United States. Congress, Senate. Committe on Commerce, Science,
and Transportation. Subcommittee on Surface Transportation.
INCREASED COAL RATES ON THE LOUISVILLE &

COMMITTEE ON COMMERCE,

SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE

NINETY-SIXTH CONGRESS

FIRST SESSION

ON

OVERSIGHT ON THE INCREASED COAL RATES ON
THE LOUISVILLE & NASHVILLE RAILROAD

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Coleman, Lynn R., General Counsel, Department of Energy; accompanied by

Marjorie Bloom, staff counsel

Prepared statement

Questions of the committee and the answers thereto

Gallamore, Deputy Administrator, Federal Railroad Administration; accompa-

nied by Edward Hymson, Assistant to Deputy Secretary, Department of

Transportation

Prepared statement

Questions of the committee and the answers thereto

O'Neal, Hon. A. Daniel, Chairman, Interstate Commerce Commission; accom-

panied by Jerry Robinson, attorney, Advisory Section of Rates, Office of

Proceedings; and John Anderson, Chief, Cost Analysis Branch, Bureau of

Accounts

Railroad Deregulation and Eastern Kentucky Coal-September 1979, re-

port

Summary statement

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Prepared statement

Questions of the committee and the answers thereto

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INCREASED COAL RATES ON THE LOUISVILLE

& NASHVILLE RAILROAD

MONDAY, SEPTEMBER 24, 1979

U.S. SENATE,

COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION,
SUBCOMMITTEE ON SURFACE TRANSPORTATION,

Washington, D.C. The subcommittee met at 9:35 a.m., in room 235, Russell Senate Office Building, Hon. J. James Exon presiding.

OPENING STATEMENT BY SENATOR EXON Senator EXON. We will call the meeting of the subcommittee to order.

This morning, the Subcommittee on Surface Transportation will explore the increased coal rates for the Louisville & Nashville Railroad recently approved by the Interstate Commerce Commission.

This hearing will attempt to obtain the factual and the timely information on the ratemaking process, and to determine the potential impact on the energy costs resulting from this approved increase.

The Commerce Committee, as you know, is presently examining many aspects of the transportation industry and making numerous inquiries concerning economic regulation and the railroads and trucking industry.

One of the more pressing questions brought to the forefront relates to the rail rate levels on commodities, such as coal, which will impact significantly on our national energy policies.

This hearing of the subcommittee will focus on all elements involved in the ratemaking, which is so timely during this period of tremendous increases in the cost of energy to the consumers of the Nation.

I will call now on Senator Ford. Do you have any opening statement, Senator?

OPENING STATEMENT BY SENATOR FORD

Senator FORD. I thank the Chairman.

As you have stated, and I think all understand, that the ICC found that the L. & N. had market dominance and acknowledged less than adequate service, yet it permitted its increase to become effective because additional revenues were necessary, according to their statement.

Why must, then, the overwhelming increase, or the increase, on one essential commodity and the burden of improving the financial

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