4 \ FEDERAL REPORTER.
Pacino Railway, are the same by petitioners’ lines as by any other line, and
nothing done by respondents has ever operated to divert tranic from peti-
tioners’ lines, or to discriminate against them. They specially deny that they
have ever· charged petitioners to or from Shreveport for freight any more than
they charge for freight over their (respondents’) own line, and they show
that since March. 1886, such charges, as a rule, have been less than those
mango on their (respondents’) own line, and less than justlncd by the letter of
e aw. * V c
Sixth. Respondents aver that from the time they took possession of the
Texas Ja Pacino Railway until September 1, 1886, the division of revenue on
business interchanged between the roads of the Missouri Pacino system, in-
- tersecting the Texas & Pacino Railway, including the St. Louis, Iron Moun-
tain &Southern and the Missouri, Kansas & Texas Railroads, was made on
the basis of whatwas known as the "Gau1t-Tucker award," made by two ex-
pert tranic managers, viz., John C. Gault, now general manager of the peti-
tioners’ lines,=and Joseph F. Tucker; then traffic manager of the Illinois Cen-
· tral system, and now assistant general manager of the Chicago, Milwaukee St
St. Paul Railway. On the first of September, 1886, a new agreement for di-
vision of revenue on business interchanged between the said roads of the Mis-
souri Pacino system and the Texas & resins Railway was duly made and exe-
cuted, which has been in operation and duly acted upon by the parties thereto
since said nrstof September, 1886.` A copy of the same is made part hereof,
as Exhibit]?. C of· this answers The petition and order to answer in this
proceeding were served on the receivers through Lionel A. Sheldon, one of
your respondents, on the ninth of September, 1886. They show that at the
time of such service, and since, they have, as above, been acting in the prem-
ises under said agreement of September 1, 1886. ,
Seventh. Your respondents aver that the Missouri Pacino roads intersect the
Texas & recite Railway at eight different points, while the Vicksburg, Shreve-
port Jn Pacino. intersects the same at but one point. The effect is that the
‘ Missouri Pacific roads could, in the absence of this agreement of September
Ist, deliver freight at these eight points without any payment to the Texas Sc
Pacino Railway, and could also deliver freight for local points on theEastern
division of the Texas & Pacino Railway at better revenue to the Missouri Pa-
cino roads than derived undersaid agreement. In other words, the Missouri
Pacino roadspay more in many instances, under said agreement, than they
would in its absence; whereas, at Shreveport, petitioners’ roads pay nothing
in this way, but are in sharp local competition. As to the Rio Grande divis-
ion, its principal business is the transportation of cattle, and the principal
markets are St. Louis and Chicago. As to this business, petitioners’ roads
can offer respondents nothing, while the division of revenue therefrom al-
lowed by the Missouri Pacino roads under said agreement is a liberal one.
This fact is important in considering the propriety of the agreement of Sep-
tember ·1, :1886. - They further show that the effect of said agreement of Sep-
tember 1,. 51886,. is to give the Texas Gu Pacino Railway alarge business in
lumber from the pineries of Louisiana and Texas, and in salt from the mines
of Iberia, for the north-west, which it could not do to advantage in the ab-
sence of the division of rates established by said agreement. They show that
the same is true of the business in cotton to Mexico, and wheat to mills on its
line. Theyfurther show that, in consequence of the position of Missouri Pa-
.cino lines on both sides of the Texas Gt Pacino road, the said agreement pre-
serves to the latter a large amount of business which might be diverted by
transportation over Missouri Pacino Railway lines now existing, or easily
built. Said agreement also secures to the Texas & Pacino a quantity of busi-
ness controlled by the Missouri Pacino system, destined to points competitive
between the Texas & Pacino and other lines which also directly intersect Mis-