
N&W coal train in West Virginia
…There Was the Coal Slurry Pipeline.
by James A. Bacon
The early 1980s were a momentous time for the U.S. coal industry, and for Virginia economic history and politics as well. As the world turned to coal in the wake of the Arab oil embargo, coal exports through Hampton Roads were surging. Loading terminals literally could not load the black rock fast enough, and dozens of ships were backing up in Hampton Roads waiting for their turn at dock. Meanwhile, the Norfolk & Western Railway (soon to become part of Norfolk Southern) and the C&O (soon to become part of CSX) exercised duopoly control over rail shipments to the ports, and, newly deregulated, they used their power to charge punishing tariffs. Thus commenced a years-long battle between railroads and coal operators over the spoils of a once-in-a-lifetime export boom.
E. Morgan Massey, president of the Richmond-based A.T. Massey Coal Co., took the lead in taking on the railroads. Not only did he build new terminals in Newport News and Charleston, S.C., to bust the railroad monopoly on loading facilities, he helped orchestrate a bid to build a 350-mile coal slurry pipeline across Virginia to bypass the railroads. Just one hitch: A coal slurry pipeline had to cross railroad rights-of-way, and only the General Assembly could grant the eminent domain. Thus began one of the greatest lobbying battles between business lobbies – VEPCO, the Transco pipeline company, and coal industry interests on the one hand, and the railroads on the other — that Richmond had ever seen.
Chapter 8, “Rails and Pipes,” of my new book, “Maverick Miner” tells the story of the clash between business titans from Massey’s perspective. Here, for the joy and delight of Bacon’s Rebellion readers, I excerpt the section that focuses on the coal slurry pipeline debate. There is no coal slurry pipeline in Virginia today, so it is not a spoiler to reveal that the railroads won the legislative battle. But Morgan and his allies, VEPCO and Transco, felt like they squeaked out a victory in the business war. Continue reading →