Jasper County Democrat, Volume 23, Number 71, Rensselaer, Jasper County, 1 December 1920 — INJUNCTION KILLS COAL LAW [ARTICLE]

INJUNCTION KILLS COAL LAW

Federal Judges Decide Against Cont*ol bv Commission. . * Indianapolis, Nov. 29. —An interlocutory injunction, which virtually nullifies the powers of the Indiana food and fuel commission in directing the distribution and production of coal, was issued in federal court Saturday on the plea of Terre Haute mining companies seeking to overthrow the coal act passed at the special legislature. The ruling, which was handed down by Judge Baker of the circuit court of appeals at Chicago, who. with Judge Anderson and Judge George T. Page of Peoria, 111., heard the case, held that the operation of the law interferes with interstate commerce and impairs the contracts made by the mines prior to the enforcement of the law, October 6, 1920.* -

The temporary injunction, while not directly striking at the powers of the commission to fix the retail price of coal, in effect paralyzes the functioning of the commission because it is now powerless to prevent the shipment of the entire output of the mines to points outside the state and can not direct the allocation of coal to* •points within the state where emergency needs may demand it. Counsel for the commission said that they would ask for an early date for the hearing for the permanent Injunction and that they Intended to carry the case to the supreme court of the United States. Five reasons were assigned by the court for issuing the injunction. They are:

“Conceding to the state the general power to take control, from time to time, of businesses which, prior to such time, have been purely private, by reason of change of circumstances, by reason of the existence of facts shoeing that such a state of wrong has arisen in that business the safety and welfare of the people of the state demand intervention by way of regulation; and, granting also to the state the benefit of the presumption that a statute Is until the contrary is shown, we Will pass to final hearing any considerations that may be advanced by the complainants to show that no facts existed which justified the finding of necessity of Intervention on the part of the state —the state being free, of course, to meet and combat such a showing. “On the question whether the remedy prescribed by the legislature has any such proper bearing to the supposed evil, we will grant to the state the benefit of assuming that op the face of the statute the remedy proposed had the necessary connection with the supposed evil.

"As to the real facts of the operation of such remedy, whether it is workable, we will pass untjl the full facts can be developed on final hearing. “On the showing that been made today, we are all of the opinion that an Interlocutory injunction should be issued.”