Evening star., 1925-08-12
COAL FREIGHT CUT
TOCAP|TAL DENIED
Commerce Commission Low
ers Seaboard Rate on West
Virginia Smokeless.

Railroads serving West Virginia
smokefess coal districts We're ordered
by the Interstate Commerce Comnls-
sion today TO establish new basis or
rates, which will allow movement OF
such coal to consuming territory, IN
cluding all OF New England and the
North Atlantic seaboard. The new
rates, which apply only in certain dis
! tricts, will apply TO Washington inso-
far as the joint rates are concerned
but will not effect a reduction In the
rates on coal shipped direct to TINS
city.
The commission refused 10 order
general rate reductions on anthracite
and possible substitutes for anthracite,
leaving the rate from the PennsyI-
vania fields to the Capital at $S.Zs'
a rate which has been in erect Tor
! several years.
Reduction Demanded.
1t alluded in the order TO desire
| by consumers for a "suDSta ntlsl re-
! duction in the retail selling prices Oh
lanthracite," and said that reductloh
lhy 10 per cent of the 1928 rate from
producing points 10 Washington
would save the Washington house,
| holder. who burns 12.5 tons OF nara
coal a year. about $40. Al the same
time the commission said, Inc GOV,
ernment had displaced anthracite Goa
for the heating OF approximately ooo
buildings in Washington by the use
of low volatile. bituminous coal, WIN
resulting large reduction In tne cost
of fuel The Government now buys
approximateIv $50 900 tons OF low
volatile bituminous coal and 2o,ooo
tons of anthracite for that purpose an:
nually. rate reduction on this fuel
was ont ordered In so far as Washlns-
Ton is concerned, although the JOINT
through rates TO New England VIII De
reduced.
The investigation showed conclu-
sively, the commission said. that the
marketing of West Virginia smoke
less fuel as a substitute for anthra-
cite was restrained by lack OF
proper Joint rates Railroads were
notified TO remedy the deficiency by
October IS, under principles set forth
in the decision. A reduction affecting
all North Carolina points which now
paw an average of $7.O6 per ton In
| freight on prepared anthracite was
ordered. The new rate will be 1915
per ton from Pennsylvania, effective
within three months. The decision
| lowers the rates on anthracite from
Pennsylvania to points in Maryland
| north of Baltimore and on bitumtnous
from West Virginia 10 other points
| in Maryland.
Commission Began Move.
The proceeding was brought by the
commission on it's own initiative, on
| recommendation OF the United states
Coal Commission, and was supple
mented by a complaint brought by the
| Interior Department attacking the
! rates on the soft coal il buys for the
Government fuel yard.
Regarding this complaint. the com
mission said the carriers during the
hearing reduced some of the bitumi-
| nous rates to the level sought by the
Government, which alleged excessive,
unjust and unreasonable rates. IL
! is agreeable to the Government that
| the question as to the reasonaoleness
of the other rates which IL attacked
may rest in abeyance without preJu-
dice to it's right, to attack the reason
! ableness of those rates in any pro-
ceeding ii elects TO bring in the fu-
ture," the commission said. There
| fore we shall not pass upon the rea-
| sonableness of the rates attacked by
the Government"
Upon the record we are unable
| to find that all of the rates on an
| thracite coal now in force are exces-
sive unreasonable or otherwise unlaw-
| full" the decision said. g and in our
opinion a horizontal reduction of all
| those rates to an extent which could
| be reflected in an appreciable reduc-
| ton of the retail selling prices of
| domestic sizes of anthracite would i'm
pair their credit and consequently
their ability to perform sufficient and
satisfactory transportation service.
Carriers Need the Money.
THE record is persuasive that i'm
| pairment of the ability of the carriers
| to perform sufficient transportation in
! connection with the distribution OF
anthracite coal might subject con-
sumers to hardships which would out
from a reduction of rates on anthra-
| cite"
| The commission found, however,
that certain local rates on anthracite
to Watertown, n. Y, should be made
the same as the rate to Buffalo. while
rates to Port Richmond, Pa, on coal
to be transshipped we're ordered nxed
at $1so per ton for pea coal. The
Reading Railroad was required to
make new schedules accordingly with
| in 90 days. To Wilmington, Del, over
| the Pennsylvania and Reading Rail
roads, a new rate of $3.50 on prepared
anthracite was also ordered.
| In considering the rates on smoke
less coal suitable in a degree for sub
| stitution for anthracite, the commits
sion cited the results OF Investigations
made both by the United States Coal
! Commission and by Massachusetts
| governmental authorities. The fire.
quent threat. particularly of labor
troubles In anthracite fields, the de-
cision said. had induced one Massa-
| chusetts commission to decide that
| permanent relief for the household
ers of Massachusetts, from their crush
| ing domestic fuel burdens will come
| only when other fuels than anthracite
are developed and competitive condi-
tions prevail in this market"
New England Benefits.
''It seems preferabl the commits
| sion said that the solution Of this
domestic fuel problem be accomplished
through the development of trade and
| commerce. The sources of production
of an ample supply of household fuels
| for use in the New England States
and the Middle Atlantic States are in
dicated. Freights rates effect total
| restraint of the shipping of coal pro-
duced from mines in West Virginia to
points in the IL Northeastern States
north Of Hagerstown, Nd, and Wash
ington. D. c.
| To remedy this situation and to open
a transportation avenue for the move
ment of the anthracite substitute
fuels, the commission ordered the
Chesapeake and Ohio, Virginian and
Norfolk and Western Railways to make
joint rates with the Pennsylvania,
Baltimore and Ohio. New Haven, Bos-
ton and Maine and Long Island Rail
roads. AS a measure of the new rates
on low volatile coal, the railroads were
instructed to fix total charge to
principal Eastern consuming points at
| ho oh he