The Topeka state journal., 1905-04-25
Interstate Commission Will Go
After MOraWetz.
Arguments of General Counsel
of Santa Fe to Be Answered.
PROOF OF REBATES.
Many Points in Railways De-
Tense COntroverted by Evidence.
Gossip and Matters of Interest
in Railway Circles.

Washington, April 25.-Vigorous an
swer viii be made by the interstate
commerce commissioners to the defense
of Victor MOrawetz, general counsel of
the Atchison, Topeka & Santa Fe rail-
road, of the relations which existed be-
tween his system and the Colorado
Fuel and Iron company when they ap
pear before the senate interstate COM
merce committee.
The commissioners will handle Mr..
Morawetz's statements without gloves,
and sustain their own conclusions that
the government should prosecute the
railroad for granting illegal rebates.
Mr. Morawetz stated that the agree
ment, which existed between the Atchi-
son system and the Colorado Fuel and
Iron company and Phelps, Dodge &
Co, which operated copper mines at
Bisbee, and a smelter at Douglas. re-
quired the Colorado company to furnish
coal required by the smelters at $1.15
a ton.
The Atchison system was to haul fuel
from the mines at Trinidad to FL PasO
or Deming, and charge for the haul
$3.50 a ton. It was to collect the price
of coal as we'll as its own rate and pay
$1.15 a ton, representing the price of
the coal, to the Colorado company. Mr..
MOrawetz admitted that the tariff fled
didn't contain the statement this in
cludes the price of coal" which. he
declared, was a mistake that was made
Mistake Institutes Rebate.
The commission will be able to show
state in the tariff which was filed and
published that the price of coal was
not included, but the rate therein speci-
fed, of $405 a ton, was imposed upon
every shipper of coal along the Atch1~
son line. In other words. that even
if the Atchison system did not mean
it as Mr.. Morawetz asserts the effect of
the mistake" was to institute re-
bate.
Neither the commission nor the in
tending shippers were gifted with the
art of cIairVOyance, it is said, and could
not claim a lower rate at $3.50 ton,
because they did not know any such
rate was allowed to the Colorado com
pany. When the shipper sought to as
certain the rate he was referred to the
tariff. which fixed it at s4.05. The COM
mission will be able to inform the com
nittee also of the issuance Of circu-
lar marked "conhdential' wherein en-
ployes of the road were advised of the
allowance made to the Colorado COM
pany.
Mr.. Morawetz stated that Phelps
Dodge & CO. could use only high class
coal. and at that time all Colorado coal
was controlled by the Colorado COM
pany. The commission has information
that there were other shippers along the
line of the Atchison system who were
trying to sell coal to the same indus
tries as the Colorado company. 1t is
true there were no other shippers from
the same region as that company, for
the reason that they were compelled to
sell directly to it. There was no other
line than the Atchison and they could
not. compete with the Colorado company
in the face Of the difference in the tarlft
which existed.
Mr.. Morawetz also asserted the Gallup
company, which made complaint about
the relations between the Atchison and
the Colorado company, owned mines 4OI
miles from Trinidad, and that, in any
event it did not produce the kind OF
coal which the industries, supplied by
the Colorado company, required The
commission has been informed that
since the correction of the rate sheet
by the Atchison system and the deduc-
ton of the tariff to $3.50 to all ship
pers. the Gallup company has been do
ing an excellent business.
Gallup Company as Criterion
In view of this result the company
and the commission hold that the proof
of the pudding is in eating. That it has
been able to flourish when placed or
the same footing as regards rates as
the Colorado company is accepted as
an indication of what will happen gen
/ orally when legislation prevents dis
elimination and unreasonable rates.