The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-03-09
THE GREAT or MONOPOLY.


the Pennsylvania Railroad Linea
PHILADELPHIA March S.--The examlna-
tion into the alleged freight determinations 10y
the Pennsylvania Railroad Company in favor Of
tho Standard Oil Company was continued TO-
day.
Mr. Jefferson Justice. Assistant Auditor Of tho
Pennsylvania Railroad, produced paper show
ing that upon total Of 343. 767 barrels OF crude
oil n r. butte OF s6S 9j3 had been allowed to tho
American Transfer Company but ho said tho
character Of his duties would not D rmit Of his
explaining how his road came to allow that re-
bate to the Transfer Company named.
The next witness was A. j. Cnssalt Third
Vice President OF tho Pennsylvania Railroad
Company. He was asked ns to low the trans
portation Of oil was conducted over the Penn
svvana Railroad in January 1877. and said
that II WIS by tho Empire Transportation Com
pany. n private corporation, and vai iOus other
lines to New York and Philadelphia At that
tim" tho work was done 10y contract with the
Empire Comuanv which, in addition to 900
track cars and 400 other cars. also had control
nnerics. g..
.o-.Are yen gcqg1nted with an organization known as
thS S% y". OF Company AL an .,.n,no,,
January 1871 transporting its oil Owe, Tic routes Of The
Eay'd Oon" S or sS t'5 con nSm,
ceased transport oil by the pcnns,y ana Railroad &c.
cuiding to the combination, In March.
Mr. Cnsse then gave tho reasons why the
TRANSFORMATION ccase1 saving that the standard
Oh Company and the Empire Transportation
Company, being distinct corporations, did not
harmonic we'll together. This led to cOmpcti-
ton and the prices " oil in the oil regions were
raised. while at the scnhoard they were de-
pressed This was due to the manipulations of
the market by the Standard Oil Company. He
then detailed at some length the various lines
by which OF was, carried TO mo sea-
board from the wells ln the sommbinotlon
and Ohio. the Lehigh Valley, the Reading. tho
Lake Shore. aud thu, Great Western Railroad
Companies. and the United Pipe Lines COM
bincd with the Standard Oil Company. 1t was
war upon the shippsTs OF the Pennsylvania
HBailroad Company. Thc witness end he IN n
line In August 1871 !" he, said Nj. Rocka-
William +. Warden Of this city. and others en-
tered into nogoiiations with the Pennsyl-
meeting was at tho St. George's Hotel in
this city; and tho subject 81 discussion
was whether some contract could not bo made
with the standard Oil Company 10y which tho
competition should cease The Standard Oil
Company insisted that they could make no con-
tract or arrangement while the oil business II
the Pcnnsylvania Railroad was carried on
through the Empire TRANSFORMATION Company.
standard Oil Company. The Empire Company
had refinery at New York. which the standard
draw its patronage from the PENNSYLVANIA Rail-
road Company. But the final blow was given
Wnen, subsequent 10 complaints Iytne Sunnafu
Company. the Empire started refncries at Phil
adelphia. The Standard Company insisted that
the first condition Of coming back to the Penn
sylVania Railroad Company was that the En-
pire Company should cease to refine in com
petition. and the. Standard was supported by
| three trunk lines"
He then snid that the Standard oil Company
| wanted the PENNSYLVANIA TO buy the united pipe
| lines but the Pennsylvania Railroad had no ne
EQUATIONS with the latter company. An agree
| mcnt was finally consummatcd with the Stand
| ard Oil Company about the LIST Of October. 1877,
| by the purchase of the Empire Transportation
| Company by the Pennsylvania Railroad Com
| pany. He detailed the arrangements by which
| the purchase was made. from which II APP
| eared that the Standard oil Company had fur
| nished all the money required.
| When this statement was gone through with.
an adjournment was had until Monday morn
| ing at o'clock.