Omaha daily bee., 1905-08-01
SANTA FE FILES ANSWER
Railroad Makes Reply to Charge Of Violat-
ing Federal Courts Injunction,
COLORADO CoSL CASE GONE OVER
Published Rate Included Price of
Fuel, but This was Not Due to
Any Desire to Give
Rebate.

KANSAS CITY, NJ, July Sl.-The Santa
Fe railroads answer to the proceedings
begun in the federal court here charging
IL with contempt of couW I'm violating the
court injunction against giving rebates
was filed today The arguments in the
case will probably not be heard until some
time IN the fall.
The complaint against the Santa Fe was
that it granted rebates 10 the Colorado
Fuel and Iron company on coal shipments
after having been ~njoined from
such practices along with half
dozen other roads. The institution
of the suit is the result of an
investigation on the part Of the Interstate
Commerce commission.
In it's answer the Santa Fe admits that 1t
at one time did give rebates, but that it
has not offended in that respect since the
Injunction was issued. Its arrangement
with the Colorado Fuel and Iron company,
Il says, was a perfectly legitimate one.
The Santa Fe accuses a rival Of the Colo
RADIO Fuel and Iron company Of being the
instigator of the suit against the road.
The Santa Fe's answer says;
Text of the Reply.
Prior to the fling of the bill for an in
junction in the above cause, competition be-
tween the different railroad companies for
the transportation of grain and packing
house products from the middle western
states, and to Secure such tratfc, became
so marked and manifest that this defendant
was satisfied that the published tariff rates
of other competing carriers were being
secretly cut on such commodlties mn sll ana IN IN
cure fair share of such trafic for itself
as against its competitors, 1t found that It
was necessary, owing to the deception
practiced by other carriers, to also secretly
cut its own published tariffs upon Its own
line where It found the same necessary to
pr the fflC in the afOra-
said commodities, and that when an inves-
tigation was had by said Interstate Com
merce commission, as referred to in said In
formation. in regard to the secret cutting
of rates upon grain and packing houses;
Paul Morton, its second vice President, ana
fore said commission the methods adopted
J to secure traffic in said commodities in COM
petition with the other carriers, in order
that the unlawful methods indulged In
might be fully exposed and stop put If
possible, to such practices.
Agents Instructed TO obey.
The answer says that Immediately upon
the issuance OF the restraining order the
| traffic managers of the various Santa Fe
lines notified the traffic agents of the COM
pany of the order and instructed them to
comply with 1t. The Santa Fe's answer
! continues:
The Colorado Fuel and Iron company
| trouble is a result of the desire of smelters
| and other Industries along the line of the
| Ell Paso q Southwestern road to use the
kind of coal mined by the Colorado com
pany The FL Paso q Southwestern is a
| connection of the Santa Fe. The Santa Fe
has lines to the Colorado companys mines.
! There are coal mines nearer to the smelters
J than the Colorado companys mines, but
/ the smelters do not like to use their coal,
because 1t is not good steam maker.
! In order to secure this coal traffic the
| Santa Fe made an agreement with the
| Ell Paso g. Southwestern to haul coal to
! connecting points with the latter road for
! which service the Santa Fe was TO receive
! as its proportion of the hauls $3.50 a ton.
/ The smelters and other industries agreed to
| pay the Colorado company l.l5 ton for
! this coal.
| violation Due to Mistake.
When the restraining order was issued a
]