1908 - POWHATAN COAL COMPANY WINS

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Roanoke Times - January 28, 1908

POWHATAN COAL COMPANY WINS

Interstate Commerce Commission Decides Against the N. & W. and Others

THE COKE OVEN BASIS FOUND TO BE UNJUST

Commission Convinced it Results in Unlawful Discrimination, But It's Not 
Unmindful That Change May Occasion Loss and Injury to Some Operators

   Washington, Jan. 27. - Through Chairman Knapp the interstate commerce 
commissions today rendered its decision in the Powhatan Coal & Coke Company 
against the Norfolk & Western Railway Company and 56 coal operating 
companies in the Pocahontas district in which it was alleged that the 
method of car distribution known as the "coke oven basis" unduly 
discriminates against the complainant and requested that the so-called 
"capacity basis", of car distribution be adopted. The commission decided 
that the coke oven basis did not fairly measure the relative rights of the 
various ovens and did unduly discriminate against the complainant, and did 
operate to the unreasonable preference of other mining companies in the 
same field. The commission declared that when the supply of cars was 
inadequate it was the duty of the carrier to fairly distribute the 
available number of cars among all operators.
   "While the commission is convinced by the facts and circumstances 
disclosed that the present basis is unjust and results in unlawful 
discriminations, it is unmindful that the change which will be directed may 
occasion loss and injury to some of the operators whose expenditures for 
the construction of coke ovens, as required by their leases, may be 
materially and perhaps greatly diminished in value. Although not warranted 
in sanctioning a further continuance of the coke oven basis, which under 
existing conditions is found to be neither just nor suitable, the 
commission does not desire nor intend that the report and order herein 
shall affect the rights, responsibilities, or liabilities of any of the 
interested parties under any contract or agreement which they might have 
otherwise have been able to enforce to their benefit. It is assumed that 
some form of capacity basis suited to the conditions and peculiarities of 
the district in  question will be devised and put into effect; but the 
railway company should take the responsibility, at least in the first 
instance, of determining and applying the substituted basis.
   "The Norfolk & Western Railway Company was ordered to cease and desist 
for at least a period of two years from enforcing the coke oven basis in 
said district. It was further ordered to establish for at least two years a 
regulation whereby coal cars shall be distributed fairly and equitably 
among the operators along its line in said district, without undue 
discrimination against or undue preference in favor of any of the said 
operators."

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- Ron Davis, Roger Link