Code to Court

On the mine selling price of every lump of the nation's soft coal last week fell a new 15% Federal tax, 90% of which will be rebated to producers who sign the NRA-like code prescribed by the Bituminous Coal Conservation Act of 1935. Moving promptly to resolve what President Roosevelt called "doubt, however reasonable," as to the Act's constitutionality, President James W. Carter of Virginia's and West Virginia's Carter Coal Co. lost one decision to the Government, won one against his family in District of Columbia Supreme Court.

Because the tax is not payable until Jan. 2, Justice Jesse C. Adkins refused President Carter a temporary injunction against forced code compliance, promised decision on his application for a permanent injunction within ten days. Justice Adkins gave the coal man a temporary injunction restraining his company from complying voluntarily with the code. President Carter wanted that because his stockholders, who are also members of his family, wanted to sign up without any legal quibbling.

When the new tax took effect last week only 1,873 of the 15,000 U. S. bituminous coal producers had signed the code but they accounted for almost one half the nation's annual output. The National Bituminous Coal Commission gave laggards a vigorous prod by promising strict enforcement of the Act's Section 14, which prohibits the purchase of codeless coal not only by the Government but by all private agencies serving the Government, such as PWA contractors and mail-carrying railroads.

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