The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1905-01-10

Dy the rAiiroau cOfulRny, ana 4ppar-
emily admitted by both interests,
which are regarded BY the commission
straight rebates. In this view OF the
case the violations Of the Elkins law
nave been sufficient almost to threaten
both the Colorado Fuel and Iron COM
| pany and the Santa Fe With bank-
ruptcy should the limit Of fines posi-
BILE under the law be imposed and
Penalties Are Heavy.
For each shipment OF coal, extending
| over at least four years, it 10 said, 1t
! would be possible for the governments
to collect fine against each company
OF not less than $loeS and not more
than $4,000.
1t is understood that since the mat
ter first came to the attention Of the
commission at a recent investigation
in Albuquerque, N. NJ. the details
have been placed in the possession of
Presi lent Roosevelt and by him may
be used in furtherance Of the cam
paign for government regulation Of
freight rates. In brief, the story de-
tailed to the commission is that after
being instrumental IN organizing the
Caledonian Coal company the Santa
Fee railroad disposed of it's mines in
Colorado, presumably to the Colorado
Fuel AMI Iron company, and that
company purchased the Crescent
mines, in the Gallup district. in
which the Caledonian company operat-
ed. After that purchase the Santa Fe
withdrew its patronage from the CAL
edonian company. Then the railroad
company filed certain coal tariffs at
Washington" as Mr.. Biddle put It OF,
the stand yesterday. "that the rates
should include the cost of the coal"
Rebates Make Monopoly.
This mental reservation. however,
was unknown to the commission, but
under it the Santa Fe paid back to the
Colorado Fuel and Iron company the
cost of the coal which it had shipped.
This rebate. amounting to the actual
price of the coal, enabled the Colorado
Fuel and Iron company to drive all
competitors out of business and Sc
cure monopoly upon the coal supply
demanded by the big shelters in Ari-
iona controlled by Phelps, Dodge &
Co. The latter also owned the Ell
Pasco Southwestern railroad, over
which the coal was shipped from Dem
yer, this company also enjoying a
1850 rate when the Southern Pacific
paid $s.45. The enormous business
thus controlled by the Colorado Fuel
and Iron company is shown by the
fact that It comprised the supply ie-
manded by the Cannanea Copper COM
pany, the Calumet and Arizona Min
Ing company. the Shannon Copper
company the, Old Dominion Copper
company, the Copper Queen. the Ari-
iona Copper company. the Greene Con-
solidated Copper company, and the
United Globe mine. The demand is
said to have been between 1900 and
20oos tons daily.
Secret Order Shown. j.
The manner in which the alleged re-
bates were allowed was shown when
Mr.. Biddle produced from the files of
the Santa Fe secret circular issued
to agents, in which it was announced
that coal should ''be billed at figures
furnished by the Colorado Fuel and
Iron Company, and which will in
clude freight rates and prices Of coal,
rates shown In regular tariffs to be
the minimum"
Another circular is said to have
been issued, in which instructions were
given that the rates should not be
disturbed without consultation with
the officers OF the Colorado Fuel and
Iron company. In addition to the Sc,
icret circular-"714 D"-a secret price
list-"No. 2 D'-was issued. at the
head Of which was the injunction that
it was for private use and should not
be shown to any one. This circular,
produced in evidence quoted a price
on coal, (. o. b., at Deming for dis
tribution among the smelters. which
was the tariff rate on coal; filed with
the commission, and which included
to the customers Of the Colorado Fuel
and Iron company the cost Of the
commodity. .t.------
Railroad a. Collector.
To make the arrangements COM
piete the agents OF the Santa Fe were