Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-03-17
THE ANTHRACITE COAL CASE.


The recent care iully prepared ruling of
the Interstate Commerce Commission on
anthracite coal rates marks an interesting
stage in the progress of railroad regulation.
1t illustr ates the principle that is generally
adopted by governmental supervision of
rates where the ordinary influences of COM
petition are suspended.
The case turned on that regular device of
the anthracite companies, in which the
usual operation of railway discrimination is
reversed. The device is that of each rail-
way company operating at its own cost coal
traffic. Nominally high freight rates are
imposed on the shipments of these mines-so
high that they are run at loss; and the
railway makes good the loss from the
freight earnings. So far as the railroads
are concerned this is simply taking money
out of one pocket to put it in another. But
to the independent mine operators who have
to pay the same rates, it amounts to confs-
cation. The commission recognized the in-
justice OF this practice. As it has no power
to enforce the Constitution of Pennsylvania,
which forbids railway companies to engage
in mining enterprises. it concluded the
best it could do was to order reduction of
rates, with the intimation that if by actual
experience this did not make matters even
it would order another.
This is, as we have said, the best the COM
mission could do. But it is a very unsatis-
factory settlement OF the question. When
great industries must depend for their very
existence on their ability to convince set
of public officials that freight rates should
be raised or lowered. their stability rests on
an insecure basis. The onlysecure and ade-
quate regulation for prices and charges is
Such condition of competition as makes
prices regulate themselves The inadequate
regulation which comes of a governmental
supervision of monopolies is sufficiently
illustrated by the fact that the rate of 81 30
per ton which the commission tentatively
fixed in this case is for an actually less SER
vice than that for which the railroads be-
tween Pittsburg and the lakes charge 95c
ton; and is about double the rate for a little
over half the service as compared with the
charges on Hooking V alley coal. If every
one could enter into the transportation of
coal by rail as they can by water, it is safe
to say that the rates on anthracite coal would
be half of those fixed by the commission.
A striking illustration of Wall street
opinion is furnished by the assertion of the
money column of a New York newspaper
that the decision can be evaded, as follows:
Tariff rates can be advanced higher than
they were before, and while Coke Bros. d Co,
or any other individual miner, are placed upon
the same footing with the collieries of the road
which is patronized, the extra profit in hauling
will amply compensate for the apparent loss in
mining COAL
As this is exactly what the anthracite
roads have been doing, the Wall street idea
is that these companies can exaggerate the
abuse; that when ordered to reduce their
rates can advance them. There is more SIM
plicity and directness in the declaration OF
one of the railroad officials that they will
not obey the orders of the commission until
the courts make them. That directly raises
the issue whether the regulation provided BY
Congress is to be obeyed by the great corpo-
rations.