The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-20
ATCHISON REBATES ON COAL.
NO DISCRIMINATION SHOWN.
SAYS Mr.. MOR4WETZ.
The Atchison Company, He says, Under
n Three COmered Agreement Merely
Acted as Collecting Agent for the
Colorado Fuel and Iron Company.

The Atchison Company, He says, Under
Three COnered Agreement Merely
Acted as Collecting Agent for the
Colorado Fuel and Iron Company.
WASHINGTON, April I9-Victor Morawetz,
chairman Of the executive committee
and general counsel Of the Atchison System,
resumed his testimony before the Senate
committee to-day in its investigation of
the subject Of rate making.
Questioned by Senator Dolliver as TO the
newspaper reports Of the rebates on coal
paid by the road TO the Colorado Fuel and
Iron Company, MT Mowawetz said thnt
when the present ma ma cement took charge
OF the road they found there was included
under the company direction various
coal companies, the stocks Of which wore
owned by the road These coal companies
supplied the Atchison with the coal II used
and incidentally they did a commercial coal
business
The new mana cement decided at once
that they must 60 out Of the commercial
coal business The coal companies there
fore we're all leased TO other corporations,
those in Colorado to the Colorado Fuel and
Iron Company. Those leases provided that
the Atchison system should get its engine
coal at moderate rates, but the commercial
part Of the business was put entirely out
Of the hands Of the road in order to remove
the cause OF complaint by other coal COM
panies Of discrimination in 1901.
A three ooTnered agreement was made
in Now York between the Atchison, the
Colorado Fuel Company and Phelps, Dodge
a Co., the latter operating extensive smelt-
ing works at II Paso and controlling the
road which connected with the smelteTs
The Colorado Fuel Company was to furnish
coal at N.l5 a ton. The Atchison was TO
haul it from the mines for $3.50 a ton and,
az was the custom, to collect from the
shelters and turn Il over 20 the Colorado
Fuel company, The agreement was 10
remain In force for Eve years. In 1902,
however, on the evidence largely Of enc Of
the Atchison officials at an interstate COM
meTce hearing, an Injunction was granted
against that road. In 1902 the Elkins
anti-rebate law had been passed
The trouble was with the tsrih, which hsd
been filed with the Interstate Commerce
Commission by the Atchison officials.
They did not say that the company was
merely collecting the til5 for the Colo
rado Fuel Company. There WIS no in
ten'ion 10 discriminate and IN fact there
was none, for the only coal the smelters
could use wns that mined by the Colorado
Fuel Company.
Senator Foraker asked il the Atchison
turned over all Of tho til5 per ton TO the
coal company.
Mr.. Morawetz-Yes; We simply acted
as lis agents. ThN price Of the coal was
perhaps lower than 10 the other consumers,
but that was owing to the largo quanti-
ties taken by the smelling works.
Mr. Dolliver called attention TO the
newspaper charges that the Atohison had
paid rebates TO the Standard Oil Company
In Kansas
witness felt at liberty, on the statement
OF the officials OF the road to fatty deny
the truth OF the charges
Replying 70 Senator Clapp the witness
said he was Of opinion that Congress could
pass a law fixing rates and IL could authorize
the commission to determine maximum
rates that might be charged by railroads
II could also authorize q court 10 say what
was reasonable rate, hut that would
apply only to the case at bar and not as to
future rates. That was where the line OF
demarcation as to the delegation Of power
was drawn.