Omaha daily bee., 1907-01-03
CAUSE OF The COAL FAMINE
Commissioner Lane Says II Was Due to
Reads Favoring More Profitable Traffic.
WORK ON RECIPROCAL DEMURWAef LAW
Commission VIII Draft statute In
tended 60 Secure Equitable
Division of Cars Among
shippers.

| WASHINGTON, Jan. 2.--The causes, but
not the cure. for the car shortage in the
northwest. and the consequent coal famine
in North Dakota have been determined by
the members of the Interstate Commerce
commission participating in the recent
hearings at Chicago and Minneapolis.
Franklin X Lane, who served as chair
man Of the investigating commission, to-
day filed his report with the full commits
sion and sent II to President Roosevelt,
who ordered the inquiry. He finds:
1t is fair inference from all the testi,
scarcity in North Dakota was such an
abundance of westbound traffic at the head
Of the lakes that cars were not available
in the congested state of the terminal for
the carrying of coal to North Dakota,
comparatively short haul for low class
commodity.
In his letter Of transmission TO the presi-
dent Mr.. Lane says the report will be fol-
lowed in due course by the special recon-
mendations Of the commission as a whole
as TO whatever legislation, II any, may be
deemed advisable.
Combine Not Responsible.
Referring to the report that the coal
shortage was due to the presence of
trust or combination between dealers in
coal who fixed prices in the northwest,
and refused to sell TO outsiders" and "ir-
regulars" the report says:
The commission has gained indlsputable
proof of an agreement between coal dealers
to maintain prices ana 10 o9ycO1 al iIds Mno
at all justlfying the contention that this
combination is chargeable with the coal
shortage prevailing nor that the railroads
were a party in such a way to such
conspiracy.
The report of the commissioner first deals
with the coal famine In North Dakota, and
presents the conditions Of distress found
to have existed in that state The remedies
which the commission proposes to work
out include plan for car clearing house
or car pool and reciprocal demurrage.
Financial loss to a large percentage of
the people of the northwest Is shown to
have been caused by the failure of railroads
TO prepare for large movement of grain.
Mr.. Lane shows that the railroads tapping
the great grain belt of the northwest seem
TO have been overwhelmed by this years
crop, although In fact the crop scarcely
exceeded that of 1906. nor did It equal that
Of at least one other preceding year.
Reciprocal DemurraGe Proposed.
In considering the evidence taken, Com
missioner Lane says that plan for pro-
posed car clearing house or car pool
between connecting lines is regarded with
much favor. The details of such plan
have not been worked out Car appropria-
ton between carriers is treated at some
length and the adoption of a rule is sug"
gested fixing a minimum of 80 cents day
during those months of the year when
traffic is light and increasing this possibly
four-fold during the latter half Of the year
when cars are most needed. The most
generally advocated remedy for the failure
of carriers to furnish cars when demanded
is known the reciprocal car demurrage.
This phrase means in word that carriers
shall be penalized on failure to furnish
cars demanded, and 1t arises out of the
universal railroad practice of imposing a
per diem penalty when a car is held by a
consignee for unloading beyond a certain
fixed number of days. The commissioner
says this plan would not overcome thu
transportation difficulties II the measure
merely provided for furnishing the railroad
for nonplacing of cars or nonmovement
thereof.
Real Cause May Lie Deep.
Mr.. Lane in his report sums up the con-
clusion of the commissioners In the fol
lowing:
The problem is one that is much deeper
and much broader than mere lack OF
cars and engines. 1t is one in which IL
involved every factor in railroading, tht
construction, operation maintenance anC
financing OF the railroad. Inc indDllllN
of shipper to secure car may only b'
a symptom of a deep-seated and organic
trouble. The real cause of the car short
age may lie in the too conservative char
acter of the management OF the nOad, o.
in the unfitness or incompetency of IL
operating officials. 1t may flow from al
incomprehension on the part of the di
rectors of the full duty Imposed by Law
on common carrier. 1t may arise on
of policy In railroad operation whicl
gives primary consideration to specula
tive stock operations. 1t may come from
an inability to secure funds so to fit II
self that II can discharge it's duty. 1t ma
follow in a time of prosperity from a
increase of traffic which could not hav
reasonably been anticipated. 1t may hav
arisen from inability to secure labor o
materials necessary to the proper enlarg
ing of facilities. This enumeration o
cat SEES is not exhaustive. 1t cbuid no
well be complete without giving consid
GRAFTON to many economic factors whic
at first glance would appear remote an
unrelated. Clearly the problem of trans
portation is so closely interviewer wit
the fabric of our commercial system an
so closely related and so interdependen
are the various activities of our industris
life that one may not lightly say wha
are the multitudinous consideration
which necessarily enter into so simple
question as the reason why a railroad ca
Is not at once forthcoming when ordere,
The enactment OF a reciprocal demui