may claim that they are immune from any regulation or control that would destroy any property rights or impair their contract obligations. The latter class of corporations are subjected to the secondary license imposed upon conditions that are believed to be violative of no constitutional rights (see sec. 10). The control of the commission and its general authority, as set forth in the next sections, will, it is believed, encourage all corporations engaged in shipping bituminous coal in interstate and foreign commerce, to accept the full control of the commission and take out the primary license. SECTION 7 Section 7 provides that the commission shall supervise, encourage, and promote the interstate and foreign commerce of the primary licenses. Its offices are to be exercised in inspecting, analyzing, and grading coals; recommending devices for increasing the safety of miners and developing economics in coal production; recommending Government-graded coal to Federal departments; encouraging the economic distribution of markets and the development of selling agencies, docks, and yards for the licensee; studying the exporting of coal and the bunkering of ships and making rules promoting such service; investigating the fuel service of railroads to the end that discrimination in such fuel service may be avoided, and in making such investigation may determine relative costs by considering the commercial traffic rates from other fields as a proper factor. The commission shall strive to bring operators and miners to wage agreements that will promote harmonious relations, fair wages, and continuous service; with the provision that the employees shall be permitted to deal through representatives of their own selection. The theory of the bill is that relief to the industry, that is to both operators and miners, must be found in the stabilization of the coal trade. For that reason the bill deals in a major way with the trade advantage and business security of the operator. Its effect on labor is indirect, except in the provision for collective bargaining. SECTIONS 8 AND 9 Sections 8 and 9 provide for the cancellation of licenses and a fine for shipments in violation of the act. SECTION 10 Section 10 relates to corporations engaged in shipping coal at the time the law goes into effect but which do not desire to become primary licensees subject to the general control of the commission. These corporations belong to the second group referred to above. They are required to take out a secondary license and submit to the following regulations: If such corporation employs its labor with the understanding that it is nonunion, the miner under such contract shall be free to terminate it at will, or, in other words, the operator may not contract so as to prevent his employees from quitting work and joining a labor union; the corporation's employees shall have the right of free assemblage for the purpose of hearing the principles of trade unionism peaceably discussed; such employees shall be paid in lawful money and be free to buy their necessities of life where they choose; they shall be entitled to choose a checkweighman to weigh their coal; and the corporation shall make annual reports to the commission. None of these regulations can be reasonably said to destroy a property right or impair a contract obligation. The operator is still free to employ only nonunion miners, but he can not have them contract away their right, at will, to join a lawful labor union. It is agreed that such contracts, as far as they relate to the status of the employee, are terminable at the employees' will; that no employer can contract with an employee to not join a labor union except during his service for the employer; and that consequently, under such contracts, employee may at any time join any lawful labor union, or any other lawful organization, by quitting his service. The requirement that employees of such a corporation shall be entitled to free assemblage for the purpose of hearing lawful matters peaceably discussed, is simply the assurance of the constitutional rights of the employees. The right to be paid in lawful money and to 28181-29-PT 1-4 have their coal weighed by themselves or their agents does not impair any lawful right of the corporation. In this section is provided a penalty for shipment by such corporation without having a secondary license to ship coal in interstate commerce; and the commission is given the right to cancel such license on a 30 days' notice and hearing. SECTION 11 Section 11 is intended to check the wasteful development of coal properties. It provides that no sidings or switch shall be built, or any main line cut for a switch to a bituminous coal mine or tipple until after the Interstate Commerce Commission has authorized it, and such authorization is only to be made upon a certificate of necessity by the bituminous coal commission. SECTION 12 Section 12 provides that if any part of the act is held unconstitutional the remainder shall be considered of full force and effect. The CHAIRMAN. Secretary Davis made a statement this morning in general terms having only slight reference to the bill. Mr. Lewis has read his statement, largely generalizations based upon facts that he obtained since we adjourned, the latter part of it referring directly to the bill. He has now read this statement analyzing the bill. How would it be now for the purposes of argument to assume that a prima facie case has been made out-merely for argumentative purposes-and then have one of the gentlemen who is opposed to this measure take it up and argue it out and show points of opposition to it, right at this juncture, and then be answered by one on the other side? In that way, we get down and reach the real crux of it. Now, if we have Mr. Warrum or somebody else, whoever is going to represent the mine workers, make their statement right along the line of what we already have-I am not seeking now to force a situation; I am just asking whether or not it would harmonize with your plans and agree with your ideas to have an adverse statement made at this time? Mr. LEWIS. Perfectly acceptable to us. I The CHAIRMAN. I do not mean right now this afternoon. We will meet again on Monday morning. We can not meet to-morrow. do not want to force you gentlemen into a position. Mr. BELCHER. Of course, Mr. Chairman, we oppose this bill. Mr. BELCHER. But there are certain other gentlemen involved in the matter that represent other interests-that is, the National Coal Association that we do not speak for-that we have not have an opportunity to have had a conference with. We would like to answer your question on Monday. My own view about it is that we would like for the proponents of this bill to say all they have to say, and then we take up the opposition, and our arguments will be brief. They will be mostly along legal lines, as we now understand it. Mr. LEWIS. May I point out, Mr. Chairman. if you will permit, that a supporting memorandum accompanied this bill when it was introduced dealing with certain legal features about it. As far as we were aware; that is, the mine workers' representatives, the constitutional features of this bill or the legal phases of it have not been questioned or challenged. There has been no argument made against it. We are quite willing to go ahead and amplify it if the committee desires it, but it seems to me a much more reasonable proposition that anybody that has any objection to this state what the objection is, so we can answer them. Mr. WARRUM. Might I add that that is our memorandum, or as one might say, a brief upon that proposition, and it has been in the hands of these gentlemen since Congress adjourned last May. The CHAIRMAN. Yes. The formal method is for the proponents to make out their case and then for the opponents to answer. I made the suggestion that I did in the interest of time so that we might get to the crux of the proposition, because we are all anxious to get through with this; we are not going to continue these hearings at great length. I do not think it is proper, however, to force the opposition into a strained situation; and if it is not agreeable for you to proceed in that way, why, of course, I imagine that with the consent of the committee we will just let it go in the usual order. But I had thought that right now it would conduce not only to saving of time but also to bringing the minds of the committee to the real controversial point if you could take the opposition now and then let it be answered by the other side. We are pretty free and easy, you know, in this committee in our method of arriving at conclusions, but we have not any desire to bring pressure to bear unduly. Mr. BELCHER. Well, just as I said a moment ago, until we have had a conference with counsel representing the National Coal Association we will not be in a position to speak. The CHAIRMAN. Very well. The committee will then adjourn to meet at 212 Senate Office Building at 10.15 on Monday morning, the proponents to continue. (Thereupon at 4 o'clock p. m., Friday, December 14, 1928, an adjournment was taken until 10.15 a. m., Monday, December 17, 1928.) BITUMINOUS COAL COMMISSION MONDAY, DECEMBER 17, 1928 UNITED STATES SENATE, COMMITTEE ON INTERSTATE COMMERCE, Washington, D. C. The committee met at 10.15 o'clock a. m., pursuant to adjournment on Friday, December 14, 1928, in room 212, Senate Office Building, Senator James E. Watson presiding. Present: Senators Watson (chairman), Sackett, Goff, Wheeler, Hawes, Pine, and Glenn. The CHAIRMAN. Well, gentlemen, it seems hard to get enough members present to go on with a hearing, but owing to illness in the family of Mr. Warrum, I understanding that he must return to Indianapolis and will be unable to make a statement to-day. Mr. Belcher, will you be ready to proceed? Mr. BELCHER. No, Mr. Chairman. We prefer that the proponents should go on and conclude their presentation. The CHAIRMAN. I imagine we better adjourn until after the holidays, although we have so much work to do in this committee that I wish we might go right along. Mr. JOHN L. LEWIS. Mr. Chairman, might I make a statement right there? The CHAIRMAN. Certainly. Mr. LEWIS. The United Mine Workers of America have substantially made a prima facie case in this matter, and in addition we helped to carry on the investigation for three months of last spring, and Mr. Warrum made a statement of the legal phases of the matter at the conclusion of that hearing. We are rather of opinion that the evidence introduced indicates the necessity for something to be done, or at least shows the very disturbed condition in the coal industry that is not helping itself. We have made an argument here, and Mr. Warrum has made a supporting legal argument to accompany the introduction of the bill, and as yet there has not been one word of opposition to the measure, either from an economic or a legal standpoint. We have understood that Mr. Greever went before the National Coal Association, an association of the coal operators, and made an argument against the bill; and an announcement was made that they were going to oppose it, and the association adopted a resolution in opposition. Those gentlemen have representatives here, and we are rather surprised that they are not in a position to present their views at this time. The United Mine Workers have substantially presented their case, and we would think they would be ready to go on and present what they have to say. |