Palestine daily herald. [volume] (Palestine, Tex.) 1902-1949, 1903-12-12


Brundred had made contract with
this railroad 10y which his oil was to be
carried for IL cents barrel. and al
other shippers were 10 pay 80 cents
Rice. who conveyed his oil to the rail
road by his own pipe line. got rate
OF 81 cents 10y using his own tank car
Later he succeeded in getting a rate
of lTE, cents Thus the rebate system
was established on this road from the
opening of the Mncksburg field.
In 1888 the Standard Oil company
tool, their line into the field. and soon
line business there. When he went
out he tried TO sell the Standard peo
pie his contract with the railroad. but
they refused IL. They describe this
contract as the worst they ever saw,
but they seem TO have gone Mr.. Brun.
drcd one better. for they Immediately
contracted with the road for a rate OF
10 cents on their own oil instead of the
- cents he was getting and rate OF
IS cents on independent oil. And in
addition they asked that the extra %
cents the independent paid be turned
over to them. II 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 ''fussy old gen.
tleman proud of his position and fond
OF riding up and down the road in his
private car" Ii 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 he
was worried lest his immoral arrange
ment be dragged into court and wrote
to his counsel asking IL there was any
way of evading conviction in case OF
discovery.
Upon my taking possession of this
road" the receiver wrote. the question
came up as to whether l would agree to
NHt SldnuhTu company y OIL 10 NATL
eta for 10 cents per barrel I'm lieu OF their
laying a pipe line and piping their oil
/. of course. assented to 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
wanted all the revenue that could be had
in this trade.
Mr.. O'Day. manager of the Standard
OIL company. met the general freight
agent of the w. and l.. L. railroad and
our Mr.. Terry at Toledo about Feb IL
and made an agreement tverbaD to carry
their oil at 10 cents per barrel. but Mr..
o'Day compelled MIR Terry to make a
thirty-fivs cent rate on all other oil going
to Marietta and that we should make the
rebate = cents per barrel on all oil ship
ped by other parties and that the rebate
should be paid over to them (the Standard
Oil company. thus giving US 10 cents per
barrel for all oil shipped to Marietta and
the rebate Of Is cents per barrel going to
the Standard OIL company. making that
company, say. SIS per day. clear money
on Mr.. George Rice's oil alone
I'm order to save the oil trade along our
line. and especially to save the Standard
OIL trade. which would amount to seven
times as much as Mr.. Rice's. Mr. Terry
verbally agreed to the arrangement,
which. upon his report to me, reluctantly
acquicsced In. feeling that could not ar
ford to lose the shipment of 200 barrels per
day from the Standard oil company. But
when Mr.. Terry issued instructions that
on and after Feb. q the rate Of oil would
be Is cents per barrel TO Marietta Mr.
George Rice. who has refinery in Mari
eta, very naturally called on me yester-
day and notified me that he would not
submit TO the advance, because the busi-
ness would not justify Il. and that the
move was made by the Standard Oil COM
pany TO crush him out. TOO true.1 Mr.
Rice said, i am willing to continue the
seventeen and half cent rate. which
have been paying from December to this
date
Now. the question naturally presents
itself TO my mind: II Mr.. George Rice
should see nj to prosecute the case on
the ground of unjust discrimination
would the receiver be held as the man
ager of property. for viola ton of the lav7
While ! am determined to use all honor
able means to secure traffic for the com
pany | am not willing to do an illegal
act III this can be called illegal and lay
this company liable for damages Mr.
Terry is able to explain all minor ques-
tons relative TO this matter"
The counsel fixed it" for the receiv-
er in the following amazing decision:
You may. with propriety. allow the |
Standard oil company TO charge Is cents |
per barrel for all oil transported through |
their pipes TO your road, and 1 under |
stand from Mr.. Terry that IL is practical |
BILE to SO arrange the details that the |
company can. in effect. collect this direct |
without its passing through your hands |
You may agree TO carry all such oil Of the |
Standard Oil company or of others deliv- |
cred TO your road through their pipes at |
10 cents per barrel. You may also charge /
all other shippers % cents per barrel /
freight even though they deliver oil TO
your road through their own piper. and |
his. ] gather from your letter and from
Mr.. Terry. would include Mr.. Rice"
Now, how was this to be done with
Simply enough. The Stand
ird Oil company was to be charged 10
.ents per barrel. less an amount equiv
llent TO % cents per barrel upon all oil
shipped by Rice. Provided your &C.
counts. bills. vouchers. etc. are consist
mt with the real arrangement actually
made you will incur no personal re-
by carrying out such an ar
angement as suggest"
Even in case the receiver was discov-
red nothing would happen to him, SO
lecided the counsel. lit is possible
hat Nv n nronpr annlication 70 the