The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-02-03
THE GREAT OIL MONOPOLY.
STIRTLING FICTS MIR HITE COME
OUTIN THE ira II ~ IMINIT.ON

rhe Pennsylvania Road Admitting that Il
Gave the standard Rebate ur over 40
per Ceut.-I.ow the uuzrn ur 80 N,uounlIsta
Might very Easily Make ~ MIiIuu ~ Month.
PHILADELPHIA, Feb. Tho OIL Producers
Onion IS max NJ very hot fight against tho
Standard OIL Company in the Stn:c Courts. As
the Cleveland monopoly t. not corporation
that can be reached directly by any legal pro-
cess in Pennsylvania. the producers have at
tackled it indirectly. 10y showing s relations
with the Pennsylvania Railroad Company. In
the exhaustive history ot this gigantic power.
published recently in THE SuN. it was snid
that the producers believed that they could
prove In court all % their charges W.
Illegal arrangements between the Rnilroud
md the Standard Company. and to do this
they brought suit against the Pennsylvania.
charging conspiracy between its manager and
the Standards officials. This conspiracy
consisted. 1t was alleged ia an agree
ment to carry oil for the standard at
a price that through system Of re-
tatrs. would crush out every refining interest
In the United Statos outside q. the Cleveland
monopoly. and put into that combinatiu ms pos
session practically absolute control oi the pctro-
leum business of the world. Charges were made
before Gov. Enrranft and bee looked into them
personally. Then he instructed the Attorney
General. IN the name 81 the Commonwealth. To-
bring SUIT against the PENNSYLVANIA Railroad
COMPANY. and to ask FOR an injunction restrain
ing that corporation from discriminating in
favor " anybody in It's freight charges for err
ryng oil. The supreme Court at once ap.
pointed a muster to take testimony and hear.
ines have already been held in Titusvie Pitts
bureh. and Philadelphia. The testimony
already received fully bears cut the story
already told in THE SUN.
Soon after the hearings were begun. 1t was
apparent that such officers Of the railroad and
Of the Standard Oi, Company rs were within
reach OF subp1nHs. had decided as they had
done in investigations heretofore. not 10 give
any testimony. They wcro summoned. but
they did not appear, except by counsel
and 1t was formally announced that
acting on the advice of counsel they
Intended TO answer no questions. The
producers were. however. prepared for just
ouch an emergency They had summoned
others who could testify To- the facts sufficiently
10 make out case. as they thought The Phila-
delphia and Reading and the Central OF New
Jersey carry oil for the peunsylvania from lIar-
risburg to Communipaw. also via the Phi.a-
delphia ana Erie 10 the same place. The EN-.
pre Transportation Company. since absorbed
by the Pennsylvania. made q contract with these
companies Tor uro rata division % all irei glltS
ItfNlNfu lNF through riIl IlflI 10 il~f ffiiti-
LUIS CONTRACT was subsequently moiln"i WIN
refercnce 10 oil traffic knowing this. the Pro-
durrrs Union sunplnaej the officials Ut the
Reading and the Central Of New Jersey, and. TO
the Intense disappointment. 10 IL sait. ~ the
Standard and Penn-yvania officials. these COM
paui"s responded with hooks and papers. In
on Of the first sessions held in TltuSyille Du-
Vid Jon =. Leas~ istaut coWutroley oi the Read
ins Railway produced the contracts and also
tn monthly accounts from Nay % November.
ISIS. which wore rendered hy the peunsy lvania
= the Reading. These showed Tie amount Of
through freight charged hy the penusylvan. a
on OIL ST. pments and the rebate allowed there
for. which Were paid tack Co. some one. the state
nent does not SAY 70 whom. but the pro iUcers
claim. 10 N" StnnGrrt rc'H'" poo. The No
yemLcr statement Was explained IN detail ny
Mr. Jones', II Shove 'lHi the total ~. -s,s"rn-
syvania were slu7.D0O and tho rebate allowed
on this WIS so 600 OK To- iuhuIete She figures:
"ro.s wi freight ,uuinss ior No'cmher - si5 -"
Net carnin.. If On, lont uuc.-P,uu.,i,imA
Ealroad. Readsrs nairosi. tcu.ra Ncw
That Is. the Penn-ylyanih Railroad Company
admitted by this statement q les allies thai il
was allowing u r"i ate oi y per cont. These
iisur qre eyen lnrE"r ;hgn many of 10 pro-
the rebate II 80 great a. To- confirm o." h..i.i
that others besides the STANDARD OIL Company
are Interested IN this rebat" pool. and tae
producers propose 10 Ind out who these others
are.
phrt fora few days. josiah Lon bard. "a New York
reiin"r has testified chat President scott lud Mr.
Nur~ht OF Inc Ituusf iNdilN nave lfAAklJ al
United INC DISCRIMINATION tht u" company
they represent wu9 making ia favor ot 10.
standard mon'polV. ln int said Mr. Lom-
BARI tAe-" two railroad ON .als told me- that
] had better Join the STANDARD. for thut WIS the
only company that could keep ponce between
the trunk lines" This - one Il the item. ~ q
testimony thut the producers rely on 90 prove
their assertion tina. the Standard WouOp poly has
forced the railroad. % holm II crush out all
opposition In the refining business. Mr. Loui-
bard snd that C.ssatt had refused % make
rnies with him as a shipper 90 PETROLEUM. Dee
cause 10 Do 50 would not plen-e the Standarl
Alr Lombard WIS also emphatic IN his h".
lief that the standard Company CONTROL ed
the oil trade because u had been nble Nv the
Interests. The Producers filed MP many tolioa
Of testimony, which corrohOrated the assertions
OF The SuN IN lis history oi the Srowth 81 th,
monopoly. showing. Tor instance. TIA; on had
been wasted ~ the VOLS bernuse there were nc
shipping facilities Afforded outside Interest," rs
the railroads; TINT tho railroads would not
provide cars; then when outside shippers
meanwhile the Standard monopoly was
the only buyer practically. in the market-th"ra-
railroads the price 10 bee paid .or hauling. To-
day Is Is. Campbell. IN" Pres dent OF the MON
ana iHfge prodursr; said thal ihIr" wn, prae
that buyer was the standard OIL Company
The only power ana control the Ntandard hh-
over the market Is the receipt ~ Il r. very
heavy rebates on freight rates. believe u IL
impossible for any one 10 g.. mp"te with then
when they receive such rcbntrs rs they now do
for believe that 80 small "a rebate as ten cent,
q barr. would be- a ;1ruue Tor any r"iiner.
lnproNcr"ut Company uS II was ioil 90 ! ul
SuS's corres poudent uhd quoted tA" pro-trai l1I
OF the refining business .u Ptt-hur-h n ~ ma
wrr.." he said " hity rrNurrirs in Pitt-bur,l
prior o. the STANDARD combination with th'
Ih JaHS' Nti f''"il '.i""'u ~ ~ y
ara % GUAM cuul9l az thr7e lrhH"Trs
Most u them were dsmun'l"L and me oi
hs45s! n 10 Gi5"F Fl F Gb has SS' r
lueQ.' Mr. Cam ph"ll said that hr would Ant nay,