The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-05-03
REBATES ON, THE RAILS.
CLOSE-MOUTHED WITNESSES TRY
TO PLAY THE CLAM.

A Louisville and Nashville Official
Admits that the Standard OIL Com
pany Was Given Special RAJ tes and
He Tells why-Why Some of hice's
Cars Were Refused.
WASHINGTON, May 2.--Before the House
Committee ON Manufactures to-day several
hours of the session were consumed in argu
ments by the counsel for the Louisville and
Nashville railroad in defense of the refusal
of two of its officers to produce statements
of rebates allowed on that road. Without
deciding upon the merits of the points raised,
the committee determined to proceed with
the examination of the officers. The wit
nesses were J. NJ. Culp, Gen
eral Freight Agent and A. #. Broad
dus, Division Freight Agent, who
had been summoned to appear before the
committee to testify and to- bring the
books of the Louisville and Nashville
company, showing all rebates, allow
anceS and deductions made to shippers over
its lines during the last ten years, and state
ments of the shipments of oil during the
years 1886, 1887 and 1888. The complainant
was George Rice, of Marietta, Ohio.
HE WAS CLOSE MoUTHED.
Mr.. Broddus was first called and ques-
toned with regard to the rates which had
been given the Standard and affiliated COM
panies, and those given to others, the object
being to show the determinations, which it
is alleged, resulted in enabling the Stand
ard Company to maintain n monopoly of
the oil business to the injury of other per-
sons The examination did not elicit any
l.. H.. l~,r H..
advice of counsel, declining to answer most
of the questions
A difference, he said, was made in rates
on tank and barreled oil. He did not know,
positively, but thought that the rates were
not the same to all persons on tank or bar
relied oil at all times. The witness said cars
carrying petroleum South usually returned
loaded with cotton seed oil and turpentine.
CULP ALSO NOT COMMUNICATIVE.
Mr.. Culp also declined to answer questions
with regard to rebates and determinations,
or to produce the books of the company.
No discrimination whatever he said, had
been made since the interstate commerce
law went into effect.
After a recess had been taken, Mr.. Culp
resumed the stand and acknowledged that
the Louisville and Nashville Company had
given preferential rates to Chess-Carley &
Co, of Louisville, and other Standard Oil
affiliated concerns. Those companies, he
| said, gave the road business to all points
reached by it, and also gave larger and
| more regular business than other shippers
| and therefore lower rates were given them in
| some instances. The witness testified that
| he had informed George Rice that ne would
charge him for hauling his empty tank cars
back from the South, Notwithstanding the
| fact that no charge was made the Standard
company for hauling back its empty cars.
| The reason for this was that most Of the
| Standards cars came back loaded while all
| of Mr.. Rice's came back empty. The road
would not agree to haul all the cars of any
persons back empty free of charge. He did
| not remember refusing to give Mr.. Rice a
rate on turpentine from Mobile to be car
ried North on his (Mr. Rice's) cars.
MR.. cARLEY A WITNESS
F. D. Carley, member of the firm Of
| Chess, Cdrley g. Co., testified that the firm
had been bought up by the Standard Oil
| Trust, and that since then he had had no
! connection with the oil business or with the
| Standard company. He gave a histor
of the growth of the firms business. In
! substance it was to the effect that the wit
ness had conceived the idea that the firm
might take the oil and turpentine business
| out of the hands of those who shipped by
vessels from New York and Philadelphia
| TO the South Atlantic points, and down the
| Mississippi river and throw it TO the Louis
vile and Nashville road in case the road
would give the firm special advantages in
return freights on tank cars 10 be provided
| by the irm. Business could never have
been obtained by the railroads
! otherwise, and the road agreed to
| it, For some time business was
done at a loss, but it was finally built up so
| as to be profitable, the firm, by contracts
| with merchants and others, securing South
| ern oil business and control Of all the tur-
psntine which went to the Northwest He
| asserted that the result had been to lower
| the price OF oil to the Southern consumer
and to get him better price for his turpen-
tine, while at the same time benehting all
| concerned.
NO REBATE RECEIVED.
The firm had never received, except in
| one or two instances, any rebates, and had
| no rate condition or an agreement that no
| shipper should have the same rate if he did
| the same business He had received special
| rates on tank oil, but elieved any other
person could have secured them who
| honestly offered TO furnish the tanks. The
| witness had never attempted to secure
| special rates on barreled oil, although he
shipped ten times as much over the
| Louisville and Nashville road as
all the other shippers. for the reason
| that it helped him in the tank
branch Of the business. The witness ac-
knowledged cutting prices down extremely
low in order to kill OFF competitors, and
said that it was his way Of doing business.
He always cut to the bone, and, 20 far as
cutting prices was concerned, the Standard
never bad anybody who cut prices lower
than he did IN order TO knock out com
petitors.
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