Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-04-20
TALKED 1T OVER.
Is Way Present Railroad
Rates Are Explained.
Companies Had No Written
Agreement to Follow.
Interesting Facts and Figures Produced
Before Commission.

Washington. April 19.-Victor Nora
wetz. of the Atchison, Topeka &. Santa
Fe Railroad, again was before the SEN
ate committee on Interstate commerce
today. Replying to a question by Sena-
tor DOlliver he said that the executive
committee and boards of directors
never know anything about the details
of traffic management. They give direc-
tons to the president of the road and
the president directs the ether officers.
Senator Dolliver questioned Mr.. Mora
wetz about the agreements between
companies as TO rates. The latter replied
that there were no agreements" The
railroad men, he said. talked things
over. and reached an understanding as
to what rates would be from COMPETE
tive points He said these rates were
fixed on a remunerative basis.
Senator Dolliver asked why interme-
date points were compelled to pay high
er rates than the competitive points.
Mr.. Morawetz replied that the railroads
were compelled to accept low rates at
competitive points. He maintained that
the intermediate points We're really
benefited by such action.
Mr.. Morawetz said that when the
present management Of the Atchison
road took control of the system, it in
Guided various coal companies. the
stock of which was owned by the origi-
nal railroad company. The new manage
ment decided that the railroad company
must go out of the coal business. The
Atchison then leased all the coal mines
in its system. some of them going to
the Colorado Fuel 4 Iron Co. There was
Il provision that the AtchisOn should re-
ceive its engine coal at moderate rates.
In 1901, there was three cornered
arrangement to which the Atchison. the
Colorado Fuel &, Iron Co., and the
Phelps, Dodge & Co. were parties. The
last named controlled the Ell Paso &
Southern Railroad.
Under the terms of the agreement the
Colorado Fuel & Iron Co. was to fur
nish coal at S1.15 PEI ton and the Atchi
son was to haul it for. $3.50 per ton. the
Atchison to collect the price of the coal
and pay the $l.15 to the Colorado Co.
The agreement was to last five years.
but in 1902. injunctions were. granted
restraining the various companies from
continuing this business. Instructions
We're set by officials of the company to
to-Ictt ttlI NiOlfttlolIS Va tIC law
Similar instructions were sent after
the ElkinS law was passed in 1908.
LAS a matter of fact said Mr.. Mora
wctz. 1.-The law had not been strictly
compiled with, but no one was affected
by the arrangement" The complaint
arose over a mistake about the COM
hination of the s4.05 which the road col
lected. an allegation being made that
this lid not include the price of coal
and that rebates were being given. But
the Atchison had the exact price: neith
er more nor less. The whole case arose
over a confusion of cost OF coal with
the cost of transportatin.
Senator Deliver asked as to the re-
port that the Atchison had paid to the
Standard Oil Co. 81 900, 900 in rebates in
Kansas Mr.. Morawetz said ne had been
advised that 10 such evidence was Civ
en-: that a garbled statement was given
TO the newspapers by an attorney who
had 4 suit against the road He felt
authorized to deny the statement that
any rebate wGs given by the Atchison
to the Standard Oil Co.
Mr.. Morawetz said Congress could
delegate to a commission power to fix
maximum reasonable rate.
Replying to questions by Senator
Carmack Mr.. Mora wetz said. that Con-
gress could not fix n minimum rate be-
cause that would force discrimination
against ports 0nd would be violation
of the constitution. Mr.. MorawetZ said
that if railroads were compelled to fix
their rates according 20 distance three
fourths of the industries Of the country
would be destroyed.
In answer to Senator NcwlandS. Mr..
Morawetz said that in several states
there were commissions with power to
fix rates. At times, the Atchison road
had suffered from Interference and was
saved from annihilatiol by the United
States courts. He said M commission
cmld have the wisdom to fix rates for
the entire country.
Senator NewlandS asked a series of
questions to support mis- contention for
tho naturalization OF railroads. For
this purpose he went minutely into the
details of the business Of the road Mr..
Morawetz represents. The latter replied
that he would prefer a federal charter
for his company to state charter.
Mr. Morawetz said that figures would
show that railroad rates had decreased.
statement saying that the report Of the
interstate commerce commission show
OH there had been an increase Of rates.
Mr.. Morawetz said that figures would
he nroduced which woul1 show that the
commission had made a mistake.
During a discussion. relative to the
aGiustmert of rates Nj. Morawetz said
that in some states. he understood there
was a limitation of net earnings and
trat ANYTHING over G6 per cent. was
snent in betterments.
president Tuttle Of the Boston &
Maine railroad, interposed to say that
no s,,cb regulation existed in New Eng
land II was a statement that had been
chasing up and down the country for
., Years and always had been denied,
hrt If made no difference in its circula-
ton.
.ha committee adjourned until II
o,o,,ot tomorrow, when President Tut
tie will be heard.
UNDER MARTIAL LAW.