| Show against do re 60 W LS CHANGE IN I 1 1 I I 1 lie bo fuel company anti tint otilta 0 complain bluit athi r und and juu ghuido ie Is 1 against them WASU washington INGTON D C july 10 on complaint of the interstate commerce commission tiled filed today the department of justice will institute prosecution against the denver deaver ind rio grande tor for violation of the cora commodities modi ties clause of the interstate commerce com mece act because this company owns and Op operates OrAtes the mints of the utah fuel company lying between mound mounds and colton and la Is engaged in n selling coil from these mines in teiho montana washington and oregon cont contrary to law the interstate commerce commission Is 1 not empowered to bring prosecution for violation of this title see section but suit will be instituted by the department of justice to compel compol the denver and rio grande to sell its interest in the utah fuel company or else discontinue the commercial sale of coal from these mines outside of the state of utah A large part of the product of the utah fuel company mines la is used on denver and rio grande locomotives and arid some Is I 1 sold la in atah that Is I 1 within the law bit it la is unlawful tor for the denver and rio orande grande owning absolutely the fuel coal to 11 coal commercially in any state other than that la lit which the coal la Is mined 0 this of the interstate commerce came today as part dart of its decision in the case care of the consolidated fuel company and others against the denver and anil rio grande and other railroads la a previous decision the commission held that the rate on coal biota the utah field on tho the denver and rio grando to points in lit idaho montana washington and oregon should not exceed by more than 25 cents a ton rates to the fame u markets from mines in tit the roch rock spring field in wyoming the consolidated fuel company and the castle valley coal company id to tiling the complaint ailene that the denver and rio armade wa was discriminating against them teem by corn com pIl ln them to build feeders from their mines to the main line oc of the denver and rio orande grande and to bear the cost of hauling of the th coal from the mines to junction points la in addition to paying the group rate on oil coal from the utah field to the markets named whereas the railroad company apply applied d these group rates rutes from the mines of the utah fuel company which it U owned to market thu thus placing at a disadvantage claimed to amount to forty cents a ton auit gt art in other words coal from the utah fuel company mines took UP lie group rate from mines to market while hile the coal mining companies paid thia this rate plus the haul to the demer dener and rio grande main line tho the commission found this sava the denser demer and rio grandt grandc a practical monopoly la in the stats stat s name and nd made it impossible for the cor coroll toll dated and other complaining companies to compete with alth the utah fuel coracan corapan co the commission does clots not enter a order in this case but cont concludes ludes that the cost of getting coal from the consolidated and castle valley mines wines to the line of the denver and rio orande is at least 25 cents per ton and stipulates that the denver and itlo graude grande either must consent to a sidn of the present group rate on the consolidated and castle valley co coil 11 of 23 cents per ton as compared to the rate on sunnyside Sunny glde side coal mined by the utah fuel company or the denver deaver and rio grande may mar take over the oler operation atlen of the branch lines of complainants and apply the group rate to complainants coal from the mine to market or it cac car make complainants aa an allowance of 25 cents per ton on om all coil it hauled but it must in a it reasonable time notify the commission which plan it proposes 0 adopt prosecution to follow readjustment of this question ht however i 1 entirely independent of the complaint bled by tha th commis corn ml slon with the department of justice and steps are to bo be taken immell ady athly by the attorney general gentral to prosecute the denver and rio grande tor for its violation of the com corn clause of tho the interstate commerce act inasmuch a as its violation is I 1 ap government bult will be brought to tako take the utah fool company out of competition with tie independent coal mine on all interstate bustness bul aea 1 unless th tl denver anil and rio grande of its it interest interests la ible this company at Plo ploena ent the railroad own owns all t the he stock in the utah fuel company and officers of 0 the coal compan company the denver and are officer officers of rio grande which is I 1 a pure viole ton flon of or tho law so long as jhb company sell selik coal for commercial uee use outside the state of utah SALT LAKE CITY july 12 the action of the interstate commerce commission irk 10 the bater latter ot of the denver and wo rio grandes ownership in 1 utah coal properties was wa a surprise party to the officials both here and in denver S V derrah a blatant al stant general freight agent in this city saye says the tb railroad company did not believe that the existing relations t f the two companies were in la violation of the interstate commerce laws for that reason the railroad did not look tor for anything but a favorable decision the clause in question makes it unlawful for a railroad to own any interest in the loal or other products carried by it in interstate ter state traffic the fuel company und and the railroad company took the stand that the coal chipped shipped from the dines mines of the utah fuel company p kny waa was not the property of the railroad nor of tho the the fuel company ati became the property of the consignee as soon as I 1 abed for thia reason they believed there was no violation of the interstate shIp shipping pins regulations I 1 for some time past the two comp companies ardea have beva separate and apart from each oath other while both are owned by the same stoc stockholders khol dera ers thy they ara a separate corporations with two different seta sets of officers D F bush Is president of the railroad while E T jeffery Is president ot of the fuel company E L drown brown Is 1 vice preil president dent and general manager of 0 the railroad and A 11 cowie Is vice tice president and 11 G general manager of the fuel company the relations of the railroad to the fuel company are same aa as they are with the thet independent coal companies the utah fuel company Is shown no favoritism in service 7 or car distribution and receives no special benefits or contess lons from the railroad denver inver opinions denver deaver officials deny that the decision of the interstate commerce commission will have such a tar far reaching effect aa as to force them to confine air interests to strictly Intra traffic denver railroad rall road attorney eay say the decision IA interpreted to M mean a that the railroad must dispose ot of tta its worth ot 0 coal property pro the victor american fuel 1 company may be forced to abandon control ot of the colorado and southeastern vail 11 road and the colorado fuel and iron company may also be forced to yield control ot of the colorado and wyoming a coal road running from trinidad to sopris the department ot of justice may inquire into alleged by tho banta santa in irk southern Colora colorida colorada Co lorada dj where it la Is generally understood the railroad owna owns the writs then the union pacific railroad may possibly bd divorced from tho the union pacific coal company williams cowie lewis and brat let managing officials of the utah fuel company who are only able to officially comment on t the h e 9 ot of the as affecting their corti company pany were out ot of town today but it la 13 stated by united states people that as far as ibey they know the group rate sought ought tor for by the complainant companies were really put into uy by the taking over by the denver and rio illo grando of the branch road roads from price to mohrland 11 hiawatha lawatha and black hawk moreover another affiant in the complaint haa has been bakem over by the U S amel ting wig refining and mining alining company which it Is I 1 stated really settles the differences alleged |
