Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-09-26
COAL RATE HEARING
OPENEDAT |. c. C..
Arguments Heard Against
Proposed 29-Cent Hike
From Virginia Fields.

Arguments against the proposed
freight rate of $3.13 on bituminous
coal coming into Washington from the
New River fields of Virginia. West
Virginia and Kentucky, representing
an increase OF 90 cents per gross ton
over the prevailing rate, were begun
today when the long disputed issue was
reopened before Examiner c. w. Berry
Of the Interstate Commerce Commits
SIGN.
The basis of contention by counsel
for the New River and PocahontaS
Coal Operators Associations, represent
cd at the hearing as protestantS, is that
the proposed increase from $284 con-
stitutes a handicap to them OF rate
disadvantage of ~ cents per ton, as
compared with rates applicable on coal
produced in Northern fields by their
present competitors for delivery here on
the Baltimore & Ohio and pennsylvania
Railways. In this contention they are
Joined by local business organizations,
which have fought the proposed higher
rate from the beginning.
Asked Hike for August.
The three railroads which haul the
soft coal from the New River district
the Chesapeake & Ohio, the Norfolk d
Western and the Virginian-first applied
for an increase in the rate from $2.84
a ton to S3.13 a ton, beginning August
10. The Interstate Commerce CommiS.
sion. after protests were filed by local
interests. including the co-ordinator of
traffic for the Budget Bureau, sus-
pended the higher rate to March 10.
1929, and set the date of new hearing
for today.
while the three railroads are actual
" defendants in the case, they are only
nom;nally so, as they stated their posi-
ton today as being In opposition to the
disparity in rates on the Baltimore q
Ohio and the Pennsylvania systems.
When william G. Atwater, for the
Pccahontas Operators AsSoclaLion,
called upon the railroads 70 state tnelr
position, at the outset OF the nearing,
this was done.
Counsel for the Norfolk & Western
Railroad, who previously had filed an
answer explaining that 1t had pubilshed
the higher tariff "unwillingly and under
protest" declared the suspended rates
are too high in comparison to the rates
from Northern and Eastern districts,
and suggested that they be Cancelled.
The rate here for delivery to dealers
on the Baltimore & Ohio Railroad
should not exceed $2.84 so long as the
rate on the Pennsylvania Is lower, tney
said.
Counsel for the Virginia Railroad told
rxaminer Berry that the road had pub
lished the advance to 1913 unwillingly
and was not appearing at the hearing
to defend the new rate. A proper set
Element of the question. the Chesapeake
&, Ohio contended, would be mod1nca-
ticn in the order. The proposed rate, IL
v,as commended, was forced upon the
road by others and it was contended
consumers in the District should not be
connpelled to pay a higher rate for soft
coal brought from the Southern fields
and sold for IS years at considerably
lower rate than for hard coal.
Want Terminal Rating.
It is the position of the Washington
Board of Trade, Chamber of Commerce
and others who have joined In the pro-
tests that Washington and adjacent
points should be treated as one terminal
and a uniform rate for coal shipments
should prevail. If the increased rate OF
1913 goes into effect, they claim. the
Southern districts on the three roads
involved would be unable to sell coal IN
this market under the impossible
handicap of Accent rate disparity.
The new tariff had been filed, 1t is
complained. to comply with the COM
missions order to remove the prejudice
against the Fadeley g. Co. and the
John P. Agnew IL Co., found by the
commission TO exist. These firms, 1t is
claimed, use but small fraction Of
the nearly 1000, 900 tons of bituminous
coal sold in Washington.
C. r. Marshall for the Potomac Elec-
trio Power Co., which uses approx
mately 26600o tons Of coal, did not file
a protest in the pending proceedings,
though originally the company did.
The Pepco company, it was said. buys
very little coal for 1924 a ton, and as
only that rate Is to be increased, 1t is
not protesting now.