Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-07-17
COAL RATE PROTEST
PREPAREDFORL.C.C.
Saving in Costs at Federal
Plants Cited as Factor
Against Increase.

Agencies, public and private, inter-
csted in the forthcoming increase on
coal rates from the New River field of
Virginia, West Virginia and Kentucky
we're arranging today to place vigorous
protests before the Interstate Com
merce Commission. In the hope that
that body will suspend operation of the
$313 per ton rate, effective August 10.
Prompted by motives Of economy on
behalf Of the Government, W. H. Quigg
acting co-ordinator for traffic. prepared
to file brief with the commission late
today, protesting against the rate raise
Of the Chesapeake 81 Ohio, the Norfolk
& Western and the Virginian Railroads,
which haul New River coal to Wash
ington.
Placing the case of the Northern coal
operators before MIR. Quigg this morn
ing, Charles O'Neill. secretary of the
Central Pennsylvania Coal Producers
Association; J S. Brennan and A. B,
McElvany, secretary of the Pittsburgh
Coal Operators Rate Committees, con-
tended that the Government would be
able to purchase their coal more cheaply
when the new rate is effective.
Cites u. S. Consumption.
Mr.. Quigg is prepared to advise the
Interstate Commerce Commission that
the new rate of the Southern carriers
on New River coal would mean an adj
dition of $4,000 to the Governments
Washington fuel bill. About $4,000
tons, used by Walter Reed Hospital,
the Capitol power plants, the District
public schools and other agencies, would
be affected by the increase to $3.13 per
ton, Mr.. Quigg declared, There are
about 60, 600 tons used by the Navy at
the navy yard. The rate Of s2,84 per
ton. which is now In effect on the
Southern carriers, MIR. Quigg said, has
been in effect for many years.
Acting under the co-ordinator OF traf-
fic. as one of the representatives OF the
Bureau of the Budget In President
Coolidge's program of economies and
better business administration, Mr..
Quigg will make 1t plain to the COM
mission that the Federal Government
is involved In the rate raise only from
the viewpoint of economy and not from
any desire to become involved In con-
troversy between Northern and Southern
coal producers or carriers.
Board Of Trade 10 Join.
The washington Board of Trade will
join with the coal operators OF the New
River fields in requesting the commits
sion to suspend. pending hearing. the
increase in rates from the Southern
fields which are to become effective
August 10, 1t was decided by the execu-
tive committee of the trade body yes
terday afternoon.
Fearing that the predicted elin1ina-
ton of the Southern operators from the
washington market as result OF the
announced increased rates would have
a bad effect on Washington. the Board
of Trade plans to suggest to the COM
mission that a rate of $2.7i per gross
ton be established for Washington and
its cnvirons instead of varying rates
which would apply under the new
sche Jules announced.
According to a telegram received by
the Offices of the Board OF Trade by
S. c. Higgins of the New River Coal
Oper ltors' Association, that organiZa-
ton will Join with the local trade as
socis on in urging adoption OF a sail
rate [ washington and It's environs II
was stressed that the rate should apply
to nearby suburban sections as well as
to the city proper to prevent ''discrim-
nation" The rate should be the same
for the Northern and Southern fields,
1t was felt.
Save 100000 Here.
The new schedule affecting the South
ern producers would bring the freight
rates per gross ton from s2.84 to $3.l3.
which the. New River operators say
would eliminate them from fair COM
petition In the Washington market.
The Board of Trade executive COM
mittee also had before 1t communica-
lions from the Central Pennsylvania
Coal Producers Association denying
that the change in freight rates af-
fecting the Southern producers would
mean higher upkeep for office build
ings, hotels, apartment houses and
other users Of bituminous coal. and
from an official of the Baltimore g.
Ohio Railroad outlining the history OF
the freight rates question.
1t was stated at the meeting that
the proposed rate of san for all pro-
ducers serving the local market would
mean a saving OF about 100000 to
washington consumers.
a.