Arizona republican., 1922-06-06
URGE CUT IN COAL
FREIGHT RATES TO
BRING COMPETITION
New Mexico And Colorado
Operators Say t h e n
They Could Enter The
Arizona Field With Gal
lup Coal


Coal operators from northern New
Mexico and southern Colorado min
ing districts, testifying yesterday at
the hearing held in the Hotel Adams
by Examiner Pattison of the inter-
state commerce commission on the
inter- mountain states coal freight
rates, declared that il a reduction
was made in the present rates, which
they characterize as discriminatory
they would be able to enter the Ari-
Zona fielG ant. meet the competition
of the Gallup mines. The present
rates from their district to AriZo-
ma, they said, were much greater as
compared to the distance than the
rates from Gallup, and on account OF
this. they claimed. they were unable
to enter this field.
The hearings yesterday was one OF
several such hearings which began in
Denver on May IA, and will end in
Ell Paso On June q Other hearings
were held in Salt Lake City on May
Is: Butte. May 19; Seattle, May %;
San Francisco. May 26; and Phoenix
YESTERDAY The hearings We're held
to determine what the reasonable
freight rates on coal should be from
the mines in Montana, Wyoming,
Colorado an1 New Mexico, to all
points OF destination within the in
termountain states, Pacific coast
states and to Ell Paso.
Big Mines Represented
The hearing in Phoenix was at
tended by rel resentatives from all
of the large coal companies in New
Mexico and Colorado, large dealers
and shippers in Arizona, and traffic
and operating officials of the rail-
roads. Many rates exhibits We're sub
mitted to show the rates now in ex-
istence throughout the territory in
volved The hearing also disclosed a
spirited contest between northern
New Mexico and southern Colorado
operators for the trade of Arizona. 1t
was brought out that the coal trade
of Arizona was heretofore given to
the Gallup, n. NJ, mines because Of
its location Of approximately 200
miles closer to Arizona than any of
the other producing mines.
Operators from the northern New
Mexico and southern Colorado coal
districts asserted that in normal times
the mines at Gallup would be un-
able to supply the demand of the
Arizona copper and gold mines for
coal and for this reason they con-
tended the rates should be reduced so
that they cou'd enter the field. Wit
nesses testifying for the United
Verde and the Verde Extension cop
per mines declared that these COM
panies have discounted the use of oil
and when running at normal capacity
would require approximately 100000
tons of slack coal a year. They asked
that the rates on coal be reduced to
pre-War rates.
It was brought out at the hearing
that temporary rates somewhat lower
than the regular rates were now in
effect on coal shipments to Arizona
but these rates would expire on Oct.
Is. Dealers and shippers of coal tes-
titled that high rates on coal to the
Arizona points had caused many of
the domestic consumers to resort TO
the use of wood and other fuels.
A. A Belts on Stand
Amos A. Belts, Arizona corpora
ton commissioner attended the hear
hibits relative to the rates. He Of
fered one table showing that the ra-
tic OF operating expenses for the
railroad lines operating in Arizona
We're much lower than those of the
roads farther north and therefore
their revenue was greater. He also
offered an exhibit showing that by
comparative engine rating the roads
of Arizona were able to haul heavier
trains than those farther north
Mr. Belts aso offered a table of
comparable rates now in effect be-
tween various places with practical
ly the same mileage Some of these
rates were as follows: From Castle
Gate, Utah, to Butte, Mont, distance
555 miles, rate $3.50 a ton, as COM
pared to rates of Sc from Gallup to
Ray Junction, AriZ.. distance of 517
miles: Castle Gate to Boise, Idaho,
619 miles, s6.121s ton, as compared
to a rate of sT.T5 ton from Gallup
to Nogales. from Cameo, Colo, TO
Twin Falls Idaho. 500 miles, s4.94
a mile. as &C ccn'pared to rate of $7T5
from Albuquerque to Phoenix. 5s6
miles; from Red Lodge, Mont. to
Grangerville Ida, S45 miles. s7.12h.
as compared to a rate of S1O.24 from
Dawson, n. M. to Phoenix, S25 miles;
and Centralia, Wash, to Seattle,
Wash, SO miles, s1.621a. as compared
to 1925 frem Gallup, N NJ, to Sc
Hgman, Ariz., 80 miles.
The railroads contended that the
rates were reasonable and should not
be lowered. They declared it cost
more to operate in certain districts
than in otf ers on account of the
small volume of coal handled to those
districts. as compared to the volume
of coal handled to those districts as
compared to the volume handled in
other disriAts of the intermountain
territory