The Big Stone Gap post. [volume] (Big Stone Gap, Wise County, Va.) 1892-1928, 1913-02-05
Denies Appeals
For An In
crease
L. & N. Given a Turndown
by the Interstate Com
merce Commission
On Coal and Coke
Rates.


deciding one of the most impor.
tant cases involving the matter
of rates on coal and coke. To
points north of the Ohio on
coke and to points both north
and south on coal, the Com
merce Commission, in an opiu.
ion written by Commissioner
McChord, refuses To allow the
l.. q n. road to increase rates
from mines on that portion OF
the Cumberland Valley divi.
sion in Virginia east OF Mid
dlesboro, Ky.
The opinion says in part:
This proceeding involves
the reasonableness Of the pro
posed increased rates on coal
and coke in carloads from mines
and ovens on that portion OF
the Cumberland Valley division
of the Louisville & Nashville
railroad in Virginia east of
Middlesboro, Ky. 1t is sought
to advance the rates ON coal to
the Ohio river aud to points
south thereof % cents per ton
from the Appalachian district
and 10 cents per ton from the
st. Charles district; to points
north of the Ohio river from rs
to % cents per ton, averaging
20 cents from the Appalachian
district and % cent, from ST.
Charles. The advance ON coke
averages about 80 cents per ton
and applies only from Appala-
CHA To points north of the Ohio
river No coke is produced I'm
the st. Charles district.
What Record Shows.
Briefly summed up, tn q
record shows, among other
things, the following.
"First-That the Louisville
~ Nashville encouraged. in
every proper manner, the de-
velopment of the mines and
ovens in the st. Charles and
Appalachia districts. assisting
those operators in establishing
IA market north of the ohio river.
Second That the present
rates have been in effect nearly
ten years, and the advance
contemplated will probably ex-
clude the Virginia operators
from the Northern territory.
Third That the cost to the
Louisville q Nashville for
transporting coal and coke
via Cincinnati is not fairly rep
resentative of the cost via that
route because of substantial ex
penditures incident TO improve
ments underway.
Fourth That via louisville
the cost to the Louisville a.
Nashville Is materially less
than via Cincinnati.
Fifth-That, according to
the Louisville a. Nashville's
figures. the cost TO 10 equals or
exceeds its revenue, wnIle nc
cording to the commissions
figures the cost is only from N
to 81 per cent. of the revenue.
"SiXth-rhat these costs in
clude ali costs except return
upon income account, the out
of pocket cost being, therefore,
even at the Lonisville's Nash
vile figures, about SO per cent.
OF its revenue.
Prosperous ROad
"Seventh-That the Louis.
Vile & Nashville system, as a
whole, is prosperous: that its
Cumberland Valley division, as
n '"hole, is prosperous; that the
Cumberland Valley division;
east of Middlesboro, shows
either a profit or a loss, depend
ent upon the method used in
the assignment of cost and rev
enue.
"Eight-That t h eastern
half OF the Cumberland Valley
division is more expensive, per
unit of freight, to operate than
the western half, because for
ten years it has remained prac.
tically unimproved, and much
more economic line could bee Sc
cured from Wasioto to Appala
CHA.
"Ninth-That, while joint
rates are under investigation
all of the cost and revenue fig