The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-02-04
Injunction Oisobeyed.

Gu
1T should be further observed tha,
March p, 1892. the United States circuit
court, in a suit begun at the instance
and request Of the interstate commerce
commission, enjOining the AtchiSon, To
peka & Santa Fe Railway company to
observe in all respects its published
schedules of rates. That company. from
the date of this injunction down -
NOV. %. 1904. was in apparently con
tinuOus disregard of that order Of court
in its failure TO maintain these coal
tariffs"
Competition Killed.
The alleged infractiOns of the Law
were first called to the attention Of the
commission by the claim Of the Gale
donia Coal company. operating q coal
mine al Gallup. n. NJ. that the Santa
Fe road was discriminating against il
in favor Of the Colorado Fuel e IRON
company. A contract of the Santa Fe
with the Caledonia company expired N
1883 or 1899, and was not renewed and
when it attempted to find a market for
its steam sizes of coal, ii is charged.
1t ascertained, apparently that coal
both from the Trinidad region and
from mines at Gallup was being sup
piled at a price which about equalled
the freight rate alone, from the point
of production 10 destination
Virtually Partnership.
The decision says that no other in
GIViGual could DO business in cOmpetl-
ton with the Colorado Fuel & Iron
company IN this field unless ne enjoyed
the same freight rate advantages; that
when other individuals endeaVOred TO
make contracts in competition with the
Colorado Fuel & Iron company, they
were compelled to pay the published
rate and were therefore unable to fur
nish the coal; and that under this ar
ransement the Santa Fe company and
the Colorado Fuel K Iron company viz
tUaIy entered into a partnership in the
handling Of this coal, In the execute IN
of which the published schedules of the
Santa Fe were utterly disregarded-'
The decision says that a number OF
other operators in New Mexico besides
Mr. Movie OF the Caledonia Coal company
found it difficult to dispose of their prod
ucts in competition with the Colorado
Fuel * Iron company.
Acted as Agent.
The Santa Fe company. the commission
says, acted agent for the Colorado Fue
x Iron company in collecting from It's
customers the price of its coal itself along
with the freight rate, and evidence
showed that in one instance at least this
also was done for the Victor Fuel com
pany Under this arrangement the Sants
Fe instructed its agents to bill coal from
certain points at which the Colorado Fue
& Iron company operated to various sta
nished by the Colorado Fuel & Iron com
panl and the practice seems to have
been 10 embrace the price of the Goa
and The freight rate in a single item
which appeared on the expense bill a:
freight.
Arrangement Not Honest.
Continuing. the commission says:
''if the Colorado Coal ~ Iron company
had in a.! cases paid the published tarit
rate which was eXacted from other ship
F.,-~ hot h. Fasf~ Of he
and the freight were included in a single
item would have worked no practical al
vantage 10 that company so Idf as W.
can see. Neither apparently. would
there have been any reason for this ar
.rangement il the purpose Of the partte:
had been honest II, however, there eN
isted on the part of the Santa Fe com
pany an intent to charge the Colorado
Fuel & Iron company less for the trans
rate it is evident that this method o
billing would afford u ready means 70
concealing the transaction
Charged Less Rates.
In point OF fact. during the entir
period covered by this invcsti cation tn
Santa Fe company did transport coal 70
the Colorado F'=ei & Iron company 70
less than its open tariff rates, and thes
concessions amounted IL many cases L
the price of the coal itself.
Under the joint tariff of May a 1896
and effective until Nov. y, 1904. the rail
roads parties to that tariff allowed III
q
cessicn or all coal transported undo
those joint rates of Sl-15 "A ton Mr. Bid
die freight traffic manager of the SAINT
Fe system. testified that of the $4.o5 re
ceived by the Santa be, Sis Was Away
paid to the Colorado Fuel * Iron com
pany with the full knowledge Of the /
Paso & Southwestern.
These railroads, therefore. collected tn
published tariff rate from the Trinida
district TO the destination and paid bac
TO the Colorado Fuel & Iron company Sl-l
a ton of the amount so collected
Not a TechnicaIity.
Some suggestion has been made tina
these payments to the Colorado Fuel
| Iron company by the Santa Fe were nc
IN the nature OF rebates, but simply pay
ment of the price of its coal: that IN
| published tariff in reality included tn
| cost OF the coal, but inadvertently omitte
! to state that fact. The record conclus
| lively shows the contrary
1T was said that these rebates in "a
| vor of the Colorado Fuel & Iron con
/ pany were no discrimination. as theI
| were no other shippers. and consequent
( no actual preference. The Santa Fe con
| Continued on Page -