New-York tribune., 1905-04-20
DENIES GIVING REBATES.
Mora5ccts Tells of Relations Bctsceen
;.4tchiSon and Colorado Fuel.

which is giving hearings on the railroad rate
question. again to-day. lie explained the charges
regarding the granting OF rebates by the Atchison
70 the Colorado Fuel and Iron Company saying
that Tho alleged rebates grew out Of confusion OF
the cost transportation and the cost OF coai ana
NOBODY connected with the Atchison system hao
any interest in ;he Colorado Fuel and Iron CON-
Iany.
NJ Morawetz said that when the present man
agement OF the Atchison road took control OF the
system il included various coal companies the
stock ~ which owned by the orglnal ralI-
road company il doing a commercial ousl-
ness The new management decided that The raii-
read company must go out OF the coal business.
The Atchison then leased all the coal mines IN
its system. some of them 10 The Colorado fuel
and Iron Company There was a proTiso that inc
Atchison should receive its engine coal AZ mod
crate rates. In 1901 There was a three corhefeo
arrF nRenent 10 which the Atchison, the Colorado
Fuel and Iron Company and Phelps, Dodge %
were parties. Phelps. Dodge & Co controHed me
FI Paso and Southern Railroad. The coloraoo
Fuel and Iron Company 20 furnish coal az = 10
"a tor and the Atchison was TO haul j. for s. 50
A Ton The road 10 collect the price Of the coal
su6 nav The s. i over TO the Colorado company
The agreement was 10 last FIVE years but ~
'.a iuiunctiols were granted restraining the COM
raRies from continuing this business. Illese III
5uactious' said Nj Morawetz were obtained
LARGELY on evidence OF one OF our own ohicials-
Instructions sent by officials o. me company
10 .correct ST violations Of the law. similar IN
str@lcti0ns were sent when the klkiis ia" Va
rassed in 1893 'As a matter Of fact" said MT
A,Sr,v-7tz the law had not been strictly COM
,lird with lrlr no one was affected by the ar
ranreneut" The complaint arose over a mistake
about the combination of the s. % which the ROAD
collected. an allegation being made that this ulo
not include the price Of coal, and that rebates
were being given. But the Atchison paid the
exact price; neither more nor less No other
shipper could be affected because Phelps Dodge
& 60. had to have The coal which was suPphe1
Iv thc Colorado COMPANY Coai was shipPeu py
other persons IT lower charge 20 the same points,
10 attempt was made 10 make secret OF the
arrsngenent. The complaint was due 10 eoe'
company which operated mines in NeW-MeNleo'
and this coal was the kind that could be USED oy
Phelps. Dodge & Co in their smelling business
80 REBATE TO STANDARD OIL
Senator Dolliver asked as 10 the report that The
Atchison had paid 100000 In rebates 10 the stand
er5 on COMPANY IN Kansas. Mr. Morawetz said
he had been advised that sach evidence was
given. that a garbIed statement was given 10 the
newspapers by an attorney who had u SUIT against
tho road IIe felt authorized to deny the state
,,eut that any rebate was given by the Atchison 10
The Standard OH Company.
senator CLAMP asked about the right OF Congress
10 delegate authority FIX rates and about a
court of review.
Mr. sIorawetz said Congress could delegate power
to fix maximum reasonable rate 10 commits
sion. Congress ought TO prescribe rules by which
ne commission should determine what a rea-
Eonable rate. u also was brought out that court
ON appeal could determine what was a maximum
reasonable rate
RepIying 10 senator Carrnaok Mr. Morawetz
said that in order 10 prevent discrimination be-
rneen ports Congress could fix only a maximum
rate II could not fix a minimum rate. because
that would force discrimination against ports
and would De in violation OF the Constitution. Il
railroads were compelled to hx their rates accord
ing 10 distance, threefoUrths Of the industries OF
the country would be destroyed There would be q
r1,,1a
speedily.
IF Congress or a commission should prescribe
rate from Chicago 10 New-York OF IS cents and
Chicago 10 Baltimore Of y cents would that be
Violation Of the Constitution asked Senator Car
If the shipments were 10 Liverpool. yes. II 10
tho cities only, no" was the reply Congress could
not in this case make minimum rate. nj Mora
vetz thought.
Tn ensWer 10 Senator NewIands. NIr Aorawetz
said that in several States there commissions
with rower 10 TX rates. At times the Atchison road
had suffered from interference and was saved from
annihHarion by the United States courts No com
mission could have the wisdom 70 fiK rates for the
entire country.
senator Newlauds asked a series OF questions 10
support hls contention for the naturalization OF
railroads. For this purpose he went mnutely into
the details Of the business Of the road Nj MOrawetZ
rerreseuts The latter replied that he would prefer
federal charter for his company State charter.
Are you getting ready 20 buy an these roads,
Senator Cuom asked MT. NeNlands.
40 replied 1lr. Newlsnds. nor I getting
read, 10 have the government buy them. l want
ihe railroads 10 take out national charters
Mr Morawetz said that every bond put our by
ele ana there Vas less railroad buiIdjnc iI TeNSs
than there would be- = there were not such strict
supervision.
SAYS RATES HAVE DECREASED
Answering senator Newlands. M. Norawetz said
tAst the Interstate Commerce Commission could not
!.
enforceable. The strikes which had resulted in so
much damage TO the country were due to The fail
are 10 enforce the law ana protect lives and prop
erty. Figures Wouil snow tla3 railroad rates had
decreased.
Senator DoHlver took ieSao with this statement
SAVING that the report ~ tie Interstate Commerce
Commission showed there had been .u Increase
Mr.. MgraWetz said figures would he produced 10
show that the commission haI made a mistake
Tn discussion regarding adjustment Of rates
ar. Norawetz said that iu some States he under
stood there vas a limitation on net earnings and
anything over 6S per cent was spent iu Uster.aeuts
president Tut1le ot the Boston ana Maine Rail-
road intsrpesee 10 say that such regulation OK
'stcd la NeH- England. It was a statement that
hsd been chasing up aud down TIE country twenty
aFo wears. and always had been denied but that
ol9 liol STOP rs circulation
senator tlk!ns referring 10 preferential rates
aslled n congress conferred g.wer or the commits
eald thar the commission could uot render such a
.'.7' 't ApAtl iol bfoliblf
-, t,tt- lIal N"Glo 10 preference and would
ilt+iie 70 s'iiai9l DoiAher, Ar. AiordWetz said
ave ~ ti'iit Ices ana BOARD OF directors
,tt l...N "i.l tiiS ano1l M" details OF trafiic
lo i-'- eS save directions 30 the presi-
other officers.
"a here Usflc managers violate the lav in Grant
ing rebates and Determinations 20 on. sbiuDer 10
you not think IL would bs right TO compel i6e road
- Elt' all shippers The low rateP' asked senator
Deliver
II many cases il would be right and IN others
nnlusi' replied Mr.. MOraWetZ. 1T would NOT be
right make etDrkHoidare clffo- fg,s.,,e. .o,,.o