38 UNIVERSITY OF COLORADO STUDIES 



competition at these points and there was no water competition at 

 Denver. These articles were shipped around Cape Horn. 1 



Coal Mining 



It appears also that the business of coal mining upon which the 

 growth of manufacturing industry depends was not greatly encouraged 

 by the railroads. Various witnesses before the committee testified to 

 discriminations of different kinds which interfered with the profitable 

 conduct of the business. Mr. Langford who was at that time operating 

 the Marshall Mine about sixteen miles from Denver stated that the 

 freight rate on coal from the mine to Denver was $1.25 a ton. The 

 Louisville Mine was operated by the Union Coal Company and was 

 two miles farther from Denver than the Marshall Mine, but the rate on 

 coal from the Louisville Mine to Denver was only twenty-five cents a 

 ton. This was denied by the general freight agent of the Union Pacific 

 who said the Union Coal Company was a department of the Union Pacific 

 Railroad. 2 The directors and stockholders of the Louisville Mine were 

 the same as the largest stockholders in the Union Pacific Railroad 

 Company. 3 Mr. Goodrich who was mining coal at Erie confirmed the 

 testimony of Mr. Langford. He stated that he was obliged to pay $1 . 00 a 

 ton to get his coal from Erie to Denver, and that he could not sell in the 

 Mountains nor south of Denver as the freight rate was discriminatory. 4 



The sale of Colorado coal outside of the state was not encouraged by 

 the railroads. A Denver dealer got orders for coal at places in 

 Kansas. The Union Pacific quoted him a rate of $3 . 50 a ton for 

 the shipment of coal to these points. A traveler had been sent out and 

 had worked up considerable trade. Three cars were sent over the Union 

 Pacific. Then an order came to receive no more cars, and the shipper 

 had to abandon the attempt to sell in Kansas. Coal was at that time 

 being mined in Gunnison County and shipped to Denver ready for the 

 markets in Kansas and Nebraska. The coal came over the Rio Grande. 

 The Union Pacific raised the freight rate for hauling coal to points in 

 the states east of Colorado to $10.00 a ton. The officials of the Union 



1 Evidence, Special Railroad Committee, p. 248. 3 Ibid., p. 50. 



' Ibid., p. 239. * Ibid., p. 64. 



