can dispose of its surplus are El Paso and Galveston, and in order to do so it has to meet competition from points in other states, nearer those points, principally from numerous Texas mills, which ship to El Paso and Galveston. It appears that the rates from Texas milling points were either prescribed or influenced by rates prescribed by the Texas Railroad Commission.

Upon consideration of all the facts of record, we find that the charges on complainant's shipments were not unjustly discriminatory or unduly prejudicial, but that they were unreasonable to the extent that they exceeded charges that would have accrued on basis of a rate of 40 cents per 100 pounds, minimum 40,000 pounds, and we find that this will be a reasonable maximum rate to apply for the future on shipments of cottonseed meal and cake in mixed or straight carloads from El Centro and Calexico to Galveston, when for export, and to El Paso. We also find that in so far as complainant has paid freight charges at the rates herein found to have been unreasonable, it has been damaged to the extent of the difference between the charges paid and the charges which would have accrued at the rate herein found reasonable, and that it is entitled to reparation accordingly. Complainant should prepare a statement showing as to each shipment on which reparation is claimed the date of movement, point of origin, point of destination, route, weight, car number and initial, rate applied, charges collected, and the amount of reparation due under the findings herein, which statement should be submitted to the defendants for verification. Upon receipt of a statement so prepared by complainant and verified by defendants, we will further consider the matter with a view to the issuing of an order awarding reparation. As above shown, the rate herein found reasonable for the transportation of cottonseed meal and cake in straight or mixed carloads from El Centro to Galveston for export was established May 15, 1914, and from Calexico to El Paso July 18, 1914.

An order will be entered requiring the maintenance of these rates for the future, and requiring the establishment of a carload rate of 40 cents per 100 pounds, minimum 40,000 pounds, on cottonseed meal and cake in straight or mixed carloads from Calexico to Galveston when for export, and from El Centro to El Paso.

There is nothing in the record which would justify an order prescribing as a maximum the rate of 20 cents sought by complainant for the transportation of cottonseed hulls from El Centro to El Paso. The rate of 274 cents proposed does not appear to be excessive. The Southern Pacific will be expected to establish this rate in accordance with its expressed willingness, and no order with respect thereto will be entered at this time.

An order in accordance with these conclusions will be entered.

No. 4914.

IN THE MATTER OF RATES, PRACTICES, RULES, AND REGULATIONS GOVERNING THE TRANSPORTATION OF ANTHRACITE COAL.

Submitted February 1, 1915. Decided July 30, 1915.

Pursuant to an order of June 10, 1912, a general investigation was made of the rates, practices, rules, and regulations governing the transportation of anthracite coal from the Wyoming, Lehigh, and Schuylkill regions in the state of Pennsylvania to tidewater ports and interior points on the lines of the initial anthracite carriers; Held:

1. That the rates on anthracite coal, prepared and pea and smaller sizes, in carloads, applicable from producing districts in the Wyoming, Lehigh, and Schuylkill regions in the state of Pennsylvania to tidewater ports and certain eastern interior points are unreasonable, and the rates on anthracite coal, prepared and pea sizes, from said districts to other interior points are unreasonable, and reasonable rates fixed for the future.

2. That the respondents by means of trackage arrangements and the free transportation to junction points in the mining regions of coal exchanged by their allied coal companies, have extended the advantages of interline transportation to their coal companies to the prejudice of other coal shippers to whom interline transportation at joint rates has been denied. Respondents required to establish through routes and publish joint through rates applicable thereto. 3. That anthracite coal is a low-grade commodity which is transported in vast quantities in trains of maximum tonnage. The tonnage loaded in each car is much greater than the loading of most other classes of traffic. Most of the anthracite tonnage is shipped from collieries whose daily production, measured in carloads, is very large These conditions tend toward lower operating costs. 4. That concessions and offsets granted by respondents to their allied coal companies in the form of interest charges, royalty earnings, the use of valuable property at inadequate rentals, the free use of the carriers' funds and credit, or by other means are as pernicious as direct cash rebates. Such concessions and offsets are unlawful.

5. That lateral allowances paid to a coal shipper in accordance with an agreement, alleged to be additional compensation for the use of a facility furnished by the shipper, are unlawful rebates.

Walker D. Hines, Jackson E. Reynolds, and H. A. Taylor for Philadelphia & Reading Railway Company; Central Railroad Company of New Jersey; Delaware & Hudson Company; Delaware, Lackawanna & Western Railroad Company; Erie Railroad Company; New York, Susquehanna & Western Railroad Company; Wilkes-Barre & Eastern Railroad Company; Lehigh Valley Railroad Company; New York, Ontario & Western Railway Company;

Pennsylvania Railroad Company; and Northern Central Railw Company.

Charles Heebner for Philadelphia & Reading Railway Company. Francis I. Gowen, George Stuart Patterson, and Henry Wolf Biklé for Pennsylvania Railroad Company and Northern Central Railway Company.

George F. Brownell for Erie Railroad Company; New York, Susquehanna & Western Railroad Company; and Wilkes-Barre & Eastern Railroad Company.

C. L. Andrus for New York, Ontario & Western Railway Company. Edgar H. Boles for Lehigh Valley Railroad Company.

Walter C. Noyes, James H. Torrey, and H. T. Newcomb for. Delaware & Hudson Company.

John L. Seager and Douglas Swift for Delaware, Lackawanna & Western Railroad Company.

Ernest S. Ballard for New York Central lines.

S. S. Perry for New York, New Haven & Hartford Railroad Company; Boston & Maine Railroad; and Maine Central Railroad Company.

William A. Glasgow, jr., and Robert D. Jenks for Plymouth Coal Company.

N. B. Kelly for Chamber of Commerce of Philadelphia.

J. C. Lincoln for Merchants Association of New York.

H. H. Dean for Michigan, Ohio, and Indiana Coal Dealers Association.

C. A. Eastman for Eastman Barber Company.

A. L. Williams for Susquehanna Coal Company.

REPORT OF THE COMMISSION.

MCCHORD, Chairman:

Pursuant to an order of June 10, 1912, a general investigation was made of the rates, practices, rules, and regulations governing the transportation of anthracite coal from the Wyoming, Lehigh and Schuylkill regions in the state of Pennsylvania to tidewater ports and interior points on the lines of the initial anthracite carriers; and whether such coal is mined or produced by or under the authority or control of common carriers engaged in the transportation thereof, or whether said common carriers are directly or indirectly interested in the production or sale of the anthracite coal which they transport.

These rates, practices, rules, and regulations have been, since the year 1890, the subject of several formal complaints to this Commission and many informal complaints by shippers of anthracite coal. The Commission's order under date of June 10, 1912, named all

carriers in official classification territory, but it was found impracticable to extend the present inquiry beyond the financial affairs and operations of the 11 initial anthracite carriers.

Freight rates on many commodities are but an infinitesimal part of the price which the consumer pays for such commodities. On coal the freight rate is a more important factor. Anthracite coal is very largely a fuel for domestic use, and it is a necessity. That reasonable freight rates should be charged for the distribution of the great fuel tonnage herein involved is of vital importance to the producers and of equal concern to the consumers.

The initial anthracite carriers, respondents in this case, are:

The Central Railroad Company of New Jersey.

Philadelphia & Reading Railway Company.

The Delaware, Lackawanna & Western Railroad Company.

Lehigh Valley Railroad Company.

Erie Railroad Company.

Wilkes-Barre & Eastern Railroad Company-New York, Susquehanna & Western Railroad Company.

New York, Ontario & Western Railway Company.

The Pennsylvania Railroad Company.

The Northern Central Railway Company.

The Delaware & Hudson Company.

Excepting the Delaware & Hudson Company and the Northern Central Railway, the railway lines of all these carriers extend to tidewater. The railway lines of the Delaware, Lackawanna & Western Railroad, Lehigh Valley Railroad, Erie Railroad, New York, Ontario & Western Railway, Pennsylvania Railroad, and Northern Central Railway extend to Lake Ontario and Lake Erie ports.

Many of the facts and figures gathered during the investigation have been omitted from this part of the report, but in order that they may not be lost sight of they are included in the appendix, which is made a part of this report.

The railway lines of most of the initial anthracite carriers were constructed into the mining regions long prior to 1890. The Scranton branch of the New York, Ontario & Western was extended into the mining region and completed in July, 1890. The consolidation and construction of a number of the railway lines making up the New York, Susquehanna & Western Railroad occurred during the eighties; its western connection, the Wilkes-Barre & Eastern Railroad, which extends westward from Stroudsburg, Pa., into the mining district (Wyoming region) was completed in 1893.

Anthracite coal is mined in three regions in the state of Pennsylvania-the Wyoming, the Lehigh, and the Schuylkill. Practically the entire source of supply is confined to an area of 496 square miles, having an extreme distance from northeast to southwest of about

100 miles. The tonnage (in tons of 2,240 pounds) of anthracite coal shipped from the three regions was 3,358,899 in the year 1850, 16,182,191 in 1870, 36,615,459 in 1890, 45,107,484 in 1900, and 71,295,716 tons in 1913. The tonnage shipped has practically doubled since the year 1890. This large tonnage is produced from approximately 302 operations, collieries, and washeries in the three regions.

As stated in publications issued in 1911 by the United States Geological Survey—

the increase in the production of anthracite bears an approximate relation to the increase in population. This has been particularly marked during the last two decades, or since the use of anthracite for iron making has practically disappeared.

This increase of consumption is limited, however, by the increasing use of gas as fuel and of central steam-heating plants which burn bituminous coal.

The breakers at the collieries reduce the masses of coal from the mines into the various sizes used for domestic and commercial purposes. Washery operations have in recent years recovered from the culm banks and turned into the channels of trade large quantities (approximately 2,500,000 tons annually) of the smaller sizes of anthracite coal. The first washery was installed in the year 1890. Anthracite coal is sold in the market in eight sizes, the size being determined by the dimensions of the meshes of screens through and over which the coal is passed. The standard screens are of the following dimensions for the sizes indicated:

The sizes smaller than pea are a by-product in the preparation of domestic sizes. The sizes larger than pea are designated "prepared sizes" in the carriers' freight tariffs.

The stove and chestnut sizes are in the greatest demand and constitute 40 per cent of the total shipments. They are essentially sizes for domestic use. Egg size is used largely in the furnaces of residences, as is also the pea size, and the latter also is used extensively in kitchen ranges. The smaller sizes come directly into competition with bituminous coal and are used largely in eastern cities in hotels, apartment

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