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 another part of the hearing, Mr. Field said to Mr. Biddle: “Can you
say, Mr. Biddle, how it happened that you issued a circular to your
subordinates in which you said, with reference to these coal rates, ‘To
be billed at figures furnished by the Colorado Fuel and Iron Company,
which include the freight rates and the price of coal; the rates issued
in the regular tariffs to be the minimum’?”
“MR. BIDDLE. Yes, sir.
“MR. FIELD. Will you tell us?
“MR. BIDDLE. It is because the railroads—the Western railroads
particularly—I don’t know whether the Eastern roads do it or not—have
been engaged in the reprehensible occupation of serving as a collecting
agency for the coal companies, and those particular instructions were
given so that the Colorado Fuel and Iron Company could sell coal to John
Smith at a given place and charge him $1.25 and somebody else $1.50 for
that same coal.”[189]
When the document was presented in evidence before the Interstate
Commerce Commission, counsel for the railway objected to its
introduction on the ground that it had been stolen.
Morawetz says that the rate agreement in respect “to shipments to the El
Paso and Southwestern was a three-cornered arrangement made in New York
in 1901 between the Colorado Fuel Company, the Santa Fe, and Phelps,
Dodge & Co., who operated large copper mines and controlled the El Paso
and Southwestern Railway.”[190]
Paul Morton, who was then the head of the Santa Fe traffic department,
says that in 1901 the people interested in smelting and mining in
Southern Arizona and Northern Mexico threatened to use Eastern coke or
build a coal railroad of their own unless lower prices were made on the
coal and coke they were receiving at El Paso and Deming. They were large
consumers, and their threat menaced a traffic worth nearly a million
dollars a year to the Atchison system. To protect its interests the
Santa Fe entered into an agreement with the Fuel Company and the El Paso
and Southwestern people the terms of which were that the Fuel Company
was to supply coal at $1.15 a ton, and the Santa Fe was to haul the coal
to El Paso and Deming “at the very low rate of $2.90 per ton, which was
in reality a division of rate, not usually published.” And “the
Southwestern people were to pay $4.05 for the coal which was to be used
by the railroad itself and the industries along its line.”[191]
Public-domain text, read in full here on John Shaqi.
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