Mr. HOWARD GRAY. "BOBBY" VEACH COAL Co., Detroit, Mich., February 14, 1941. DEAR SIR: I am writing in regards to my business and the renactment of the Guffey Act. We, the small dealers, are badly in need of this act, and stop the wholesale of coal on the docks that hurts, so we can realize a reasonable and legitimate retail profit. I, on my own behalf, will appreciate all you can do to get this Guffey Act passed. With best of wishes, I am, Very truly yours, Mr. HOWARD GRAY, Washington, D. C. ROBERT VEACH. BOBBY VEACH COAL CO. JAY COAL & COKE CO., Detroit, Mich., February 15, 1941. DEAR MR. GRAY: We wish to register our desire to have the Guffey Act extended and hope you will use your influence to that end. We have had very little benefit from it yet in this territory, as a large part of this season's coal was purchased before the act went into effect. We also believe that the usefulness of the act will be absolutely nil to most of the dealers here unless the differential in prices to all-rail dealers and dock dealers is adjusted; but because we have faith that these differences will be adjusted and that another year will show great benefits to the coal dealers of our country, we support the act and hope to see it extended. Very truly yours, Mr. HOWARD GRAY, Director, Bituminous Coal Division, JAY COAL & COKE CO. By LYNNE L. MERRITT. OFFICE OF ALBERT F. ARBURY, Detroit, Mich., February 15, 1941. Department of Interior, Washington, D. C. DEAR SIR: The Bituminous Coal Act of 1937, which expires April 26, 1941, should, in my opinion, be extended for a period of 2 years. The act is well designed to maintain and extend the uses of bituminous coal, provided the Department of Interior is given a fair opportunity to demonstrate its ability to enforce the marketing rules and regulations and to actually provide minimum prices. As a stockholder in the J. T. Sinclair Co., a Detroit, Mich., retail coal corporation, I strongly urge this extension under your direction. Very respectfully yours, Mr. HOWARD GRAY, J. T. SINCLAIR CO. R. F. MEEK COAL & SUPPLY CO., Director, Bituminous Coal Division, Department of the Interior, Washington, D. C. DEAR MR. GRAY: We have been keenly interested in the Guffey Act ever since it was enacted, and have observed how it operates, and the beneficial effects it has had on the retail coal business here in Detroit. There are many reasons in our opinion, why the Guffey Act should be reenacted, and no doubt no one is better qualified, than yourself to marshal these in their order of importance and so we are not going to enumerate all of them. However, if the Guffey Act did nothing else than to prevent the "dumping" of coal on a retail market, already saddled with many perplexing problems, it would justify its reenactment. We, therefore, recommend and urge you to use every possible means to see that the Guffey Act is again put in effect. Yours very truly, Mr. HOWARD Gray, R. F. MEEK COAL & SUPPLY Co. By R. R. MEEK, Treasurer. A. T. ALLAN Co., Detroit, Mich., February 20, 1941. Director, Bituminous Coal Division, Department of the Interior, Washington, D. C. DEAR SIR: We understand the Guffey Act expires on April 26, 1941, and we urge you to do everything possible to have this act continued. We believe the act will have a good effect in stabilizing retail prices, inasmuch as the costs will be uniform to all dealers. Thanking you in advance for anything you can do to have the act continued, we remain Very truly yours, Mr. HOWARD GRAY, A. T. ALLAN Co. I. E. JOZEFIAK & SON, Hamtramck, Mich., February 21, 1941. Director, Bituminous Coal Division, Department of Interior, Washington, D. C. DEAR SIR: I am informed that the Guffey Act expires April 26, 1941. Inasmuch as this act places us all in the same buying position, and through this our place in retail coal business is more certain, I am a hundred percent for this act, and hope that this law be reenacted as is. Yours truly, Mr. HOWARD GRAY, EDWIN E. JOZEFIAK, JACOBS BROS. COAL CO., Detroit, Mich., February 15, 1941. Director, Bituminous Coal Division, Department of Interior, Washington, D. C. DEAR SIR: As we are a small retail coal dealer, we have found the going kind of hard in the past, but since the Guffey Act was put in effect, we are able to get a reasonable margin for coal that we have sold. It has kept prices on a more even keel, so if you will, we would like you to do what you can for the continuance of the Guffey Act. It will do wonders for both wholesale as well as the retail coal industry. JACOBS BROS. COAL Co. EBERTS BROS. Co. Mr. HOWARD GRAY, Wyandotte, Mich., February 19, 1941. Director, Bituminous Coal Division, Department of the Interior, Washington, D. C. DEAR SIR: We wish to go on record as urging the reenactment and continuation of the Bituminous Coal Act of 1937 in its present form without interruption. Our company as retailers of solid fuel have been serving this community since 1880, and believe that our years of experience qualify us to judge as to the merits of and need for regulation of the coal industry from the standpoint of the consuming public, whom we feel will be greatly benefited by the classification of coals, and the legitimate retail dealer who is interested in giving his customer the most in heat satisfaction for their fuel dollar, and still realize a reasonable and legitimate profit for his services, to which he is justly entitled. The full effect of the act has not been felt in this market for reasons as follows: Our community is but 3.3 miles from the limits of the city of Detroit, which is the Rouge River, on whose banks there is unloaded the largest percentage of dock coal coming into the Detroit area. As these docks were stocked to capacity, plus the large tonnage that moved to the all-rail yards for stock prior to the effective date of the act, and the official temperature proves this to be the mildest winter of record since 1882, there is still a large tonnage of coal in stock purchased prior to the establishment of minimum prices. This coal is being sold at ridiculous prices and has completely demoralized this market and we can only hope for a more stabilized market by the control of prices at the mines. To furnish facts to prove the above statements, we enclose tear sheets from three of the leading Detroit papers, practically this same copy has appeared in the daily and Sunday issues of these papers since early fall. This should give you some idea of market conditions, which we hope will be materially corrected when present stocks are depleted, if the Coal Act continues in force. We realize your department has no control over the retail dealer, but by analysis of the enclosed adds, we believe that you will agree the retail dealer should have protection, if only to make it mandatory to advertise and sell the different coals under their true name, and not by self trade-market and/or trick names in a deliberate attempt to confuse and deceive the consuming public. Considering the vast investment of the retail coal industry in this area it does not seem just and logical that approximately 300 dealers should suffer from the actions of a few, as the present conditions of the market could probably be traced to not more than six concerns. As our yard is located on the Detroit River with ample depth of water to accommodate any size of lake vessel and as we do receive over 50 percent of our domestic coal by water, which percentage could be materially increased, we are not affected as much as the all-rail dealer, however, we believe the retailing of coal is a legitimate business and our policy has always been for the protection of the industry as a whole, and we have hopes, that should more retailers pursue that policy, and with the continued help of the Bituminous Coal Act, the industry will survive and not be disrupted by selfishness and greed. We beg your whole-hearted support for the prompt reenactment of the act, and that there will be no lapse in its enforcement. Thank you. Very truly yours, EBERTS BROS. Co. Mr. HOWARD GRAY, MICHIGAN FOUNDATION CO., INC., Director, Bituminous Coal Division, Department of Interior, Washington, D. C. DEAR SIR: As a retailer of coal we earnestly hope and desire that the Guffey Act, which expires April 26, 1941, be reenacted as is. We feel that the Guffey Act is very much needed in our business, and that only through a complete control of the wholesale markets can we hope to realize a reasonable and legitimate retail profit. Thanking you in advance for anything you can do for us on this matter, we are, Very truly yours, Mr. HOWARD GRAY, MICHIGAN FOUNDATION CO., INC., SERVICE COAL CO., INC., Detroit, Mich., February 17, 1941. Director, Bituminous Coal Division, Department of the Interior, Washington, D. C. DEAR SIR: In connection with the Guffey Act, we cannot urge too strongly its enactment and continuance. From a retailer's standpoint, it will help eliminate the cutthroat competition and give the retail yards a chance to survive, especially in this area, where the dock coal, gas, and oil are cutting into the retail dealer's volume and profit. By all means, do what you can to extend this law. Thanking you, we beg to remain, Very truly yours, SERVICE COAL Co., Mr. HOWARD GRAY, ELMER A. SCHMIDT. DEARBORN FUEL & SUPPLY CO., Dearborn, Mich., February 24, 1941. Director, Bituminous Coal Division, Department of the Interior, Washington, D. C. DEAR SIR: It is our understanding that the Guffey Act is to expire April 26, 1941, and we would like to urge you to have the Congress extend this act. Since October 1, 1940, when minimum prices were established at the mines the coal business in this area has been greatly stabilized. We feel this legislation has been to our business what the National Recovery Act was intended to be for all forms of business and trade, and we fervently hope the Congress will indefinitely extend the act. Should we in any way be able to help your department to accomplish this end, we will be pleased to assist in any manner you request. Respectfully yours, DEARBORN FUEL & SUPPLY CO. The CHAIRMAN. The committee will stand adjourned until tomorrow morning at 10 o'clock. (Whereupon, at 2 p. m., the committee adjourned to 10 a. m., Tuesday, March 18, 1941.) EXTENSION OF BITUMINOUS COAL ACT OF 1937 TUESDAY, MARCH 18, 1941 HOUSE OF REPRESENTATIVES, Washington, D. C. The committee met at 10 a. m., Hon. Robert L. Doughton (chairman) presiding. The CHAIRMAN. The committee will be in order. The first witness this morning is Mr. Dom J. Schuh, manager of the Soil Fuel Institute of Cincinnati. Mr. JENKINS. Mr. Chairman, before Mr. Schuh proceeds, I should like to state that Col. C. O. Sherrill, who is the city manager of Cincinnati, and who is a nationally known expert on many matters, especially matters of city government, was here yesterday and expected to testify but he had to go back home. He left with me two amendments that I would like to offer, which he would have offered had he had the opportunity. I ask that the clerk read these amendments, to be inserted in the record. Also, Colonel Sherrill asked leave to file a statement for the record, and I ask unanimous consent that he be permitted to file such a statement which he will send in in a day or two, to be included, with these proposed amendments. The CHAIRMAN. The clerk may read the amendments. (The clerk read the amendments referred to, as follows:) (A) Provided, however, That a fair minimum price as adopted shall not be increased or decreased by reason of any particular modes of transportation that may be used in transporting coal from the mine to the point of consumption. (B) Nothing in this act shall be construed to prevent ultimate consumers from continuing to enjoy economic advantages which heretofore may have accrued to them by reason of geographical location or existing transportation facilities. STATEMENT OF COL. C. O. SHERRILL, CITY MANAGER, CINCINNATI, OHIO Col. SHERRILL. Mr. Chairman and members of the Ways and Means Committee, I appreciate very much your courtesy in giving me permission to appear before you and to represent the great city of Cincinnati of which I am the ctiy manager. I bring for your consideration what we in Cincinnati think is a serious situation. I ask you to give to our complaint your most thoughtful consideration. As I understand it, the Guffey Coal Act, known as the Bituminous Coal Act of 1937, is sought to be extended by the legislation which you are now considering. 302773-41-33 509 |