The Topeka state journal., 1904-12-31
United States Attorney Will Be
Given Evidence Secured.
BIDDLE'S DISCLOSURES
SCI Never Before Saw Such Bare
faced Disregard of Law.
That is What C. A. Prouty,
Member Of Commission, Says.

disregard of the law as the Santa Fe
railroad and the Colorado Fuel s.
Iron company have manifested in this
coal case. For years the railroad COM
pany has received less than it's pub
Mshed rates from the Colorado Fuel
& Iron company, while its competitors
have paid higher rates-but not always
the published rates. The evidence in
this case will be presented by the COM
mission to the attorney general C A.
Prouty, Member of the Interstate Com
nnerce Commission.
Startling evidence of the publication
Of fraudulent tariffs and discrimination
in rates OF the Colorado Fuel & Iron
company was given before the inter-
state commerce commission at the seS-
sion being held in Chicago, by w. B.
Biddle. freight traffic manager of the
Santa Fe.
The evidence secured together with
that secured recently by the commission
at FL Paso and Albuuerque, will be pre-
scented to the attorney general. Upon
his decision depends whether suit is
brought in the federal courts against
the Santa F'e system for violating the
interstate commerce law by the pay
ment OF rebates.
The penalty for such an offense of
this kind. under the Elkins amendment
to the act to regulate commerce, is
fine of not less than LOCO or more than
$50 900 for each Offense, each shipment
on which a rebate was paid being con-
sidered a separate offense. If convict
ed of every offense alleged. the Santa
Fe company would be forced to pay
fines exceeding 81. 900.
The CaledOnian Coal company of Gal
lup. N NJ. which filed the charges
against the Santa Fe company before
the interstate commerce commission,
has also brought suit in the Colorado
courts against the Santa Fe, asking
damages in 100000 for the destruction
of its business a result of the dis
elimination in rates against it by the
Santa Fe-
The Interstate commerce commission
had announced that it would take up
three cases yesterday, and as a result, |
when it convened, the circuit court
room in the Monadnock block was
thronged with railway attorneys and |
traffic officials and witnesses in the !
various cases.
The first case called was that of the |
Caledonian Coal company against the
Santa Fe railway, and its freight traf- |
ic manager, ". b. Biddle, was the first |
witness.
The first question asked by Nefn B. |
Field. attorney for the Caledonian Coal
company, startled everybody in the /
court room.
did a tariff filed by your company
with the interstate commerce commits |
sion. on coal from Trinidad to Deming, |
include the cost of the coal?'
Yes, on coal destined beyond Dem |
ing replied MIR. Biddle, to the amaze |
ment Of every body who heard him ex-
cept those who attended the previous
hearings in the case at Ell Paso and Al
buquerque.
in ming that tariff didn't you in
tend to conceal from the interstate |
commerce commission and the competi- |
tors Of the Colorado Fuel & Iron COM |
pany the net rates you were charging /
that company pursued Attorney |
Field
You need not answer that question:"
cried Attorney Dunlap of the Santa Fe.
you have told what you did and need |
pXnl1in
Acknowledges Big Rebate.
when your published tariff said |
your rate per ton on coal from Trini- /
dad to Deming was 81, what rate did /
the Santa Fe actually receive from the |
Colorado Fuel and Iron company?" ask
ed Attorney Field.
We received $3.50 per ton," replied
Mr. Biddle.
What was done with the difference,
t11O?"
I'VE paid that to the Colorado Fuel
and Iron company" said Mr.. Biddle
Prior to the reorganization of the
Santa F'e company in 1896 it owned GER
tain coal mines. and it's tariffs then
published included the price of coal de-
Hvered at any given point. After the
reorganization of the Santa Fe COM
pany the coal mines were sold to the
Colorado Fuel and Iron company and
the practice of issuing tariffs including
the price of the coal was kept up. In
other words, we acted collection
agents for the coal company, a bad
practice common among western roads,
I regret to say
Did you act as collection agents for |
any company but the Colorado Fuel
and Iron2" asked Commissioners Prouty.
We would have done so if request
ed" replied Mr.. Biddle.
As matter of fact. what rate did
you charge other companies for haul
ing coal from Trinidad to Deming?''
The published rate, 81 or $405 per
ton" said Mr. Biddle.
What rate did you charge the South
ern Pacific railroad2''
we had special contract with them
to charge S3-45 a tom
Fail 10 File Papers
Was that rate filed with the inter
state commerce commission
You filed tariff of s4 or s4O5 with
the commission. and that rate you
charged generally; but on coal from
the Colorado Fuel and Iron company
you charged only $3.50 per ton while
you charged another rate of S345 per
ton to the Southern Pacific company.
Prouty. 4
I'VE had an arrangement with the Ell
Paso & Southwestern railroad TO
charge $3.50 per ton over our line from
1Tinldad to Deming on coal consigned
TO points beyond Deming on the line of
the El Paso & Southwestern. answer
ed Mr.. Biddle. we collected in addi-
1ion to our freight rate the value of the
coal. S1-10 or $I15 per ton, and that we
paid to the Colorado Fuel and Iron
company. Our arrangements as to
freight rates we've made with the FL
Paso Southwestern railway not with
She Colorado FNuel & Iron company
Who made those arrangements on
behalf OF the Santa Fe ?'' asked Attor-
ney Field.
''I did, with President Douglass of
the Ell Paso e. Southwestern" answer
ed Mr.. Biddle. 81 believe that Phelps,
Dodge & Co., who control the Ell Paso
& Southwestern and the most impor-
cant frdusfrfA@ along that line made