The New York herald., 1879-08-30
RAILROAD RIVALRY.
Mr.. Vanderbilt Concludes
His Testimony.
TIL E OIL MONOPOLY.
Mr.. butcher on the Live Stock
Freightage.

SARATOGA N. Y, August 20. 1873.
The Legislative Committee on Freight Discrimina-
tons resumed its investigation this morning. and
Mr.. vanderbit's examination was continued.
Previous to going on with Mr.. yanderblt's testi-
mony, Nr. Sterne asked II Mr.. Jewett had been able
TO verify the cable despatches in reference to the
to his telegram for the production OF the stub
from Eries Office would be received during the day.
NEW YORK CENTRAL MANAGEMENT.
Mr.. Vanderbilt testified In regard to the agreement
OF March, 1872 between the railroads. producers and
oil reaners outside of the Standard Company. that
the rates should be impartial under the same cir
cumstances. He deemed that agreement in force.
but he claimed that the circumstances wore difler
said, '.the Standard construction of the agree
ment In our action. but not in principle"
He attributed the Standards monopoly not alone to
the capital handled by that company. but to the
sharpness Of the men composing the company; the
oil transportation is lost 70 the rairoads he thought
II the Standard Company had monopoly Of the oil
claimed they would control its price; he did not
mean to Let them compel him to carry oil at price
which would not pay simply because others did
he did not think they could be put down by egisla-
tion he did not think the West had too many rail-
many the Vest he aid not think the
New York Central had sufficient terminal facities
at New York it onS could carry four times a.s,
n more; 1ia have got got rolf rolling stock enough @ ana ana
to spare for the ordinary business. bat the in.
the year. and no railroad could afford to have
equipment to accommodate the traffic in the heavy
season; in all his railroad experience never saw
railroad able to do the business called for at certain
periods had three times much freight offered
Ia could be taken. and at the same time low prices
were prevailing; the low prices were to satisfy
public clamor for them; we ought to get much
more; have spent the last four Sc in
New YORK for facilities. and are now spending large
itures think railroads have done their share toward
the COMMERCIAL prosperity of the city and State OF
New YORK; 1t would hurt New York city II we were
to carry there tor the same price we carry to Bal
more.
NO ADVANTAGES ovEB RIVALS.
It is q mistake to suppose that the New York Gen.
trail has advantages rival roads; the manage
nent Of rival roads is expensve; they get good
local rates and do better paying business than we
40; those rival roads all the railroads and canals
their routes and IL they do not get good rates 1t
is their own fault; there are railroad companies
forming parts of our line who were in the habit OF
farming out cars; he had broken 1t up thought the
railroads were entitled to protection by law the same
non-monetary interests thought capital rs much
entitled to protection any other interest; is in
favor OF law to punish railroads for going above
below certain rates be fixed by the general govern
ment. cooperating with individuals and State gov
ernments the State legislatures haul railroads
up ut any time tor the Infringement Of tho law; he
thought IL governments would interfere with . shoe
maker or merchant in the conduct of his business
the man interfered with would be likely to sell out
and quit business; he thought corporations should
have the same rights as individuals.
MIR. Vanderbilt was questioned as to the increase
OF the funded debt &c. His knowledge on the sub
ject was uncertain, and no information of i'm
portance was ELECTED. After this subject
hsusted Mr.. Vanderbilt said 1T has just been sug-
or not we are goirg to declare another eighty per
cent dividend. guess not.
Mr.. Vanderbilt testified that the through passen-
ger traffic is subject to the payment OF commissions;
81 Is the commission to Chicago.
Mr.. Stsrne questioned Mr.. Vanderbilt a. to the
$4,000 charged to treasurers contingencies which
Mr. Worcester had testified paid out for legisla
tive expenses In and about the year 1862 Mr.. Van
derbit stated that he knew nothing about any such
an account in the New York Central and Hudson
River Railroad books.' fr,
Nc Von fxopn <ha ofa
thanked the committee for tho Consideration shown
him by them during his examination.
OIL TRANSPORTATION.
Mr. T. g. Patterson next took the stand Had
been engaged in the production OF petroleum for
ten years; was In no business now: Witness de-
pcribed the petroleum belt, which Is 100 miles in
length and 10 miles wide. and said the territory Is
constantly shifting; the production ut the present
time 10 much larger than ever before, and the
sumption has correspondingly increased; the geo.
graphical development does not affect the railroads;
out out pSu regard nt to the locality OF W the % develop
ment. He explained the progress made Ia
facilities for transporting from the wells
trade began to be paralyzed. and rumors
wore afoat of a combination between the trunk
general production; mass meetings held by the
producers. and committee. OF which witness was
member. was appointed to visit the presidents OF
the trunk lines and protest against the combination
the South Improvement Company was the name OF
the combination.
The contract between the South Improvement
Company and tine various railroads here pro-
duced. identified by witness and put in evidence.
Witness resumed-This agreement was subse
Quently abrogated and witness know that the parties
to 1t were getting lower rates; later, in 1874 the
"Rutter Circular made its appearance rrhe cir
oular read in evidenced The circular known
the ''Crude scheme" under which crude oil
transported for nothing to Cleveland and Pittsburg.
and which charged the same rate on the refined pro-
ducts from these rehneres TO New York from the
wells. thus putting the Cleveland and Pttsburg
reinerics, which were the property OF the Standard
Company, . footing with those in New York;
This circular also provided that secret rebate OF
twonty-two and half cents per barrel would be
allowed ON oil oil passing through the United Pipo
lines. This drove about eighty per cent of the
twenty existing pipe lines out of existence. They
were absorbed by the United Pipe line. OF tho min
directorsof the United Pipe line six identified
with the standard Company and Mr.. Wor-
cester. OF the New York Central and Hudson River
Railroad.
RATES OF rnEIeHrAeE.
The net rate TO outside shippers in 1878 was
81 4<, and the rate ut the time to the Standard
Company, according to the testimony OF Mr.. Cas-
satt. vice president of the Pennsyl Railroad
Company witness being present the investigation
In Pennsylvania. where such testimony was gven),
was eighty cents. Mr.. Patt. also testified that
the Standard OIL Company, OF Pittsburh and Cleve-
land: Pratt Co.. tho Acme Oil Company, Bostwick
Co., Imperial Oil Company. of Oh CITY; Attain
tio Rehning Company. OF Philadelphia; Camden
OIL Company. Of Maryland. and the Devoe Manutac-
turing Company, composed what Is known the
Standard Oh Company. Witness referred to the
OF the New York Central and Erie roads against
the Pennsylvana road explained In the testimony OF
Mr. Vanderbilt and Mr.. Jewett. by which the Empire
Company was wiped out OF existence and the fac
ties OF tho road by the stand
ard. Questioned TO the railroad built by Mr.
Vanderbilt. which tho latter referred to In his
testimony In connection with the bad faith of
tain oil men. witness said tho road was originally
built from Dunkirk TO within forty miles OF Titus
ville citizens of Ttusville mot the oil refiners
wished h,m to extend this line to that point and
promised HIM their businoss ~ long he would do
Il cheap any one else; no oil men went near
hm At this time and guarantee of oil traffic was
made; witness subsequently testified that
the road was now In successful operation
aud that 1t receives its share OF oil
under the Standard arrangement. Witness said
there was pipe line known NJ the American Trans
fer Company. owned by Bostwick. OF the Standard
Company; this line was transferred to United Pipo
lines; Il was generally understood that the New
York Central owns one-third Of the standard oil
Company stock and IL In also understood that tho
American Transfer Company was part OF the STAN
dard OIL Company system.
Az to Mr.. Jevett's testimony that he permitted
some one-he did not remember whom--to sink u
we'll In the roadbed of tho Erio branch running
tho w nea mi that tho