The evening times., 1899-09-11

State Senator Lewis Emery, jr., OF
Bradford, Pa, connected with. the Pure
Oil Company, the United States Pipe Line
Company and Producers Oil Company,
testified before the Industrial Commission
today relative to the oil industry.
Senator Emery prefaced his remarks by
inviting the members of the Commission
TO ask all the leading questions they de-
sired. He stated that be had no animosity
against the Standard Oh Company, but did
not approve of its methods ot doing bust
ness.
He gave brief history of the discovery of
mineral oil and the primitive methods of
transporting il by means of boats down the
Allegany River TO Pittisburg. From 1858
the witness stated until 1872 the refining
and production of oil was unrestricted.
there having been no attempt made TO
. monopolize the industry until the latter
date. Senator Emery gave history of the,
conception of the idea of shipping oil by
pipe lines and its early development. He
also related the facts regarding the forma-
tion of the Standard Oil Company by the
consolidation Of the existing pipe lines OF
Western Pennsylvania with a capitaliza-
tion of 81, ,000, 900, having refining capa-
city of 600 barrels of oil day.
In his testimony the witness described
the methods by which the Standard Oil
Company secured the cooperation of the
leading railroads Of the country by reor-
ganizing the corporation and granting the
leading railroad magnates an interest in
its business.
In speaking of the relation OF the rail-
roads to the oil industry the witness stat
ed: The railroads are responsible for the
existence OF trusts today. Through their
determinations in favor Of certain corpo-
rations they have made, and still make,
monopolies possible by the rebate system"
He described the agreement between the
Standard Oil Company and the three lead
ing oil-carrying railroads.&c. Pennsylya-
mia, New York Central, and Erie systems
as being damnable and contrary 10 the
common law. He stated that when the
Standard Oil Company was formed 1T
would have been millions Of dollars in his
pocket to cooperate with it, but be de-
clined, as he did not approve of its meth
DDS of doing business.
Senator Emery read the contract enter
ed into by ~ Standard Oil Company, the
Pennsylvania N>w York Central, and Erie
railroads in 1872, which distributed the
carrying trade among the three roads ac-
cording to a stated basis the Pennsylva-
Ma receiving 10 pei StAl NhS OeAS4 N"o
u 1-2 per cent each. According TO the
contract rebates were granted, and viewed
from the standpoint OF the witness il wa
openly agreed that if the interested par
ties chose TO freeze out the independent
refineries they could 90 so by refusing TO
carry their oil. Although the formal con-
tract was annulled a few years after 1t
was made Senator Emery expressed the
firm conviction that its provisions were
observed at the present time.
The witness recited instances TO sub
stantiate his belief During the seventies
he went to Mr. Scott then President of the
Pennsylvania Railroad. and protested, say
ing that il was impossible for him to con-
tinue in the old refining business if the ex-
orbitant rates then charged by the rail-
roads TO independent refiners were TO be
continued. He was told by President Scott
that if he would ship the same amount OF
oil then shipped by the Standard OH Com
pany that he would be granted the same
rates enjoyed by that corporation. Tins
being impossible he was forced out Of the
business. Later at the instance of tbs
Pennsylvania Railroad Company which Of
fered inducements he ventured the busi-
ness. but through a refusal to maintain
the special rates which il offered, he was
again compelled 10 close his refineries
The witness throughout his testimony
strongly denounced the method of the oil
trust and its alleged allies, the railroads.