The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-02-04
Further Information in the
Santa Fe Rebate Case.
Attorney General Is Given Ev-
idence to Use in Prosecution.
OFFICIALS MAY RESIGN
RumOred That President Ripley
Would Leave April /.
Gossip and Matters of Interest
in Railway Circles.

washington, Feb. 4.-The decision
of the interstate commerce commits
sion which has been submitted to
liz. S. Attorney General Moody, with
instructions to act. says that a num-
Der of other operators in New Mexico
besides Mr. Bowie, of the Caledonia
local company. found it difficult to dis
pose of their products in competition
with the Colorado Fuel and Iron com
pany.
The Santa Fe company, the COM
mission says, acted as agent for the
Colorado Fuel and Iron company u
| collecting from its customers tIle
price of the coal Itself along with the
freight rate, and evidence showed that
in one instance, at least, THIS also was
Under this arrangement the Santa Fe
instructed its agents to bill coal from
certain points at which the Coloraoo
Fuel and Iron company operated 10
various stations on its system at hg-
ures to be furnished by the COLORADO
Fuel and Iron company, and the prac-
tice seems to have been 10 embrace the
price of the coal and the freight rate
in a single item, which appeared on
the expense bill as freight. Continu-
ing. the commission says:
IF the Colorado Fuel and Iron COM
panv had in all cases paid the pub
iished tariff rate which was exacted
from other shippers, the fact that the
price of the coal and the freight were
included in a single item would nave
worked no practical advantage to that
com pany, so far as we can see Neither
apparently would there have been any
reason for this arrangement II the pur-
pose of the parties mad been honese.
If, however, there existed on the part
of the Santa Fe company an intent 70
charge the Colorado Fuel and, Iron
company less for the transportation
of its coal than the published rate: II
is evident that this method of billing
would afford a ready means for con-
cealing the transaction.
I'm point of fact, during the entire
period covered by this investigation the
Santa Fe company did transport coal
for the Colorado Fuel and Iron COM
pany for less than its open tariH rates
and these concessions amounted IN
many cases to the price Of the coal
Under the joint tariff filed May "a,
1903, and effective until November u,
1904, the railroads parties to that |
tariff allowed the Colorado Fuel and
Iron company a concession on all coal
transported under those joint rates OF
$1-15 ton. Mr. Biddle. freight traffic
manager of the Santa Ee system, EeS-
tiled that of the $4.05 received by the
Santa Fe, S1.15 was Always paid to
the Colorado Fuel and Iron company,
with the full Knowledge of the FL Paso
& Southwestern
'.These railroads therefore collected
the published tariff rate from the Trim
idad district to the destination and
paid back to the Colorado Fuel and
Iron company $1.15 ton of the
amount SO collected.
'sSome suggestion has been made |
that these payments to the Colorado
Fuel and Iron company by the santa
Fe were not in the nature of rebates,
but simply payment of the price of its |
coal, that the published tariff in real |
ity included the cost of the coal but
~4,-~-A tod tn
fact The record conclusively shows
the contrary.
"It was said that these rebates in
favor of the Colorado Fuel and Iron
company were no discrimination, as
there were no other shippers and con- |
sequently no actual preference The !
Santa Fe company published its rates, I
and these rates were actually insisted /
upon in the case of small consumers,
apparently; but whenever it seemed |
desirable, to secure a particular con- |
tract, to shade the price, special ar
rangement was made between the !
Santa Fe and the Colorado Fuel and /
Iron company by which the Santa Fe
agreed to transport the coal required /
to fill that contract for less than this /
published rate
''Since the greater part of the bust
ness of that company was in filling
these contracts, the rebate was ap-
piled to the greater part of its total
Nobody else sold to these large
consumers, because in the very nature
of things nobody else could sell, These
tariffs from the Trinidad district
merely served as scarecrows to keep
off all competitors and, further, as a
pretext for declining to reduce rates
from other coal fields on the ground
that there ought to be some relation
between different districts 1t has
been intimated in some quarters that
the Santa Fe in the payment of these
rebates. squandered its revenues in
the interest of the fuel company. That
phase of the subject was not under in
vestigation, but nothing appears in the
record to justify that suggestion.
THE testimony also tended to
show that while the Colorado Fuel
and Iron company was operating the
mines Of the American Fuel company
at Gallup the Santa Fe gave that COM
pany special rate on its supplies No
witness having knowledge was pro-
duced. and we have a strong impress
sion that such special rates were en-
Joyed by the Colorado Fuel and Iron
company"