Evening star., 1933-08-11
COAL FREIGHT RATE
CHANGE IS DENIED
!. C. c. Refuses Reduction in
Charges for Pennsylvania,
Maryland, West Virginia.
BY the Associated Press.

BY the Associated Press
The Interstate Commerce Commission
today refused to change the present
freight rate charges on soft coal from
Pennsylvania, Maryland and Northern
West Virginia to destinations in Eastern
trunk line and New England territories.
The decision. affecting the largcat
freight movement in the Nations various
groups, found the general rate structure
to be not unlawful except in a few in
stances. Similarly, it upheld the pres
ent trans-shipment rates from the same
mines to New York, Philadelphia and
Baltimore on soft coal for export and
coastwise movement.
The commission authorized the roads
involved to continue or to establish rates
to New England territory without OBJ
serving the long and short haul proVi-
sions, the effect being to maintain
higher rates from and to intermediate
points.
Rates Held Unreasonable.
The commission held the inte-stata
rates aSSalled were not unrea easonable o.
terState rates from mines on the West
ern Maryland and Baltimore & Ohio
Railroads in the Cumberland Piedmont
Meyersdale district to Chambersburg
and Greencastle. Pa. were unreasonable
to the extent that they exceed or may
exceed S246 a long ton.
Reasonable rates for the future were
prescribed for these shipments
The commission said the rate level
which coal shippers sought to have
readjusted had stood for many years
with relatively few changes and has
been exceptionally free from complaints
by either operators or consumers"
Neither the grouping nor the rates
in this interrelated adjustment should
be disturbed by us except on a clear
showing of unlawfulness. and such a
showing has not been made here
Although considerable tonnage has
been lost to other sources Of energy and
to tidewater coal from Hampton Roads
(VaD, the record contains no facts
which warrant a conclusion that any
substantial amount of that tonnage
could be regained by a reduction In the
rates.
Assail Eastbound Rates.
THE record does show the adverse
effect that even a slight reduction in
the rates would have on defendants
financial condition. which is serious"
The Central Pennsylvania Coal Pro-
ducers Association and the Somerset
Meyerdale and Cumberland Piedmont
Coal Traffic Bureaus had assailed the
EaStbound rates.
Chairman Farrell and Commissioners
Lee and Tate diSsented from that part
n 10 oil
continue or to esta bliSh. under certain
conditions, higher rates for hort than
for longer hauls.
Commissioner McManamv dissented
regarding the major aspect OF the case,
! hoIdmg present rates were too high
McManamy said the evidence intro
duced TO justify the present rates bv
showing the cost per ton mile Of handl-
ing freight in Pennsylvania. is epproy-
ina tely double that in the Pocahontas
, region, lis not convincing, and even if
| that were established, it does not. in
my opinion. justify the maintenance of
existing rates y
Holds Rates Are Too High.
THE record also shows" he added.
"a very large transfer of tonnage to
other fields, and l am of the opinion
that proper rate adjustment would
| not only benefit the producers out that
the increase in tonnage which would
follow would more than compensate the
: carriers for the decrease in revenue
which would be caused by the reduction
/ in the rate. and this increase would
come not entirely from competitive
| coal fields, but in part from markets
regained from substitute fuels
If Pennsylvania bituminous cCal is
| to hold its place in the market in COM
| petition with coal which moves at a
lower rate and with substitute fuels. it
must be given similar consideration to
that now being contemplated for Penn
sylvania anthracite.
Tt is my view that the rates here
/ assa1.ed are too high based on either
the cost or the value of the service and
that further loss of production and of
I tonnage will in the near future force
the readjustment which the majority
here find We have no power to make.