New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-03-17
THE RAILWAYS OPPOSE III.
CHARGES THAT THEY ARE IN LEAGUE
WITH THE STANDARD OIL COMPANY
A LIVELY HEARING on SENATOR HERBERTs
BILL TO GIVE THE UNITED STATES OH o'M
PANY THE RIGHT TO LAY PIPES


THROUGH NEW JERSEY.
Trenton. March &c (Spec.aD.-The Senate Com
m,ee on Railroads and Canals met at o'clock
this afternoon to give a further hearing on senator
IIerbert.s pipe-line bill The measure Is In the In
terest Of the United States OIL Company ana II Is
said TO be opposed by the Standard OH company
Senator Herbert. chairman OF the committee was
accompanied by Senators Ward ana hnsie "heh
the hearing opened. j. Frank Fort. representing
the Delaware Lackawanna and Western Railroad
Company, began the speechmaknS lie SAID 'hat
New-Jersey had at present no legislation on the
subject of oil pipelines. Mr. Fort called atten-
ton to the wording of the bill. which gives every
CORPORATION formed under the act the right to lay
pipes etc. upon private or other property
THAT phrase or other property. remarked MT.
Fort. "can mean only public property and 1t plainly
permits such corporations the riparian rights
of the State. There is proper restriction as 10
the laying pipes upon streets. railways or canals
There Is no protection Of any kind as TO the less-
Iation of other States. New-York's law Is prob
ably the best OF any on the subject although New
York Is not an o!l-producing State
Yes il is" interposcd ex-senator Emory, OF
Pennsylvania representing the United States Com
pany "New-Yorl produces 400 barrels day"
Mr. Fort proceeded to tell how carefully the New
York law was drawn. Any corporation desiring TO
lay a pipeline had to stake ont the route. ana
property-owners have ample opportunity to appeal
or provision Of that kind.
1T has been said" Mr.. Fort continued. that the
Standard OIL Company IS opposing this bill. Per-
haps. But should say that the Standard Oh Com
pany would jump with Joy at tho passage OF such n
measure II would confer extraordinary benefits
and privileges on that corporation. What ask You
to do is to so amend this bill 10 bring 1t in har-
mony with the statutes OF New-York and Pennsyl-
vania and other States. The New-York statute re-
quires that oil shall be carried for anybody that
wants and specifies the rates that may be charged
but this bin does nothing OF the kind We were told
the other day that the passage OF this bill would re-
duce the price OF oil In New-Jorsey. Why. our rail-
road is now carrying oil from Wilkcsbarre 10 the
seaboard for 81 car Of IN barrels each barrel
having forty-two gallons. That Is 10 cents barrel
The rate Is Is cents a barrel. and tho railroad
barrel OF oil IS fifty gallons" said ex-senator Emory
''Very well II comes 10 the same thing" Mr.. Fort
retorted.
Ex-senator Lee interposed 70 remark that the
United States Company had amendment TO pu,
in the bill requiring corporations 10 carry oil for
ANYBODY at n reasonable rate.
Good" replied Mr. Fort. "a change has come
over the spirit OF your dreams Now. another
amendment that we want put IN IL one requiring the
comnanies 10 make regular statements so. that the
State can tax them. want tho state To collect
tax Of five cents every 200 gallons OF OH carried
through the State The railroad companies are
taxed SEQ 10000 a year for their franchise rights
In Ohio legislation Is now pending TO TAX oN-ca'ry-
ING companies on basis that Will bring that state
s75O a day Now in other States the law has
clause requiring companies to carry oil FOR all. ana
II they refuse consolidate or unite tho FRANCHISES
lapse. ~
IN THE NAME OF REFORM.
"r, gems 20 me-" Mr. Fort declared further on.
chat when anybody wants to do anything crooked
~ wrong he does II In the name Of reform They
toll Won that this bill ls 10 enable competition with
The Standard on Company, and that tha' corpora
t,on e a grea. monopoly so 1t IS. and this measure
proposes TO create another.
81 am going to ask this committee to insert an
amendment giving municipalities power TO regulate
hv ordinance the construction OF tanks within their
boundaries | want the committee 10 insert an
amendment requiring the companies to nave cap-
tai stock OF $3.50 for every mile OF pipe line -FOUR
Constitution prohibits you from giving special
nr,v,r1es or immunity to any corporation ana TINS
bin Is in conflict with that provision. They say
tina, this BIZ is general In Its provisions But 1t
limits the carrying power at the VIII OF the carrier
and IS thus special. The bill proposes that cor
poratIon may across this state ana take
nronerty anywhere and everywhere without restric-
ton or tax.
Ex-Congressman Harrison of Belvedere. speaking
for the United States Company. declared that the
Standard OH Company had been acting IN c0hJulc-
railroad in blocking the path of the United States
Company Mr.. Harris said that 1t was intended or
disposed no of the STAT and il could not be done
All that the United States Company wanted was
Road Companies and Mr.. Harris contended that they
had the right TO DO mat +, o, -
were in the Legislature OF Pennsylvania when that
Of 1883 was passed. ana nose rssiIevos Were
Legislature should adopt all those restrictions, SO
@r no object 5nS o Coming
OF taxation oil pipe lines that TINS Leglsa'uie
ali COMPANIES carrying oil through the State Such
provision should. submit pe htne o. b, az
n apcn our Company. carrying 400 barrels day,
while the standard OH Company carrying niv 1900 ,s
neone free open competition the carrying and
sale OF Illuminating oil, and are willing that YOU
shgSa put ' We ask that you shah not up
wall to prevent from reaching the seaDoafd
SQUEEZING OUT COMPETITORS.
Hugh King president OF the Columbia OIL Com
pany Bayonne. told Of the efforts mace 10 get iair
competition with the Standard OH Company. Mr..
King mentioned instances OF how the Standard
dropped five cents n gallon of oil to squeeze out
competition. The bill before the Senate. MI King
said was p the ey Of ,ns of the e un
States Pipe Line Company asserted tnnt tne raj,
9 Sa iSe S,andar OIL Company Mr. Emory charged the
Standard on Company with having entered e INTO
sViyania Railroad he said doubled Its rates on oil
so as to destroy all competition ana aplel out the
"The Interstate Commerce act prevents all that"
interposed Nh Fort rr,orv rs,or,sd %, have had
I,
q case pending before thnt Commission for seven
years That Commission couldn't take care OF the
viola tors OF the law In any county alone. We need
such a commission In every State I'm the Union. The
gang that we have fighting In Pennsylvania IL
the same gang that we find opposed to In Jersey
The New-York Central. the Erie and other railroads
Joined in that contract made by the Pennsylvania.
| and that contract Is st In existence. The COM
panies In return for this bargain TO Increase the
rates were TO receive 26 per cent on the tonnage OF
all oil going to the seaboard, no matter who car
| RED It. That is why the railroad companies are
| bound to oppose u.s."
II represent the Delaware. Lackawanna and West
| ern Railroad Company and no other" inerjected
| Mr.. Fort -
Yes" replied Mr. Emory. land I'll prove that
| your company is In league with the Standard oil
Company. This contract results In illcgitimatc
charge Of cents gallon every gallon OF oil used