Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-26
PITTSBURGH GROUP
WINS RATE VICTORY
Southern Competitors Fail to
Get Cut in Charges on
Coal to Lakes.

BY the Associated Press.
An important victory in the pro-
tracted contest over the rail rates on
lake cargo coal was won yesterday by
the Pittsburgh and Ohio mining terri
tory. The Interstate Commerce COM
mission refused to allow the principal
railroads serving West Virginia. Ten
neSSee, Virginia and Kentucky to cut
rates to Great Lakes ports 20 cents a
ton. although the roads voluntarily Of
fered the reduction, and the Pittsburgh
Ohio coal operators were granted by
railroads serving their mines cut OF
that amount last Summer.
The rate relationship will determine
IN large part the dominance in the
lake cargo trade, which amounts to
10000, 900 tons of coal year, as be-
tween the West Virginia -TenneSsee-Vir-
ginia kentucky fields on the one hand
and their Ohio-pennsylvania COMPETE
tors on the other.
Has Been Bitter Feud.
The feud over the lake cargo rates was
sufficiently embittered early this year to
bring about its transfer in part to the
Senate, where confirmation of Commits
sioner Esch. though reappointed by
President Coolidge. has been blocked
because of controversy over his vote on
the coal rates. Yesterdays decision of the
commission noted that Esch had been
necessarily absent, but would have
concurred in the commissions find
ings. Three commissioners-Meye
Woodlock and Brainerd-dissented from
their associates in ruling against the
Southern cargo rate cut.
The competition between Southern
mines and Northern mines in the APP
palachian coal fields over the lake
cargo business. has been intensified In
recent years, the testimony before the
commission showed. by differences in
wage rates and by non-union mining
conditions. Four separate proceedings
as 10 the rail rates have been brought
to the commission, and previous to yes
teroay's action the Ohio Pennsylvania
territory had been successful in obtain
output when shipped to the Great
Lakes for movement by boat onward to
the Northwest.
Flat Refusal.
In yesterdays decision the commits
sion indicated a fat refusal to change
the position that 1t took in ordering the
northern rate cut last Summer.
All Of the rates under consideration.
and the rates from the Pittsburgh and
Ohio fields as well. were initiated.
modified. established or adjusted by us
IN an endeavor to provide as nearly as
may be such system of rates as would
enable the carriers in the groups in
which they were placed to earn the ag-
gregate annual railway net operating
incomes based upon property values
which the law requires us to endeavor
TO secure" the decision said.
In SO adjusting these rates as the
law requires we gave due consideration
TO the transportation needs of the coun-
try and the necessity of providing the
people Of the United States with ade-
ouate transportation. The reduce
tons We required from the Pittsburgh
and Ohio fields were made in the exer-
cis7 OF our power to modify particular
rates found 70 be unjust and unreason-
abe
The proposed reduction before us
would create no new traffic. If the
prophecies of the Southern railroads are
correct. the only effect would be a di-
version OF portion of the tonnage
from one set of carriers to another
within the same rate group"