The heart of the railroad problem: The history of railway discrimination in the United States, the chief efforts at control and the remedies proposed, with hints from other countriesParsons, Frank
History
The heart of the railroad problem: The history of railway discrimination in the United States, the chief efforts at control and the remedies proposed, with hints from other countries
Parsons, Frank
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
In the Colorado Fuel and Iron Case, investigated by the Commission in
1904 and 1905, it was shown that the Santa Fe has persistently violated
the Interstate Act, the Elkins Act, and the injunctions issued by the
United States Circuit Court. The Santa Fe tariff filed with the
Interstate Commission May 24, 1903, and in effect till November 27,
1904, made the rate on coal from the Trinidad district, Colorado, to
Deming, N. M., $4.05 a ton; but Mr. Biddle, General Traffic Manager of
the Santa Fe, testified that during all this time $1.15 of the $4.05 was
always paid back by the railroad to the Colorado Fuel and Iron Company,
a concern in which the Standard Oil people are largely interested.
Similar favors were shown the Colorado Company in respect to shipments
from its mines at Gallup, N. M., giving that company a decided advantage
over competitors, who were obliged to pay the full rate.[180]
It made a difference, also, who was to get the coal. The Santa Fe
carried Colorado Fuel and Iron Company coal to the El Paso and
Southwestern for $2.90 a ton, while charging $3.45 a ton for hauling the
same coal from the same mine to the same point, Deming, when the billing
was to the Southern Pacific. The El Paso could get coal on a rate of
$2.90, while the Southern Pacific must pay $3.45 and the published
tariff rate was $4.05. Anybody on the line of the El Paso who stood in
with the management could get the $2.90 rate, while his competitors
might be paying $4.05.
Mr. Biddle testified as follows, December, 1904, in answer to the
questions of Mr. Field: “I say the freight rate we got from the Southern
Pacific was $3.45 at the time we were accepting $2.90 on coal destined
to the El Paso and Southwestern.”
“MR. FIELD. That is to say, at that time you were charging the Southern
Pacific Railroad Company $3.45 per ton for transporting coal (to
Deming), when you were charging the El Paso and Southwestern Railroad
Company only $2.90?
“MR. BIDDLE. Yes, sir.
“MR. FIELD. And all upon a published tariff which showed a rate of $4 to
Deming?
“MR. BIDDLE. No; the arrangement we had with the Southern Pacific was an
agreement as to what they would pay for their coal.
“MR. FIELD. You paid no attention whatever to the published tariffs?
“MR. BIDDLE. I don’t know that we published a tariff on Southern Pacific
coal at all.
“MR. FIELD. When you published a tariff for the information of the
public and the Interstate Commerce Commission, it was with the
reservation that you might modify that tariff to certain consumers as
suited your business?
“MR. BIDDLE. It didn’t apply to coal when destined to the Southern
Pacific.
“MR. FIELD. That is another way of saying that it didn’t apply when you
didn’t want it to apply.
Public-domain text, read in full here on John Shaqi.
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