The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-11-13
GIVES LIGNITE
F0RCESCHANCE
TO SAVE RATE
Interstate Commerce Com
mission Suspends Increase
Pending a Hearing
OPERATORS TO MEET
Consider Action - Stanley
Washburn Declares Rate
Boost Means Higher
Coal Price

OOdl TTlCe
The Interstate Commerce Commits
sion will give North Dakota Ignite
coal operators, state officials and
commercial bodies an opportunity tc
fresent their case against the pro-
posed 40 to 60 percent increase on
Ignite coal inter- state freight rates
A telegram reaching the office of
Governor Nestos from G. M. McGin-
ty, secretary of the commission
Washington, D. c., announced the
suspension of the tariff schedules
until April 4, stating it was in re.
sponse to the wire and protest OF
Governor Nestos of November 8.
Chairman Milhollan of the state
railroad commission received tele-
gram from John E. Benton, solicitor
for the National Association of Pub
lie Utilities Commissioners, to the
effect that the commission would
take such action to give the opera
tors an opportunity to be heard
The Ignite coal operators will
meet here Wednesday night to con-
slider methods of protecting their in
terests.
Secs Combine
Stanley Washburn, president of
the North Dakota Ignite Coal Oper-
ators Association, in dispatch here
from Lakewood, New Jersey, declar-
ed "that the arbitrary increase of
rates on Ignite coal which between
North. Dakota and the Twin Cities
averages 81 percent is the result of
collusion between soft coal opera
tors and railroads enjoying long
hauls from southern coal fields is
manifest in telegram received by
me today from high traffic Off
cial of one of the Northwestern
railroads. n
The telegram, he said, was in an
Swer to one of protest from him say
ing the rate increase would close
most of the mines in North Dakota
and raise the price of coal through=
out the Northwest one to two dollars
COR
Means Price Rise
Mr.. Washburn said:
"That the arbitrary increase of
rates on Ignite coal which between
Dakota and Twin, Cities average
81 percent is the result of collision
between soft coal operators and rail-
, roads long haul from southern coal
fields is manifest in a telegram re-
ceived by me today from high traf-
fic official of one Of Northwest stern
railroads.
This telegram was one in answer
to protest sent Saturday in behalf
-of the North Dakota coal operators
association in which it was pointed
out that this rate would close most
of mines in North Dakota and raise
the price of coal throughout the
Northwest from one to two dollars
ton.
The telegram reads in part as fol-
lows: we are following indicated
course as to Interstate rates and
could not longer delay in face Of in
structions from connecting lines to
cancel discriminating rates on Ignite
coal. In justice to the Northwest
ern roads it is fair to say that the
Northern Pacific, Great Northern
and 500 line have heretofore cooper
atcd in every way possible to foster
and encourage development of the
Lignite Industry and the frank ad-
mission of a high traffic official
that this rate was put in on account
Of instructions from connecting
roads makes it evident that eastern
mines and eastern railroads propose
by manipulation of rates to kill lig-
mite industry which is month by
month cutting into the market for
soft coal in the Northwest.
Nearly every coal dealer in the
i Northwest has prior to the past few
\years represented eastern coal mines
and the Ignite operators have been
obliged to face for, decade the pro-
paganda of Misrepresentation as to
the adequacy of Ignite to serve as
.fh alternative for eastern Goals in all
Of the Dakotas and western Minneso-
ia. To counteract this campaign
0SoAH0" ASuAGc tHeTC was organized
last year the Ignite coal operators
association whose soul object was to
conduct a campaign Of development
and education as to the value of lig-
mite as the future solution Of North
west fuel problem. The Ignite oper-
ators basing their campaign on exist
ing rates, increased their production
last year by nearly 80 percent. One
Dakota company alone increased its
sales from thirty-four towns in
Minnesota using Ignite to one hun
-dred and sixty-five. This year there
has been heavy over production Of
soft coal and surplus Of between
four and five million tons above the
five year average is on the Duluth
docks as Ignite has been retailing in
Minneapolis from three to five dol
lars ton less than eastern and south
.ern coal it is obvious why North Da-
kota coal has become a menace to
the southern mines and is equally
clear that the connecting railrosdsI |
obtaining the long haul have issued
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