New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-09-20
Should Sell in Philadelphia for
s3.25, Instead Of ST,
a Ton.
ENORMOUS PROFIT SHOWN
Authorities Hope to Bring Gar
rier Railroads to Terms oy
Enforcing Rigid Provision
of State Constitution.
rRv r,l.s-apr to The Tribune D

1,e,b,,rg and Director Cooke to-day re-
..;,..5 fror, the experts on the anthra-
cite coal freight rate case the preiim-
mar, pIsn. which they will use in the
case against the coal carrying roads TO
reduce tho present rates and so ameh-
crate The hirl cost Of living by an
attempt 70 bring this necessity down
~ the price az which II is declared II
should be sold. These papers snow
that coal which now sells for s. ton
should rot retail ar more than 50 %
ron and the smaller sized coal al 50 %
ton.
The plsn was prepared by Professor
W. Ward Pierson. Of the University OF
PENNSYLVANIA. who a. counsel IN TINS
as. has the Endorsement OF Harry +
Bells. the well known freight rate eN-
p.rt and it shows that the constitution
Of the state contains a provision when
- rnost rigid IN stipulsting against any
|o-n Of preference or discrimination oy
IN. railroads znd against the charge OF
> greater rate for a shorter haul Ihls
provision is direct and unequivocal ana
Is further strengthened BY the acts OF
1889 and 1907. which give effect 70 the
long and short haul provisions OF the
constitution which were placed on tIe
statute books 10 regulate freight rates
in this state.
The plan submitted by the Mayor
experts shepys that the published tar
iTs 81 the Philadelphia q Reading
Railway Company on prepared sizes OF
snthracits coal from the SchuylhlA
district 10 Philadelphia, when con-
signed to points outside the capes, IS
$50 q ton. The carriers charge II
cents ton for handling this coal over
the piers. so that practically they
charge Sl1Sa ton on this coal, whereas
coal shipped 10 Philadelphia for con-
sumption I'm this city is charged for at
The rate Of s. 20 ton.
The brief which Professor Pierson
las prepared in the action Of the city
against the anthracite roads further
bv the carrier the advantages it natu-
rally enjoys with respect 10 coal
freight rates the rates on coal shipped
70 this city. based on the cost Of coal
SHIPPED 10 other cities. would not be
81 "a a tor. but. on furnace coal. 81 OIL;
on egg coal 81: on stove and nut coal
a. cents. and on pea coal, 81 cents
Rate Said To Be Excessive.
The city IN its claim for redress is
a,ked TO make this plea: That IL the
present traffic is profitable. then the
rate Of 81 20 ton on prepared sizes
% coal Is excessive and exorbitant
because the character q the service
rendered I'm both instances by the car
rier for the long and short haul is
identical
The papers then 20 on 10 show that
the current prices al the mines are.
Egg, 81 stove 81 10; chestnut 81 and
pea. 81 20 The Philadelphia and Read
ing Coal and Iron Company TX the
price OF anthracite coal al Philadelphia.
The difference between a reasonable
cost OF production ready for shipment
81 so ard the current selling price at
The mine is ~ 70 ton. or more than
POO per cent
Based on the cost of labor and trans
portstion, the experts figure that the
profit on this business Of the anthra-
cit. carrying roads is approximately
10 per cent more than is q reasona ole
percentage OF profit covering the entire
handling OF coal from the mine 70 the
consumer in Philadelphia.
This percentage is based on a com
parison OF the present charge of s. a
ron on prepared sizes and - - on
small coal. which la ter figure includes
reasonable profit 20 those concerned
IN the handling Of coal
The statement which the Mayor has
received and on which he is asked 10
bring suit and compel the anthracite
companies to lower the rates on coal 70
this city is exhaustive and covers every
phase Of the anthracite case. II shows
by reports from the Reading COMPANY
what has formerly been the price Of
transportation and also the cost OF
labor In certain years. the Reading
Company was compelled 20 go into the
open market and purchase coal. and
from SITS own figures it admits that
ali that was paid for this commodity ar
fhe mines from rival operators was
e 80, and the city declares that this
price shows a profit as one operator
would hardly sell 70 rival az actual
cost.
The experts in their analysis and
computation show that anthracite coal
at the mines should cost only II 30. as
against the 81 which is now charged
for A. The freight rate should be -
cents. as against the 81 70 which the
railroads now charge, and the retailer
could then receive 81 for the handling
of It instead of 81 30 which he now re-
ceives.
As AZ present arranged. the operat tors
secure 57.14 per cent Of the 81 ton
now received for large sizes Of coal
The railroads secure 24.29 per cent
while the retailer obtains 1857 per cent
~ the price paid by the consumer