The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-04-20
REALLY NOTHING
IN THE CHARGES
Attorney For the Santa Fe ExCner-
ates the Company.
PAID ANY REBATES
SENATE COMMITTEE LISTENS TO
Mr.. MORAWETZ.

NhTAsHINGTON. April 1s-Yietor
w Morawetz of the Atchison, To-
peka & santa Re railroad, again
was before the senate committee on in
terstate commerce today
Replying TO questions by Senator Dol
liver. Mr.. dorawetz said that the eN-
ecutive committee and board of direc-
tors never know anything about the de-
tails of traffic management They give
directions to the president Of the road
and the president directs the other Off
GERS.
Where traffic managers violate the
law I'm granting rebates and discrimina-
lions to one shipper do you not think
it would be right to compel the road to
give all shippers the low ratee' asked
Senator DoIiiver-
Same Old Excuse.
I'm many cases. it would be right and
i'm others unjust" replied MI Mora
wetz. 1T would not be right to make
stockholders suffer because some agent
had committed a wrong"
Senator DOIliVer questioned Mr.. MO
rawetz about the agreements between
companies as 10 rates The latter re
piled that they We're not agreements
The railroads he said talked things
over and reached an understanding as
TO what rates would be from compeu-
tive points. He said these rates We're
fixed Oh a remuDeratiVe basis
Senator Deliver asked why inter-
mediate points we're compelled L" pay
higher rates than the competitive
pOirts. NIr NoraWetz replied that the
railroads We're compelled TO accept low
rates at competitive points lie main
tanned that the intermediate points
were really benefited by such action.
Santa Fe Rebates
In reply to a question by senator
DoIIiver. Nj. Norawetz explained the
charges regarding the granting of re-
bates by the Atchisou to the Colorado
Fuel & Iron company He said that
the alleged rebate grew out of contu-
sion OF the cost Of transportation ana
The cost Of coal. The AtchiSOn iled WIN
the Interstate commerce commission a
rate of S4.05 from the mine 10 the point
Of intersection with any road Wnch
was controlled by Phelps Dodge K Co.
the coal cOuSfgnOr. As matter of fact
he said the rate was $3.50 per ton. and
lhe difference $L15. per ton--Nas paid
10 the Colorado Fuel & IRON company
Off the coal The road collected she
, price Of the coal and the cost of trans
portatiOu at the point of delivery IL
was alleged that the payment OF &l-l-
10 the Colorado company was rebat &C.
/ when. as matter of fact. he said. uo
rebate was paid. No interest. ne stated
/ suffered by the act of the company
Nobody connected with the AtchiSO1
/ system had any interest i'm the Colorado
Fuel & IRON COMPANY
/ Went Out Of Coal Business.
/ Mr.. NIorauetz said when the present
! mauaga mint of the Atchison road took
/ control of the system it included vari-
. Gus coal companies. the stock of which
: was owned by the original railroad
. company. The new mana cement de
I cided hat the railroad must go out oi
/ the coal business The AtchlSOu theI
/ leased all the coal minsS in its system
+ III 1901. there was a. threc-COrnered ar
} raugcmeut To which the AtchisOn, the
/ Colorado Fuel < Iron company and
! Phelps Dodge ~ Co. controlling
! the EI PaSn < Southern railroad. were
/ parties.
/ Undsr the terms of the agreement tn,
/ Colorado Fuel * iron company was q
/ furnish coal at $1I5 per ton and tn,
/ AtchiSou was 20 haul IL for $3.50 pc
: TON. the AtchiSou TO collect the price o
the coal and pay the SI-50 over to thu
Colorado company The agToemen
/ was to last five years. But i'm 1902 in
{ functions were granted r=sITainiug thu
. various companies from continuing thi
! business The complaint arose over
[ mistake bout the combination of TIT
81 o. which the road collected. an ale
I cation bein@ made that this did not in
! clude the price Of coal and that rebate
Z were given No other shipper could b.
affected because Phelps. Dodge & 20
had TO have the coal which was sup
piled by the Colorado company. TIL
I whole case arose over "a confusion Il
the cost of coal with the cost of trans