Arizona republican., 1905-02-04


 of coal, it is charged, "it ascertained, apparently, that coal both from the Trinidad region and from the mines at Gallup was being supplied at a price which about equalled the freight rate alone from the point of production to the point of destination"
 The decision says that mo other in dividual could do business in competi- tion with the Colorado Fuel and Iron company in this field unless he enjoy ed the same freight rate advantages; that when other individuals endeavored to make contracts in competition with the Colorado Fuel and Iron company, they were compelled to pay the pub Iished rates and therefore were unable to furnish the coal; and that under this agreement the Santa Fe company and the Colorado Fuel and Iron company virtually entered into partnership in the handling of this coal, in execution of which the published schedules of the Santa Fe were utterly disregarded.
 The decision says that a number of other operatives in New Mexico be- sides MT. Bowie of the Caledonia Coal company found it difficult to dispose of their products in competition with the Colorado Fuel and Iron company.
 The Santa Fe company, the cOmmis- S. Colorado Fuel and Iron company in collecting from its customers the price of the coal itself along with the freight rate and the evidence showed that in one instance, at least, this also was done for the Victor Fuel company. Under this arrangement the Santa Fe instructed it's agents to bill the coal from certain points at which the Col Orado Fuel and Iron company Operat- ed, to various stations on it's system at figures to be furnished by the Colorado Fuel and Iron company and the prac tice seems to have been to embrace the price of the coal and the freight rates in a single item, which appeared on the expense bills as freight.
 Continuing the commission says: If the Colorado Fuel and Iron compa- ny had in all cases paid the published tariff rate which was exacted from other shippers. the fact that the price of the coal and freight were included in Q single item would have worked no practical advantage to that compa- ny so far as we can see. Neither ap parently would there have been any reason for this arrangement if the pur pose of the parties had been honest If however there existed on the part of the Santa Fe company an intent to charge the Colorado Fuel and Iron company less for the transportation of it's coal than the published rate it is evident that this method of billing would afford a ready means for con- cealing the transaction.
 "In 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 it's open tariff rates, and these concessions amounted in many cases to the price of the coal itself.
 Under the joint tariff filed May 24. 1903. and effective until November 27. 1904, the railroads parties to that tariff allowed the Colorado Fuel and Iron company a concession on all coal transported under these joint rates, of $1.15 a ton. MT. Riddle, freight traf- fife manager of the Santa Fe system, testified that of the S4O5 received by the Santa Fe, $1.15 was always paid to the Colorado Fuel and Iron com pany with the full knowledge of the Fl Paso and Southwestern. These railroads. therefore, collected the pub lished rate from the Trinidad district to destination and paid back to the Col orado Fuel and Iron company $1.15 a ton on the amount so collected.
 Some suggestion has been made that these payments to the Colorado Fuel and Iron company by the Santa Fe were not in the nature of a rebate, but simply the payment of the price of it's coal; that the published tariff in reality included the cost of the coal. but inadvertently omitted to state that 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 it's rates 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 engagements were made between the Santa Fe and the Colorado Fuel and Iron company by which the Santa Fe agreed to transport coal required to fill that contract for less than the pub lished rate. Since the greater part of the business of that company was in filling these contracts, the rebate was applied to the greater part of its total shipment.
 Nobody else sold to these large con sumers, because in the very nature of things nobody else could sell. These tariffs from the Trinidad district merely served as a scare-crOw 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 the different districts. It has been intinated in some quarters that the Santa Fe in payment of these re- bates squandered it's 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 company a spe-