[Bituminous Coal]
[From the U.S. Government Publishing Office, www.gpo.gov]

PRICE SCHEDULE No. 5
Bituminous Coal
PRICE STABILIZATION DIVISION
NATIONAL DEFENSE ADVISORY COMMISSION
WASHINGTON, D. C.
Foreword1
Office for Emergency Management
OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY
1.	All price schedules, instructions, announcements, forms, and notices heretofore issued, promulgated, or adopted, and all committees formed, by the Advisers on Price Stabilization and Consumer Protection, members of the Advisory Commission to the Council of National Defense, or by the Price Stabilization and Consumer Divisions of the Advisory Commission to the Council of National Defense, are hereby ratified, adopted, and continued in effect, until modified, terminated, or superseded, as price schedules, instructions, announcements, forms, notices, and committees, of the Office of Price Administration and Civilian Supply and the Administrator thereof.
2.	This ruling is issued under, and in execution of the purposes of, Executive Order No. 8734, issued by the President on April 11, 1941.
Issued this 15th day of April 1941. .
Leon Henderson,
Administrator.
1	Federal Register, April 16, 1941, Vol. 6, No. 74. ni
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Price Schedule No. 5
BITUMINOUS COAL
Whereas the Price Stabilization Division of the Advisory Commission to the Council of National Defense is charged with functions related to the maintenance of price stability and the prevention of undue price rises and price dislocations ; and
Whereas the Nation’s production of bituminous coal has in large part ceased as a result of a failure of the mine operators and employees to negotiate a wage agreement, and unless production is promptly resumed, there will be a shortage in the supply of bituminous coal available to meet the demand therefor; and
Whereas on account of such shortage and fears of shortage a serious and perhaps excessive and disastrous rise in the prices of bituminous coal is clearly threatened, which price rise will have an injurious effect upon the Nation’s economy, because of the importance of bituminous coal as the prime source of energy for industry and as the prime source of heat for domestic consumers; and
Whereas it is difficult and perhaps impossible to maintain price stability and prevent excessive and unwarranted price increases in the absence of specific maximum standards set with the utmost expedition and at all levels of sale ; and
Whereas the prompt establishment of such standards is necessary to prevent the kind of price policy which leads to a weakening of the defense effort through disastrous inflation, undue burdens upon the Government, economic dislocations, price spiraling, and profiteering, and the establishment of such standards is otherwise necessary in the public interest and in the interest of national defense ; and
Where ar on the basis of information made available through the cooperation of the Bituminous Coal Division of the Department of the Interior, and on the basis of other information secured by the Price Stabilization Division, I find that the maximum prices set forth below in this Price Schedule constitute reasonable limitations, in the present emergency, for bituminous coal,
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Now, Therefore, in order to facilitate cooperation with the Government in maintaining price stability and in preventing excessive and speculative price increases injurious to the defense program and to the public interest and welfare. It Is Directed That:
1.	Ceiling Price.—On or after April 3, 1941, no person selling bituminous coal, whether producer, distributor, retailer, or any other seller, shall sell or deliver bituminous coal, or offer to sell or deliver bituminous coal, at a price exceeding the ceiling price. The ceiling price shall be the price received by such seller for a similar sale or delivery made on March 28, 1941. A similar sale or delivery shall refer only to a sale or delivery involving the same size and quality of coal, the same intended use, the same or nearby delivery and transportation points, and the same method of transportation: Provided, That nothing herein shall prevent the seller from continuing to receive such price differentials on the basis of quantity sold or delivered as have customarily been received by such seller. In the event that no similar sale or delivery was made by such seller on March 28, 1941, the ceiling price shall be the price received by such seller for the latest similar sale or delivery made prior to March 28, 1941. In the event that no similar sale or delivery was previously made by such seller, the ceiling price shall be determined by appropriate adjustment of the applicable price on most similar sales.
A lower price than the ceiling price may be charged, demanded, or offered: Provided, That nothing herein shall be construed to authorize the receiving of a price lower than that prescribed pursuant to the Bituminous Coal Act of 1937. The price limitations set forth in this Schedule shall not be evaded whether by direct or indirect methods, or by charges for service or other charges not previously made by the seller of the coal.
2.	Modification.—This Price Schedule is issued upon the basis of presently existing conditions. In the event of a substantial resumption of production of bituminous coal, this Price Schedule will be revoked as soon as practicable; and in the event of any other substantial change in conditions, this Price Schedule will be adjusted, or revoked, as may be appropriate. Persons complaining of hardship or inequity in the operation of this Schedule may apply to the Price Stabilization Division for approval of any modification thereof.
3.	Supplements.—In order to facilitate the application of this Schedule, Supplements further stating its scope will be issued from time to time as may be necessary or appropriate.
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4.	Enforcement.—In the event of refusal or failure to abide by the price limitations contained in this Schedule, this Division will make every effort to assure (a) that Congress, the various Federal, State, and local agencies and committees, including defense organizations, and the public are fully informed of the instances of such profiteering or noncooperation; and (b) that the powers of the Government are fully exerted in order to protect the public interest in the maintenance of fair prices. Persons who have evidence of the demand or receipt of prices above the limitations set forth, or of speculation, manipulation of prices, or hoarding, are urged to communicate with the Price Stabilization Division.
Issued this 2d day of April 1941.
Leon Henderson, C omonissioner.
Supplement No. I1
BITUMINOUS COAL
Price Schedule No. 5, issued April 2, 1941, established maximum prices on bituminous coal because of the substantial cessation of production resulting from failure of mine operators and employees to negotiate a wage agreement.
Numerous inquiries have been made regarding the application of Price Schedule No. 5 to districts and fields where substantial production of coal has been or will shortly be resumed, under an agreement between mine operators and employees which provides that any general wage agreement reached in the Appalachian Conference be made retroactive to April 1, 1941. In considering such inquiries we have consulted with representatives of the Bituminous Coal Division and other experts. The essential fact which has been brought to our attention is the unique position of the bituminous coal industry. Because of its depressed condition, Federal legislation has been passed in order that bituminous coal prices might be kept up to a level at least sufficient to return to producers their average costs. Price Schedule No. 5 establishes as maximum prices the actual prices charged on March 28, 1941. We have been informed that, generally speaking, these maximum prices are approximately the same as the minimum prices fixed by the Bituminous Coal Division.
With maximum prices thus established at approximately these minima, it is apparent, if production is to go forward, that a determination must be made now regarding the application of Price Schedule No. 5 to newly mined coal. In making this determination, consideration has been given not only to the factors recited above but
1 Federal Register, April 17, 1941, Vol. 6, No. 75.
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to the need for protecting consumers by preserving the March 28, 1941, price for coal heretofore mined, and carefully limiting any increase in price to increased costs In addition, consideration has been given to the manner in which the industry has customarily treated similar problems arising under substantially similar conditions.
Accordingly, Pursuant to and Under the Authority Vested in Me by Executive Order 8734, it is Directed That:
(1)	Bituminous coal producers may (a) demand and receive for coal mined under retroactive wage agreements prices which do not exceed the maxima heretofore set, and (&) at the same time enter into a collateral agreement whereby the purchaser agrees that when Price Schedule No. 5 is revoked by this Office following substantial resumption of production, the purchaser will pay the producer a sum, to be agreed upon between the parties, not to exceed the increase in costs, at the normal rate of production, since March 28,1941.
(2)	Any person purchasing from a producer under such an agreement may, in delivering such coal upon resale, (a) demand and receive prices which do not exceed the maxima heretofore set, and (b) at the same time enter into a similar collateral agreement whereby the next purchaser agrees in his turn to pay the original purchaser such additional sum as the producer may obtain pursuant to the preceding paragraph.
(3)	Similar agreements providing for the passing on of the additional sum obtained by the producer may be entered into by subsequent purchasers.
Issued this 16th day of April 1941.
Leon Henderson,
Administrator.
Press Release1
Moving swiftly to prevent run-away or excessive prices due to the bituminous coal strike, Price Commissioner Leon Henderson of the National Defense Advisory Commission today issued a price schedule freezing bituminous coal prices at or below the March 28, 1941, prices. The ceiling prices apply to producers, distributors, retailers, and all other sellers of bituminous coal.
In the event of a substantial resumption of production of bituminous coal, these ceiling prices will be revoked as soon as practicable.
The move was made after consultation and in cooperation with the Bituminous Coal Division of the Department of the Interior, and the
1 April 2, 1941.
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ceiling prices were issued by the Price Stabilization Division with the approval of Miss Harriet Elliott, Director of the Consumer Protection Division of the Advisory Commission.
Mr. Henderson explained that he had acted expeditiously to make sure that coal prices do not get out of hand and to prevent repetition of the unfortunate experience of the World War, when bituminous coal prices soared to fantastic heights. He added that he was keeping a vigilant eye on prices for other fuels, including anthracite coal, and would take appropriate steps to prevent excessive prices for such fuels.
“Stabilizing bituminous coal prices is doubly important,” Mr. Henderson said, “because bituminous coal has a dual character and is a basic industrial commodity, as well as a commodity entering into the cost of living of the average consumer. Because the price of coal enters into the cost of practically every other commodity and because it affects the cost of living, run-away coal prices might touch off a spark leading to other price increases and having spiraling and inflationary results.”
The price schedule provides that no producer, distributor, retailer, or other person shall sell, deliver, or offer coal at prices exceeding those received by the seller on similar sales or deliveries made March 28,1941. If no similar sale was made March 28, the seller is limited to the price received by him on the latest date prior to March 28, 1941.
Mr. Henderson said that he is asking retail coal distributors to use their best judgment in allocating their limited supplies so as to prevent hardships to consumers. Through Frank Bane, Director of the Division of State and Local Cooperation of the National Defense Advisory Commission, the aid of state and local defense councils has also been enlisted. The following telegram was sent today by Mr. Bane to all State and local defense councils :
“In view of bituminous coal strike and in order to prevent runaway prices, Leon Henderson of the National Defense Commission has today issued price schedule freezing prices for bituminous coal, at or below prices charged March 28. These ceiling prices will be revoked when production is substantially resumed. Ceiling prices apply to producers, distributors, retailers, and all other sellers. We should appreciate your cooperation in helping to publicize and enforce this price ceiling and to prevent any taking of advantage of the possible emergency. We suggest that you contact all coal distributors and retailers in your region and assist them in allocating their stocks in the interest of national defense and community needs.”
Any seller suffering hardships or inequities in the operation of the Schedule may present his case to the Price Stabilization Divi
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sion by petition for modification, Mr. Henderson said. He added, however, that since the coal to be sold in the weeks to come has been produced or acquired prior to the stoppage of production, there is an absence of any increased cost and any price rise would therefore represent an attempt to take undue advantage of the emergency and to take large profits on existing stocks of coal.
The Price Schedule provides that in the event of any failure to observe the ceiling prices, the Price Stabilization Division will “make every effort to assure (a) that Congress, the various Federal, State, and local agencies and committees, including defense organizations, and the public are fully informed of the instances of such profiteering or noncooperation; and (5) that the powers of the Government are fully exerted in order to protect the public interest in the maintenance of fair prices.”
Persons who have evidence of violations of the ceiling prices, or of speculation or hoarding, are urged to communicate with the Price Stabilization Division.
Press Release 1
The coal price schedule issued April 3, freezing coal prices at or below the prices charged March 28, does not prevent a producer from asking higher prices when selling or offering for sale coal to be mined after the mines resume operation and to be delivered after revocation of the schedule, Price Commissioner Leon Henderson of the National Defense Advisory Commission announced today.
The statement was made by Mr. Henderson in a telegram replying to an inquiry from John A. Luse, executive secretary of the Bituminous Coal Producers Board No. 7, Washington, D. C. Mr. Luse asked whether a producer, in quoting prices now on deliveries to be made after the strike ends, may provide for increases to cover increased wage costs.
In reply Mr. Henderson said that the price schedule “contains no prohibition with respect to sales or offers of sale relating to coal to be mined after mines resume operation and to be delivered after price schedule is revoked”.
He explained that the “schedule will be revoked as soon as practicable after substantial resumption of production”.
Press Release2
Modification of the bituminous coal price schedule to avert hardship for mines where work has been resumed under retroactive wage
1 April 5, 1941.
»April 16, 1941.
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agreements during strike settlement negotiations was announced today by Leon Henderson, Administrator, Office of Price Administration and Civilian Supply.
This modification took the form of a supplement which permits bituminous coal sellers operating under such conditions to sign collateral agreements with purchasers.
Under such agreements, an operator is permitted to obtain, for coal mined after the price schedule is revoked and there has been substantial resumption of production, an agreed sum equal to the maximum price set up in the schedule plus the increase in costs necessitated by the retroactive wage agreement.
“Because of the depressed nature of the bituminous coal industry,” Mr. Henderson said, “the actual prices on March 28, 1941, which constitute the maximum prices contained in Price Schedule No. 5, approximate the minimum prices fixed by the Bituminous Coal Division. The industry is practically unique in that these prices, generally speaking, do no more than to return to producers their average costs. In the event, therefore, that a wage increase is made retroactive, hardship and inequity to producers and other sellers might result unless this relief is granted.
“Consumer protection will not be diminished by the supplement, since the March 28 price ceiling is maintained for all coal above ground. Collateral agreements are not permitted unless the coal is newly mined under a retroactive wage agreement. Moreover, future compensation is limited to actual increases in cost at the normal rate of production.”
Press Release3
The price schedule issued April 2 setting a ceiling on prices on bituminous coal and the supplement to it issued April 16 were revoked yesterday by Leon Henderson, Administrator, Office of Price Administration and Civilian Supply. Mr. Henderson warned, however, that price action would be renewed if unreasonable prices are charged.
The bituminous coal price schedule set a ceiling for all stages of the distribution process at levels prevailing March 28,1941. The purpose was to avert price increase because of curtailed supplies due to the coal strike. The schedule stated that it would be revoked when substantial resumption of bituminous coal production was achieved.
This schedule was modified by a supplement issued April 16. The supplement provided relief for mines which reopened under a retroactive wage agreement.
The revocation was made after consultation with the Bituminous Coal Division of the Department of the Interior, with which division
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Mr. Henderson’s office has cooperated in the administration of the schedule.
“Although the schedule is revoked,” Mr. Henderson emphasized, “no reason exists for any unreasonable price increases in bituminous coal. Preliminary statistics computed by the Bituminous Coal Division indicate that the average cost of producing coal in 1940 decreased approximately 18 cents per ton under the average costs obtaining in 1936 and 1937, upon which the division based its minimum prices. Many producers, therefore, will be able to absorb any cost increases because of wage adjustment, and price increases in many areas will thus be unnecessary.
“If unreasonable prices are charged by either producers, distributors, or dealers,” Mr. Henderson continued, “price action with regard to bituminous coal will be promptly reinstituted. If a ceiling again becomes necessary it may have to be imposed at a level lower than that to which coal prices have become inflated. Persons affected by any unreasonable price increases are urged to communicate with this office.
“In the event of any temporary shortage in bituminous coal after resumption of production, due to transportation or other causes we ask that all sellers of coal favor defense industries wherever possible. Such patriotic action will make unnecessary any attempt at rationing the supply in the areas affected.”
Mr. Henderson expressed his appreciation for the excellent cooperation received from state and local defense councils in connection with the coal schedule.
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TITLE 32—NATIONAL DEFENSE
Chapter XI—Office of Priee Administration and Civilian Supply
PRICE SCHEDULE No. 5
Order of Revocation1
BITUMINOUS COAL
Because of the cessation of production of bituminous coal resulting from the failure of mine operators and employees to negotiate a wage agreement, the Office of Price Administration and Civilian Supply of the Office for Emergency Management on April 2, 1941, issued Price Schedule No. 5, fixing a ceiling price upon bituminous coal. The Schedule provided for its revocation as soon as practicable in the event of a substantial resumption of bituminous coal production. To avoid hardship, Supplement No. 1, authorizing collateral agreements where production was resumed subject to a retroactive wage agreement, was issued April 16. We are now informed that as a result of an agreement reached yesterday between operators and employees, substantially all bituminous mines will be reopened this morning, subject either to a new wage agreement, or to wage negotiations the result of which is to be made retroactive to the date of resumption.
Accordingly, Pursuant to and Under the Authority Vested in me by Executive Order 8734, it is Directed That:
Price Schedule No. 5, and Supplement No. 1 thereto, are hereby revoked.
Issued this 1st day of May, 1941.
Leon Henderson, Administrator.
Certified to be a True Copy of the Original.
John E. Hamm, Deputy Administrator.
1 Federal Register, May 2, 1941, Vol. 6, No. 86.
0. S. GOVERNMENT PRINTING OFFICE: 1941
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