The San Francisco call., 1905-02-04
BOARD SCORES
The SANTA FE
System of Rebates With the
Colorado Iron Company
Continues for Long Time
WILLFUL INFRACTIONS
Watson of Indiana Declares
Against Activity of Rural
Mail Carriers i'm Politics

WASHINGTON, Feb. 3.-"Flagrant,
willful and continuous violations of
the law during the last five years are
laid at the door of the Atchison, To-
peka and Santa Fe Railroad in a de-
cision rendered to-day by the Inter-
state Commerce Commission on the
s'alleged unlawful rates and practices"
of that road in the transportation of
coal and mine supplies. The decision
also involves the Colorado Fuel and
Iron Company. The main points of
the decision are as follows:
The act to regulate commerce requires car
riers to publish and adhere to their tariffs.
The Atchison, Topeka and Santa Fe Railway
Company has for the last Ave years willfully
and continuously violated this provision in the
law in the respects above stated.
February 10. 1903, the so-called ''Elkins
Dit was enacted, providing that carriers
traffic schedule has been published, and that
the published tariff should be observed and
more than 500 eco for each offense The pro
visions of this statute extend both TO the
Santa Fe and the Colorado Fuel and Iron
Company Systematically and continuously vio-
lated the provisions of that act in the par
ticulars mentioned from the day of it's pas
sage down to November q, 1904, when the
tariffs under which this coal moved were re-
duced in all cases 81 Is. 1t would seem that
the FL Paso and southwestern railroad was
IN violation OF the same statute during that
period, Dut that company was not party to
this proceeding and has not been heard.
1t should be further observed that on March
20. le02, the United States Circuit Court in
a suit begun at the instance and request of
the Interstate Commerce Commission. enjoned
Company to observe in all respects it's pub
llshed schedules of rates. That company from
the date of this Injunction down to November
q, l904, was apparently in continuous dlsre-
gard of that order OF court in its failure TO
ma intain these coal tariffs.
The decision says that a number of
other operators in New Mexico besides
Bowie of the Caledonia Coal Company
found it difficult TO dispose of their
products in competition with the Col
orado Fuel and Iron Company.
The Santa Fe Company, the commits
sion says, acted as agent for the Col
crado Fuel and Iron Company in col
lecting from its customers the price of
the coal itself along with the freight
rate, and evidence showed that in one
'nstance. at least, this also was done
for the Victor Fuel Company Under
this arrangement the Santa Fe in
structed its agents to bill coal from GER
tain points al which the Colorado Fuel
and Iron Company operated to various
stations on its system at figures to be
furnished by the Colorado Fuel and
Iron Company, and the practice seems.
to have been to embrace the price of
the coal and the freight rate in a
single item, appearing in the expense
Dill as freight Continuing, the COM
mission says
If the Colorado Fuel and Iron Company had
in all cases paid the published tariff rate which
was exacted from other shippers the fact that
the price OF the coal and the freight were in |
cluded in single item would have worked TO
the practical advantage OF that company so
far as we can see, Neither apparently would
n raa ann for. bfc
ment II the purpose of. the parties. had been
honest. If. however. there existed on the part |
the Colorado Fuel and Iron Company less for I
the transportation of its coal than the pub
billing would afford ready means for conceal |
ing the transaction.
In point of fact, during the entire period |
covered by this investigation the Santa Fe |
did transport coal for the Colorado |
Fuel and Iron Company for less than its open |
tariff rates, and these concessions amounted |
In MANY cases to the price of the coal itself
Under the joint tariff filed May "a 1903. |
and up to November %, 1904, the railroads |
parties to that tariff allowed the Colorado Fuel
and Iron Company a concession on all coal /
taxed under those joint rates of 81 15 ton.
Mr.. Biddle freight traffic manager of the San /
Ia Fe system, testified that of the 81 CO re-
reived by the Santa Fe 81 Is always paid !
10 the Colorado Fuel and Iron Company with
he full knowledge of the Ell Paso and South
western.
These railroads therefore. collected the pub
shed tariff rate from the Trinidad district TO
LIe ueStlfatiOil ana pdlu Ddck 10 the OOlOTduO
Fuel and iron Company 81 10 ton of the
amount go collected.
Some suggestion has been made that these
to the Colorado Fuel and Iron Com
,any by the Santa Fe we're not in the nature
# rebates. but simply payment of the price
included the cost of the coal, but inadver
emily omitted to state that fact. The record
,onclusively shows the contrary. Il
1t was said that these rebates in favor bf |
he Colorado Fuel and Iron Company no
as there were no other shippers
Ind consequently no actual preference. The
santa Fe Company published its rates and
hese rates were actually insisted upon In the
ase Of small consignors. apparently: but
whenever it seemed desirable. to secure a
,articular contract to shade the price a
special arrangement was made between the
santa Fe and the Colorado Fuel and Iron
company by which the Santa Fe agreed to
transport the coal required to fill that con-
ract for less than this published rate
Since the greater part of the business of /
hat company was in filling these contracts.
he rebate was applied to the greater part of
is total shipment
because in the very nature OF things nobody
Use could sell. These tariffs from the Trni-
lad district merely served as scarecrows to
seep off all competitors and. further. a pre-
ext for declining to reduce rates from other |
oal fields on the ground that there ought TO
t has been intimated in some quarters that
he Santa Fe, in the payment of these rebates.
quandered its revenues in the interest of the
uel company. That phase of the subject was.
lot given. but appears in the record to justify
hat suggestion
The testimony also tended to show that
ADVERTIS.