Indianapolis Times, Volume 48, Number 58, Indianapolis, Marion County, 18 May 1936 — Page 3

MAY 18, 1936.

GUFFEY COAL CONTROL ACT KILLED BY SUPREME COURT; 6-3 DECISION HANDED DOWN Opinion Hits Labor, Tax and Price-Fixing Provisions; Ruling Is Seen as Serious Defeat for Administration. (Continued From Page One)

with personal liberty and private property,” the court said. The words seemed definitely to dispose of any Federal attempt of industrial control under present interpretations of the Constitution, a Matter gaining huge significance in view of suggestions of finding a substitute for NRA. ‘The delegation,” the opinion added on this point, “is so clearly arbitrary and so clearly a denial of right safeguarded by the due process clause of the fifth amendment that it is unnecessary to do more than refer to the decisions of this court which foreclose the question.” See Price-Fixing Inseparable The price-fixing provisions of the act were stricken down primarily becau.se the court held that Congress would not pass the law if the labor provisions had been emasculated. It held that for this reason the price-fixing was inseparable from the labor provisions. In concluding its opinion, however, the court insisted that it was not indicating that it approved the price-fixing provisions if they were brought to it separately. ‘‘The primary contemplation of the act is stabilization of the industry through the regulation ol labor and the regulation -of prices; for, since both were adopted, we must conclude that both were thought essential. The regulation of labor on the one hand and prices on the other furnishd mutual aid and support; and their associated force—not one or the other, but both combined—was deemed by Congress to be necessary to achieve the ends sought. The statutory mandate for a code upheld by two legs at once suggests the improbability that Congress would have assented to a code supported -by only one." Delay Heightened Interest The Guffey act opinion had been awaited with highest expectancy, both for its effect on the great bituminous coal mining industry and for further revelation of the court’s attitude toward the possibility of any broad-scale industrial control on a Federal basis. The expectancy had been heightened by delay in the handing down of the court's opinion. May 18 marked the sixty-eighth day since the case had been argued before the court. Upon the decision, too. hinged this year’s congressional adjournment date. Plans for similar control in the anthracite and textile industries had been prepared for action in case of a favorable ruling while forebodings of an unfavorable -decision caused mine leaders to prepare substitute legislation.

550,0000 Miners Affected Directly affected were the 550,000 soft coai miners employed in the industry which in normal times has had a billion-dollar annual output. Regardin'? the price fixing provisions of the coal code under the act, the court said: “Neither this disposition of the matter, nor anything we have said, is to lie taken as indicating that the court is of the opinion that these provsions if separately enacted, could be sustained. “If there be in the act provisions, other than those we have considered, that may stand independently, the question of their validity is left for future determination, when, if ever, that question shall be presented for consideration. “Without repeating the long and involved provisions with regard to the fixing of minimum prices, it is enough to say that the act confers (he power to fix the minimum price of coal at each and every coal mine in the United States with such price variations as the board may deem necessary and proper. “There is also a provision authorizing the commission, when deemed necessary in the public interest, to establish maximum prices in order to protect the consumer against unreasonably high prices.’’ Sought by Both Sides The Guffey Coal Control Act was passed by Congress at the insistence of President Roosevelt soon after the Supreme Court held NRA unconstitutional a year ago. With talk of anew strike in the bituminous coal fields sounding on all sides, Congress adopted the law with a degree of debate unusual for such a measure. The legislation was being drafted when the NRA case was decided and it was hastily revised in an effort to overcome the court's o K jection to the former law. For this reason many considered the case before the court presented an important development in determining the power of government over industrial conditions generally. Pressure for the act came from both operators and miners. Industry Long Depressed Changing conditions in the industry following the war had started a depression in coal in 1924. From then on, due to falling demand for bituminous coal and increased competition from natural gas, oil and hydroelectric power, conditions in the industry progressed steadily from bad to worse. The general decline in economic conditions served to add impetus to the downward movement in the bituminous industry so that it became one of the outstanding economic and social problems of the nation. Under NRA and the bituminous coal code, those supporting the legislation asserted, the industry saw its first profitable year since 1924. That code also had been adopted amid threats of strikes and labor disorders, a recurring threat in the bituminous industry for many years. Summary of Provisions The law, as finally enacted, was made to run for four years. Briefly it provided: The creation of a national bituminous coal commission and a bituminous coal labor board The imposition of a 15 per cent

tax on the sale of coal or on its fair market value—the latter in the case of captive mines. Producers who file an acceptance of the code with the commission shall be entitled to a 90 per cent drawback. District Boards Set Up Formulation of a code for producers to include: Provisions for the creation of district boards in 23 coal producing districts and creation of voluntary marketing agencies if desired. Fixing of minimum prices to insure a fair return and fixing of maximum prices, if necessary, to protect consumers. Outlawing of unfair trade practices such as consigning unordered coal, granting secret rebates, discriminatory credit allowances or other, price discrimination, commercial bribery, false advertising or misrepresentation, unauthorized use of trade names and trade-marks, and inducing breach of contract. Company Union Barred Protection of the right of employes to organize and bargain collectively without restraint or coercion. Barring the company union, permitting employes to select their own checkweighmen and provision to abolish the practice of compelling miners to live in company houses or to trade at company stores. When two-thirds of the producers and more than one-half of the workers in any district reach an agreement as to wages and hours, the agreement shall be binding on all code members. Attacks Begun Early Soon after the law was enacted it was attacked by various producers. Without waiting for an attempt to enforce the law, several legal steps were taken to forestall ics effectiveness. More than 100 producers filed suits seeking to enjoin the 15 per cent tax, a vital part of the law’s operation. In most instances it was enjoined, pending a determination of the Supreme Court cases. One case, that of James Walter Carter, stockholder and president of the Carter Coal Cos., was filed in the District of Columbia Supreme Court. It charged the law was an invasion of rights reserved to the states because it attempted to control production and to regulate intrastate commerce. The Carter suit was filed to enjoin, also, the directors of the company from joining the coal code. When the case came before Justice Jesse C. Adkins, he held the law

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to be valid except for the wage and hour provisions. These, he ruled, were unconstitutional but found that this part of the act could be separated from the rest, thus permitting it to stand. Justice Adkins at the same time enjoined collection of the tax pending a final determination of the law’s validity. The Carter lawyers appealed from the first part of the decision and the government from the latter part. At about the same time a Federal district court in Louisville, Ky„ decided in two pending suits that the law was valid in its entirety. One of these suits was brought by C. H. Clark, a director of the R. C Tway Coal Cos. of Harlan County, Kentucky, scene of prolonged strife in the bituminous industry. Mr. Clark sued to compel his fellow directors, R. C. Tway and L. A. Shafer, who had voted him down al a directors’ meeting, to enroll the company under the coal code. The other Kentucky suit was brought by 11 Harlan County producers who challenged the validity of the law and sought to have the collection if taxes under it enjoined. The Carter case and the Harlan County cases were argued before the court at the same time. Assistant United States Attorney John Dickinson defended the act. It was assailed in argument by Frederick H. Wood of New York City, Carter counsel, who successfully challenged the ‘validity of NRA before the high court, and former Federal Judge Charles I. Dawson, who while on the bench held NRA. invalid and who later became a leading American Liberty League lawyer. While President Roosevelt, in asking Congress to enact the law. admitted its “doubtful” constitutionality after the NRA decision, the court’s subsequent ruling outlawing AAA as an invasion of state rights was regarded by many as clinching the fate of the Guffey act. It was argued that, if the court condemned Federal control of agriculture in the indirect manner of AAA, it would also condemn control of industry. Clear-Cut Issue Presented When the case came up for argument Mr. Dickinson placed the constitutional issue directly before the court. He argued that the states themselves had admittedly been unable to control conditions in the bituminous industry and that, unless the Federal government could do so, it was beyond the control of any governmental agency. Mr. Dickinson’s stand was supported by “friend of the court” briefs filed by seven important coal producing states in which they asserted the industry was being destroyed and thousands of their citizens affected. The states were Pennsylvania, Ohio, Kentucky, Indiana, Illinois, Washington and New Mexico. The states agreed with contentions made later in arguments by Mr. Dickinson that the Federal Constitution was imperiled unless some governmental agency had power over the huge natural resource industry. Local Man, 66, Is Dead Peter Schultz, 66, of 2001 Beech-er-st, died at his home last night apparently from natural causes. Dr. William Arbuckle, coroner, sent the body to city morgue.

THE INDIANAPOLIS TIMES

ALL FACTIONS IN GOVERNOR RACE CLAIM RECRUITS

Jackson Renamed Chief by Democrats; Fry Loses Post to Finney. Republican and Democratic candidates for the gubernatorial nomination today continued to make conflicting claims of delegate strength as both parties pointed their efforts toward the state conventions scheduled for June. Convention interest was rexindled by Saturday’s organization meeting of the Democratic state committee. Omer Stokes Jackson, Greenfield, was re-elected Democratic state chairman by acclamation. Other state officers re-elected were: Mrs. Emery Scholl, Connersville, vice chairman; William Storen, Indianapolis, treasurer, and Keith L. Johns, Indianapolis, secretary. On the Republican side Don B. Irwin, Frankfort, holds his chairmanship by the narrow margin of one vote, with the possibility that an elect'rn of district chairman in the Eighth District—set for this month—might oust him from his seat. Ralph Gates, his opponent, claims the two votes of the district. Springer Holds Advantage Observers concede Raymond S. Springer, Connersville. candidate for the G. O. P. gubernatorial nomination, a wide edge in delegate strength on the first ballot at the convention to be held in the Coliseum at the State Fairground on June 3. The three Democratic gubernatorial candidates. Pleas Greenlee, Lieut. Gov. M. Clifford Townsend, and E. Kirk McKinney, are at variance in their delegate claims. Mr. Greenlee and Mr. McKinney assert they have sufficient strength to block the nomination of Mr. Townsend on the first ballot as forecast by Towns®; T supporters. The Democratic sta ; convention is scheduled for Jvne 16. Adherents of ne three candidates claim that delegates have switched to their respective camps since the primary. Finney Declared Winner Paul P. Fry; Linton, state excise chairman, was ousted as Seventh district chairman in favor of Frank Finney, of Martinsville, state commissioner of motor vehicles. The defeat of Mr. Fry is termed a blow at Mr. Greenlee by friends of Lieut. Gov. Townsend. The Third and Sixth districts are in contests over chairmanships. The state committee declared no election in the Third district and denied M. Edward Doran, South Bend, a supporter of Mr. McKinney, a place on the committee. In the Sixth district the chairmanship of Vigo County is still in doubt on the Democratic side with George Evelo claiming the post but James J. Fagan has protested to the state committee that he was named

OFFICIAL WEATHER __united Slates Weather Bureat. Sanrlse 4:57 I Sanset 6:56 TEMPHRATURE —May I*. 1935 7 a. m 53 1 p. m 66 —Today—--6 a. m........ at 10 i. m 65 7 a. m 63 11 a. m 65 * a m 64 13 (Noon) 66 9 a. m 64 1 p. m 69 BAROMETER 7 a. m 29.99 1 p. m 39.94 Precipitation 24 hrs. ending 7 a. m... .08 Total precipitation since Jan. 1 11.23 Deficiency since Jan. 1 4.15 WEATHER IN OTHER CITIES AT 7 A. M. Station. Weather. Bar? Temp. Amarillo. Tex Clear 3P.02 58 Bismarck, N. D Clear 30.06 48 Boston PtCldy 29.80 77 Chicago Cloudy 29.92 61 Cincinnati Cloudy 29.98 6 5 Denver Clear 30.14 48 Dodge City. Kas Clear 30 04 60 Helena. Mont. Clear 30.12 40 Jacksonville, Fla. Cloudy 30.12 74 Kansas City. Mo Cloudy 30.02 64 Little Rock. Ark Cloudy 29.98 68 Los Angeles Cloudy 29.96 58 Miami, Fla Cloudy 30.02 76 Minneapolis Cloudy 29.88 58 Mobile. Ala Cloudy 30.02 76 New Orleans Cloudy 29.98 72 New York ... PtCldy 29.92 68 Okla. City. Okla Cloudy 29.98 66 Omaha. Neb PtCldy 30.08 52 Pittsburgh Rain 29 94 64 Portland. Ore Cloudy 29.70 56 San Antonio. Tex PtCldy 29.94 66 San Francisco Rain 29.92 54 St. Louis Rain 29.98 64 Tampa. Fla PtCldy 30.06 72 Washington. D. C. . . Cloudy 29.96 74

CHURCH OBSERVES DATE OF FOUNDING Sermons, Banquet Feature Program Here. The Fortieth anniversary of St. Peter’s Evangelical Church was celebrated yesterday with sermons at morning services by former confirmants who now are pastors. The observance was concluded with a banquet in honor of founders last night. The Rev. C. H. Geiger, Cissna Park, 111., who attended St. Peter’s in his boyhood, conducted German services at 9 yesterday morning, praising the benefits he had derived from his association with the church. The Rev. Carl F. Eisele, Dillsboro, another early member of St. Peter’s, spoke at 11 at English services. chairman. The state committee postponed decision. McKinney Aid Angry Leonard B. Marshall, president of the McKinney-for-Governor Club, today termed as “high-handed” the tactics of the controlled majority of the Democratic state committee in freezing out M. Edward Doran, South Bend, “as Third District chairman. “It, in my opinion, will act as a boomerang to the candidacy of M. Clifford Townsend for Governor,” Mr. Marshall said. Mr. Doran is a McKinney supporter. ‘The wishes of those who have supported Mr. Doran have been overridden by a group that has become panic-stricken over a rapidly growing threat to its regime,” he said. “I believe that self-appoint t rulers have overplayed their hand,” he ad'ded.

POLICE TO ASK INDICTMENTS IN RIVERSJIAYING Municipal Court Hearing Is to Be Avoided to Protect Evidence. * Lieut. Roy Pope of the police homicide squad said today that the Marion County Grand Jury would be asked to return indictments against all persons held in connection with the slaying of Sergt. Richard Rivers. Purpose of the move, Lieut. Pope explained, is to bring dismissal of Municipal Court charges without a hearing where important evidence might be exposed to the defense. Either members of the Alfred Brady gang do not know who fired the shots that killed Sergt. Richard Rivers, or they are signing confessions to confuse the case, police asserted today. Clarence Lee Shaffer Jr., 20, of 1142 S. Lyndhurst-dr, captured in front of his home as he was reading a detective story magazine, was quoted by Indianapolis authorities as saying, “It must have been me,” when asked if he killed Sergt. Rivers. Makes His Confession A few hours earlier, Chicago police claimed that James Dahlhover admitted being the trigger man. With Brady, Shaffer and Dahlhover under arrest, detectives pressed a search today for a fourth member of the gang, believed to have been wounded in a Lima (O.) jewelry store robbery. The desperadoes were seeking treatment for this man at the home of Dr. E. E. Rose, 2153 Barth-av, when the gun battle in which Sergt. Rivers was killed occurred. In one raid detectives discovered what they believe was the gang's arsenal in the 2400 olock on Parkav. Among the weapons iound were a Marlin army model machine gun, many belts of ammunition, tear gas and hand grenades, tracer bullets, three army rifles, a sawed-off shotgun and a revolver. When taken to headquarters,

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MARKETS AT A GLANCE Bt I'nitrd Fre* Stocks—lrregular after spurt on Guffey decision. Bonds—lregularly h : or; seven U. S. government issuer, at new highs for the year. Curb—Stocks irregularly higher, quiet. Chicago—Stocks irregular. Call Money—l per cent. Foreign Exchange—Sterling higher. French francs lower. Cotton—Unchanged to 7 points higher. Grains —Wheat rallies, oats and rye firm, com mixed. Rubber—Off 6 to 9 points. Silver—Bars in New York. 45 V off •■'s cent. Shaffer, detectives said, admitted being a member of the Brady gang, and said he took part in a number of grocery and jewelry store robberies in northern Indiana and Ohio. Blames Mrs. Larson He blamed the gang’s downfall on Mrs. Margaret Larson, Brady’s companion, who, he said, insisted that they park their car and stay overnight in a Chicago hotel. Brady was arrested in the hotel when police checked on the license plates and found the car had been stolen. Shaffer, after eluding Chicago police, wandered through eight Midwestern states and then returned to Indianapolis, where he was captured. He was given the title of the “gabby bandit” after police said he bragged for hours about his exploits. Dahlhover still is being held by Chicago authorities, but he is expected to be brought to Indianapolis before the end of the week to face a murder charge. COMMITTEE NAMED TO SELECT NEW PASTOR Successor to the Rev. T. J. Simpson Is to Be Picked. Frank Lisby, Oliver Ewing, William Martin, Frank Lentz and Mrs. T. V. Petranoff were named as a pulpit committee of the Washington Street Presbyterian Church yesterday to select a pastor for the vacancy created by the resignation of the Rev. T. J. Simpson. Mr. Simpson, who has accepted a call to the First Presbyterian Church of Hammond effective June 1, is to preach his farewell sermon in the local church May 31.

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ACCIDENTS IN STATE KILL 5: 7 HURT HERE 21 Persons Injured in Car Wrecks Over Indiana During Week-End. (Editorial on Page Ten) Five persons were killed in Indiana traffic accidents over the week-end. Funeral rites were planned today for: Tryphon Speybroeck, 70, Mishawaka. Jeanette Meyer, South Bend. George W. Glatzback, 5, Elkhart. Ralph Wyatt, 22, Dugger. Charles Richardson, 72, Olney, 111. Seven persons were injured in accidents in Indianapolis; 21 were reported injured in the state. Mr. Speybroeck was injured fatally when he was struck by a street car at Mishawaka and Miss Meyer was crushed to death by an automobile driven by a neighbor. Young Glatzback died in an Elkhart hospital from injuries received when he was struck by .an automobile. Mr. Wyatt and Mr. Richards were injured fatally in two motor car crashes near Switz City at the intersection of Ctate Roads 54 and 67. Failure to halt at intersections was blamed for the crashes. Fourteen persons were injured in the collisions. Mr. Richards was on his way home after visiting his son, Fred D. Richards, 40, of 2538 W. Washington-st, when the accident occurred. In Marion County, two persons were injured early today when their car was crowded into a utility pole. Army Code Expert Is Dead By United I'rcsn GENEVA, 111., May 18.—The body of Col. George Fabyan, 69, known as the “brains” of the Army cryptograph division during the World War, was to be taken to Boston today for burial. He died yesterday.