1907 - Road Unfair in Allotting Cars

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Roanoke Times - October 31, 1907

ROAD UNFAIR IN ALLOTTING CARS

Powhatan Coal & Coke Company Charges Discrimination by N. & W.

   Washington, D. C., Oct 30. - The question of car distribution 
along the line of the Norfolk & Western Railway will come up for a 
hearing on Nov. 6, at which time the Powhatan Coal and Coke Company 
will present its plea for a distribution on the basis of working 
capacity rather than on the number of coke ovens.
   This company, which is the complainant in the case, asserts the 
allotment of cars on the basis of the number coke ovens a company 
has, permits wholesale discriminations. It points out that there are 
about 11,000 coke ovens, costing $500 each, in the Flat Top 
Pocahontas Coal district, a large percentage of which are not in 
operation, and many of which are not erected for the purpose of 
producing coke, but for the sole purpose of getting extra cars 
allotted. It asserts that the railroads allot one and one-half cars per oven.
   It is further alleged that there are some companies in the good 
graces of the railroad which get a certain number of cars arbitrarily 
allotted them, and then get their share of the pro rate allotment 
besides; that there are other companies that are allotted cars on a 
basis of more ovens than they already have; while other companies 
still, have no ovens at all, but are allotted cars on the basis of an 
imaginary number of ovens.
   It is asserted that 6 per cent of the total cars allotted are 
given to the companies arbitrarily before any allotment is made.
   It is pointed out that so eager are some companies to get cars 
that they have built from 50 to 100 coke ovens at a cost of about 
$500 each, which were never built for use, but for car allotment 
purposes alone, and that 5,000 ovens are enough to supply the coke 
trade, whereas there are 11,000 of them in the district.
   The complainant asserts that if the allotment were to be made on 
the loading capacity rather than on the oven basis, it would get 3 
per cent of the cars that go to this district, whereas, under the 
present allotment basis it gets only .01939 per cent.
   It further claims that if they were allotted cars on the basis of 
the actual number of ovens in the district it would get .0275 per 
cent of the cars. It charges that the whole system is unfair, and 
that it works a great hardship on those coal producers who happen not 
to be the favorites of the Norfolk & Western management. It further 
asserts that it could load 25 cards per day, whereas its gets only 
10, and that the Norfolk & Western has financial interests in some of 
the companies it favors.
   In its reply the railroads says that the basis of allotment was 
adopted in 1889, as the most equitable one that could be devised, and 
that the coal producers had a hand in it. It cites the fact that the 
land owners originally required the coal operators to erect at least 
100 coke ovens on each 500 acres of land, and that this was done in 
order that the coal should be screened and good coal and coke 
produced, whereas, without the ovens there would have only been a low 
grade of coal produced. It was this element in the situation that led 
the railroads to adopt the coke oven basis, as it meant more traffic for them.
   As to the arbitrary allotment of cars, it says that when the road 
was extended to the western side of Flat Top Mountain it was found 
that it could not carry coal as cheaply from the western side to 
tidewater as from the eastern side. The operators on the eastern side 
agreed that if they were allowed so many extra cars in the handling 
of their coal they would agree to pay the same rate that was charged 
the operators on the western side. It was to equalize matters in this 
way, and to put the operators on a common footing in the markets, 
that this arrangement was entered into. As to the allegation that the 
railroad gives certain cars to other companies arbitrarily, the 
railroad takes the ground that is has a right to buy coal for its 
engines wherever it pleases, and to furnish whatever cars are needed 
for its transportation, without reference to any allotment basis.

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- Ron Davis, Roger Link