Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1911-12-18
NVEsT|GATING
THE STEEL TRUST.
Alleged Conspiracy to Smother In
depent Coke Producers in
Some Places.
WEST VA. OVENS TO PROFIT.
Interesting Exhibits Before the Inter-
state Commerce CnmmissiOn--InyeSti
ggti0n to Continue Some TimO.

stare Olnmerce InmWisSioH--iHNeHt
getion to Continue Some Timo.
T. Washington, Dec. .1S-An alleged
conspiracy on the part Of the Steel
trust and the railroads to smother
the independent coke producers Of
the Connellsville district in Penn
sylvania in favor of the coke ovens
of West Virginia, largely owned by
subsidiaries of the railroads and the
Steel trust, by means Of discriminate
ory freight rates which have virtual
ly closed the markets Of the east.
Cincinnati. Columbus, st. Louis. and
other places tributary TO the Con-
nellsvlle Independents came up for
Investigation before the interstate
commerce commission today.
The case affects the entire mineral
transportation Of the Appalachian
mountain district, and is regarded as
the most important interstate conf
merce case since the intermountan
cases Wade II. Ellis. of Ohio. is
general counsel for the independent
coke PRODUCERS. assisted by n score
of other lawyers. and the corporate
defendants fighting the proposed re-
ductions in coal rates were repre-
sented BY a formidable array of le-
gal talent.
the independents is that the coke
business of Fayette and Westnsore-
land counties in the Connellsyille
district developed for 20 years al
most unnoticed by the captains Of
finance in the Steel trust, the Penn
sylvania railroad and other great
corporations. Independent coke hak-
ers. as they grew more prosperous.
invested great sums OF money de-
yeloping their properties. About the
time the Steel trust was formed tho
cSTlains OF industry discovered that
the best coke in the world was being
produced in the ConncllSvillc region.
and that ithe men who had developed
the distr It were making big profits.
No re cheap coal lands could
be had / the Connellsville district.
But in West Virginia coking coal
lands were still cheap. and there the
railroads and the trust bought. Short
line roads were built TO tap the West
Virginia fields. The Hepburn bill
forbade .ailroads owning coal prop
critics. so the railroad lands were
turned over to independent" COM
panies, who's bonds were guaranteed
and the j".erest on them paid by the
railroo. companies, but the profits
in nc coke industry went to the rail
.oad directors, who formed the coke
companies. taking over title from the
railroads.
The ConnellSville independents
claim there is rank discrimination in
favor Of the railroad and trust owned
coke ovens of West Virginia.
As result, it is claimed. the West
Virginia production Of coal and coke
has increased annually for 10 years
a per cent, while the ConnellSville
industry has shown only a % per
cent increase annually for the same
period. The independents claim that
freight rates to the east on West Fir-
ginia coke. with an average haul 40
miles longer, is 30 cents ton less
than from the Connellsville district.
Rates in other directions show cor
discrimination.
1t is pointed ont as significant thar
as soon as the steel trust coke ovens
at Gary, Ind, were finished and pur
in operation the rate on coke from
the Connellsville district to Chicago
advanced from $235 to $3.50 a ton.
more than the coke is worth at the
Pennsylvania ovens.
1t is expected that hearings will
continue for two weeks and that the
final hearings in all the complaints
will not be finished until in February.