The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-04-20
Morawetz,s Able 1sstlmonx

W.T. dWctZ ) Apte eStlmOnH
WASHINGTON, April 19.-victor Mora
wetz of the Santa Fe again was before
the senate committee on interstate COM
merce today.
Replying to questions by Senator DOL
liver. Mr.. MOrawetz said that the execu-
i've committee and boards of directors
never never Know anything about the details of
10 the president of the road and the presi-
uent directs the other officers.
senator Dolliver questioned Mr.. Mora
wetz about the agreements between COM
panies as to rates The latter replied that
there were no agreements The railroad
ne said, talked things over and reached
an t understanding as to what rates would
De from competitive points He said these
rates were fixed on a remunerative basis
:, IN reply TO question by Senator Dol
Ilver, mr. Morawetz explained the charges
Iesarulng the granting of rebates by the
Atchlson, to the Colorado Fuel and Iron
company.
Explains Coal Case
He said that when the present manage
ment OF the Atchison road took control of
the system 1t included various coal com
pan1es, the stock of which was owned by
the original railroad company Ii was do
ing commercial business. The new man.
agement decided that the railroad COM
pany must go out of the coal business.
The Atchison then leased all the coal
mines In It's system, some of them to the
Colorado Fuel & Iron company There
was a proviso that the Atchison should
receive Its engine coal at moderate rates
In 19O1 there was three cornered ar
rangement to which the Atchison, the
colorado Fuel & Iron company and
Phelps. Dodge * Co. were parties The
last named controlled the El Paso &
southwestern railroad. Under the terms
iron company was to furnish coal at
sll5 per ton and the Atchson was to
maui II for $3.50 per ton. tile Atchison to
e9l,ect the Price of the coal and pay the
yl.lO over TO The fnpl Ia
agreement was to last five years But in
1907 1nJunctionS Were granted restraining
the various companies from continuing
this business.
These injunctions." said Mr.. Mora
wetz. were obtained largely on evidence
OF one OF our own officials"
instructions were sent by officials of the
company to correct all violations of the
law. Similar instructions were sent them
when the Elkfns law was passed I'm 1903
AS matter of fact said Mr.. Mora
wetz. the law mad not been strictly
compiled with. but no one was affected by
the arrangement"
The complaint arose over a mistake
ABOUT the combination of the 81 05 which
the road collected, an allegation being
made that this did not include the price of
coal and that rebates were being given.
Senator Dolliver asked as to the re-
port that the Atchison had paid to the
Standard Oil company 81, zoo. 900 in rebates
In Kansas. Mr.. Morawetz said he had
Deen ADVISED that no such evidence was
gwen 10 the newspapers by an attorney
who had suit against the road. He felt
authorized to deny the statement that
any rebate was given by the Atchison
to the Standard Oil company
Minimum Rates Illegal
Replying to questions by Senator Car
mack, Mr.. MOrawetz said that i'm order
to prevent discrimination between ports
congress could fix only maximum rate
II could not fix minimum rate because
= 1ifneaf
ports ana would be in violation of the
constitution. Mr.. Morawetz said that If
railroads were compelled TO fix their rates
according to distance three fourths of the
industries of the country would be de-
stroyed. There would be a revolution
winch would settle the whole question
very speedily.
IF congress or a commission should
prescribe rate from Chicago to New
York of 10 cents and from Chicago to
Baltimore of II cents, would that be a
violation of the constitution asked Sena-
tor Carmack.
If shipments were to Liverpool YES.
II TO the cities only, no. was the reply
He said congress could not in this case
make minimum rate
In answer to Senator NewIand Mr.
Morawetz said that i'm several states there
We're commissions with power to fix rates.
AT times the Atchison road had suffered
from interference and was saved from
humiliation by the United States courts.
He said no commission could have the
wisdom to fix rates for the entire country
Senator Newlands asked a series of
questions to support his contention for the
naturalization of railroads. For this
purpose he went infinitely into the details
of the business of the road Mr.. Mora
wetZ represents. The latter replied that
he would prefer a federal charter for his
company to state charter.
National Charters
Senator Cullom, addressing Senator
Newlands. asked:
Are you getting ready to buy all these
roads?"
Mo replied Mr. Newlands Nor am
/ getting ready to have the government
buy them. want the railroads to take
out national charters
Mr.. Morawetz answering Senator New
lands said that the interstate commerce
putes. because no arbitration was en-
forceable He said that the strikes which
had resulted in so much damage to the
country were due to the failure to en-
force the law and to protect lives and
property.
Mfr. Morawetz said that figures would
show that railroad rates had decreased
Senator Dolliver took issue with this
statement, saying that the report of the
interstate commerce commission showed
that there had been an increase of rates
Mr. MorawetZ said that figures would
be procured which would show that the
commission had made a mistake
When Mr.. MorawetZ had concluded the
committee adjourned until IL O'Clock to-
morrow, when President futile will be
heard.