Statement of coal contracts entered into or effective since Jan. 1, 1917-Contd. New York, New Hav- Apr. 1,1917 Apr. 1, 1918 $5.63 net, Bos en & Hartford R. R. ton dock. .do....... $6.47 net, Boston dock. .do. .do..... Alabama (sliding scale; price increased to $2.05 on May 1, 1917). Alabama (sliding scale; price increased on May 1, 1917, to $2.05). Pennsylvania (this company has had to buy considerable coal in open market at much increased cost over contract). West Virginia. Not stated. These are two representative contracts of many. (Not stated (sliding scale). These are two typical contracts of several and show lowest and highest price contracts. Fairmont district; price increases or decreases with rail rate from mines to tidewater. Canada; price increases with import duty if imposed. Kanawha district: price increases or decreases with rail rate from mines to tidewater, or with mining rate plus 50 per cent. Maryland; price increases or decreases with rail rate, mining rate, or added costs due to legislation. $2.50 f. o. b. Reynoldsville district; price mines. subject to same changes as above contract; half of the cars must be supplied. Delivery alongside their steamers, Norfolk Harbor. b. mines. Do.. .do.... do. Mar. 31, 1918 $3.04 gross......... .do. $3 f. o. b. net... $1.22 gross, f. o. b. mines. $2.25 gross, f. o. At mines. Sliding scale. Statement of coal contracts entered into or effective since Jan. 1, 1917-Contd. The Minneapolis & St. Apr. 1, 1917 Apr. 1, 1918 $1.90 f. 0. b. mines. $2.25 f. 0. b. Louis R. R. Co. .do. Mar. 31. 1918 mines. $2.20 mines (lump). Apr. 30, 1918 $2.77 mines Washington. F. o. b. mines. Above are representative contracts. Four others have not yet expired. Illinois. Price now $2.15. Sliding scale. Iowa. Price now $2.50. Sliding scale. Iowa. $0.90 mines (screenings).. (lump). $2.35 mines (mine run). 1 Calendar year 1916. Illinois. New Mexico. Colorado (20-year contract). Sliding scale. Above are representative of some 90-odd contracts. Average cost of coal from mines, capital stock of which is owned by railway company, is $2.035 per ton. Statement of coal contracts entered into or effective since Jan. 1, 1917-Contd. Central Apr. 2, 1917 Apr. 1, 1918 $2.23 net, f. o. b. Sliding scale. Increase of New Nork R. R. Co. Do.. Do.. Do..... mines. $2.25 net, f. o. b. $2 net, f. o. b. $1.38 net, aver age. Oct. 1, 1916 Sept. 30, 1917 $1.56 net.. $0.25 likely. This is bituminous coal. Sliding scale. coal. Run-of-mine Does not include increase. Matter not settled. This is for anthracite No. 1, buck coal. Above are representative of some 40 contracts in effect since Jan. 1, 1917. West Virginia and Pennsyl vania West Virginia. Do. Representative of some 6 or 8 contracts. The CHAIRMAN. I have here two communications in the form of statements that I desire to place in the record. (The communications referred to are here printed in full, as follows:) Hon. F. G. NEWLANDS, Chairman Interstate Commerce Committee, United States Senate, Washington, D. C. DEAR SIR: In the course of the hearings which have been had before your committee relative to Senate bill 2354, reference has been made by Mr. H. E. Willard to the fact that the present price of coal is in his judgment partially attributable to the inability of the railroad companies to furnish the coal operators with all the cars for which they have use, and that this is in part the result of the fact that these companies are furnishing cars to shippers who load them from wagons and not from tipples, and consequently consume an undue amount of time in the process of loading. This practice has also been referred to by Mr. Colver, of the Federal Trade Commission, and by Gov. Fort, and a further statement relating to the same matter was made by Mr. Charles C. Greer, of Johnstown, Pa. In view of the fact that the situation alluded to is one which is causing material concern to the Pennsylvania Railroad Co., it seems proper that this company should state its position in the matter and should recite the efforts it has put forth to terminate the practice. In the first place, it concurs emphatically with the views expressed by Mr. Willard and by the Federal Trade Commission that the practice is calculated to enhance the price of coal, has already tended to diminish the efficiency of the railroad company's equipment, and will with increasing effect continue to produce this result if it is not stopped, and that it is directly detrimental to the best interests of the consuming public. The foregoing statement is predicated on the following facts: By delivering cars to persons loading coal from wagons more time is consumed in the process of loading, the cars are withheld from established mines where they could be speedily loaded from tipples, and these established mines, being under contract with various consumers, are hindered in the fulfilling of their contracts, their miners are attracted away-in many instances to the operations of the wagon loaders and the railroad company is required to spot these cars on team tracks constructed on its property for the purpose of loading and unloading other materials, thus to some degree hampering the handling of other materials and requiring additional time and expense on the part of the railroad company in spotting the cars one at a time, here and there, and picking them up, rather than placing them on the tail track, thence to be dropped under the tipple by gravity by the operator, which is the normal process at the regular operation. The tendency to deplete the regular supply to the established mines which have provided their own facilities in the nature of sidings and tipples for the loading of the cars with dispatch and are under contract with the consuming public, has a direct influence in reducing the quantity of coal that would otherwise reach market, in creating a speculative condition in the coal market, and in abnormally enhancing the price of coal because of the difficulty which the established operators thus encounter in fulfilling their contracts, being compelled not infrequently to purchase coal at inflated prices in order to meet their obligations. Recognizing the seriousness of the practice, this railroad company, in January, 1916, issued an order refusing to place open-top coal cars to be loaded in this manner, but the public-service commission of the Commonwealth of Pennsyl vania, before which a hearing was held, felt that the practice had not at that time become so extensive as to be a serious factor, and, despite the fact that this railroad company earnestly protested that the practice would grow with increasing prices, requested that the railroad company's order be withdrawn, and this request was complied with. The practice once permitted, however, the railroad company's anticipations were unfortunately verified, and during the latter part of 1916 the number of cars loaded from wagons increased with alarming rapidity, so that in the early part of 1917 petitions were filed both with the public-service commission of the Commonwealth of Pennsylvania and the Interstate Commerce Commission asking leave to amend the tariffs upon three days' notice so as to terminate the practice of loading coal in the manner described. Both commissions refused the permission asked, for the reason that in their view sufficient cause was not shown for establishing the regulation on less than statutory notice. Thereupon this railroad filed tariffs, to become effective on statutory notice, restricting the commodity rates published on bituminous coal to coal loaded directly into cars from mine tipples with track connections with the line on which the shipment originated, and the rules of the company providing for the distribution of cars were concurrently amended providing that only box, cars would be furnished, when available, for the loading of coal by wagon. As a result of the filing of these tariffs hearings were had before the publicservice commission of the Commonwealth of Pennsylvania, which eventuated in an order by that commission requiring the railroad to cancel the tariffs and to restore the practice of accepting coal from wagons on the same terms as from tipples. During the interval between the date on which the tariffs were filed by the railroad company with both the Pennsylvania public-service commission and the Interstate Commerce Commission the latter body, under its investigation and suspension docket No. 1040, suspended the rules of the railroad company |