Evening star., 1927-07-31
|. c. c. WILL TEST
RATE LIMIT POWER
Decision on Southern Line
Plea for Lower Tariff to
Lakes to Be important.

How far the Interstate Commerce
Commission is willing to 60 in using
its authority over railroad rates so as
TO control economic conditions between
different sections Of the country prob
ably will be demonstrated by its ac-
ton on the petition of Southern car
r;erS for permission to reduce their
charges on coal destined for Great
Lakes ports for transshtpmcnt by
boat.
1t may he that the commission viii
find a way to act on these proposed
new schedules in such manner as TO
base its action on grounds which will
avoid the issue in the blunt form
herein set out; but those directly
affected will view the matter without
circumlocution.
Involved in the issue as now pre-
scented the commission is a bitter
struggle between bituminous mine
owners of the unionized coal fields of
Ohio and western Pennsylvania on
the one hand and the operators of non
union mines in West Virginia. Nir
Ginia and eastern Kentucky on the
other-a conflict Of interest which was
responsible, more than any other fac
tor, for the failure Of the Senate last
Winter to confirm the nomination Of
Cyrus E. Woods of Pennsylvania as
q member Of the Interstate Commerce
Commission, to mention only one Of
its unusual phases
DisapprovaI Is Indicated.
The fact that the commission in its
latest decision in the Lake cargo case
took cogniZance of the possibility that
Southern carriers might reduce their
rates on coal, and advised against it.
may indicate to some disapprOval of
the schedules Just flied, but no formal
action has been taken. If the new
Southern rates are approved. the
Pennsylvania Ohio coal operators will
find themselves with an empty vic
tory.
More than two years ago the soft
coal shippers of Ohio and PennSyl-
vania began a fight before the com
mission for a greater advantage in
railroad freight rates on coal to lake
ports. thence to be ta1:en by boats to
Duluth-Superior and other docks for
distribution throughout the North
west. Their complaint was that the
non-union mines of the Southern
fields could ship coal right by the Ohio
mines to the lakes and were taking
the Northwestern market because of
lower production costs.
The commission handed down a de-
cision refusing to change the 25-cents-
per-ton differental between the two
fields. Then rehearing was secured.
The tel II of Commissioner i. l. Cox,
who had voted against Il change, eX-
pired and Southern coal operators
opened a fight against the appoint
ment of Pennsylvania, Judge
s,1l@ = L.
his nomination. The place finally was
given Ezra Brainerd, jr, of oklahoma.
Differcntial Was Widened.
On reconsideration of the lake cargo
case the commission six weeks ago
handed down a decision directing rail.
roads serving the Ohio and Pennsyl-
Nania operators to reduce coal rates
to lake ports 20 cents per ton thus
widening the difference between the
Northern and Southern fields to Is
cents per ton, with a few other minor
readjustments.
In this last decision the commission
mentioned the fact that the Northern
soft coal mines, paying union wages.
were having difficulty in holding busi-
ness, pointing out how man miners
had been idle for months in that ter
rltory. Thus the commission recog-
nized the principle of economic con-
ditions in adjusting railroad rates.
The Southern field operators imme-
diately declared their markets and
miners would suffer if they could not
compete with the lake cargo coal, with
the result that the principal carrie,s
of the Southern territory voluntarily
have filed new rate schedules, reduc-
ing charges 20 cents a ton and thus
absorbing the differential ordered by
the commission in the Northern field.
That there is a strike in the union
lied fields is Of only temporary con
Germ in this freight-rate battle. The
lower rates ogdered by the commission
are to be effective August 10. The
question now is whether the commits
sion will refuse permission to South
ern carriers 10 cut their rates volun-
tarily. and thus insist that the North
ern mines shall have a greater share
of the Northwestern coal market, III
so far as railroad rates can influence
the situation.
Copyright. 1927