Waterbury evening Democrat., 1903-12-03

practice was stIlI in operauon, pur nat urally proof was most difficult to se- cure. The demonstration came in 1885 through one of the most aggressive and violent independents which the war in oil has produced, Mir, George Rice of Marietta, O. MT. Rice, an oil producer, had built refinery at Marietta in 1873. He sold his oil in the state, the west and south. Six years later his business was practically stopped by a sudden rise in rates on the Ohio roads, an advance of fully 100 per cent being made on freights from Marietta, where there were several independent refner- ies, although no similar advance was. made from Wheeling and Cleveland, where the Standard reflneries were To- cated. These discriminations were fully shown in an investigation by the Ohio state legislature in 1879. From that time on MT. Rice was in constant difflt cuIty about rates.
 In 1883 MT. Rice began to draw the crude supply for his refinery from his own production in the Macksburg field of southeastern Ohio, not far, from Marietta. The Standard had not at that time taken tts pipe lines In the Macksburg field, and the oil was gath arhd hv line owned by MT: A. J. Brundred and carried to the Cincin- natl and Marietta railroad. Now, MT. Brundred had made a contract with this railroad by which his oil was to be carried for 15 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 25 cents by using his own tank car. Later he succeeded in getting a rate of 171h cents. Thus the rebate system was established on this road from the opening of the Macksburg field.
 In 1883 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 peo- 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 MT. Brun- dred one better, for they immediately contracted with the road for a rate of 10 cents on their own oil instead of the 16 cents he was getting and a. rate of 85 cents on independent oil And in addition they asked that the extra 25 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 it's 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" It is probably good description Certainly it is evident from what follows that the receiver was much "fussed up'' ethicaIly 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 if 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 I would agree to
 carry the Standard companys oil to Mari I etta for 10 cents per barrel in lieu of their
 laying pipe line and piping their oil. l, of course, assented to this, as the mat
 ter had been fully talked over with the I 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 irrh+ | agent of the w. and L. E. railroad and | our MT. Terry at Toledo about Feb. 12 and made an agreement (verbaD to carry I their oil at 10 cents per barrel but MT l ODay compelled MT. Terry to make a. 1 thirty-flve cent rate on all other oil going l 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 l the rebate of 25 cents per barrel going to
 the Standard oil company, making that | company, say, $25 per day, clear money | on MT. George Rice's oil alone.
 "In order to save the oil trade along our l line, and especially to save the Standard l Oil trade, which would amount to seven
 times as much as MT. Rice's, MT. Terry | verbally agreed to the arrangement 1 which. upon his report to me, I reluctantly l acquiesced in, feeling that could not af- ASA~ @OS SAAo VI sVo oesA SAS PSA l day from the Standard Oil company. But | when MT. Terry issued instructions that | on and after Feb g the rate of oil would l be 35 cents per barrel to Marietta, MT. | George Rice, who has a refinery in Mari l etta, very naturally called on me yester- 1 day and notified me that he would not 1 submit to the advance, because the busi- ness would not justify it, and that the
 move was made by the Standard Oil com 1 pany to crush him out. [Too true.l MT. Rice said, I am willing to continue the I seventeen and a half cent rate, which I
 have been paying from December to this | date
 l Now. the question naturally presents Itself to my mind: If MT. George Rice ! should see ii. 10 prQaacnte the case on