The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-06-18
DROVE THEM TO BANKRUPTCY.
STANDARD OIL co. HAS DESTROYED
ITS COMPETITORS.

AockWOod Says the Railroads Are in
Combination With the Standard.
and Have Paid 1t Millions in Re-
bates-Has Given IL n Profit of 400
Fer Cent.-SOme Testimony Ques-
uoned-Trusts Save Millions by
Getting Rid of Travelling Men.
Washington June 1.-THE Industrial
Commission to-day heard a statement
from L. NJ. Lockwood an oil producer
OF Zelenople, Pa, in opposition to the
STANDARD oil trust
Mr.. Lockwood declared that this COM
pany had driven the independent rehners
TO bankruptcy and servitude, and he de-
hounced the course pursued in severe
terms. He held the railroads especially
responsible for this condition of affairs.
Going back to 1872 he referred at length
to contract made by the trunk lines
OF Pennsylvania with the Southern I'm
provement Company. Under this con-
tract, he said, the freight rates on oil
were doubled and one half the amount
collected was paid back as a rebate-not
only this, but the contract company re-
ceived like rebate on the shipments of
all other companies. This contract, he de-
clared. had been secretly continued by the
railroads with the Standard Oil Com
pany.
He quoted A. J. Cassett, the new presI-
dent of the Pennsylvania Railroad Com
pany, as testifying before the Interstate
Railway Commission to the effect that
while the open rate to the public was
$3.50 per barrel the rate to the Standard
Oil Company was so cents.
Further investigation, said Mr.. Lock-
wood, had developed the fact that the rail-
road companies actually received only 35
cents. This condition of affairs had re-
suited for time, according to the wit
ness, in giving the Standard company a
profit of 400 per cent, while the independ-
ent refnerles were being rapidly driven
into bankruptcy. Mr.. Lockwood was free
in the use of epithets. cheracterizing both
the oil company and railroad officials as
highwaymen and brigands.
1t Is Robbery All the Same.
"If you have got to be robbed" he ex-
claimed, "it does not matter much whether
you are held up by Dick Turpin with a
pistol or by John Rockefeller with a rail-
road; it is robbery all the same"
He said that men who had carefully an,
dlyzed the testimony taken before tho
Hepburn committee estimated that in six
teen months time the five trunk lines of
Pennsylvania had paid to the Standard
company $11,00O0 600 in rebates. The rail-
road companies had, he said, completely
ignored the orders of the commission TO
cease their discrimination in favor of the
Standard company, resorting then 10 the
system of false billing.
Speaking of the remedy for the evil,
Mr.. Lockwood said it was in public own
ership of the railroads, and it was not to
be found in the eourts-the courts were
too slow and expensive.
He col sdered all the railroads of the
country as practically one gigantic trust,
and asserted that they We're in control OF
our politics, contributing millions to elect
legislatures, senators and judges, and to
punish those not willing to do their bid
ding.
Testimony Questioned.
The afternoon session was characterized
by the development of differences among
the members of the commission as to the
character of testimony that should be
admitted. Mr. Lockwood made the state
ment that Judge Albert Haight, of the
New York Court of Appeals had been
elevated to his present position by the
corporations through the use of a cor
ruption fund because of his action in
what is known as the Matthews case-a
proceeding of the railroad combination
against the Independent reiners. He aft
erward said that while convinced the facts
were as he had stated, he had not actu-
ally seen the fund; therefore, the state
ment was an inference only.
At this point Mr.. Farquhar, of the com
mission, protested against the character
Of the testimony, saying that Judge
Haight was his next door neighbor and
one of the purest men he had ever known.
He had never before heard an imputation
upon his character
Mr.. Lockwood said that be also knew
Judge IIaight and that he had been sur
prised al the apparent developments. The
issue had been raised in the campaign and
he had understood that he ran behind his
ticket.
After a few general remarks by other
members of the commission as to the adj
Visibility of striking out the entire state
ment, Congressman Belle made vigor-
Gus protest against the demand to elimi-
ale any of the testimony. 1t was not he
said, in the province Of the commission to
tell a witness what he must say He said
he had uoticed ttat some members of the
commission were very sensitive when
something was said which did not entirely
fall in with their predictions.
Former Congressman Philips, presiding,
held that the testimony was competent
How Trusts Save Millions.
In his statement before the commission
yesterday President G. +. Dove of the
Travellers Association submitted figures
10 show that the organization of the trusts
had resulted In throwing $4,000 saesmen
out of employment, and in reducing the
salaries of 25000 more. He estimated that
the annual loss to the statesmen on ac-
count of loss Jof employment and reduc-
tions aggregated sG0,O00,000; to the hotels
S2e 00gOoO and TO The railroads $27 900 OO0
because of the loss of patronage.
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