The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-14
FEAR HIGHER PRICES.
Belief That Decision VIII Result
In Advance 20 buyers.

The presidents OF the half dozen rail-
roads principally affected by the de-
cision of the Interstate Commerce Com
mission reducing the rates for carrying
anthracite coal were out of town y~ester-
day and their associates here were not
prepared to upon the decision
o. to give estimates OF it's effects.
AS wall Street was prepared for
such a decision the heavy selling of the
stocks directly affected which marked
the opening of business ended rather
abruptly. The recovery was as speedy
as the decline. The restoration of equi-
librium indicated hat the situation had
been discounted. The brief decline OF
the anthracite shares was reflected in
the falling on . point or two of other
railroad stocks.
From the offices of the railroads
came the word that it would be futile
to attempt an analysis of the decision
with respect to its permanent effects
upon the business OF the railroads and
In" coal companies which they control.
That the railroads will suffer "A consid-
ers bic reduction in is obvious.
This is especially true in the case of
IN" Delaware and Hudson and the on
tario and Western. II was the guess Of
those with a bent for figures that the
reductions In the case of these two roads
might reach a figure that would wipe out
the surplus for dividends or cut. into
II so deeply as to give grounds for fur
Their action basel on the contention that
the new rates are coniscatory.
$4,000, 900 Loss a Year.
on the other hand there was con-
ISOLATION for some OF the railroads In the
fact that the reductions made in the
rates charged by the railroads mean a
a. - "a rg aat 40 49, u,
producing companies which these same
railroads own or control. Eighty per
cent. of the anthracite IL mined by
companies owned or controlled by the
railroads and the losses 10 the railroads
will fall on the coal Transported for the
Independent companies. Estimates made
yesterday tally closely with those made
in THE SUNS dispatches from Wash
ington yesterday. which indicated that
the loss to the railroads would be about
s.. 900. 900 a year.
As pointed out. this heavy loss will he
offset in some instances through the
control of coal companies by the rail-
roads or through the granting of more
favorable rates in some cases.
s"lace for One Road.
II was asserted. for example, that the
Philadelphia and Readings losses OF
approximately $500, 900 Il year will be
offset by the increased revenues of the
Philadelphia ami Reading Coal and Iron
Company, which II owns. The Central
OF New Jersey Railroad, forced to re-
duce its rates on coal brought to tide
water. will be able to compensate itself
for its losses by charging more for
transhipping the coal to New England.
whittier a large part of IL goes by water.
II was estimated that the annual earn
ings OF the Delaware. Lacka wanna and
v estern Railroad will be reduced about
s. 600, 600. This road may get some
solace in the fact that a large part of
its tonnage goes to Buffalo and points
West, whore the reductions in the rates
are not so great. This Is also the situ-
alton with the Lehigh Valley Railroad.
" hich does a big business through the
West. This roads loss in gross and net
revenue will approximate 81. 200. 900.
Opinions varied as to the effect OF the
decision upon the price OF coal to the
consumer. One theory was that tbs
Interstate Commission had
laid such stress upon the plight of tn.
Independent dealer that he would feel
justified in getting a little more than
the decision allows to him from the
pockets OF the railroads and would try
~ get this from the pocket OF the con.
sumner, II was said that the coal com
pan!es owned by the railroads would. ot
course, follow the lead OF the indie
psndents and that the effect upon the
consumer would be higher prices every
where
4 representative OF one OF the rail-
roads owning coal companies said he be
lieved the decision would have no effect
on the price OF coal to the consumer.