The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-05-04
WHEEL WITHIN A WHEEL.
HOW THE RAILROADS HELP THE
STANDARD OIL COMPANY.

An Instance Where the Louisville and
Nashville Company Advanced the
Rates of Reflner Rice so Per Cent.
at the Instance of the Octopus.
WASHINGTON, May 14--After a secret
session of an hour this morning the House
Committee on Manufactures opened its
doors. The chairman said it was the
understanding that Mr.. Flagg, the attorney
of the Standard Oil Company would furnish
the committee list Of persons to whom
S10,000,000 in trust certificates had
been issued in exchange for
properties turned over by them
to the Standard trust. Mr.. Flagg said that
he understood that the committee had
waived its demand for the production of
such a statement. If this was not the case,
he must respectfully decline to comply with
the committees wishes on the ground that
1t was strictly a private matter.
RICE FAVORED.
B. F. Mitchell, general freight agent of
Newport News and Mississippi Valley Rail
road Company, testified that his road had
given George Rice lower rates on oil than
had ever been given to the Standard Oil
generally about the same before the passage
of the Interstate Commerce act as they
were now. The company had made mile
age rate on petroleum cars returned empty
from the South, but had never received any
money from this source because no cars were
returned empty while the rate was in ex-
lstence Cars were usually returned loaded,
either with cottonseed oil or turpentine.
w. B Crosley, of Atlanta, manager Of
HiNiGlnn Of laRA Standard
Company of Kentucky testified that the
Standard company had always paid full
rates on tank and barreled oil out OF Atlanta
and other Southern points. More than
half of the oil consigned from the North to
Southern coast towns was in tanks.
AN INSTANCE OF DISCRIMINATION.
George Rice, of Marietta, o., an oil
refiner and producer and an opponent of
the Standard Oil Company, testified that he
had been charged so cents per barrel on oil
shipped from Macksburg to Marietta, while
Brundred & Dale, the Standard affiliatorS,
paid only 10 cents. Subsequently the rate
was advanced cents on the witness, and
reduced 5 cents on his competitors ship
ments Brundred a. Dale were allowed
25c on each barrel transported for the wit
ness. The witness further said that he was
building up profitable business in the south
when rates on oil were advanced in CON
sequence of an agreement made by officials
of the different railroads running south 1t
had also been proved in court that the wit
ness competitors were given notice of rates
that would be given the witness before he
himself received notification Of the rates
that were to be charged.
sPRINGING COLD FACTS.
The witness produced a statement show
ing the difference between the rates charged
him, and those charged the Standard Com
pany, and said that it showed that his rates
had been advanced from 10 to 100 per cent,
while the Standards rates remained un-
changed. He produced vouchers showing
instances where railroads had charged him
greater rate than their tariff rates. An
other source of complaint was the practice
of carrying tank cars at an estimated
weight, which was less than the real weight.
The result Of these determinations was that
in period Cf five months the witness was
compelled to shut up fourteen of twenty
four agencies and quit supplying forty out
of seventy three towns His business
was reduced in volume about four
lfths. The witness was compelled to pay
an inspector of oils in Georgia and Ken
t cky, under the State laws, over 100 per
cent. more than the Standard Oil Company
paid, because his oil was in barrels and the
Standard company's in tanks.
As DUMB AS OYSTERS.
In order to ascertain whether the in
creased prices paid by the witness over
those paid by the Standard company were
due to the fact that bis oil was in barrels,
the witness had written to officers of the
Louisville and Nashville, Newport News
and Mississippi Valley and other railroads,
asking if the same rates would be given
him on tank cars that were given
the Standard Company, but he had
never received any answers to his letters.
The witness was next questioned with re-
gard tc letter written by Chess, Carey g.
Co, of the Standard afliliation, 10 the Lou
isvile end Nashville railroad, ending ''please
turn on another screw" He said that five
days after that letter was written his rates
were raised so per cent One screw, the
witness said, was sufficient in his case, and
that screw had a very coarse thread.
Laughter
Mr. Archibald was recalled and again re-
fused to produce list of persons to whom
the original Standard Oil Trust certificates
ware issued