The Barre daily times. (Barre, Vt.) 1897-1959, 1903-12-30


natl and Marietta railroad Now. Mr.
Brundred had made contract With
this railroad by which his oil was to be
carried for 10 cents a barrel, and all
other shippers were to pay 30 cents
Rice. who conveyed his oil TO the rail-
road by his own pipe line. got rate
of % cents by using bis own tank car
Later he succeeded In getting a rate
Of 1715 cents. Thus the rebate system
was established on this road from the
opening of the Macksburg field.
In 1888 the Standard Oil company
took their line into the field, and soon
after Brundred retired from the pipe
line business there. When he went
out he tried to sell the Standard PEG.
pie his contract with the railroad, but
they refused it. They describe this
contract as the worst they ever saw
but they seem to have gone Mr.. Brun-
dred one better, for they Immediately
contracted with the road for a rate Of
10 cents on their own oil instead Of the
Is cents he was getting and rate Of
80 cents on Independent oil. And In
addition they asked that the extra rs
cents the independent paid be turned
over to them. If this was not done
the Standard would be under the pain
full necessity Of taking away its ship
ments and building pipe lines to Ma
rietta.
The Cincinnati and Marietta railroad
at that time was in the hands of a re.
ceiver, described as a ''fussy old gen.
tleman proud Of his position and fond
of riding up and down the road in his
private car" 1t is probably a good
description. Certainly 1t is evident
from what follows that the receiver
was much fused up officially. Anx-
ious to keep up the income OF his road.
he finally consented to the arrange
ment the Standard demanded But be
was worried lest his immoral arrange
ment be dragged into court and wrote
to his counsel asking If there was any
way Of evading conviction in case Of
discovery.
Upon my taking possession OF this
i road" the receiver wrote, the question
came up as TO whether / would agree 70
| carry the Standard companys oil to Mari
| eta for 10 cents per barrel In lieu Of their
/ laying a pipe line and piping their oil
/ I. Of course. assented 10 this, as the mat
ter had been fully talked over with the
Western and Lake Erie company before
| my taking possession Of the road. and J
wanted all the revenue that could be had
| IN this trade.
''Mr. oDay. manager Of the STANDARD
Oh company. met the general freight
| agent Of the w. and L. E. railroad and
our Mr. Terry at Toledo about Feb L
and made an agreement (verbal) to carry
their oil at 10 cents per barrel but Mr.
/ O'Day compelled Mr.. Terry to make I
thirty-fiYe cent rate on all other oil goini
70 Marietta and that we should make tn
rebate Is cents per barrel on all oil ship
ped by other parties and that the rebat
should be paid over to them (the Standar,
Oil company, thus giving US 10 cents pc
barrel for all oil shipped to Marietta an
the rebate OF Is cents per barrel going t
the Standard oil company. making tina
company. say SIS per day. clear none
on Mr.. George Rices oil alone.
f'In order TO save the oil trade along GU
line, and especially TO save the Standar
Oil trade which would amount to seye
times as much as Mr.. Rice's. Mr.. TER
verbally agreed to the arrangement
which, upon his report TO me, reluctant
acquiesced in, feeling that / could not al
ford to lose the shipment Of 700 barrels pt
day from the Standard oil company. Bt
when Mr.. Terry issued Instructions tha
on and after Feb. Is the rate Of oil woul
be IS cents per barrel to Marietta, NJ
George Rice who has a refinery in Mar
eta, very naturally called on me yestel
day and notified me that he would ne
submit to the advance, because the bus
ness would not justify 1t, and that III
. move was made by the Standard Oil CON
pany to crush him out. TOO true.l M
Rice said ! am willing TO continue til
! seventeen and half cent rate. which
have been paying from December TO tn
date
Now, the question naturally present
itself to my mind: II Mr. George Rio
, should see fit TO prosecute the case Q
the ground of unjust Discriminate
would the receiver be held, as the mar
ager Of property, for violation OF the law
While / am determined to use all honoi
able means to secure traffic for the con
: pany / am not willing to do an illegi
act (if this can be called Illegal and 10
this company liable for damages. III
Terry is able TO explain all minor que
) lions relative to this matter"
The counsel fixed it. for the recei'
er iii the following amazing decisions:
"you may. with propriety, allow q
] Standard on company TO charge 3 cen
! per barrel for all oil transported threue
their pipes to your road. and undo
stand from Mr.. Terry that It Is practic'
bic to so arrange the details that 4
. company can. in effect. collect this dire
T without its passing through your hand
You may agree to carry all such oil of q
Standard OIL company or Of others deli
I cred TO your road through their pipes
+ 10 cents per barrel You may also char
! all other shippers IS cents per barr
freight. even though they deliver oil
your road through their own pipes, al
! this. I gather from your letter and fro
E Mr.. Terry, would includeaMr. Rice
Now, how was this to be done wi
] propriety27 Simply enough. The Stan
! ard oil company was TO be charged
{ cents per barrel, less an amount equi
alent to 25 cents per barrel upon all {
/ shipped by Rice Provided your q
$ counts bills, vouchers, etc, are consi:
! ent with the real arrangement actual
! made you will incur no personal
. sponsibility by carrying out such an q
4 rangement as ! suggest"
n Even in case the receiver was disco
4 cred nothing would happen to him.
T, decided the counsel 1T is possih
y that by q proper application to I
e court some person may prevent you