Mr. Brooke Describes Improved Equipment which Releives the Chesapeake and Ohio of any Dependance on the Northern Carriers.
How the Chesapeake and Ohio has equipped itself to haul to Lake ports all the coal produced at the mines it serves in West Virginia and Kentucky, and also to accept all tonnage offered by the Virginian, Norfolk and Western, and Louisville and Nashville Railroads and handle it without any assistance from Northern carriers was impressively outlined by George D. Brooke, Vice-president and General Manager, at a Lake Cargo Coal Rate hearing before an lnterstate Commerce Commission tristate examiner.

Writing in the Manufacturers Record, J. V. Sullivan, of the West Virginia Coal Association, Charleston, W. Va., gives the following account of that proceeding:
"Southern coal operators, operating and traffic officials of Southern railroads, and large industrial consumers of Lake cargo coal in Northwestern States, in common defense in opposition to the petition of Pittsburgh and Ohio operators for wider rate differentials or higher rate advantages over the Southern mines on shipments of Lake cargo coal have literally demolished the contention of Northern operators that mileage should be the paramount factor in determination of freight rates." The hearings were held before Examiner Charles M. Bardwell of the Interstate Commerce Commission, all the parties representing a dozen States involved in the production, movement and consumption of more than 30,000,000 tons of coal annually shipped across the lakes into the markets of the Northwest.

In previous Lake cargo rate hearings, the Southern operators have been content to offer evidence that the widening of freight rate differentials would serve to give the Northern districts greater advantages in the markets of the Northwest. Heretofore, the West Virginia and Kentucky shippers had said the granting of greater freight rate advantages to the Northern districts, would tend to destroy the Southern competition in the Lake markets. In this hearing, the Southern operators, led by James D. Francis, of Huntington W. Va., chairman of the Property Owners Committe In the Southern States, reiterated this and proved by exhibits that the growing rate advantages had been responsible for the loss of markets by southern mines and that Northern shipments had been increased by favorable differentials and then supplemented the evidence with the opinion that all producing districts in the Appalachian area should be consolidated into one origin group, taking a blanket rate on shipments of Lake coal.

Chairman Francis said this plan was justified by economic conditions, including the improvements in railroad facilities for transportation of coal from the Southern districts, the severence of relations between the Pittsburgh and Ohio operators and the United Mine Workers and better preparation of coal in the Northern mines to satisfy the demands of the consuming markets. He added that the northern districts three years ago had been given an additional 10 - cent rate advantage on Lake shipments and were now enabled to sell Lake for the loss of markets by south ern mines and that Northern shipments had been increased by favorable differentials and then supplemented the evidence with the opinion that all producing districts in the Appalachian area should be consolidated into. one origin group, taking a blanket rate on shipments of Lake coal.

Chairman Francis said this plan was justified by economic conditions, including the improvements in railroad facilities for transportation of coal from the Southern districts, the sever- ence of relations between the Pittsburgh and Ohio operators and the United Mine Workers and better preparation of coal in the Northern mines to satisfy the demands of the consuming markets He added that the northern districts three years ago had been given an additional 10 - cent rate advantage on Lake shipments and were now enabled to sell Lake coal at lower prices than the Southern mines.
" We feel very strongly that the only way competition can be maintained between the Northern and Southern fields is to put them on the same freight - rate basis to the Lake ports," said Mr. Francis. Both fields are practically the same distance from the general consuming markets of the Northwest where the coal is actually consumed.

Counsel for the Northern operators replied that it was their contention that Northern mines should I not be deprived of the advantages of geographical location.An outstanding change in the economic relationship between the Northern and Southern districts Mr. Francis attributed to the remarkable improvement in railroad facilities during recent years; these were comprehensively outlined before the examiner by George D. Brooke, Vice-president and General Manager of the Chesapeake and Ohio Railway. Mr. Brooke said that the Chesapeake and Ohio now is able to assemble 140 gondolas in one coal train at the Russell, Ky., yards, move this solid train of 11,000 tons across the entire State of Ohio to the docks at Toledo in a period of 12 hours, without refueling the locomotive and with only one stop for the changing of crews. He added that his road no longer needs the concurrence of Northern railroads in the movement of Lake cargo coal, as it has not only equipped itself to haul to Lake ports all the coal that is produced at the mines it serves in West Virginia and Kentucky, but also has adequate facilities to accept at their physical connections all tonnage produced at mines along the Virginian, Norfolk and Western, and Louisville end Nashville Railroads, transport this production to the new docks at Toledo and dump it in vessels for transshipment.