The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-02-03
To SUE SANTA FE
Attorney General Will Begin
s Prosecution in New Mexico.
Colorado Fuel and Iron Co. Sub
sidiary to Railway Company.
INDIVIDUAL PROFITS.
Corporation Rather Than Off,
cfals VIII Be Defendant.
Paul MOrtOn's Name Not Mem
TONED In Report.
INDIVIDUAL PROFITS.

law during the past five years is the
way in which the Atchison. Topeka. &
Santa Fe railway is arraigned in a. de-
eision promulgated today by the inter-
state commerce commission in the
alleged unlawful rates and practices
| of that road in the transportation of
coal and mine supplies involving also
the Colorado Fuel & Iron company
The main points of the decision, sum-
marizing the way in which it is alleged
the law has been violated and disre-
garded are as follows:
THE act to regulate commerce re-
quires carriers to publish and adhere to
their tariffs. The Atchison. Topeka s.
Santa F'e railway company has for the
last five years wilfully and continuous
~ violated this provision of the law in
the respects above stated.
February 10, 1908, the so-called
Elkins bilP was enacted, providing
that carriers should in no case trans
port traffic until a tariff had been pub
lished and that the published tariff
should be observed and providing a
penalty of not less than 81, 900 nor more
than $4,000 for each offense. The pro-
visions of this statute extend both to
the railway company which grants and
the party which receives the cOnces-
sion- Both the Santa Fe and the Colo
rado Fuel < Iron company Systemat-
ically and continuously violated the
PROVISIONS OF ElaL act IN the particulars
mentioned from the day of its passa &c
down to November q, 1904 when the
tariffs under which this coal moved
were reduced in all cases $1-15. 1t
would seem that the FL Paso & South
western railway was also in violation
of the same statute during that period,
but that company was not a party to
this proceeding and has not been heard.
t'It should be further observed that
on March 25, 1902, the United States
circuit court in a suit begun at the
instance and request of the interstate
commerce commission enjoined the
Atchison, Topeka & Santa Fe Railway
company to observe in all respects its
published schedules of rates. That
company from the date of this injunc-
ton down to November Z, 1904, was
apparently in continuous disregard of
that order of court in its failure to
maintain these coal tariffs
The alleged infractions of the law
were first called to the attention of the
commission by the claim of the Gale
dOnia Coal company. operating a coal
mine at Gallup, N M, that the Santa
F'e road was discriminating against it
in favor of the Colorado Fuel & Iron
company A contract of the Santa Fe
with the Caledonia Coal company ex-
pired in 1898 or 1899 and was not re-
newed and when it attempted to find a
market for its steam sizes of coal, it is
charged, lit ascertained, apparently
that coal both from the Trinidad re-
was being supplied at a price which
about equalled the freight rate along
from the point of production to des-
tinatiOn.'
The decision says that mo other in
dividual could do business in compe-
tition with the Colorado Fuel & Iron
company in this field unless he enjoy
ed the same freight rate advantages;
that when other individuals endeavor-
ed to make contracts in competition
with the Colorado Fuel & Iron COM
pany, they were compelled to pay the
published rate and therefore were IN
able to furnish the coal; and that I'M
der this arrangement the Santa Fe
company and the Colorado Fuel &
Iron company virtually entered into
a partnership in the handling of this
coal in the execution of which the pub
lished schedules of the Santa Fe were
utterly disregarded."
Acting unanimously, the interstate
commerce commission signed an order
submitting to the attorney general I'M
der the law the case of the Atchison
Topeka & Santa Fe railroad, with the
request that Mr.. Moody take the neces-
sary steps at once for the prosecution
OF the railroad and of its subsidiary
companies, particularly the Colorado |
Fuel q Iron company, which received
an illegal rebate given by the railroad. |
All five of the names of the interstate |
commerce commissioners appear on |
this sensational order.
This marks the official beginning of
what is likely to be the most sensation |
al railroad case ever tried in this coun- |
try, inasmuch as it is the first one IN
der the new Elkins act which was
passed for the avOwed purpose of pre- |
venting rebates and Determinations.
There is no disposition on the part
of the members of the interstate COM |
merce commission to proceed in an ar |
bitrary fashion, and inasmuch as they
are breaking the ice in regard to this !
class of litigation, a recommendation |
can be made to the attorneys general
that he should sue the corporation at
this time and not the officers.
This action, in fact, is contemplated |
by law, for the ElkinS bill provides es- |
pecially that anything done or omitted |
to be done by a corporation as COM /
mon carrier is subject to the Interstate |
ted to be done by a director. officer re- |
ceiver, trustee, lessee, agent, or en-
ploye of the corporation, would consti- |
tute misdemeanor, and shall be held |
a misdemeanor committed by the cor |
poratiOn, which shall be subject to the
same penalties as are prescribed for in
dividuals.
This means the beginning Of a series
Of suits of a criminal nature under /
the direction of the attorney general |
of the United States against the Atch- |
ison. Topeka & Santa Fe railroad and |
the Colorado Fuel and Iron companv
1t viii be alleged in the bill of par |
ticulars that the railroad granted and |
the coal company received a discrirn- |
mating rate on coal shipped to various /
eonsignees, each specific shipment /
under the law constituting a seDa "a te
offense. The Elkins law provides that
every corporation which gives or re-
celVes rebate shall on conviction be /
punished by fine not less than 81, 900 /
nor more than $4,000.
The suits will be begun in the
judicial districts of New Mexico and I
Arizona, where the shipments were /
made. and where the rebate was con
structively given, although the actual /
payments may have been made else
where. The attorney general is al