New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-08-14
d. & H. President Criti-
cises Decision of Com
MERGE Commission.
RAILWAYS DEPEND
ON ANTHRACITE
Effect of Such an Attack I'm
pairs the Foundations of Their
Existence, He Declares.
From The Tribune Bureau ]


Washington, Aug. l3.-Pointing out
that nearly rs per cent Of the freight
revenues of the so-cslled anthracite
railroads, excluding the Pennsylvania
system, are derived from freight
charges on anthracite, President L. +.
Loree Of the Delaware & Hudson Rail
road Company declared tonight that
the Interstate Commerce Commissions
decision Yesterday reducing these rates
was a blow at the very heart of their
business"
"As they were built and exist main
", and in some instances almost
wholly. in order to serve the anthracite
mining industry" he asserted, tine
effect Of such an attack must be to I'M
pair the very foundations Of their exist
ence.
at is possible" he said later. that
the total loss Of revenue will be greater
than the aggregate increase granted TO
all the carriers in the Eastern rate case
The newspapers have been inclined 10
feel that the railroads were receiving
great benefits at the hands of the COM
.merce commission. 1t is quite evident
that their disposition is TO give 1t IN
drops and take it in bucketfuls.'
GAS the anthracite carriers are to so
large an extent dependent upon a SIM
gle commodity, it is obviously OF great
significance that every ton which goes
over their lines is just so much sub
tracted from a minable aggregate that
is approaching exhaustion.
End of Anthracite Is Visible.
although the date Of the complete
cessation Of anthracite movement IS
visible and calculable. and, particular
" for the northern regions, is not far
distant. no traffic TO take the place OF
hard coal is in sight or is llkely 10
appear. This fact ought to be gwen
recognition in any determination OF
reasonable anthracite rates, for JUST
rates must not only provide a lalr
annual return upon the present invest
ment. but must safeguard the invest
ment itself against this Impending loss
distance for distance, the present
receipts per ton per mile from anthra-
cite traffic do not exceed the average
from other freight
Anthracite is necessarily proouced
in different sizes, of which only the
larger are salable at prices higher than
the average per ton cost of production
AT the mines. The smaller, or steam,
sizes. constitute a by-product that for
merlv went into the culm banks but is
now sold in competition with Dltuml-
nous coal. In 1890 the smaller sizes
amounted to 231 per cent OF the total
shipments. but in 1912 they had grown
to 1922 per cent. AS these smaller
sizes must be carried at lower rates
u.an those applied to the larger, or
domestic, sizes, their relative increase
in volume has resulted in a steady de-
cline in the average rate produced by
anthracite traffic. 1t is estimated that
the revenue lost TO the railways by the
reduction brought about in this way,
comparing 1912 with 1890, amounted
to S4,526,707.
THE cost Of producing anthracite is
estimated 10 have increased on the
average, 80 cents a ton between l90o
and 1914. while the average wholesale
price increased sc cents. 1t is appar-
ent. therefore, that the per ton margin
between cost of production and re-
turns from sales is now smaller than
il was when prices were lower.
Rates Do Not Govern Prices.
"The prices at which coal is sold by
retailers are not controlled by the rail-