The New York herald., 1879-10-15
How Certain OIL Dealers We're Squeezed
Out Of Business
DERELICT WITNES SEES.
Me3B. Archibald. Square, Pratt and Baslgnk fail TO
Put in an Appearance

the members of the committee and counsel were
present. usual. and the inquiry proceeded with
delay. Much the ground gone over on previous
days was resurveyed, relating to the crushing out
of rival rehners by the Standard Oil Company ana
the excessive freight rates charged by the railroads.
This concludes. with few minor EXCEPTIONS the
testimony in regard to the surface railroads. To-
day the management of the "L" roads Will be In
quired into. and interesting developments are ex-
pected.
.wHERE IGNORANCE Is BLISS"
Henry IL. Rogers. of the firm of Charles Pratt q
Co., oil rehners. the first witness called. lie
could not say whether the firm shipped under the
Standard Oil Company's rates
@. Are you a member of the Standard OIL Com
pany ? A. think that is private matter
O. DO you ship oil under the Standard Oh COM
pany' arrangement? a. don't know.
O. Do YOU have amy contract with the railroads
for shipping oil? A. don't know.
O. What rate do you pay? A. don't know.
O. What is the capital of the Standard Oil Com
pany? A. Formerly S2,500,000. heard that it had
been increased.
@. Are you a stockholder in that company? A.
would like to consult counsel
Counsel ready and advised witness to answer
He replied, hesitatingly :-''Well, sir. am
by Chairman Hepburn-Was not your firm taken
into the Standard Oil Company? A. We were in har-
mony with the Standard Oil Company. and have been
for number of years. Ninety per cent of the
fners are in harmony with the Standard Oil Com
plny.
BY Mr.. Sterne-When you speak OF harmony what
do you mean? A. Well, mean they live happily to-
gether; for instance. am in harmony with my
wife.
Q. Yes, you married to her, and have contract
with her. (Laughter.) Do you mean that the peo-
pie who in harmony with the Standard Com
,,1,,.l
dom? A. Not necessarily as long they arc happy.
Laughter.) mean by harmony that you and so
to Wall street aud buy Erie at 80 and to sell it
at IL. That is harmony.
by Mr.. Sterne-You that you gentlemen
agreed with the Standard Gil Company on the rate
at which you were to buy and sell? A. Without
going further detail will say that relations
very pleasant.
The witness to Mr. Sterne-Is it abuse to be in
harmony?
Mr.. sterne-well. there are some kinds of harmony
that the law considers conspiracy.
The chairman stated that the committee desired to
know whether the firm of Charles Pratt & Co., that
lid not belong to the Standard Oil Company proper.
had arrangement with them by contract. Mr..
Rogers promised to furnish the desired information,
and was excused from further attendance.
John L. Mills, representing the iron foundry Of
. Abendroth Brothers at Port Chester. next testified
IN relation to the freight CHI argos of the New York
and New Haven Railroad The road. he SAID, charged
higher rate for ireighting their goods from Port
Chester to Boston than they charged New York
chants 10 Boston; the regular rate from New York
to Boston on plumbers castings ton cents per
hundred pounds; Abendroth Brothers. although
tweniy-eight miles nearer Boston, were charged six
cents they found it cheaper to send their goods
to pier 90 North River, and have them billed from
there TO Boston without breaking bulk. than to send
them direct to Boston; on stove castings from New
York the regular rate fifteen cents the firm
charged twenty-fve by way of New York they
could send them for twenty-one cents, saving SO a
:ar; the company afterward reduced their rate to
tonrteen cents for plumbers castings and nineteen
cents for stove castings making the expense about
the If sent by way OF New York this was
still So per car higher than the rates from New
YorE dIrcct the firm loaded the themselves.
ANOTHER
Charles L. Morehouse. an oil refner said that he
formerly had prosperous business netting S21 900
profit yearly; in 1875 he first began to experience
difficulty III getting material aud in sending it to
getting lower rates of freight than he could g,t
ihc difference 20 or rs cents against sl.5O
$500 barrel Mr. j. d. Rockefeller built refinery
small capacity in 1867 for the production OF burn
ing oil; from this tarry residuum was left, and
lubrcator; afterward. Rockefeller's refinery be-
the Standard Oil Company, and gradually
absorbed the twenty or twenty-five other iehneries
a Cleveland: there only there now the others
were dismantled or destroyed: in Pennsylvania the
same thing occurred. meeting, however. with more
oppostion the process went on 80 that there were
hardly any lett; ut Pittsburg there were Il teen
twenty refneries all OF which had been purchasedby
the Standard Oil Company; some of them
abandoned and others i'll the interests OF
the company: in New York the same absorption
took place. When witness built his refinery he did
with the express understanding from Mr.. Rookie
fcer that he (witnessl should have the residuum
from his factory to work; he was to have twenty
five barrels day. but it soon reduced to twelve
barrels. II knew what that meant continued the
witness; that meant, we squeeze you out to buy
Cn rla. - t1aNh hQyA nni fla.N and
have nothing" The works, winch cost him sal 900.
sold tor $4,000 TO the Standard OIL Company;
that company was making money out OF Eis ruin
by Mr.. Sterne--Why dad You not convert your
lubricaiing works into regular refining works9 A.
might as well have set powder III there and put
matches to 1t and blown it up.
Mr.. Morehouse said that the first agreement with
Rockefeller for the residuum OF his refinery at
SIX cents barrel, and 1t was gradually raised to
twelve and half cents.
Q. Why did you not refuse to sell out TO tho stan
dard? a. Tho choice was, ''You must either sell out
Or be squeezed out, and thought would die q
natural death; think that am wiped and made
spoor man by their operations III not lotting me
have material that was willing to pay for: it is the
general feeling OF every man who has sold to the
Witness further stated that Rockefeller got his
empty barrels to New York Tree OF charge; In each
shipment of londed barrels of oil thale was room
enough in the cars to place second tier OF empty
ones; the car could not carry two tiers OF full ones;
the empty barrels were carried tree.
DIFFERENT GRIEVANCE
John Wimarth. an aged resident OF New Rochelle,
was tho next witness lie came voluntarily TO tes.
tity with reference TO a grievance concerning the
railroad depot at New Rochelle; there plat
form the side opposite the station and passon-
gers going east Obliged to land between the
tracks, the bridge near there had opening IN it
that let the rain aud mud down the heads OF those
passing undcrncath it was the vlest depot ho had
seoi
Several other country gentlemen offered TO testify
the subject. but Alr. Scrne said lac thought they
had enough on that point.
A telegram read from MIR. Charles Pratt stat
ing that he was unable to attend. The chairman
said he could not DO excused. A recess then
taken.
Abicl Wood, an oil commission merchant, for-
mcrly "a rcfncr took the stand when the committee
reasscmbled, and testified that about the year 1861
he began TO feel that something was ut work which
was disturbing his business very much; his Gus
toners IN New York gradually being taken
away from him by being supplied at cheaper rates