The weekly tribune and the Cape County herald. (Cape Girardeau, Mo.) 1914-1918, 1915-11-26
COAL RATECASE
AWAITS FRISCO
REORGANIZATION
Receivers Promise tr Fulfill
Cape's Contract in
Their Scheme.
I. r. KELSO SAYS NO
COURT ACTION NEEDED
Situation Needs Coaxing Lawyer
Tells Cape Coal Users
Politics Involved.

Adjustment of the coal rate situa-
ton between the Cape and the Frisco
Railroad is being held in allegiance
pending the outcome of the reorganl-
cation plans of the road to take it out
of receivership. The receivers for the
Frisco, Judge James w. Lusk, w. c.
Nixon and w. B. Biddle, have assured
Attorney l. R. Kelso, who is in charge
of the case for the city, that no re-
organization of the Frisco will be af-
kfected without arrangements having
been made for the road to observe all
its contracts such as that operative
with the city of Cape Girardeau.
Mr.. Kelso has been told that it is the
intention of the road to assist in get
ting the Cape's coal rate adjusted
without resort to litigation, and act
ing on that assurance, he has declined
to start legal action to force the road
to uphold its contract.
The situation, Mr.. KelsO has told
Charles l.. Harrison, chairman of the
Traffic Committee of the Commercial
| Club, is very delicate at present and
the presentation of the Capc's COM
plant now will not aid in bringing
about the final results desired.
Kelso expects to be able to settle
the complaint outside of court and the
settlement depends upon the rapid dis
charge of the road from its receiver
ship. That is a complicated affair with
politics injected into it which slowly
is being consummated. The least done
at the present time to hinder the men
engaged in recognizing the Frisco,
the better for the Cape's plans, Kelso
has indicated to business men in the
Cape are anxious to get the former
coal rate of go cents returned.
The coal rate of 60 cents into the
Cape from the Marion, ILL.,, coal dis
trict, was advanced to rs cents a ton
several weeks. ago, when a supplement
to tariffs on the c. & f. |. were placed
in effect. The c. & f. l. obtained the
new rate before the Interstate Com
merce Commission.
Hearings were held in Chicago last
winter on the new tariffs, and the
Cape was not present at the hearing to
protest that it would conflict with the
Cape's contract with the Frisco to de-
liver coal in the city at the 60 cent
rate.
The go cent rate was made by the
Frisco in return for valuable franchise
rights that were granted to the road
about two years ago.
In the franchise contract with the
city is contained 4 clause that in the
event that the 60 cent rate is broken
for any reason, a commission of arbi-
tration may be named to determine
what shall be a commensurate COM
pensation for the city.
In the recent moves made by the
roads officials, it has not been clearly
indicated whether they will want to
resort to arbitration to fix a compen-
sation for the Cape's loss of the 60
cent rate, or to maintain the former
rate at monetary loss to the Frisco
The loss to the business men in the
Cape is calculated to be close to $685.
900 year due to the increase in the
coal rate. The increase to some single
concerns in the Cape amounts to from
SO to $50 day.
Mr.. Harrison, when in st. Louis re-
Gently, held conference with Kelso
in regard to the situation of the coal
rate adjustment. Harrison yesterday
afternoon declared that at that time
Kelso declared the matter was virtual
ly dependent upon the reorganization
plans.
The CELEBRITY with which the rate
will be adjusted depends upon the
speed with which the reorganization is
effected. He pointed out that there are
legal phases of the situation that make
it impracticable for the Cape to in
volve itself in lawsuit over the con-
tracts violation and argued that the
settlement outside of court is but a
matter of time.