Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-19
Morawetz Tells About the
Santa Fe Methods.
REBATE CHARGEDENIED
QUESTIONED AS TO PRACTICES OF
TRAFFIC MANAGERS.
Things, Done, He Says, of Which Di-
rectors and Stockholders Would
Not Approve.

Mr.. Victor Morawetz. chairman of tho
executive committee OF the board of di-
rectors of the Atchison. Topeka and Santa
Fe railroad again went on the stand before
the Senate committee on interstate COM
! merce. in session at the Capitol this morn
ing. There was again a full attendance of
the committee. Senator Elkins. chairman;
Senators Cullom. Kean, Foraker. Dolliyer,
Clapp, Carmack. Newlands and Millard
were all present.
Senator Dolliver put to the witness sew
eral questions as to the best methods for
dealing with the railroads in order to pre-
vent discrimination. He asked whether he
would approve of the suggestion made by
the New York chamber of commerce that
when a secret rate is discovered on rail-
road the entire business of that road be
put on the basis of that secret rate.
The fact is" replied Mr.. Morawetz,
proved by the president or board of direc-
tors. They are made by the traffic man.
ayers ayers N an eNGess @ of zeal and would
GERS If they were aware of them
Mr.. tolliver wanted to know what the
TEN had to do with the rates on that road.
Mr.. Mordwetz said they knew nothing
of the details of the business of fixing
rates. He thought it would not be lust
to punish the stockholders for the action
of traffic manager without the knowI-
edge of the officers or directors He
thought some less severe punishment
might be provided for the traffic man
ager who gives 4 rebate than placing all
the business of the. road on the same
basis as the secret rate made.
Senator Dolliver wanted to know how the
books of railroads are kept and whether
it would be possible to discover the rebates
by examination of the books.
Mr.. MorawetZ was not familiar with the
details of these records, but he thought the
books would show information of that kind.
He saw no reason why these books should
not be open 10 inspection, in order TO allow
the detection Of any rebate that might have
been given or whether complaint is well
founded.
Burden Borne by Small Cities.
Mr.. Dolliver stated the case of rates be-
tween St. Paul and Duluth where, he said
the rate on grain was at the rate of cents
a hundred pounds, whereas the rate from
Duluth to ST. Cloud, only half the distance,
was IA cents. He wanted to know how
such system could be justified when it
resulted in destroying the milling interest
of the small town.
Mr.. Morawetz replied that he was not fa-
mliar with all the facts in that case, but
he was sure that the two rates were made
as result of competitive conditions.
rs it right" asked Mr.. Doliver ito have
the roads give cheap rate, with small
profit, to the large city and recoup by
high rate small cites?"
II am sure" replied the Witness that IL
the roads could do so they would charge a
higher rate to the larger cities
Asked why the interstate comm, cree law
had not been more effective, Mr.. Morawetz
replied:
TT is because, in my judgment, the inter-
state commerce commission has not used
diligence in prosecuting Vlolators OF the
law"
But how could they discover these dis
ordinations when.as you have testified, the
officers and directors of the roads them
selves do not know what is going on, and
would be Mortified If they should find out
about it?" asked Mr.. Dolliver:
There are a good many determinations
that are not secret replied Mr.. Morawetz.
There is the practice of giving undue
arbitraries on terminal rates and the prac-
tice of giving undue mileage allowances to
nriyate car lines. The commission is aware
of these discrimina tons, and 1t has not
prosecuted any cases with energy in order
to correct them
Defense of the Atchison Line.
Mr.. Dolliver called forth a long and de-
tailed explanation from Mr.. MorawetZ as to
charges that have been made against the
Atchison company of discrimination In IA
vor of the Colorado Fuel and Iron Company.
He explained that after the Elklns act was
nassed they had filed a tariff sheet with
the interstate commerce commission giving
the rate between two points as S4.Oo per ton
for coal from the mines to the point at
which the coal was turned over 20 the In
t@rcepting line. The fact was, that rate IN
cluded the price of the coal, n.15 per ton,
and it was that money that the Atchlson
had turned over to the coal company When
their attention was called TO the mistake in
the tariff they corrected it. Their rate had
been 81 80 and that rate had been open 20
everyone, although, as matter OF Iact,
there had been no other shipper. He re-
garded the charge against his road as the
result of spite.
He explained how the Colorado Fuel and
Iron Company operated leased lands that
had formerly belonged to his road. but
which they were satisfied they should not
operate, and for that reason they leased
them with agreement as to the price at
which they were to purchase coal for their
engines
Alleged Rebates to the Standard.
Asked by Senator Dolliver as to reports
that his road had paid rebates to the STAN
dard Oil Company in Kansas amounting