‘the council meeting held in Benton
ECity last month and a discussion of
jAchievement Day plans followed.
Mrs. Bernice Tomaske gave some
good recipes for home made clean
ing aids and a paper on housecleans
ing, a timely topic this time of the}
year. Mrs. E. Mcßee gave an in
teresting book review on “The Emi-l
grants” by Johan Bojer.
Mrs. Maurice Mcßee was ap
pointed :chairman of a committee
,for a club circulating library with
ers. Frank Smith and Mrs. Elinor
IMcßee as assistants. Each mem
§beristobringabooktothe next
meeting to be passed on to other
members. For recreation. Mrs. To
maske had several readings pre
sented. The next meeting will be
at the home of Mrs. z. Perrault on
recipes for egg dishes
Mrs. Eric Caper and son Donald
visited last Tuesday with Mrs. J.
Mr. and Mrs. W. 0. Travis plan
to leave Thursday for Soap Lake.
where Mrs. Travis will take treat
ments. They plan to stay a week.
F.F.A. Boys Take 4-Day
Trip to Coulee Dam
Norman Travis arrived home Sat
urday evening after a 4-day trip
They were accompanied by Mr.
Wills, their teacher, and visited
many places or interest, going to
{Wenatcheg Grand Coulee and Spo
jkane. The trip was made by truck
‘81“ twentFtwo boys made up the
Mr. and Mrs. Dennis Henson. Mr.
and Mrs. Albert Morgan of Kenne
wick and Miss Alice Girt were din
ner guests at the Guy Morgan home
Sunday. It was in honor of the
lbirthdays of Mr. Benson and Dora
.belle Morgan, an event which has
Ibeen celebrated together by the two
families annually for a number of
81311118 vacation this year. so gov--
eral of the high [school pupils re
Wednesday. They were Merle my
M 01833. AllO9. EVElyn and Jean
’Girt, Gene Ben and Louise Morgan.
Mrs. Chester Anderson were dinner
guests last Sunday of Mr. and Mrs.
John Strom of Whitstron. Miss
Dorothy Boyd is making her home
with the am while attending‘
’ Mrs. Catharine Belan. Mrs. Prank
Smith and son Clarence were busi
ness visitotp in Sunnyside lat Tues-
f Annohhcing Opening of
‘ New Shoe Repair
No. 9 Km Avenue
(Next 00°F *0 Mill's Cafe)
nons'r womsm .
i We just got in a full line.
Come in and look it over. ’
E. C. Smith Motor Co.
Kennewick, Wash.
day. Enroute they wen dinna'
Mr. and Mrs. Eric Cooper and
family entertained as guests on
Sunday Mr. and Mrs. Raymond An
derson. Mr. and Mrs. Wallace An
derson and Clifford Henson. .
Grangers Change Time
For Summer Meetings
FINLEY—The Finley grunge met
Thursday night with forty-six
members present. During the bus
iness meeting. two meinstatements
were voted favorable, three took 3rd
and 4th degrees. Starting with the
next meeting grunge will meet at
8:30 for the summer months. The
pie contest was held with Mrs. c.
Puderbaum Judged as best pie
maker and Mrs. D. Gerber second.
The Judges were Sister Fugue.
Brother 8. Ash and C. Merhaugh.
Refreshments were served at the
\close. Dancing followed. The Juve-j
nine grange also met Thursday
night. In the absence of the Itas
ter Duwayne Ash. Donald Sherry.
overseer, took the chair. after a
short business meeting, the June
niles enjoyed a weiner roast in the
Wesley Street orchard. In the ab
sence of the matron. Mrs. Mattie
Street, the assistant matron. In.
Clara McCarty had charge of the
Mr. and Mrs. Stanley Stiilwell
were in Spokane Thursday and Pri
day. where Mr. Stillwell went to at
tend the teachers Institute. They
visited Mrs. Stillwell's parent: in
Reardon Saturday and Sunday.
Miss not Erickson oi' Dense.
Washington. visited timing the{
Easter vacation with Mr. and “11:.1
hSorty Ericmon and sons.
Mr. and Mrs. Edger Scott of
Polk City. lowa are the parents of
a daughter born Monday. April 3rd.
Mrs. Scott will he remembered as
Mabel Lynn
son of Kennewick and um Grace
Wlw ms moslafioltt
Wigwam .9
Paul has mm more than
one-Illa! of all the autono
hllu out In!!! In the mall
THERE aremore Ford cars in use today than any
other make. And there are more Ford V-Bo than
any other 8-cylinder car.
The 1939 Ford V-8 represents the broadest ex
perience in building cars any manufacturer ever had.
You will find yalues in it far beyond what any other
maker can put into a car at the low Ford price.
Ford performance, traditional for a generation,
has reached new heights in the 1939 V-8.
And‘now Ford style leadership is equally outstand
ing. ‘Thesmartestcarsontheroad"isthewayown
estinappearance. l..eaders,astheydeservetohe.
APRIL IS FORD INVITATION MONTH I Your lord dealer hvlm you to
dI'IV. M'smmmm m.M-kocdch¢orcmoxpodom.
Western Auto Supply
OLAV I. OTHEIM, Authorized Dealer
“vacuum Bundny evening
Dun Ktncheloe and daughter.
Betty of The Danes ame Satur
dny evening to join nu. Kinchloe
|‘ Paint Sale I
Quart—Boc Full Gallon .. ~
v’- 33£Y55§§F...........32.50
j Potl’atch Yards, Inc.
look at that.
O m ”WWW—The Inu
u-y or b the low-price field.
0 VJ?" mum m.—
Elght cylinder: (Ive eneeth
ueee. Snell cylindere give
0 0070.40": llAKlS—Eeey
eater-quick. Om.“ nope.
e WM” conven—
New flexible roll-edge eeet
cuelllele. eel! treleveree
eprllge. double-acting lay
dreullc M duet-here.
hen-end ”Me; or dipping.
Lewd ohm. level eupe. level
tide. ' ‘
Neleee hushed (er quiet ride.
o‘o. PRICI3-Adveflleed
'l'leee hdude my “one e!
deem equip-eel.
Universal Car Sales Co
Pasco. _Wuh.
and children over the week-end
’ot the hique home. They on left
10: their home Bunny evening.
‘ It. end Mu. Jeue Londe spent
Vega!” in Dayton and Weill.
We. .

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