Binkley Mining Co. v. Wheeler

133 F.2d 863, 1943 U.S. App. LEXIS 3907
Court of Appeals for the Eighth Circuit·Decided February 10, 1943·No. No. 12367·Published·Cited by 13 cases

Opinion

WOODROUGH, Circuit Judge.

The petition for review in this case is presented by the Binkley Mining Company of Missouri, a Code Member under the Bituminous Coal Act of 1937. It feels itself aggrieved by the order of June 4, 1942, of the Director of the Bituminous Coal Division of the Department of the Interior directing petitioner to cease and desist from selling or offering to sell coal produced by, it at less than the applicable effective minimum prices established therefor, contrary to the provisions of the Bituminous Coal Code and rules, regulations and applicable price schedule thereunder. The order imposed no penalties and the Director has not applied for any order of enforcement but the petitioner feels that the Director had no right under the circumstances presented to hear or consider the charge which had been preferred against it and that his decision and order are not in conformity with the Act and are not supported by substantial evidence. Petitioner is accorded the right of review in this court by Section 6(b) of the Bituminous Coal Act, 15 U.S.C. A. § 836(b), and as its petition presents the first instance of a review in this court of a trial and action taken by the Director against a Code Member for alleged wilful violation of the Bituminous Coal Code, both parties have briefed and argued the important questions for decision with great care and thoroughness.

The statute involved is the Bituminous Coal Act of 1937, approved April 26, 1937, c. 127, 50 Stat. 72-91, 15 U.S.C.A. §§ 828-851, and extended by amendment April 11, 1941, 55 Stat. 134, 15 U.S.C.A. § 849 et seq.

[865] The Act as initially passed was to be administered by the National Bituminous Coal Commission. However, the functions of administration of the Act were transferred from the National Bituminous Coal Commission to the Department of the Interior by Act of June 7, 1939, Reorganization Plan No. II, § 4(a) and (b), Public Res.No.20, 53 Stat. 813, 1431, 5 U.S.C.A. §§ 133s, 133t (pursuant to authority granted in the Reorganization Act of 1939, Pub. No. 19, 76th Cong., 1st Sess., approved April 3, 1939, 53 Stat. 561, 5 U.S.C.A. § 133 et seq)~. Pursuant to order of the Secretary of the Interior, the Bituminous Coal Division is, with exceptions not here pertinent, the successor to all functions of the National Bituminous Coal Commission. (Order No. 1399 of the Secretary of the Interior, dated July 5, 1939).

The Supreme Court epitomized the objects and provisions of the Act for discussion and establishment of its constitutionality in Sunshine Anthracite Coal Co. v. Adkins, 310 U.S. 381, 60 S.Ct. 907, 84 L.Ed. 1263, and to clarify discussion of the points here presented it is further observed that the Act provides that producers of bituminous coal may accept membership in the Bituminous Coal Code. Producers accepting such membership are required to abide by the minimum prices established for the coals produced at their mines and to conduct their business in a manner consistent with the trade practice provisions of the Act and regulations issued thereunder. The Act imposes a 19% percent tax on all sales of bituminous coal covered by the statute but provides that the tax shall not be applicable to the sales of coal by producers who are members of the Bituminous Coal Code. The requirements for admission into the Code are detailed in Section 4 of the Act.

Pursuant to the statutory direction contained in Section 4 Part II of the Act, the Director, following lengthy public hearings, promulgated schedules of effective minimum prices for the coals produced by Code Members in the various production districts. Coincident with the establishment of minimum prices, the Director issued marketing rules and regulations designed to implement the minimum prices by controlling various aspects of the sale of coal.

Section 4 II (e) provides that the sale or delivery or the making of a contract for the sale of coal by code members at a price below the minimum established by the Division shall constitute a violation of the code.1 A schedule of Effective Minimum Prices for District No. 15 for All Shipments Except Trucks was established and in effect from October 1,' 1940, to March 31, 1941, providing in Price Instruction No. 9 Part I:

“Domestic and Commercial Use and Industrial Use.

“(a) Prices shown for Domestic and Commercial Use apply (1) on all sales in retailing of coal. (2) On all sales of coal to consumers using coal principally for space heating. (3) On all other sales except Industrial Use as provided for in Part II Special Purpose Use and Part III Railroad Locomotive Fuel Use.

“(b) Prices in the Industrial Use Schedule apply only where sale is made by the Producer Code Member, his authorized agent, or a registered wholesaler or jobber and where the coal moves direct from the mine of the producer to the consumer using the fuel principally for (1) -the purpose of driving steam engines or turbines, (2) [866] the purpose of manufacturing or processing if fuel is required each day of the year products of the consumer are produced.”

Section 4 II (j) authorizes the Division to hear and determine written complaints made by certain parties charging any violation of the Code specified in Section 4 Part II and to make such orders as the facts and the circumstances warrant.2

Section S (b) provides that upon written complaint by any code member, district board,3 State or political subdivision of a State, or the Consumers’ Counsel, the Division, after a hearing with thirty days’ written notice to the code member and “upon proof that such [code] member has wilfully violated any provision of the code or any regulations made thereunder,” may revoke his code membership or, in its discretion, may order the code member to cease and desist from violations.4

Section 6 (a) makes all the regulations and determinations of the district boards subject to review by the Division upon proper appeal to it, and provides that in the event a district board fails for any reason to take action authorized or required of it under the Act, then the Division may take such action in lieu of it.5 Certain actions of the district boards are subject to supervision of the Division by the provisions of Sections 4 I (a) and 4 1 (b), 15 U.S.C.A. § 832 (a, b).

Section 6 (b) provides in part that “the finding of the [Commission] Director as to the facts, if supported by substantial evidence, shall be conclusive”, upon review thereof by the Circuit Court of Appeals.

[867] Statement.

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Binkley Mining Co. v. Wheeler, 133 F.2d 863, 1943 U.S. App. LEXIS 3907 (8th Cir. 1943).

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