South Bend news-times. (South Bend, Ind.) 1913-1938, 1913-11-20
RATE To INDIANA
CITIES IS HIGHER
THAN To CHICAGO
Windy City Coal Dealers Pay
S1.75 a Ton Compared to
Two Dollar Rate For Cities
Nearer the Mines.

PHILADELPHIA. Nov 2O.-Decla-
rations that the anthracite carrying
railroads discriminate against the in
dependent companies shipping hard
cOalltO the central west in favor or the
EO-called railroad coal companies and
that this alleged discrimination leads
the Independents 10 seek more profit
able markets. thus creating an artifi-
cial shortage OF the fuel in the fall
and winter months, were made We'd
nesday at the interstate commerce
commission inquiry into anthracite
freight rates. They were made by G.
A. Eastman, OF the Eastman Barber
company who also IS interested in
coal companies in Indiana.
Mr.. Eastman's testimony came aft
er cOEnsel for the commission had
concluded examining operating Off
Gals OF the Erie, Reading ard Lehigh
Valley railroads regarding the hand
ling OF coal lie took the stand vol
UNFAIRLY when the commission through
counsel asked whether any one pres-
ent mad any complaint TO make re-
garding coal freight rates. Mr.. East
man said that officers Of the Ohio, In
diana and Michigan Coal Dealers as
sOciatiOns. representing two thousand
dealers were in Philadelphia ready to
protest before the commission against
the coal rate to their states.
More Than 10 Chicago.
Mr.. Eastman testified that the
freight rate on anthracite from the
mines 10 Buffalo for shipments to
points in Ohio, Indiana Michigan, and
certain points in Illinois and all lake
points IS 81 a ton while the rate from
the mines TO Chicago is $1.75. He
further testified that on account of
the differential in freight rates on
coal going in the same direction with
the same equipment and handled in
L. hnr
is a chance for manipulation Of about
sixty cents per gross ton.
las a shipper in Chicago" Mr..
Eastman said. "as long as we pur-
chased anthracite coal from what is
known as the railroad coal companies
3 cents a ton was handed back to US
when the coal was consigned to points
that take the $500 rate" Indepen-
dents. he said, could not afford to Go
this.
The witness testified that through
the alleged control OF the so-called
railroad coal companies by the car
riers these coal companies realizes
more for their coal at the mines than
the Independents Consequently, he
added. the Independents seek markets
in the east where they can better
compete for the coal trade.
Dealers are Favored.
Mr.. Eastman also testified that the
chased their coal from the railroad
coal companies in the matter Of
switching charges. The railroad prac-
tically said TO the dealers. Mr.. East
man testified. you buy all of your
coal from me and will take care of
your switching"
Continuing Mr.. Eastman said:
The result has been that there has
been built up in Chicago in connection
with some Of the anthracite coal
roads a very large retail organization
that is gradually eliminating all com
petition and 1t can only be a question
Of time until the Independent dealer
in Chicago and vicinity Will be en-
tirely eliminated"
on cross examination by several
railroad attorneys Mr. Eastman ad-
mitted that in times OF scarcity of
coal some Independents would charge
n premium for the fuel. He also said
that there had been instances where
railroad coal agents IN Chicago have
reported a shortage OF coal while at
the same time subsidiary companies
or these same railroads would sell
the railroads coal at a premium.