The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-04-27
OILD0M'S GREEDY GIANT.
INDEPENDENT REFINERS COM
PLETELY AT HIS MERCY.

--------
All the Cars of the Pennsylvania Rail-
road Cornered so that Trausporta-
ton Facilities Could not be Secured
The Pennsylvania's Promise of
Equal Rates for all thus Circum-
vented.
WASHINGTON, April 26.-When the in
vestigation into the subject of trusts was
resumed by the House Committee ON Manu-
factures this morning, the counsel of the
Standard Oil Company introduced Joseph
X. Choate, the well-known New York
lawyer, as the representative of the Stand
ard Oil Company before the committee.
John Swartz, of Pleasanton, Pa, and
Frank l.. Woods, of Titusville, Pa, oil re-
iiners, testified to having heard that the
Pennsylvania railroad had allowed lower
rates to other shippers than to themselves.
They thereupon presented claims for rebate
to the railroad company, and 13c. per
barrel on their shipments was retu rned to
them.
State Senator Lewis Emery, of Bradford,
Pa, corroborated the statement made yes
terday to the effect that practically the in
dependent refiners had been wiped out be-
tween 1872 aud 1879 by reason of the re-
bates given the Standard Company and its
predecessor, the South Improvement Com
pany, by the railroads. The Independent
competitive refineries in 1872 numbered $50
and only four or five were in existence in
1879.
PROMISED A FAIR CHANCE.
Subsequent to 1879, on guarantee from
the Pennsylvania railroad that equal rates
would be given to all shippers, the witness
Established a rpfDarW DbilaAaIDbio Az
that time he was a large oil producer, but
found that owing to the fact that the com
panieS affiliated with the Standard COM
pany owned tue pipe lines, he could not get
fresh oil to his refinery, but was served
with tank oil of an inferior quality, esti
mated to be worth 20c. less per barrel than
fresh oil The witness then constructed
pipe line from his wells to the Roches-
ter and PttSburg railroad so as TO
secure oil from his own wells. Trouble
soon commenced in getting cars, and though
the witness made strenuous efforts he was
unable to secure them, except at irregular
intervals. At one time he found that the
Standard company had applied for all of
the oil cars of the Pennsylvania railroad
aud had sent most of them out Of the State
to the far West At that very time the
Standard had 800 of its own cars sdetracked
and idle in Buffalo.
FORCED TO SELL.
Finally the witness was forced to sell out
to the Standard Company in 1887. eve
were simply deviled to DEATH" he added
Had he been able to secure cars the witness
testified that he would have been able to
continue business, even though there was no
profit in refining because of Tie fact that he
saved $40 900 year out of his pipe lines
alone. A computation made 10y the witness
showed that the Standard Company had re-
-
| teen and a half months from four principal
railroads leading from the oil fields. This
computation was based o. tine supposition
| that certain things which had been denied by
the counsel of the Standard Company were
true in point of fact. The witness had no
! personal knowledge of the fact but il was
his opinion that the Pennsylvania railroad
still gave rebates to to the Standard Com
pany. He, at the present time, had a suit
for $500 900 against the Standard Company
for rebates alleged to have been given from
1881 TO 1887.
CROOKEDNEsS INsINUATED.
Representative Breckenridge asked the
witness the reason why railroads discrimi-
mated against shippers, as it would seem to
be against the stockholders interests. The
witness replied that he would not like to
give what he believed to be the history of
these rebates, but he would ,sert that it
was his opinion that railroad men were
Interested IN these drawbacks and made
hundreds Of thousands of dollars
year out of them "Had they all had
their deserts" continued the witness, "they
would be in States prison TO day" The
witness said there was no valid business
reason why these rebates should be given,
and it was gross injustice to the stock
holders OF the railroad. The amount Of
rebates given the Standard Company he
certainly thought amounted in the aggre-
gate to over 500 00J, 900, and had the rail
roads treated all shippers alike, it was his
belief that they would now be in receipt
Of an annual income of from S15,000,0O to
$40 1000, 900 greater than they received at
DreSent.