Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-02-04

lation of the same statute during that
period, but that company was not a
party to this proceeding and has not
been heard.
III should be further observed that on
March o. 1892. the United States circuit
court. in a suit begun at the instance
and request of the Interstate commerce
rnnmission enjoined the Atchison, Tope-
ka q Santa Re Railway Co. to observe
in all respects its published schedules OF
races. That company from the date o.
thinS injunctiOE down TO Nov. q. 1904, was
.auuarcnlly IN continuous disregard OF That
ur,Icr Of the court in its failure to main
tam these coal tariffs.
The alleged infractions of the law were
FIRST called to the attention ol the com
mission by the claim Of The Caledonia
Coal Co, operating a coal mine al Gallup,
n NJ, that the Santa Fe road was dIS-
eliminating against 1t in favor Of the Col
orIdn Fuel IL Iron Co. a contract Of
tn. Santa Fe with the Caledonia Co. eX-
pircd in 1895 or 1893 and was not renewed,
for its steam sizes OF coal, II Is chtfBeu,
lit ascerttined apparently that coal, both
mines at Gallup WAS being supplied at Il
pricc that about equdlled The freight rate
alone from the point Of production to des-
tinatiOn.
yidual could do business in competition
with the Colorado Fuel K iron 60. in this
field unless he enjoyed the same freiSh-
rai,. advantages; that when other individ-
ualS cndeaVorcd TO make contracts in
competition with the Colorado Fuel q
Iron GO they were compelled to ray the
published rate, and therefore We're I'M
able t. furnish the coal, ana that under
This arrangement the Santa fe Co and
the Colorado Fuel x Iron Go. virtually
entered into a partnership III The handling
OF this coal, in the execution Of which the
published schedules were utterly disre-
gardcd."
The decision says that number of 9th
or operators i'll New Mexico besides Mr..
Bowie Of the Caledonia Coal Co., found
il difficult to dispose Of their produces
III the competition with the Colorado Fuel
q Iron Co, the commission deduces Il
number of general facts from the evil
dencc. The Santa Fc Co. il says. acted
as agent for the Colorado Fuel & Iron
Co. in collecting from its customers the
price Of the coal itself along with the
freight rat" and Tn" evidence showed that
in onc instance, at i"ast this also was
done for The Victor Fuel GO. Under this
arrangement, H." Santa Fc instructed it's
agents 10 bill coal in certain points l..
which Tho C0l0la 10 Fuel X Iron Co. Op-
Grated to various stations on its system
at figures 10 h" furnished by tn" Colorado
Fuel a. Iron CO.. and the practice seems
to have been t., embrace M. price OF Tn,
al ANA tn freight rair in Il single item.
winch appeared on the tXp"uS. bill as
freight. Continuing. the commission says:
If the Colorado Fuel 4 Iron Co. had III
al cases paid the published tariff rate
which was eXacted from other companies,
the iact that the iriCe of the coal and
the freight were included in a single item
would have worked no practical advan-
tagn to the company far as can see.
Neither. apparently, would there have
been any reason for this arrangement if
the purpose of the parties had leen hon
est. If. however there existed on the
part of the Santa Fc 60. an intent to
charge the Colorado Fuel & Iron co. less
for the transportation of its coal than
the published rate. il is evident that this
method of billing would afford ready
means for concraling the transaction. In
point of fact. during the entire period
covered by this investigation the Santa
Fc co. did transport coal for the Colora-
do Fuel * Iron Co. for less than its open
tariff rates, and these concessions amount
itself
I'ndcr the joint tariff filed May "a, 1903
roads parties 10 that tariff allowed the
Colorado Fuel & Iron Co. a concession
ON All coal transported unde" those Joint
rates of SIZE per ton: Mr., Fiddle freight
testified that of the $fnj received by the
Santa Fe. $l.15 was always paid to the
C"lo'ad" Fuel & Iron Co. with the full
Knowledge OF the FL Paso and Southwest
crn. These railroads. therefore. collected
the published tariff rate from the Trini-
dad district to destination ard paid back
ton OF the amount so collected
Some suggestion has been made that
these payments 70 the Colorado Fuel &
Iron Co. 10y the Santa Fe were not in the
nature of rebates. hut simply payment for
The price OF its coal; that the published
tariffs in reality included tn" cost of tho
coal. but inadvertently omitted to state
that fact. The record conClusively shows
thu contrary.
1T was said that those rates in favor Of
tn Colorado Fuel & Iron co. worked ~
as there was no other shir.
per and consequently no actual prefer.
ence- The, Santa Fe Co. published its
rates and these rates were actually insist
ed upon in the case Of small consumers
apparently, but whenever ii seemed de-
Slrdble to secure particular contract to
shade the rlice, a special arrangement
was made between the Santa Fee and Col
orado Fuel x Iron Co. by which the Santa
Fe agreed to transport the coal required
to fill the contract for less than this pub
liShed rate. Since the greater part of the
business of the coal company was in fill
ing those large contracts, the rebate was
applied to the greater part of its total
shipment. Nobody else sold to these large
consumers because in the very nature OF
things nobody else could sell These tar
IFS from the Trinidad district merely
served as scar2crows TO Keep off ali COM
petltorS and further as q pretext for de
Ginning to reduce rates from other coal
!eIiS on the ground that there ought to
he some relation between different dis
trictS. 1t has been intmated in some
Quarters that the Santa Re in the INV
ment of those rebates squandered its reyc-
mleS IN the interest of the fuel company
800 li'''' VI tllt ~ulJftl WIS not under
investigation. but nothing appears in this
record to Justify that suggestion
rhe testimony also tended 20 show thai
while the Colorado Fuel K Iron Co. was
operating the mines Of the American Fuel
&C. at Gallup. the Santa F. gave the com
pany special rate on its supplies. No
witness having knowledge was produced.
ana we have a strong impression thai
such special rates We're enjoyed by the
Colorado Fuel < Iron CO..
THE RAU pOAn DATES
Bill to Be Revised As 1t Does Not In.