New-York tribune., 1906-04-20
THE COAL ROAD INQUIRY.

The employment by the federal government Of
Mr.. Charles f. Hughes of this city. and Alex
ander Simpson. jr. of Philadelphia. special
counsel to examine alleged violations of law by
the coal carrying railroads ought to insure a
thorough ventilation of the conditions now so
bitterly complained of In the coal traffic. Mr..
Hughes distinguished himself by the clearhead-
edness. fairness and patience with which he
conducted the life insurance investigation last
year, and Mr.. Simpson is vOuched for by the
Philadelphia newspapers as a lawyer of wide
experience and marked ability The inquiry
which these two agents will undertake without
prejudice but earnestly. is one of great impor-
tance 10 the public for ii is expected TO disclose
the true relations between the producers of coal
and the railroad companies which take the coal
TO market. The time is especially ripe for such
an inquiry, for the opinion is rapidly gaining
ground that in the interest of the public the
functions of production and transportation
should be rigidly divorced, and the Supreme
Court has only recently put limitation on the
exercise Of these dual functions by a railroad
that in its view will practically debar n COM
mon carrier from vending coal or other prod
uctS.
II will be remembered that In the case of the
New York, New Haven & Hartford Railroad
against the Chesapeake & Ohio Railroad. decided
in February, the Supreme Court declared void
contract under which the Chesapeake & Ohio
delivered or attempted TO deliver. coal at New
port News AT a less price per ton than the mar
ket price of coal AT the West Virginia coal
mines. plus the published freight rate from the
mines TO tidewater. The railroad claimed that
ii had not violated the anti-discrimination
clauses of the Interstate Commerce act, because
fl charged itself the full freight rate the coal
ana booked whatever loss there was TO its ac-
count coal dealer. The court brushed aside
that defence and laid down the broad principle
that q common carrier TO keep within the law,
cannot sell coal or any other commodity on
terms which will compel il to deliver that prod
uCf at any moment of time at a lower figure
than the actual market cost at the place of
shipment plus the published freight rate To
destination On such conditions long term con
tracts become highly perlous and attempts by
railroads 10 engage in business are largely
frustrated.
But if railroad cannot discriminate I'm its
own favor a vendor il cannot be permitted 30
discriminate in favor OF vending companies in
which ii has a direct or indirect interest The
burden OF the complaints now made against the
coal carrying roads is that they have favored
coal corporations in which they hold stock or
through which their officers In one way or
another benefited Discrimination is charged in
the supply of cars, in the construction OF
switches in The prompt handling of freight and
IN the limitation of the markets allotted 10
certain districts The Interstate Commerce
commission has within the last two weeks taken
Some Important testimony bearing on these
points. and from the great mass of evidence
which is still to be collected Messrs. Hughes and
Simpson can doubtless frame an Illuminating
statement of present day conditions in coal traf-
Nc. They viii have to decide whether or not on
the evidence which they secure prosecutions
should be begun against individuals for violation
OF the Interstate Commerce act But for the
public an even more important point will be-
made II means are suggested for separating