The Montgomery advertiser., 1905-04-20
MORAWETZ IS
 AGAIN HEARD Interesting Session Of Senate Committee. MIR. DOLLIvAR'S QUESTIONS Senator Probing Into Matter
 Zeal0uSly. Atchison, Topeka and santa Fe Omcial Goes Into Details With Members of Railroads Traflc Man.
 agement.
MR. DOLLIvAR'S QUESTIONS

dWetz, or the AtchiSon, Topeka and Santa Fe Railroad was again before the Senate Committee on inter- state commerce today. Replying to questions by Senator Deliver. MT. Nor awetz said that the executive commit tee and board of directors never knew anything about the details of the traf- fic management. They give directions to the President of the road and the President directs the other officers.
 "Where traffic managers violate the law in granting rebates and discrimi- nations to one shipper, do you not think it would be right to compel the road to give all the shippers the low rate asked Senator Dollivar.
 "In many cases 1t would be right and in others, unjust" replied MT. Morawetz. Tt would not be right to make stock holders suffer because some agent had committed wrong"
 Senator Dollivar questioned Morawetz about the agreements between compani- es as to rates. The latter replied there were no Agreements" The railroads he said, talked things over and reached an understanding as to what rates would be from competitive points. He said the rates were fixed on remune- rative basis. Senator Dollivar asked why intermediate points were compell- ed to pay higher rates than the com petitive points. MT Morawetz replied
  cept low rates at competitive points. He maintained that the intermediate points were really benefited by such action.
 Charges Explained.
 Tn a reply to a question by Senator Dollivar. Mir Morawetz explained the charges regarding the granting of. re- bates by the Atchison to the Colorado Fuel and Iron Company. He said that the alleged rebate grew out of confu- sion of the cost of transportation. and that of coal. The Atchison filed with the interstate commerce commission rate 4.05 from the mine to the point of intersection with another road which was controlled by Phelps, Dodge and company, the coal consignees. As matter of fact he said the rate was S29O per ton and the difference, $1.15 per ton, was paid to the Colorado Fuel and Iron Company for the coal. The road collected the price of the coal and the cost of transportation at the point of delivery. It was alleged that the payment of $1.15 to the Colorado Com pany was a rebate, when, as matter of fact, he said, no rebate was paid. No interest he stated. suffered by the act of the company. Nobody connected with the Atchison system had any in- terest in the Colorado Iron and Fuel Company.
 Mr. Morawetz said that when the nresent management of the AtchisOn road took control of the system 1t in- cluded various coal companies. the stock of which was owned by the or isinal railroad company. It was doing a commercial business. The new man agement decided that the railroad com pany must go out of the coal ouslhess. The Atchison then leased all the coal mines in it's district, one or them 10 the Colorado Fuel and Iron Company NlaN hn fR should receive it's engine coal at mod crate rates. In 1901 there was three cornered arrangement to which me Atchison the Colorado Fuel and Iron Company and Phelps, Dodge and Com pany were parties. The last named controlled the Fl Paso and Southern Railroad. Under the terms of the agreement the Colorado Fuel and Iron Company was to furnish coal at $1.15 per ton and the Atcnison was to haul it for $2.9O per ton, the Atchison to collect the price of the coal md pay the $1.15 over to the Colorado Com pany. The agreement was to last live years. But in 1902 injunctions were granted restraining the various com pauies from continuing this business.
 OaeinIs Furnished Evidence.
 These injunctionsF said MT. Mora wetz. were obtained largely on evil dence of one of our own officials In- structions were sent by officials of the company to correct all violations of the law. Similar instructions were sent when the Elkins law was passed in 1903.
 AS matter of fact" said MT. Nor awetz." the law had not been strictly complied with. but no one was affected by the arrangement"
 The complaint arose over a mistake about the combination of the S4.O5 which the road collected. an allegation being made that this did 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 be- cause Phelps. Dodge and Company had to have the check. which was supplied by the Colorado Company. Coal was shipped by other persons at lower charge to the same points. No attempt was made to maSe a secret of the Ar- engagement. The complaint was due to coal company which operated mines in New Mexico and this coal was the kind that could be used by Phelps, Dodge and Company in their smelting business. The whole case arose over confusion of the coast of coal with the cost of transportation.
 Senator Deliver asked as to the re- port that the Atchison had paid the Standard Oil Company $I7,O0O in re- bates in Kansas. MT Morawetz said he had been advised that no such evil dence was given, but that a garbled statement was given to the newspapers by an attorney who had a suit against the road. He felt authorized to deny the statement that any rebate was given by the Atchison to the Standard Oil Company.
 Senator Clapp questioned MT. Mora wetz relative to the right of Congress to delegate authority to fix rates and also about a court of review MT. Morawetz said Congress could delegate to a commission power to fix a reason able minimum rate. Congress ought to prescribe rules from which the com mission should determine what was a reasonable rate. It also was brought out that a court of appeal could de- termine what was a maximum reason able rate.
 WouId Violate ConStifutfon