The Montgomery advertiser., 1907-01-03
CAUSES OF FAMINE
INTERSTATE COMMERCE. COMMTs-
 SION MAKES REPORT.
Lack of Coal i'm Northwest Was Due to Inability of Raiiroads to Han-
 de Years Increased
 Business.

Washington, Jan. S.--The causes put not the cure for car shortage in the
 Northwest and the conseduent coai famine have been deteTmined by mem bers of the Interstate fen ? y|9xee Conn nsfgsioif fatrtfcipati1is In the recenT
 hearings at Chicago and Minneapolis.
 Franklin K. Lane, who served as
 chairman of the Investigating commits
 sion, today filed his report With the commission and sent it to President
 Roosevelt. He finds:
 Tt is a fair inference that the real cause Of the coal scarcity in North Dakota was such an abundance Of westbound traffic at the head of the lakes that cars were not available at that terminal for carrying coal to North Dakota-a comparatively short haul for low class comodity."
 In a letter to the President, Mir. Lano says that the report will be followed by special recommendations as to what legislation may be advisable.
 Referring to the reports that the shortage was due to the presence of a combination between dealers in coal who fixed prices and refused to sell to "outsiders" and 'irregulars." the re- port says:
 "The Commission has gained indis- putable proof of an agreement between coal dealers to maintain prices and to boycott all who do not so agree. But there Is no evidence Justifying the con- tention that this combination Is charge able with the coal shortage prevail ing. nor that the railroads were Q party to such a conspiracy"
 The report of the Commissioner first deals with the coal famine in North Dakota and presents the conditions of distress found in that State. Consid- eration of proposed remedies are dealt with extensively as well as a proposed plan for 0 'car clearing house or car pool and reciprocal car demurrage. Fi- nancial loss Is shown to have been caused by the failure of railroads to prepare for a large movement of grain. MT. Lane shows that the railroads tapping the grain belt seem to have been overwhelmed by this years crop, although the crop scarcely exceeded that of 1905, nor did 1t that of one of the preceding years.
 The situation was explained by Pres- ident Elliott, of the Northern Pacific. who said that in attempting to handle freight they were trying to force a three inch stream through a one inch nozzle, and President Hill, of the Great Northern, declared that his railroad, as well as others, were endeavoring to bore a one inch hole with a half inch auger.
 In considering the evidence taken, Lane says that a plan for a proposed car clearing house, or a car pool between connecting lines, is regarded with much favor. Preparation between carries is treated at some length, and a rule is suggested fixing a minimum of fifty cents a day during those months of the year when traf- fc is light and increasing this possi- ply four-fold during the latter half of the year when cars are most needed.  for tho failure of carriers to furnish cars when demand is known, as "re- ciprocal car demurrage."
 This phrase means that carriers shall be penalized upon failure to furnish cars, and 1t arises from the universal practice of Imposing a per diem penalty when aTcar is held by a consignee for unloading beyond a cer- tain fixed number of days.
 Of the latter plan the Commissioners say that 1t is evident that the transpor- tation difficulties would not be over come by recipocaI demurage bill alone, If such measure merely pro- vided for punishing the railroad for non placing of cars or non movement there- of.
 The need for additional legislation to reach the seat of the trouble Is shown by the conclusion of the report whera- in 1t is said;
 If the Interstate Commerce Com mission is to be vested with power to make rules under which railroad shall be required upon penalty to furnish cars to shippers. this Commission should also be empowered to make rules under which free interchange of cars shall be effected ,or to require railroads engaged in interstate com merce to make such rules fo rtheir own potectfon and provide for their enforce msnt." co. - . .t'