Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1916-03-17
OLD CONTRACT
NOT A BARRIER
Public Service Commission
Will Go Into Details of An
Important Case

! The New Jersey Zinc Company of
| Pennsylvania, which complained to
| the Public Service Commission against
the proposed increase of the charges
for the transportation of coal from
the Lehigh and Wyoming regions TO
] Hazard and Palmerton by the Central
Railroad Company of New Jersey,
alleging that the new rates were un-
! reasonable and excessive, will get a
/ hearing on the case very soon.
From the facts presented to the
commission it appeared that in 1898
a contract was entered into between
the zinc company and the railroad
company by which the railroad COM
pany agreed to transport culm, rice
and buckwhcat coal to the plants of
the zinc company about to be erected
at Hazard and Palmerton at rates not
10 exceed SO and 51 cents per gross
ton. respectively, for period of
twenty years, ana as long as the COM
panN continued TO operate its plants at
the two points named. ON October /,
. 1918, the railroad company published
a new tariff, increasing the rates for
this transportation from SO cents to
90 cents and from 81 cents TO "a cents,
and the enforcement of the new rates
was later restrained by the common
pleas court of the county of Philadel-
phia, the court suggesting in its order
/ that the matter should be raised be-
fore the Public Service Commission
after January /, 1914, when the pub
lie service company law went into eff
[ feet. This complaint was accordingly
filed and the matter presented to the
commission.
The zinc company contended before
the commission that the commission
should pass upon the validity of the
contract above mentioned before con-
Sidering the question of the reason
ableness and legality of the proposed
increased rates, alleging that the con-
tract was binding and precluded the
/ railroad company from increasing the
rates during the time mentioned. The
only matters presented to the commits
sion were the questions of the right of
the parties to make this contract and
its effect in view of the passage of the
public service company law.
The commission in its report dis
cusseS the effect which the public
service company law may have upon
the right TO make such a contract and
the questions which are raised before
the commission by an allegation that 4
lawfully published rate is unreason-
able. unjust and discriminatory. 1t
uttlueS IliI lht publl' SERVICE COIIl-
pany law gives the commission such
administrative discretion over the sub
iect of discrimination in rates that it
is required to proceed to hearing and
investigation of all matters pertinent
to such subject. in spite of the exist
ence of a contract which the courts
might have declared nondiscrimi-
natory. The commission also held
that, even if it We're to be decided that
the rates fixed in the contract could
not be deemed TO be uniustly discrimi-
natory nevertheless the obligation of
the contract does not extend to pre-
vent the railroad company from charg-
ing such rates as are just and reason
able.
Based upon those two conclusions,
the commission directed the parties to
present such facts as they desired upon
the question of the reasonableness of
the increased rates complained of.