The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-01-01
DAUL MORTON IN REBATE DEAL
RESPONSIBLE FOR FAVORITISM
IN FREIGHT RATES.
kncN Of the Discrimination OF Abont
~ 900 Day In Freight I'm Favor OF
the Colorado Fuel and Iron CO.
Prunty Says Railroads Own Public Men.

CHICAGO, Dec, i'll estlHlony conIlcCt-
Ing Paul Morton. Secretary of the Navy
with the AtcMson. Topeka and Santa 70
Railway Company and the Colorado Fuel
aud Iron Company rebate scandals are
Interesting the Chicago public.
According TO the testimony before the
Interstate Commerce Commission these
relations amounted TO a discrimination Of
about 81 600 day in favor Of the Colorado
FUEL and Iron Company. They were estab-
pshed through an order issued by w. B.
Biddle, freight traffic manager Of the Santa
Fl At the time the order was issued. how
ever. MIR. Biddle was under the direct order
Of Mr. Morton. who was then second vice
president OF the Santa Fe in charge Of the
traffic department Of that railroad system.
That Mr. Morton must have been cogniz-
IN, Of the relations between the Colorado
Fuel and Iron Company and the Sante Fe
was conceded by President +. p. Ripley of
the santa Fe, Mr. Ripley was asked
who was In supreme charge OF all freight
matters Of the Santa FG at the time OF the
issuance Of the order by which the Colorado
Fuel and Iron Company was granted
rebates?7
1T was not rebating.- said President
Ripley. 1T was simply a figure agreed
upon 10y private contract. Mr.. Paul Nor
ton was cogni2ant of it. and although his
name mag not be affixed to the order for
us being carried into effect, he was the man
from whom Mr. Biddle, the freight traffic
manager, got authority TO haul coal for the
Colorado Fuel and Iron Company on the
Germs which you mention.
Did you also know OF it. Mr.. Ripley?'
why. YES, as know of all our business.
consider it absolutely legitimate and will
do il tomorrow again if like. Mr.. Nor
ton was responsible for all traffic matters;
and it must be over two years since we
began deductng difference in the case Of
the Colorado company.
Then convictions will never come, In
Your opinion, Mr. Ripleyf'
Why no. can see through the whole
thing. The CALIFORNIAN Coal Company Las
for six months tried TO secure what they
imagine to be evidence against us in a suit
for damages They finally hit upon the
idea Of utilizing tho Interstate Commerce
Commission as a cats paw to get at what
they wanted. The commission consists Of
able and learned men and l am surprised
that they permitted a private attorney to
step In and conduct the examination in q
matter which has nothing to do with public
~ transportation OF passengers or freight,
and which is really contract between two
roads to carry fuel for the use OF one of them
and the industries en- it's line
Was Mr.. Morton in office when the order
was given favoring the Colorado Fuel a
Iron Company
Well. you mean the order which gave
them a deduction as per contract1 Why,
1T. e. ~ Iaat biu rNou
ton as second vice. president of the Atchi-
son until last Septenber. when he entered
the Presidents Cabinet Are they trying
20 make a national issue OF this' They
had better wait and see the outcome,
have not followed the evidence very
closely
Interstate Commerce Commissioner
Prouty said to-day:
IF the Interstate Commerce Commission
were worth buying, the railroads would
try to buy it. They have bought pretty
nearly everything in this country that is
worth buying and the only reason they
have not tried to purchase the commission
Is that this body Is valueless in its ability
to correct railroad abuses.
This statement was made by Mr.. Prouty
in a discussion of legalized pooling. When
asked. in view of this statement. whether
1t would be wise to give commission
control over rates, he replied:
The public must trust some one. and
that would be the best remedy is possible
10 obtain under existing conditions / am
aware. however, that the great danger
would lie in the possibility OF the body
TO which should be intrusted the guardian
ship Of the peoples rights not performing
its duty
Because Of possibility OF purchase by
the railroad interests?' he was asked.
sYes, but not in the sense Of an actual
cash transaction. The railroads, It IA well
known. own many Of our courts and other
public bodies. but not because they have of
necessity bought them by the expenditure
of money. They have n different way OF
doing things They zee 10 it that the right
men. the men Of friendly inclinations, are
elected There would exist the danger
Of their doing this In the case Of "A Strong
commission 50 that it might be composed of
men who would sit idly by and do nothing of
value
When asked his opinion of Secretary
Morton's pooling plan, Mr.. Prouty said:
Rate control by commission would
come far from removing all the evils that
attend the pooling Of railway earnings.
The people are concerned in only two things
in connection with the railroads, the facility
OF service and the rates. In my opinion
there is no longer any competition as to
rates worth mentioning.
1.-THE only thing the people have loft Is
competition as to the facility. 1t is a god
send 10 the shipper to-day, and there are
some independent roads that are still strug-
Cling for business. With legalized pooling
every incentive to competition as to the
facility Of service would be removed, as II
would make little or no difference to a
railroad whether 1t carried the business
or not
no LAW VIOLATED, SAYS RIPLEY.
Commenting further on the charge against
tn Santa Fe, President Ripley said.
THE arrangement which is under dis
cussion WIS made with the FL Paso anC
Northwestern Railway Company for it,
own benefit and use and in no tnannei
discriminated against any individual
firm or corporation in the coal business
Neither this company nor any of it's officer
is in anv manner interested financially
or otheryy ige in the Colorado Fuel and irof