The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-09-09
MR.. ARCHBOLD TESTIFIES.
STANDARD OIL MAN BEFORE THE
INDUSTRIAL CONFUSION.

the Standard, and Says the Company
Has Strictly Obeyed tho Interstate Law
Declined All Propositions to Combine
With Its Rival, the Pure oil Company
Statement Showing the Benefit to the
Public of the Standard OIL Company.
WASHINGTON. Sept. S-The examination Of
Vice President John ID. Archbold OF the
Standard Oil Company OF New York.
took up the entire session Of the
United States Industrial Commission
to-day. 1t was enlivened by numer-
Gus wordy encounters between the witness aud
mem bers OF the commission. and those mem.
bers OF rival corporatian who had previously
given their testimony. Mr.. Archbold attacked
the testimony OF these witnesses. in some cases
denouncinR their statements as utterly false
drawing sharp replies from such OF them az
were present He also became involved in con-
troversy with the acting chairman OF the COM
mission, Mr.. Phillips. and the latterwil tax Q the
stand tomorrow after General Counsel Rod
gers has been heard. Mr. Archbod concluded
his testimony by reading prepar ed statement
in defence OF the Standard on Company on
economic and ethical grounds in which
he said that such organizations were an
absolute necessity for the successful
development and promotion OF BUSH
HOSE. lOucnlnR on trust l0RlSIdtlOn. no
asserted that the next great and inevitable
step OF progress in the direction OF commercial
development lay in the direction OF National or
Federal corporations. He suggested for the
consideration OF the commission the thought
Of a Federal corporation law.
Mr. Archbold's examination was begun
Immediately after the assembling OF the COM
mission. He requested that he be permitted
to answer number OF criticisms on the COM
pany before proceeding to a statement as to ito
methods Permission being granted. Mr..
Archibod said that the first witness. James
W. Lee Of Pennsylvania. President OF the Pure
on Company. acknowledged himself to be the
head OF the greatest trust and only trust in OIL
AT this point. 1t having been evident for
several days that the trend OF the Testimony By
Standard OIL witnesses would be to Justify the
course pursued by the company In attacking
the Pure Oil Company. Chairman Phillips. who
10 a large stakeholder in the Pure Oil Company.
a rival OF the Standard arose and said that he
wished it understood that he was connected
with that company. but he also wished to dis
tinctly declare that he and his company were
willing to submit to any legislation designed to
protect the interests Of all. His company was
Incorporated according to the law and was
proceeding lawfully. He had no objection to
this statement being entered as evidence.
Lee and State Senator Emory. OF Bradford Pa.
that the railroads gave immense rebates to
the Standard Oil Company. He took up the
history OF the rebate system and gave figures
to show that the Standard Oil Company had
always been q subject OF persecution at the
hands Of the railroads. and said that whenever
rebates were given to the Standard Oil Com
pany similar rebates were given to other ship
pers.
II give this as an answer and. trust. q final
one." he said. TO that dusty old lie about
the 81 100000 in rebates"
Mr.. Lee. he said. apparently thought the
old lies about rebates had been exhausted and
had to introduce some new features and had
therefore selected the story that tho railroads
were being robbed by officials who make dis.
eliminating tariffs In favor OF the Standard.
which statement. the witness said. was untrue.
and he defed Lee to produce a scntilla OF evi.
dence to prove it.
Since the passage OF the Interstate Com
mercial law" he said. we have strictly obeyed
1t. Before the passage Of that law the adj
vantage in the rates went to the consumer.
We were not averse to the passage OF tho
Interstate Commerce law. but on the contrary
we strongly favored it. and the records show
that We were right as tho greatest period OF
our prosperity has come after the passage OF
this law"
Mr.. Archbold submitted a mum Der OF letters
from the officials OF the Pennsylvania Railroad.
the Boston and Maine. Chicago and Alton. Lake
Shore and Western. Northern Pacific. Lake
Shore and Michigan Southern. and other rail-
roads, all denying that since the passage OF the
Interstate Commerce law. any special rates
had been given to the Standard Company.
In reply to a question. Mr.. Archbold said he
did not know Of any advantage being given to
the company by more rapid movement OF its
freight. The old system OF rebates was en-
tirely vicious and contrary to the interests OF
the Standard Oil Company.
We are not disposed to take rebates even II
we dared" he said. as we ara too shining q
mark but we have to keep pretty close
watch on our com petitors. The business the
Standard was so great that In the old days he
railroads offered the Standard lower rates than
to its competitors In order to secure its BUSH
ness"
, In regard to the prices Of refined oil In New
York during 1895. Mr. Lee had testified that
the Standard was charging Ga cents a gallon.
but when tho Pure Oil Company entered tho
field the price was dropped to 81 cents. Mr..
Archbold read from the price list for March
that the price in New York averaged 7.aS cents.
OIL at the wells was 81 80 per barrel. In April
refined oil in New York sold at 7.3l cents a
gallon. while the crude brought $l.22 per
barrel at the wells; May. Gta cents for re-
fined in New York and $1l3 for the crude;
June. 672 cents and Sill for the crude; July.
6.23 cents for the refined and 81 90 for crude.
This was intended to demonstrate that tho
price OF refined oil In New York went down be-
cause Of the reduction OF the price Of oil at tho
wells and not because OF the competition Of
the Pure Oil Company.
Mr. Archbold cited a contract between
the United States Pipe Line and the Gem
trail Railroad OF New Jersey to show
that the Standard had never had any
contract as favorable as this one. He
denied that the Standard Oil Company had
ever made any proposition to tho Pure OIL Com
pany looking toward consolidation oi the two
companies. or division OF territory or any
other arrangements to divide tie trDde. On
the contrary. propositions had been made by
representatives OF the Pure Oil Company.
Messrs. Lee. Phillips. Mcdowell and others.
which were declined because OF their Illegally
and because the Standard people knew tho
character OF the mon making the proposals and