The CHAIRMAN. It is not subject to the direction of the Interstate Commerce Commission? Commissioner HALL. I think it is under the present act. That is, I think that would be distinctly the compensation that the owner of the car is to receive for the use of it. The CHAIRMAN. The commission has not yet acted? Commissioner HALL. We have not had occasion yet. Sixty cents is what is in effect. It runs into a very considerable sum of money as against the New England railroads, for example. Senator POINDEXTER. In that connection I think it was before this committee that I read into the record a brief extract from a recent letter from the president of the Northern Pacific Railroad, in which a most surprising capitulation of the whereabouts of their refrigerator fruit cars was made. Some of these had been lost to his road for two years and the greater part of them were gone on other roads and consequently out of their control, and threatening the fruit crop of the Pacific coast because of that fact. The CHAIRMAN. Are there any further questions? Senator TOWNSEND. I just want to ask you one or two questions. Have you adopted a plan to try to regulate the car shortage yourself? Mr. VINSON. We have not, Senator. All of our cars, or about 95 per cent of them, go outside the State. I mean they go into interstate traffic and our public service commission has no jurisdiction over the coal traffic. Senator TOWNSEND. Would there be a real shortage of coal cars if they were all together instead of being scattered by the thousands over the country to-day? Mr. VINSON. I do not know. I could not answer that only in this way, Senator. If the coal cars belonging to the coal-producing roads I mean by that where the mines are situated-could be kept in the service of those mines, it would relieve the situation very greatly. Senator TOWNSEND. Do those roads which have so many of these cars-some of them with a large percentage of cars owned by other railroads are they short of coal because of this? Mr. VINSON. You mean short of transportation facilities; yes, sir. Senator TOWNSEND. Short of coal. Are they lacking in coal now where they have all these cars? Mr. VINSON. I would not think so, judging from the number of I do not know just what that situation is. You see the road is anthracite principally. cars. Senator TOWNSEND. Do you sell coal cheaper to those sections than you do to the other sections of the country? Mr. VINSON. No, sir: I should think not. The fact is we get little more. With the additional freight rate added it would cost the consumer a little bit more. In November and December, and three or four months of this year, it was not a question of the cost of coal or the freight rate, as a matter of fact, so much as it was getting the coal, and consequently very extravagant prices were paid for the coal to be delivered in New England and throughout the seacoast and even in Pennsylvania from West Virginia points. Senator TowNSEND. Your theory is that these high prices have been forced upon you by the buyers? Mr. VINSON. There is not a bit of doubt about that. Senator ToWNSEND. I think that is all. Senator POINDEXTER. Has there been a lack of coal supply at a fair price to the carriers during the last year. Mr. VINSON. Well, there has been no lack of supply, Senator, but heretofore when the carriers wanted coal they would issue a letter or circular and send it to the operators and say the price is now 95 cents or a dollar; how much do you want? Senator POINDEXTER. They fix the price? Mr. VINSON. They fix the price. And when the outsiders began to bid for the coal all the way from $2 up, then the railroads in many instances bought their own coal properties. The Norfolk & Western bought the mines and sold them to the Chesapeake & Ohio. Senator POINDEXTER. Well, then The CHAIRMAN. Senator, have you any objection to closing the hearing now, as Senator Cummins has got to go away at 5, and I have asked these gentlemen to come down to see us? Senator POINDEXTER. Yes; I have no objection, if you will let me finish this one question. In one way or another, either by purchase of properties or otherwise, the railroads have supplied themselves with coal at a fair price? Mr. VINSON. Yes; I think so. In Pennsylvania, on one occasion the company confiscated a train load of coal that had been sold at $7 That, with the exception of the price paid by the carriers, is per cent less than that paid by the average public. Senator POINDEXTER. That is all. a ton. 25 The CHAIRMAN. There is nothing further, so the committee will now adjourn. I desire to place here in the record some communications and data bearing upon the subject under discussion which are self-explanatory. (The matter referred to above is here printed in full, as follows:) PITTSBURG COAL PRODUCERS' ASSOCIATION, Hon. FRANCIS G. NEWLANDS, Chairman, Senate Office Building, Washington, D. C. DEAR SIR: At the recent hearings before the Committee on Interstate Commerce it was pointed out to the members that the essential factor in the coal problem of the country to-day is transportation, and that unless this adequate transportation is furnished to permit the mines to run full time instead of twothirds full time, as at present, it will be impossible to produce and ship the increased output of coal which the Nation and its allies will require of the mines this year. In this connection I inclose, for your information, a statement from the Pittsburgh Gazette Times in its issue of to-day, which states the condition prevailing here. GENTLEMEN: Inclosed please find copies of letters from Mr. John E. Lyons, Westfield, Mass., and from the North Star Ice & Coal Co., Knoxville, Tenn., which are herewith respectfully referred to your committee, as they may be of interest to you in connection with your hearings on the coal situation. (Attention of Mr. L. L. Bracken, secretary.) DEAR SIR: You will remember my writing you on different occasions regarding four cars of coal held by the B. & A. consigned to the New England Coal & Coke Co., of 111 Devonshire St., Boston, Mass. Thursday morning, July 5th, the writer was at the B. & A. freight house and found that the company were unloading the coal, that is, dumping it out in the lots and seizing the cars. The demurrages amount to about $570.00 on this coal. Of course, the coal can not be taken until some one pays the demurrage charges, and it is simply of no use to anyone in the open lot-doubtful if you can get near it to load it. Was there ever anything done regarding this matter, and is there anything done in such cases after you receive the information? Are you going to allow these people to repeat this again on another occasion? For your information, wish to say that the writer made a second attempt to buy this through Mr. Balch, of Springfield, at $5. That was a week or 10 days ago. Mr. Balch telephoned the writer that he would be glad to sell it, but the New England Coal and Coke Company told him to forget the coal was there and not to let anyone know that they had any coal in Westfield. The writer is glad to give you all the information possible regarding these matters, but would also like to know what the results are to be. Awaiting with interest your reply, we remain, Yours, very truly, WESTFIELD MANUFACTURING CO., Purchasing Agent. WESTFIELD MANUFACTURING CO., FEDERAL TRADE COMMISSION, Washington, D. C. (Attention of Mr. L. Bracken, Secretary.) DEAR SIR: * * * Would add that these cars are still in Westfield, and for the time ending June 18 the demurrage charges were $230. To-day will be $20 more, which will make $250. Just think of it. The writer saw the coal last week on the siding over there and took the car numbers, which perhaps might be of some service to you. They are all New York Central cars, numbers as follows: 417986, 417940, 417917, 417939. GENTLEMEN: We, like all others, are suffering under the high price of coal for both factory and domestic use. I have delayed writing to you, hoping that something might be done along this line for lower prices. If you will bear with me, I want to give you some facts prevailing in Tennessee. The coal operators are charging $3.75 per ton for all grades of coal f. o. b. mines. They say the Government allows them $3.50 per ton and 25 cents commission is allowed the selling agents. All the selling agencies have been pooled with the operators to get the 25 cents per ton. I have been handling and burning coal for factory use in Knoxville for about 20 years. All coals in Tennessee in grades are very different. Nut and slack is worth about $1 per ton in efficiency against lump or block at $3 per ton for factory use at the mines. The coal operators can make 100 per cent on their investment if they run in a businesslike way, after allowing the advance to miners, as they have done. I am going to give you a schedule of prices, as follows: Nut and slack f. o. b. mines_ 3-inch steam. Run of mine_ Lump or block_--- $1.25 1.50 2.00 2.50 The operator can make 100 per cent net profit on the prices we have named at the tipple. They do not make any lump to sell us. Run-of-mine at $3.75 f. o. b. mines, 80 cents freight to Knoxville, Tenn., unloading, 5 cents per ton, making the total price to manufacturers at $4.60 per ton delivered. There are few factories can exist in Tennessee six months under such prices for coal, except munition plants, cotton and steel mills. All other plants must borrow from the banks large sums of money to pay these coal operators the price they are now asking for coal so they can make 150 to 200 per cent on their investments. I feel sure that you business men at the head of our Government after knowing the facts would not allow the masses of people to suffer under such conditions. I also make the following statement in behalf of the consumers of coal for home use: If the dealer pays $3.75 for run-of-mine, gets 50 per cent lump and 50 per cent dirt in the same car, pays 80 cents freight to Knoxville, Tenn., $1.50 per ton for screening, 5 cents for unloading, 70 cents for drayage, makes actual cost to the dealer $6.80 per ton delivered to the home. The dealers should be allowed some profit in addition to this. Coal is now selling in Knoxville for $6.50 per ton delivered, so you can see that no one is getting rich. I am sure that you all have same facts in your possession and hope you will act on this quickly and have the coal operators to make a reasonable price, as the manufacturing interests of Tennessee will soon be forced into bankruptcy while the coal operators make from 150 to 200 per cent on their investment. The operators will not make lump or block coal when they say to me, they can get $3.75 for run-of-mine, as we know is 50 per cent dirt, and can be mined very much cheaper than lump coal. We hope you will consider this letter enough to investigate the coal operators' business. Yours, very truly, Y. H. SHANKLIN, President. |