The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-09-13
'EMERY'S CURE FOR TRUSTS.
THINKS THAT RAILROAD REBN TIES
MAKE THEM POSSIBLE

The Industrial Commission Hears an ArRu-
ment in Favor OF Government Owner
ship - Testimony About standard OIL
Methods Other with essos to BE Hoard.
WASHINGTON. Sept. 1.-THE United States
Industrial Commission has named Prof. ]. W.
jerks. Senator James II, Kyle. Major ]. NJ
Faruuhar. Representative Theobold Often,
G. J. Harris and Col. l.. F. Living to repre-
sent II at the Trust Conference OF the Civic
Federation to begin in Chicago to- morrow.
To-day's session will conclude for the present
the inquiry Into trade combinations. There
will be only two more witnesses In connection
with the Standard Oil Company and they are
to be heard next month. John d. Rockefeller,
President OF the Standard Oil Com pany lie one OF
them and George Rice. whose complaint was
made the basis OF the action OF the Ohio courts
against the Standard OIL Company. will be the
other. 1t Is expected that the commission
will have report on some branches Of the
trust question. at any rate. to submit to Con-
gress before March 1. The commission has
arranged to take testimony on other branches
OF the inquiry this month. Samuel Gompers
President Of the American Federation OF
Labor. and T. v. Powderly. Commissioner OF
Immigration. are among those who will be
heard this week. John Wanamaker Of Phila-
delpha has been invited to testify, especially
AZ to the relation OF department stores to In
dustry and labor.
Ex-State Senator Louis E. Emery OF Brad
ford. Pa. was before the commission this
morning for cross-examination. He again as
serted that the Standard Oil Company had re-
eelved rebates from the railroads sincs the
passage OF the Interstate Commerce law. He
said the rebate system was responsible for the
trusts He said the success Of the Standard
Oil Company was due entirely to dlscrimina-
ton In rates by the railroads in its favor.
Mr.. Emery having Consumed considerable
time In reading testimony before Congress
ional commission to show that In 1875 the
Standard was receiving rebates. Commits
sioner Ratohford called his attention to the
fact thatif he proved his assertion 1t had moth
ing to do with the charge that the Standard
was receiving rebates at the present time.
Commissioners Clark and Livingston suggested
that the witness conHne himself to the pres
emit After an argument lasting some fifteen
minutes, Emery insisted that the Commits
sioners should question him, while they in
sisted that no should proceed in his own way.
Il cannot hope to educate this commission
unless the commissioners ask me questions"
said Emery.
What is THAR" inquired Col Livingston.
When the statement was repeated Dol. Living
ston said: We'll. the members OF the commits
sion are pretty dull. We admit. but you will
have to try to forgive us for that"
disclaimer by Emery OF all intention to In
sinuate that the commissioners were unusu-
ally thick witted resulted in the striking from
the record OF this passage at arms. When
1t was suggested that the time Of the
commission was valuable. Mr.. Emery
retorted that his time was more valuable than
that OF the Commission and. further. he was
present at the invitation OF the Commission
and did not care whether he gave the testi-
mony or not. He thought he could pay his fare
homo II his testimony was cut of at once
After forty minutes Of discussion these
lines. during which Emery announced that the
Commissioners would be unable by question
ing him to put him In a hole. the witness pro-
reeded He detailed his connection with the
oil business and said he was practically forced
nut OF the business by the Standard because 1t
compelled the railroads practically to refuse to
garry his oil by threatening them with the
withdrawal Of coal shipments II the roads con-
tinued to carry his oil.
Commissioner Farquhar asked n It were not
true that the ennsylvanians were very indig-
paDt because the Standard rem owed its refining
interests to New York. and that much OF the
bitterness in Pennsylvania against the concern
arose from this fact Emery said this was lot
the case. as the Standard had returned toPenn-
sylvania and built reaneries and was most
sorry It had ever erected refnerles outside OF
the State.
At the suggestion Of Chairman Phillips the
witness undertook to explain the condition Of
the oil trade since 1890. beginning with his
tory OF the organ ization Of the United States
Pipe Line Company. Details were given oithe
opposition encountered by the company In
laying it's pipes under the Delaware. Lacka-
wanna and Western Railroad In New Jersey.
Hot water and live Goals were poured from
locomotives on the track into the culvort
below. where the pipe-layers were at
work. Emery procured rifles and held
the place for seven months until the court
decided In favor OF the Pipe Line Company
Crude and refined oils are now pumped i've
hundred miles to the junction about lfty miles
from New York. From this point to New
York oil was transported by the Central Rail-
road OF New Jersey at rate Of TX cents a
barrel for the refined and 6k cents for the
crude Any other company could send its oil
over the road at the same rate. which the wit.
ness declared was a very high rate for fifty
miles.
As a remedy for the evils OF trusts. Mr.
Emory recon m ended the Government owner.
ship OF transportation lines. No trust or com.
binAtion in commodities. he said. could last
long without the discrimination in rates by
the railroads. and this would be i'm possible Il
tho Government owned and operated the roads