FREIGHT RATES AND MANUFACTURES IN COLORADO 45 



cial favors to the company in the matter of freight rates as the company 

 had united with Palmer in the development of the coal and ore beds and 

 was therefore entitled to a good bargain. This is why, according to the 

 evidence of the receiver of the Rio Grande, no other companies were 

 allowed to sell coal in Leadville except the Colorado Coal and Iron 

 Company. 1 This also explains why the above company shipped coal 

 from Coal Creek to Pueblo at two dollars less a ton than could other 

 shippers at Canon City. The discrimination was even greater than two 

 dollars ordinarily at that point. 2 This is also sufficient to explain the 

 refusal of the Rio Grande to furnish cars to the other companies even 

 though a number of the cars desired were at that time standing empty 

 on the side track. 3 



Concerning the railroad attitude toward manufactures in Colorado 

 Mr. Shelby, the general freight agent of the Union Pacific, said : 



It would be to the interest of the Union Pacific Company to so adjust their 

 rates between the Missiouri River and those Colorado central points, as to make 

 it to the interests of the merchants at these points or at the Missouri River, but 

 when you come to go a step further, you will see that would turn the jobbing mer- 

 chant of Denver against us, if we were to pursue that policy; so from a business 

 standpoint, we find it to our interest to so adjust our rates as to give the Denver 

 merchant the benefit of dealing with all the merchants in Colorado. There may 

 be some few instances where this plan is not lived up to. 4 



A number of wholesalers had already shown that this plan was not 

 generally lived up to. In theory the rate to the points in central Colo- 

 rado was the rate to Denver, plus the local rate, but a number of instances 

 are recorded where the dealer in the interior of the state got the same rate 

 as the Denver dealer. As far as the manufacturer was concerned, Mr. 

 Shelby said the Union Pacific was willing to make the freight rate 

 on raw materials 90 per cent, of the rate on manufactured articles in 

 order to encourage manufactures in Colorado. 5 



As to the general question of freight rates from the East to the Rocky 

 Mountains, it is clear that very great pressure was brought to bear on 



1 Evidence, Special Rauroad Committee, p. 206. 



3 Ibid., p. 19; Colorado Daily Tribune, January 1, 1885. 



3 Evidence, Special Railroad Committee, p. 67. * Ibid., p. 240. s Ibid., p. 228. 



