1908 - Tidewater Loses

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Thu Jan 3 22:16:02 EST 2008


Roanoke Times - January 3, 1908

TIDEWATER LOSES

Will Have No Advantage in Rates on Coal

The Interstate Commerce Commission, sitting in New York, has
blocked the Virginian (Tidewater) Railroad in its plan to open its
Kanawha and Red River coalfields at a slight advantage over
competitors, and to do it at the expense of the Chesapeake and Ohio,
with which it was sought to force through routes and divisions of rates.
The complainant in the case was the Loup Creek Colliery Company,
and the defendants were the Virginian Company and the Chesapeake and
Ohio. Although an effort to show the coal corporation was owned by
the Virginian was not successful, it was significant that its claims
were backed by that railroad company. The complaint prayed for
through rates from Page. W. Va., on the Virginian, and that they be
the same as the Chesapeake and Ohio was making for all of the mines
in the Kanawha district to all points outside of West Virginia.
Among other things, the commission says in its ruling:
"The effect of granting the relief sought would be to reduce the
joint through rates from Page on the Virginian to all points on the
Chesapeake and Ohio, outside of West Virginia, down to the separate
individual rates of the latter from points on its line in this
district at the entire expense of the Chesapeake and Ohio, and at the
same time to relieve the shipper located on the Virginian of all
expenses in reaching the Chesapeake and Ohio."
The commission further says that to make such a ruling as the
Virginian sought would totally be to disregard the long-established
practice recognized as reasonable and just by legislatures, railway
commissions and the courts, as well as by carriers, of allowing two
or more railroads which make up a through line to charge somewhat
more for the through transportation, the earnings of which must be
divided among them, than would be deemed reasonable and sufficient
for the transportation if performed by a single road.
The effect of this decision will be to quiet the anxiety and
apprehension of railroads generally with respect to the important
power the commission now has of compelling through routes, rates and
divisions of rates. - Richmond Evening Journal


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- Ron Davis, Roger Link






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