Omaha daily bee., 1906-12-05


merce Commission Thursday. The COM
mission has for some time had the matter
OF an investigation under advisement be-
cause Of communications that have reached
It alleging that the effect of the alleged
combination is to suppress competition. The
active work of the inquiry will be dele
gated to some responsible person in whom
the commission has full confidence and
upon whose report a decision will be
reached as to what II any, further steps
shall be taken.
VIII Consider Car Shortage.
The intentions and attitude Of the In
terstste Commerce commission respect
ing the car shortage in the northwest are
made clear in letter addressed to Senator.
Hansbrough by Chairman Knapp, which
says:
The inability Of shippers to secure cars
for the movement OF their trafhc is re-
ported from various parts OF the country
and amounts in some sections. as you
observe, to almost a calamity. This mat
ter has given the commission special con-
Cern, although we appear to be without
any adequate authority to deal with such
a situation. We can exercise no direct
power to compel interstate carriers to fur
nish adequate equipment nor are we pre-.
pared at this time to recommend spectuc
legislation upon this subject.
Chairman Knapp said the commission
could perhaps award reparation for dam
ages resulting from failure to supply sut-
fcient cars. but the power to do this is
not altogether certain. and he says: 1T
would seem to be rather more suitable
and efficient for aggrieved shippers TO
bring their suits in the courts in the first
instance"
Taking Testimony in Denver.
DENVER, Dec. A-Interstate Commis-
sioner z. E. Clark took evidence in Denver
today in the investigation which he is con-
Quoting under the Tillman-Gillespie resolu-
zion to ascertain whether certain corpora
tions Of Colorado and Utah enjoy privileged
rates from the railroads and whether there
are instances in these two states OF COM
binations In restraint OF trade based on
systematic discrimination. High officials of
the Denver & Rio Grande railroad, the
Colorado Fuel and Iron company and the
American Smelling and Refining company
were summoned to give testimony at the
hearing, which continues two days.
]. A. Reiter, auditor Of the Colorado Fuel
and Iron company, denied that the Colo
rado & Wyoming railroad was owned by
the Fuel and Iron company. Commissioner
Clark ordered that Mr. Reiter produce in
court a list Of stockholders OF the com
paaY. J. +. welbon. vice president Of the
Colorado Fuel and Iron company, while de-
nying the existence of a community OF in
terests between that company and the Colo
rado & Wyoming railroad, acknowledged
that over 50 per cent Of the freight on the
railroad was handled for the Colorado Fuel
and Iron company.
Car supply short.
Mr.. Welborn said there had been short
age Of cars for some time and that nearly
all the mines had been closed at different
periods owing to the shortage. He said
there had been a general urgent demand
l for coal this winter and that on many or
} ders the company were two months or
/ more behind. He said he knew of no dis
! elimination in the matter of furnishing
! cars.
! At the completion Of Mt welborn's testi-
mony Commissioner Clarke said:
well, Mr.. welborn, your testimony in
regard TO the shortage of cars resolves
itself into this: You have more orders
for coal than you can produce and can
produce more than you can get cars to
carry?"
Yes, sir" replied the witness.
/ Charles E. Schlacks, vice president OF
the Denver & Rio Grande railroad, testified
that the rate on coal granted the Colorado
Fuel and Iron company was not directly
remunerative but the company felt that
1.-THE announcement OF this large company
was Of benefit to the state and 70 the Den
yer & Rio Grande railroad.
All the stock Of the Utah Fuel company,
! he said is held by the Rio Grande West
ern Railroad company A nat rate without
/ classification was made by. the Rio Grande
company for all goods shipped to the Utah
Fuel company. The rate was the com
pany material rate" He did not know
whether or not any Of this freight was
I shipped from outside Utah.
/ This company material rate" which was
4 cent per ton per mile, was discontinued
about August /. 1906.
Land Records Missing.
: At the afternoon sssion Mr.. Schlacks re-
sumed the stand He said he did not know
whether or not any Of the oil companies
at Florence were connected with the Stand
ard oil company.
After testifying that the president and
vice president OF the Denver & Rio Grande
and the Utah Fuel company and the Pleas
ant Valley Coal company were identical
the witness stated that the railroad com
pany did not direct the affairs OF the fuel
companies. The records OF the purchase Of
coal lands he said, we're kept in Utah.
The auditor OF the fuel company had testi-
fed In salt Lake City that the records
this discrepancy to the attention OF the
witness. and Mr. Schlacks said then he
did not know where the records were kept
There was a clash Of counsel over a
question put TO the witness By the counsel
for the government, who demanded TO know
how much money had been paid for coal
lands by the Utah Fuel company and the
Pleasant Valley company. The commits.
sion sustained the objection made by Joel
F. Vail, counsel for the Denver & Rio
Grande Railroad company.
Three Roads Make Low Rates.
Mr.. Welborn OF the Colorado Fuel and
Iron company was recalled, and produced
a list Of directors Of the company and Of
the Colorado & Wyoming railroad. The
lists showed that only one man was a
director in both companies. Mr.. Welborn
also produced a memorandum Of agreement
signed in lS3, between the santa Fe. the
Colorado a Southern and the Denver a Rio
Grande railroads 20 give the Colorado Fuel
and Iron company a rate Of mills per
ton per mile on cosl hauled from common
points. with the stipulation that IN no case
should the charge be less than s7ss cents
a ton.
D. C. Beaman, secretary and general
counsel Of the Colorado Fuel and Iron
company, b. request, submitted a list Of