Evening star., 1928-05-03
PEPCO IS DENIED
LOWER COAL RATE
Hope, However, Seen for Ul-
innate Reduction to Benefit
of Light Users.

Despite an adverse ruling of the IN
terState Commerce Commission on an
application Of the Potomac Electric
Power Co. for a downward revision OF
freight rates Of $3lS ton on btu
mino0S coal shipped from the New
River district of West Virginia to the
power plant at Benning ID. c.. loop
hole was left open whereby it is believed
the utility company ultimately Will OBJ
tain its desired reduction of 90 cents
ton, If such is the outcome Of the long
contested rate war, the Potomac Elec-
trio Power Co. Will be in 8 position to
save approximately $4,000 on its an
nual coal bill, which would reflect to
the advantage Of local light users.
The loophole is provided in the case
a. John P. Acnew & Co and Fadeley
q Co, local dealers. who intervened in
the complaint urging that the rate of
So 50 asked by The Potomac Electric
Power Co. be applied To shipments to
their yards Since these coal firms arc
directly in competition with firms en-
5oying the s. So rate the Interstate
Commerce Commission held the charges
they are now forced to pay are unduly
prejudicial.
Declared Not Unreasonable.
The commission held that the rate of
$3lS on the Chesapeake & Ohio 10
Bennlng and 10 Washington for Baltj-
more s. Ohio delivery is not unreason-
able in the case Of the Potomac Electric
Power Co, since none of its coal is sold
IN competition with dealers On the
other hand. 1t held that the mainte-
nance of the same rate is unduly prelu-
oicsal 70 the two coal firms. engaged
with Others in competition. 10 the sx-
tent that il exceeds the S2S4 rate con-
tenporaneously maintained by tho
Chesapeake & Ohio from the same dis
tTict TO Washington for delivery on tho
tracks Of the PENNSYLVANIA Railroad and
the Chesapeake & Ohio and Pennsyl-
vania reads to Relee and RoSSlyn, Va.
Freight rates on coal from mines on
the Norfolk &, Western and Virginian
Railways which operators on those
points are compelled TO pay for deStina
tons in Washington and Maryland also
were found unduly preludlcial, in that
they exceeded the rates from mines on
the Chesapeake & Ohio in comparable
districts.
Cautioned Against Prejudice.
The defendant railroads are ordered
GO abstain from pTacticing undue preju-
dice and TO apply regulations on or be-
fore July is that would prevent dis
examinations against the two local coal
firms and operators.
Being 8 finding OF undue prejudice.
II was explained. the carriers have an
election OF the methods by which the
discrimination must be removed. They
may obey the order Of the commission
by reducing the rate 10 S2S4 or they
could comply with it by increasing the
rates on TO Pennsylvania road TO 1918
II is felt in local coal circles that
the latter method would stir up such
ciSsension that ultimately the railroads
would consent to a downward revision
OF rates to S2.S4 Coal from the New
River district on ths Chesapeake &
Ohio destined here must move over the
Baltimore g. Ohio TO lexington through
Benniaz Under the long -and-short-
haul use. the railroads cannot main
tain a higher rate at Banning than 10
lexington Consequently, If the car
riers comply with the Interstate Com
rrarCe Commissions order to reduce
the rate 10 So 81 in favor of the twc
cnal dealers. they would be compelled
eo grant the same rate to the Potomac
Electric Power Co. for deliveries al
BennirE ~