The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-08-01
Santa Fe Did Give Them But
Quit Long Ago.
The COmpany's Answer Filed in
the Federal Court.
CHARGED TO A RIVAL.
Celedonian Coal Co. Accused of
lnstigating Suit
Because the Shelters Would Not
Use Its Coal.

answer to the proceedings began in the
federal court here, charging it with con-
tempt Of court in violating the courts
injunction against giving rebates, has
been filed by Gardiner Lathrop, general
solicitor for the road. Attached to the
anawer is the affidavit of E P Ripley,
president of the Santa Fe, to the effect
that the statements made in the an
aver are true to the best OF his belief.
The arguments in the case will probably
not be heard until some time in the
fall.
The complaint against the Santa Fe
was that it granted rebates to the Colo
Tado Fuel and Iron company on coal
shipments after having been entoined
from such practices, along with half a
dozen other roads. The institutions Of
the suit is the result Of an investigation
on the part of the interstate commerce
commission
In its answer, which is a lengthy one,
the Santa Fe admits that it at one time
did give rebates. but that it has not
offended in that respect since the in
junction was issued. Its arrangement
with the Colorado Fuel and Iron COM
pany, it says, was a perfectly legiti-
mate one The Santa Fe accuses a rival
of the Colorado Fuel and Iron COM
pany of being the instigator of the suit
against the road.
There Are Others.
After making various admissions of
general character the Santa Fe's answer
lakes up the subject of past offenses
and present conduct and says:
TT further says that it has at all
times been its policy and desire to obey
the various provisions of the interstate
commerce law and to avoid the giving
OF rebates or the cutting OF tar1n rates
AIed as required by said law with the
Interstate commerce commission, but
that prior to the filing of the bill for
an injunction in the above cause, and
as indeed appears by the tenth para
graph of said bill, competition between
zhe different railroad companies for the
transportation of grain and packing
house products from the middle western
states, and to secure such traffic, be-
came SO marked and manifest that this
defendant was satisfied that the pub
1tshed tariff rates of other competing
carriers were being secretly cut on such
commodities, and in order to protect its
Of such traffic for itself as against its
competitors it found that 1t was neceS-
Bary, owing to the deception practiced
by other carriers, to also secretly cut its
own published tariffs upon its own line
where it found the same necessary to
secure or protect the traffic in the
aforesaid commodities, and that when
an investigation was had by said inter-
state commerce commission, as referred
to in said information, in regard to the
secret cutting of rates upon grain and
packing house products, Mr.. Paul Nor
ton, it's second vice president, and then
IN charge of its traffic freely laid be-
fore said commission the methods
adopted to secure traffic in said com
n1odities in competition with the other
carriers, in order that the unlawful
methods INDUCED in might be fully ex-
posed and a stop put, if possible. to such
practices
Compiled at Once.
The answer also says that while the
to alleged violations of the interstate
commerce law in respect to the trans
portation OF grain and packing house
products and was very vague in regard
to other commodities, Immediately upon
the issuance of the order the traffic
manager of the various Santa Fe lines
notified the traffic agents of the COM
pany of the order and instructed them
to comply with it,
The Colorado Fuel and Iron company
trouble, the Santa Fe says, is a result
Of the desire of smelters and other in
dustries along the line of the FL Paso
a northwestern road to use the kind of
coal mined by the Colorado company.
The Ell Paso & Southwestern is a con-
nection of the Santa Fe. The Santa Fe
has lines to the Colorado company S
mines. There are coal mines nearer to
the smelters than the Colorado COM
pany's mines: but the smelters do not
like to use their coal, says the Santa
Re, because it is not a good steam
maker.
In order to secure this coal traffic
says the Santa Fe, it made an agree
xnent with the Ell Paso & Southwestern
to haul coal to connecting points with
the latter road, for which service the
Santa F'e was to receive as it's proper
ton for the haul 81. 80 a ton. The smelt-
ers and other industries agreed to pay
the Colorado company $1.15 a ton fol
this coal
When the restraining order was is
sued, says the Santa Fe's answer, E
tariff was published covering this agree
ment. 1t Is alleged against the Santa
Fe that it violated this published tariff
and on this point the answer says:
In preparing said joint tariff sale
traffic manager inadvertently, but with
out any desire to evade such order in.
cluded in said joint rate prescribed IL
said tariff the price or cost of the Goa
carried, but this defendant at all time,
received upon the coal so carried under
such joint tariff only its proportion Of
agreed division of the entire or through
charge of carriage"
There Was an Agreement.
The Santa Fe. the FL Paso & South
western, the Colorado Fuel and Irol
company and the smelters had al
agreement whereby, when the coal wa
delivered to the smelters the smelter
paid the railroads the freight charge
and also the price of the coal. TIL
freight charges and pay the rest to tn
Colorado company. 1t is alleged tina
this practice was made the vehicle 70
the giving of rebates. On this point thu
Santa F'e says:
This defendant says that for mum
Der of years prior to the aforesaid ar
Tangement and for some time there
after il was the practice of railroads IL
said western territory, in carrying coal
whenever requested by the producer O.
consignor. and where found to be re
sponsible to collect from consignees a
the time of collecting the freigh
charges also the cost or price at which
said coal was sold, bills being furnished
therefor by the consignor to the agent
% the railroad companies.
cit was also in pursuance of tn
Aforesaid cuaforn or arrangsrnent tina