The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-22
railroad under precisely similar circ,m-

railroad under precisely similar circ,m-
stances.
PROCEEDING AGAINST COMPANIES ONLY.
"In both this Colorado Fuel case and in the
International Harvester case | direct that
proceedings for contempt against the COM
panies be taken by the Government.
Whether. as the cases develop proceedings
against individual officers become necessary
must depend in each instance upon whether
testimony is obtained showing that such
individual officer has either by act or con-
nivance been personally guilty in the mat
ter. If there are any railroads guilty Of
the practises which we have enjoined
other railroads from following but which
have not themselves been enjoined, pro-
ceedings should be begun to put them under
a similar restraint"
MortOn's Explanation.
The President enclosed in this letter the
letter from Paul Morton. 1t says
my DEAR Mr. PRESIDENT: Now that
have rendered and you have accepted my
resignation of the position of Secretary of
the Navy, | wish to make a statement in
regard to the Atchison, Topeka and Santa
Fe-Colorado Fuel and Iron Company alleged
rebate case which has occupied 80 much at
tention and has been made the occasion of
so much unjust criticism OF the Atchson
company's management and of myself
The arrangement referred to was en-
tered into in the year 1901. prior to the
time that the restraining orders enjoin-
ing the Western railroads from cutting
rates or departing from published tariffs
were issued, and prior to the passage Of
the Elkins bill.
THE people chiefly interested in tho
smelling and mining business Of southern
Arizona and northern Mexico were large
consumers of coal and coke. They were
dissatisfied with the quality Of coke they
were getting from the. ovens along the
lima pf tho Atchis0D railroad in tGlnraIn
and threatened to Use Eastern coke e1-
cusively or build a railroad of their own
to coal properties which they might Oh
tain, unless lower prices were made on the
coal and coke that they we're receiving at
FL Paso and Deming. These same peo-
pie were making all sorts Of experiments
with fuel oil. with the idea of substituting
it altogether. if possible, for coal. and they
did it with such good effect that in part
they did substitute oil for coal. thereby
cutting down the amount OF coal con-
sumed.
AN Of these things. taken in connection
with the undoubted financial ability of
the people interested to build additional
railroads and develop either coal or oil
fields, menaced a traffic worth nearly
million dollars year to the Atchison sys-
tenn and solely for the protection of the
railroad, so far as its officers were con-
cerned. an understanding was entered
into between the railroad, the Colorado
Fuel Company and the FL Paso and South
western people. the terms of which were:
Il The Colorado Fuel Company was to
supply the coal at a very low price al the
mines in Colorado. $l.15 per ton. This is
all they received for the coal, and there was
nothing additional paid them in the way
of n rebate or otherwise.
80. The railroad company was to haul
the coal at very low rate to FL Paso and
Deming, the rate being $3.50 per ton. This
was. in reality.a division of rate. not
usually published
-. The FL Paso and Southwestern people
were to receive and pay for the coal sto5
per ton at FL Paso and Deming. and II was
TO be used hy the railroad itself and the
industries along its line.
The tariff covering this arrangement
was published 40 as to show the freight
rate to be sA.0j per ton. instead of the
delivered price at FL Paso and Dcming.
and did not separate the freight rate from
the cost Of the coal AT the mines, as it should
have done. Until the Investigation of the
case by the Interstate Commerce Com
mission did not know personally how the
matter was being handled so far as the
publication of the tariff was concerned.
NV own connection with the case was
to see that the traffic was secured TO the
Atchison rails, and. aftcr that. details were
left to subordinates. Thousands of tariffs
are published every year.
no UNJUST DISCRIMINATION.
when this arran cement was entered
into. the Colorado Fuel company owned,
all the coal properties on the Atchison
line in Colorado from the district in which
the rate applied, or, in other words. it was
the only shipper Of coal from that district
over the Atchison rails. and there was in
no sense any unjust discrimination against
any other Colorado producer. II was
good thing for the coal district and for the
State Of Colorado as well as for all other
parties Interested in the contract,
The following year, or In 1902, the hjunc--
tons were issued. ] suppose 1t was not
known to you, certainly rot TO the public
generally that il was the testimony which
I gave before the Interstate Commerce
Commission on the practises of Western
railroads. 50 far as grain, dressed beef
and provisions arrangements were con-
cerned, that made It possible TO secure the
injunctions.
ORDERED THE INJUNCTION opEYEp
when the injunction order was issued
by the court positive instructions were
given by me verbally to my subordnates
to comply in every respect with its terms.
These Instructions were issued to every
body concerned, in writing. and are mat
ter OF record, as is my correspondence on
the subject, all Of which will confirm what
say.
W hen the Elkins hill ecame law early
in 1909 all Of my ms ructiOns were reiterated
under no circumstances or conditions
would any deviation from the law lie per
mitted.
Notwithstanding al! Of these precaut ions.
the old arrangement Of biiling the coal and
coke at a delivered price, and not separating
the freight rates from the price of the
commodity in the tariff, was not corrected
until some time last Novem er. II was
evidently not regarded in the tariff printing
bureau a. an irregular arrangement. and
entirely escaped attention. 1t might Ne
considered that it was Il misplaced switch
in that bureau, and neither the president
Of the railroad nor Mr.. Biddle, the freight
traffic manager, nor myself, was any more
responsible for 1t personally than Is the
president or vice president or general
manager of any great railroad for the train
service which may result in lad wreck
. All of our orders were carefully considered
and carefully issued but, so far as this
particular case is concerned, seem to have
been overlooked.
AT the time this contract was made
I had no interest whatever in the Colorado
Fuel and Iron Co. | sold my stock in that
company and all its auxiliary companies
when left its employ. efore entering the
service of the Atchison road in 1895, and have
not feen stakeholder of it or of any Of its
! subordinate companies since. My only
| interest in the Colorado Fuel and Iron Co
was TO get all the business | could from il