The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-10-18
ON The DEFENSIVE.
The Railroads Presenting Their
Side of the Case.
IL A N d S I E A M.
Further Testimony Before the
Legislative Committee.

|
Immediately upon the reassembling of the Leqis-
lative Committee appointed to investigate the man.
agement of railroads in this State. yesterday morn
ing ut the rooms OF the Chamber of Commerce. No.
G3 william street, the the side of the railroads
was opened. Ex-Judge Shipman and Mr.. George r.
Blanchard represented tho Erie Railroad and Mr.
Chauncey NJ. Depew the interests of tho New York
Central, Mr.. Simon Stcrne examined rs usual on be-
half Of the people. Matters relating the Erie Rail-
road and chiefly regard to its oil business and tho
transactions Of the Standard Oil monopoly. the
first topics presented. Mr.. Blanchard conducting
the direct interrogation Of witnesses Most Of the
ground covered by the testimony had already boon
gone in the presentation OF the on behalf
or the people. and consequently less interest wss
manifested in yesterdays proceedings.
THE STANDARD MONOPOLY AGAIN.
William T. Scheide petroleum dealer from PENN
syvania. first called and testified in regard to
the South Improvement Company:-Under its con-
tract the New York roads to receive forty-dve
per cent Of the business the receipts being pooled;
the oil dealers secured contract with the New York
roads at more favorable terms but only eighteen
per cent was left for the New York roads; John J.
Fisher of Oil City. violated his contract with the
other dealers. and sold $4,000 barrels Of oil to the
Standard Oil Company, which part of the South
Improvement Company. thus breaking the blockadet
the charter of the South Improvement Company was
afterward repealed by the Pennsylvania Legslaturei
witness had applied to the Pennsylvania roads for
drawback and received one; the business at the
weehawken docks always done to his salts.
faction; the pipe lines had q pool. but
Hunter L. Cummings did not enter It; the
ratio on the railroads to Now York was 81 rs bar.
rel but they charged 81 A. collecting the twenty-five
fha
given buck a rebates the railroads gave advan-
tage to ono pipe another. except perhaps a.
against Hunter & Cummings; witness had sold his
refinery to Charles Pratt Il Co. - ~ s <.
BY Mr.. Blanchard-Did you sell 1t because Of
any advantages that the Standard Oil Company pos
sossed over you by our liner A. No. sir.
O. Or for any reasons connected with railroad dis.
crimination or preference? A. No. sir.
@. Did tell you at that time that we would be
glad to have you continue in the business and give
you as good rates anybody else? A. Yes. sir. do
not think have ever had anything to complain OF
in relation to the Eric Railroads treatment of US.
Witness did not ship anything by the Eriewhen
Bostwick had charge of the docks at the end Of the
road; he began to ship over the Erie because Of
bad treatment received from the Pennsylvanis; he
was the largest shipper. and made contracts aheaa
for cars when business poor he had no din
Guilty in transporting OIL but when 1t became brisI
pers for cars and sometimes witness could not gel
enough transportation and was obliged to buy oil u
Now York to fill orders; he then went over from thu
Pennsylvania road to the Erie.
A REBATE ADMITTED. aa Hit.
Witness did substantially the whole business. re
ceving rebate equal to the freight on the branch
road BY which no had to bring his oil to the Erie,
and. in addition. the cost OF transferring tho oil
from the narrow gauge road to the broad gauge
cars thus making his actual freight the II
the Erie got the oil from the mouth of the we'll;
witness became the sole shipper. but received no
other rebate than the expense mentioned Of getting
the oil to the Erie tracks, witness sold out his busi
ness because tho refining business in New York had
been largely bought up by the Standard OIL Com
pany; instead OF buying his crude OIL they would
send thor own to New York and I'LL the refneries
with that. 30 tho crude oil Of other parties
could not be refned witness sold out to Mr.. Pratt,
who was connected with the Standard Oh Company;
his works tho only outlet against the Standard;
maintain themselves afterward other dealers had
to send oil by rail to Buffalo and then ship by canal
the market in 1876 they would have been all ABB
sorbed by the Standard; substantially the whole
business in the hands OF the Standard Oil Com
pony and the firms affiliated with 1t.
General Alexander Divcn was called and asked to
give the names OF any o. the % wn1 oD3sIssd
charge OF tho terminus. but said that he could NOS
recollect the names OF any of the Erie shippers.
ton facilities from them to the seaboard ext
exhibited aud explained by ex-Judge shipman.
Erie Hallway, was then called to the witness stand
and was examined by Mr.. Shipman. He testified
Erie's freight traffic. subject only to the Presidents
and the Board OF Directors. He described his con-
nection with other railroads.
A recess waa then taken.
Chairman Hepburn. after tho recess stated that
the committee, both publicly and privately. had
been asked to go into the subject of taxation. They
wero well aware Of the need of investigating the
whole subject but the action OF the Senate and As
sembly had shown that 1t was not intended that the
committee should investigate tho subject. and they
had concluded not to do so. "a
nroducad the tsri Of troirhts Of the Erie RAILWAY
He found that the uniform freghts were based upon
tariff Of nve cents per ton per mile for arss class
two for fourth class for distance OF fifty miless
in addition Twenty-Five cents per ton was paid for
forced. principally by competition. to alter these
rates; there fifteen competing lines at thirty.
by the Charman--you think you should take
into consideration tho amount OF profit man gets
freirhtq A. think that if tho public demand that
we should divide our profits with them thoy should
BIO willing to divide theirs with us. q
ErFEcT OF REDUCING CANAL TOLLS
Reduced canal tolls had also forced change In
the Eric rates; the time Of loading cars at
hours as at large centres; witness did not think
citizen in the interior Of the state sending 90
casona load OF grain should got the Same ratios
as one at BunAlo believing that lower rates would
induce farmers along the line OF the Erie road 10
plant an scresss they while tho
Chicago rate was put up last Monday to thirty.nve
cents; witness did not think that tho charge from
all stations tho road should be proportional TO
the rates from tho West from the interior OF the
State tho rates should BIO proportionately higher
but actually lower than from beyond the limo OF the
State special rates on tho other roads interforod
with the business OF the Erie in 1878 the rates wore
reduced nearly one-hnlf ut different points on the
road being the largest voluntary reduction ever
made by any railroad in the United states; they
produced very large loss In the gross earnings OK
o. On what ground did you mako tho reductionss
A. Upon the ground that the charge OF eighty-three
cents from Horncllsville while we charged forty
cents from Buffalo In itsoif Discrimination
against which the public had right to complains
.l,t mt ukh n
stimulated to come along tho limo OF the railway and
make up for the largo lossos 49,
,rhero was not = territory In the world OF tho
sume extent. continued witness, with equal rail-
road facilities that had as low ireghts a. that OF
tho state OF New York; to make the canal free
woud reauiro reduction In railroad freghts to re-
tain the business; cast-iron and inhexible ratio