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
The Santa Fe used to own and operate coal mines, but in 1896 leased them
to the Colorado Fuel and Iron Company under a contract[185] supposed to
cover the question of freight rates. Afterward a circular in reference
to coal rates was issued from the central office of the Santa Fe in
Topeka.[186] It stated that coal originating at certain points (where
the Colorado Fuel and Iron Company had mines) would be delivered when
consigned to certain specified industries or parties at prices covering
both freight and cost of the coal, which total prices might be, as we
have seen, no greater than the published freight rate alone. The
circular was headed: “This publication is for the information of
employees only, and copies must not be given to the public.”[187] And it
gave notice to Santa Fe agents that the Colorado Company’s coal shipped
to points on the Santa Fe was “to be billed at figures furnished by the
Colorado Fuel and Iron Company which will include the freight rate and
the price of coal.”[188]
The following questions of the I. C. C. counsel, Mr. Field, and answers
by Mr. Biddle, the general traffic manager of the Santa Fe, are of
interest in this connection:
“MR. FIELD. You did not advise the Commission that the rate you made (on
the Colorado Company’s coal) included the price of the commodity?
“MR. BIDDLE. No.
“MR. FIELD. Why didn’t you?
“MR. BIDDLE. I didn’t consider it necessary.
“MR. FIELD. I ask you categorically if you didn’t do it with the
intention of deceiving the Interstate Commerce Commission and the
competitors of the Colorado Fuel and Iron Company as to that rate.
“MR. BIDDLE. No, sir.
“MR. FIELD. What was your purpose, Mr. Biddle?
“MR. BIDDLE. Well, we did it for business reasons.
“MR. FIELD. What were the business reasons? I want you to tell me the
reasons.
“MR. BIDDLE. We did it for reasons we did not consider necessary to
tell; on coal to intermediate points—the rate that we found it necessary
to make to points reached by the El Paso and Southwestern.
“MR. FIELD. You say upon your oath now, that you did not do it for the
purpose of deceiving the Interstate Commerce Commission or the
competitors of the Colorado Fuel and Iron Company?
“MR. BIDDLE. Whatever answer I may make here I am making under oath.
“MR. FIELD. Do you say that is so?
“MR. BIDDLE. I repeat what I said.
“MR. FIELD. You did not intend to conceal from the Interstate Commerce
Commission the fact that that rate as published included the price of
the commodity?
“MR. BIDDLE. We did it for business reasons.
“MR. FIELD. I ask you for a categorical answer. Did you or did you not
intend to conceal from the Interstate Commerce Commission the fact that
that rate included the price of the commodity?
“MR. BIDDLE. I decline to answer.”
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