The New York herald., 1879-08-27

would furnish it's contracts for the committees in
speotion; Mr.. Bsggs manager OF the western divi-
way has charge of furnishing for transporting
OIL as part of his duty; will furnish the committee
road in 1878, and for whom it was carried
also the amount received and retained for
the same less all rebates aud drawbacks; Mr. Oln
has made complaints regarding transportation over
the road; he (Mr. Jewett told Mr. Oiu that the Erie
Company controlled but few tank cars and those
were mostly taken up by customers of long stand
ing; that il Mr.. Olin would furnish the cars we
would transport his oil on the terms rs for
other customers. or if he would assure us of con-
business to certain extent the railroad would
build tank for his accommodation; the Stand
Customers Of the road for long time and ssneralv
used all the facilities we could furnish; never
any letter written by Mr.. Rockefeller vice president
OF the Standard Oil Company. to Thomas A. Scott.
president of the Pennsylvania Central Railroad.
letter here presented was recognized stating
in the first part the substantial portion of the agree
ment regarding oil transportation heretofore testi-
fed to.
the quantity OF oil to be carried guaranteed.
Mr.. Sterne offered q copy of the letter from Mr..
Rockefeller to Thomas A. Scott in evidence.
Mr.. Jewett protested against the letter being re-
ceived, only q small portion of it contained any
thing which was according to his knowledge.
The committee declined to receive the letter.
Mr.. Sterne contended that ther~ was evidence of
conspiracy between four trunk lines and the Standard
Oil Company to drive the Empire Oil Company cut
MIR. Jewett said he asked the Standard Company
for no guarantee OF 1000 900 barrels yearly.
toned in Mr. Rockeieller's letter.
Mr.. Jewett's attention being called to the portion
of Mr. Roc kefeers letter. ne ntioning an allowance
of ten per cent rebate the Standard Company for
acting eveners, said he agreed to allow re-
bate on OIL the shipment OF which not con-
trolled by the Standard Company. Mr.. Jewett said
his experience of railroads did not justify belief
that they exercised any arbitrary power to
benefit anyone else; he was not party to any
the Pennsylvania Central. The witness said that
the Erie Company had never, to his knowledge.
paid ten per cent to the Standard Company for crude
Oil not owned by that company some organiza-
ton controlled by said company and being sub
stantially on their account.
Mr. Jewett could not answer as to the result of the
conference OF railroad presidents in Saratoga in
1878; he had recollection Of what rebate or fur
ther reduction agreed upon at that time: he re-
mem bered the conference at the Windsor Hotel re-
Gently: he did not remember any business done at
that conference in relation to the oil business.
He was questioned as to the organization OF rail-
roads in the coal business.
Mr. Jewett's salary as receiver $4,000; there
has been considerable decline in railroad material
since 1878; it is now on the increase the material
of the Erie is now much cheaper than at the time Of
ahor now nav Ii 10 ner dsv Eris has M now mora
mileage than when he was appointed receiver more
sidings. &c. and few more miles of roadbed; there
franchises or privileges not had in 1874
to make the road conform to gauge traffic;
SINGLE track has been laid its whole distance; broad
gauge is feet. narrow gauge is feet 8H inches;
we pay ordinary mileage to the Standard Oil Com
pany tor the use Of its cars; during the war the
mileage ran up to two cents: ( think it
is three quarters OF cent; it is only within
few years that the production Of oil began Eries
lines; large majority OF the oil equipment on the
Erie belongs to the Standard Compauy-about as SIX
to two; would not build or authorize the build
ing Of tank cars on account of the uncertainty of
the oil traffic. The witness instanced several oil
producing regions of former times, which are now
unworked; the oil business should be in the hands
OF few persons who could follow its shifings, and
make the business profitable by various devices;
think the oil traffic of Erie has increased since 1865;
don't think the Pennsylvania roads traffic has in
creased; could not say to other roads; will furnish
to the committee statement of the oil transported
Erie the beginning of the oil trade don't
know what proportion OF oil passing over all roads
is transported.
THE RAMsDELL CONTRACTS.
Mr.. Sterne here questioned the witness to Mr..
Homer Ramsdell's contracts.
Mr. Jewett said when lie came to his present posi-
tion he found two contracts with Mr. Ramsdell.
furnishing to the Erie Company fifty merchantabie
railway at cost not to exceed $40 900, which
then about the market price; those were to
be paid for in monthly instalments, running q
series OF years not yet expred by the terms of the
contract he was to transport certain freight from
Newburg to New York which the Erie Company was
to deliver at Newburg for New York. he furnishing
terminal facilities in New York; for that he to
ceive the difference between the local rate of the Erie
Company to and from Newburr and the rate to and
from New York had the freight come directly from
Jersey Cty the other contract has reference to the
depot cars. &C., in Jersey City these two contracts
were marked exhibits; the contracts continued
during his recevership but another was made on
the 3lst of last May which wipes out the
contracts.
Mr. sterne questioned MIR. Jewctt as to tho pay
meut6 made to MeSSrS. turner, Leo ana Mcclure.
the plaintiffs Farmers Loan and Trust Company
attorneys in the foreclosure suit against the Eric
Railway Company.
Mr.. Jewett stated that he paid Messrs. Turner Lee
and McClures legal expenses from time to time
der order of the Court that the Court had appointed
referee to pass upon such matters James q. Spen-
Ger was the referee and the Erie Company paid him
$4,000 year.
Judge Shipman desired to know what tho object
of such questioning WAS.
Mr.. Serne replied that the object to show that
the defendant paid the expenses Of the plaintiff in
appointed receiver; that the expenses Of the
referee and his fees were also paid by the same
party as well as the expenses of the Attorney Gene
raj and his tees for bringing suit
Mr.. Jewett qualified and further explained his
ideas given yesterday as to special rates. illustrating
his idea by the case of tanner whose tannery was
upon the line OF the Ere and who could not operate
his works unless given a rate sufficiently low to
enable him to send his leather to market. In such
make him special rate. This is not gen.
eral, but would be the same under like circum-
stances to other shippers
In reply to question by Mr.. Grady. of the COM
mittee. as to the facilities in baltimore, compared
with New York. Mr.. Jewett said they were much
better and cheaper in Baltimore and also in Boston,
than in New York; Erie pays to the city of New
York $4,000 rent per annum for wharf privileges;
in fault about terminal charges or not. but he did
know that the charges excessive, beyond those Of
Phiadelphia and Baltimore:
The direct examination of Mr.. Jewett closed at ten
minutes past eleven A. NJ.
Judge Shpman questioned Mr.. Jewett rs to whether
he had devoted his whole time to the business of the
Eric Company?
Mr. Jewctt said he had his salary as receiver was
$4,000 a year. and was paid by the Court; he had
received no other salary from any company beyond
that
HISTORY FoREcLosURR SUIT.
When proceedings began to annul the charter Of
tho Erie Company and appoint q receiver MI Jewett
went to Albany and saw the Attorney General. in
whose name the proceedings were begun, to ask him
to come and see IL they could not be stopped; the
Attorney General promised to do in March or
April. 1876. the Assistant Attorney General to
New York and began Investigation; explained mat
ters to him. and sold him how his predecessors had
invested means in coal lands, ,ncurring debts there
for; did not think these lands could be made profit
able, aud had made arrangements. as he supposed,
with the Delaware and Lackawanna aud Delaware
and Hudson to take said lands and expected
in that way to get means to pay the in
terest; the directors were convened and pledges
were made of means to pay the interest;
MIR. Brown, acting tor the Attorney General. again
came to New York. and said the Attorney General
had been advised that the interest could not be paid
except runous sacrifices were made to get the
means; about the same time was told by the Della
aud Hudson Canal Company and the Delaware
I.nt1 COmpauy that their counsel re-