New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-08-13

allied coal companies have extended
the advantages Of interline transporta-
tion 10 their coal companies to the
prejudice Of other coal shippers 10
whom interline transportation NJ JOINT
rates has been denied. The respon-
dents are required to establish through
routes and publish joint through rates
applicable thereto.
Anthracite coal is n low grade com
modify, which is transported IN vast
quantities in trains of maximum tom
mage. The tonnage loaded in each car
is much greater than the loading OF
most other classes Of traffic. Most OF
the anthracite tonnage is shipped from
Galleries whose daily production, meas
ured in carloads, is very large. These
conditions tend toward lower operating
costs.
Concessions Are Unlawful.
Concessions and offsets granted by
respondents TO their allied coal com
NAMES in the form of interest charges,
ROYALTIES earnings, the use of valuable
property at inadequate rentals, the
free use of the carriers funds and
credit or by other means are as per-
nicjous as direct cash rebates. Such
concessions and offsets are unlawful.
Lateral allowances paid to a coal
simmer in accordance with an agree
ment alleged to be additional com
pensaton for the use Of a facility
furnished by the shipper are unlawful
rebates.
The commission dwelt at length on
the methods by which the railroads
controlled 50 per cent of the output
Sc .bo anthracite mines
"The transportation of this low grade
commodity, anthracite coal. has been
termed by these carriers their back
bone traffic" the commission says.
"They are engaged in producing and
selling, as well as transporting II.
We cannot overlook the fact that some
force has brought the production and
sale of most of the tonnage OF TINS
commodity under their control II
they established excessive rates on an
thracite they became the beneficiaries
of conditions which were preJudiclal
70 the business of individual opera
tor or shipper. The power TO fix freight
rates on this commodity was the OPP
portunity to confscate property, If the
carrier so wlled.
Excessive Rates Admitted.
at is established in the record that
these carriers for many years have
found it necessary or expedient TO ex-
tend to the coal companies which they
own and control concessions from and
offsets against their tariff rates on
anthracite coal. When by such conduct
these carriers have admitted that their
tariff rates are excessive eXactlons on
the greater portion OF the anthracite
tonnage shipped, can we regard their
rates as reasonable for the smaller
shippers, who are not recipients OF
such concessions or Offsets and TO
whom the tariff rate is real factor
in the distribution Of the coal produc-
ton to the consumer?
IF freight rates have not absorbed
more than their fair share OF the
profits of the coal business, why do
these carriers guarantee the bonds OF
their controlled coal companies, and
why do deficits result from the opera
tions of so many of the controlled
coal companies?
"The conduct of these carriers, ex-
tending over a long period of years
in granting to their allied coal COM
panies concessions from and offsets
against their established tariff rates
presents very strong evidence that the
rates on anthracite coal, which these
carriers established, are excessive"
Commissioner Harlan dissented from
the decision of the commission, hold
ing that, the commission having au-
thorized a general horizontal increase
of per cent in respect to practically
all other traffic, it seemed to him in
consistent, if not discriminatory, not to
take the level of rates laid down three
years before as basis for future rates
on anthracite. The advance allowed
through this territory in the per cent
case. he held, should be taken into
consideration.