The Birmingham age-herald., 1906-12-05
.CURpUKAIIONS ARE BEING LOOKED INTO interstate Commerce CommiS- sion Investigating Rates HIGH OFFICIALS ON STAND Colorado Fuel and Iron, American Smelling, and Railroad Companies
 Under Fire-Car Shortage
 Greatest Trouble.
HIGH OFFICIALS ON STAND

Denver, December 4-Interstate Com merce Commissioner Clark took evidence here today in the investigation which he is conducting under the Tillman-Gilles- pie resolution to ascertain whether cer- tain corporations of Colorado and Utah enjoy privileged rates from the railroads and whether there are in existence in these two states combinations in restraint of trade, based on systematic rate dis crimination High officials of the Dem yer and Rio Grande railroad, the Colorado Fuel and Iron company and the American Smelling and Refining company, were summoned to give testimony at the hear ing.
 J. F. Welborn, vice president of the Colorado Fuel and Iron company, while denying the existence of community of interests between that company and the Colorado and Wyoming railroad, &C., knowledged that over 95 per cent of the freight on the railroad was handled for the Colorado Fuel and Iron company. MT. Welborn said there had been shortage of cars for some time and that nearly all the mines have been closed at differ ent periods owing to the shortage. He said there had been a general urgent de- mand for coal this winter and that on many orders the companies were two months or more behind.
 He said he knew of no discrimination in the matter of furnishing cars. He said that the railroads made no discrimi- natory rates in favor of the company in it's interstate business and the only state discriminatory rates made were those which were brought out in the examlna- ton at Pueblo yesterday. MT. Welborn said that the Colorado Fuel and Iron company did nothing for the Denver and Rio Grande railroad in return for low rates granted. He said that it was nec- essary for the Colorado Fuel and Iron company to have the low rate in order to do business in Pueblo at a profit.
 The reason the Colorado Fuel and Iron company could not do business at Pueblo without a low rate was stated by MT. Welborn to be that the ore and coal there were generally inferior to those secured by eastern concerns and that the Colo rado Fuel and Iron company was com pelled to pay a higher scale of wages. The Chicago and other plants in the east also had the advantage of water haul for ore, coal and the finished product. At the completion of Mir. Welborn's testimony Commissioner Clarke said:
 Well, Mir. Welborn, your testimony referring to shortage of cars resolves it. self into this: You have more orders for coal than you can produce and can produce more than you can get cars to ssXaS Gtr ' rpnIipd tba uftnnGS
 Charles b. Schacks, vice-presdent of the Denver and Rio Grande railroad, tes- tfied that the rate on coal granted the Colorado Fuel and Iron company was not very remuneratlve, but the company felt that the encouragement of this large company was of benefit to the state and to the Denver and Rio Grande railroad,
 All the stock of the Utah Fuel company, he said, is held by the Rio Grande Vest ern Railroad company. A flat rate with out classification was made by the Rio Grande company for all goods shipped to the Utah Fuel company. The rate was the "company material rate" He did not know whether or not any of this freight was shipped from outside Utah.
 This company material rate,' which was one-half cent per ton per mile, was discontinued about August 1, 1906.
 At the afternoon session MT. Sehlacks resumed the stand. He said he did no. know whether or not any of the oil com panies at Florence were connected with the Standard oil company. After testify ing that the president and viee-president of the Denver and Rio Grand railroad and the Utah Fuel company and the Pleasant Valley Coal company were iden- tical the witness stated the railroad company did not direct the affairs of the fuel companies.
 The records of the purchase of coal lands, he said were kept in Utah. The auditor of the fuel company had testified in Salt Lake that the records were kept in Denver and counsel brought this dis crepancy to the attention of the wit ness and MT Schlacks said that he did not know where the records were kept.
 There was a clash of counsel over question put to the witness by the counsel for the government, who demanded 10 know how much money had been paid for coal lands hy the Utah Fuel company, and the Pleasant Valley company. The commissioner sustained the objection made by Joel F. Vail counsel for Denver and Rio Grande company.
 Mr. Welborn of the Colorado Fuel and Iron company was recalled and produced a list of directors of the company and of the Colorado and Wyoming railroad. The lists showed that only one man was a director.
 Mir Welborn also produced a memoran- dunn of the agreement signed in 1903 be- tween the Santa F'e. the Colorado and Southern and the Denver and Rio Grande railroads to give the Colorado Fuel and Iron company a rate of six mills per ton per mile on coal hauled from common points with the stipulation that In no case should the charge be less than 37Ka cents ton.
 Three witnesses were called to show that coal land had been secured by the Utah Fuel company in the same manner as was brought out in the investigation of Union Pacific railroad by the com mssioners in this city several months ago
 These witnesses filed on coal lands with the understanding they could sell 1t when it was proved upon and later transferred the land to representatives of the Utah Fuel company for a considera- ton of $50 each.