The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-01
LACKANANNA UP ON CHARGES
or DISSEMINATING AGAINST
INDEPENDENT on FIRM.
Interstate COmmisslSn Hears
That The railroad Refused TO Deliver OIL
at Its brooklyn Terminal. To the Bone.
nj or a standard Subsidiary concern.

That the railroad Refused TO Deliver OIL
at ITS BROOKLYN Terminal. 20 the Bcne.
nj OF a standard Subsidiary Concern.
The charge that the Della ware. Lacka-
wanna and Western Railroad had dis
eliminated against Preston q Davis, inde-
rendent oil dealers in Brooklyn, in refusing
10 deliver kerosene in hulk at the Wallabout
terminal of the road came up yesterday
nt a hearing OF the Interstate Commerce
commission in the Federal Building. 1t
Is charged by Preston 4 Davis that the
railroad discontinued the delivery Of oil
in bulk to them in response to pressure by
officials of the Standard Oil Company,
whose subsidiary concern, the Mehlen
Family Oil Company, is one of Preston &
navis's chief competitors in Brooklyn.
Commissioner Knapp presided. Commits
sioners Clements and Prouty sitting with
him. Preston d Davis we're represented
by Henry A.. Powell. W. s. Jenny, general
counsel for the Delaware and Lackawsnna,
defended the interests Of the road.
Former State Senator David F. Davis,
one Of the members OF the firm, testified
that the firm was organized in 1890 to do
= family oil business in Brooklyn. At that
time il bought its oil from the Standard
oil Company in barrels. About the same
time the Mehlen Family Oil Company
started up. Davis suspected that it
vas controlled by the Standard, but he
didn't find out definitely until a few years
later.
The business OF Preston a Davis increased
and the firm prospered. In 1903 it began
20 plan the erection Of a storage plant near
North Tenth street, Brooklyn. Davis testi-
fed that he went Up into the oil fields n
bought three carloads OF the refined prod
uct and had them shipped to Brooklyn.
The FIRMS wagons, Davis testified. were
Swallowed when the oil was drawn away from
the Delaware and Lackawanua terminal,
and A little later a representative of the
Standard Oil Company visited the firm
and inquired where it had got tho oil.
In huving oil in the barrels the firm OF
Preston 4 Davis had TO depend to a consider
able extent for it's profits on the sale Of the
"empties, . and the firm found that in some
unaccountable way the price OF oil barrels
IN Brooklyn was being reduced. For four
years more Preston q Davis continued to
huv oil from the Standard company, but
in 1897 the price to them was gradually in
creased until it was doubled. Al the same
time the Mehlen Family Company continued
20 sell at the old retail price and in some
instances at lower prices.
We were," said Davis, "ketween the
upper and neither millstones. Our profits
we're completely wiped out, and for two
Years we conducted our business at a loss.
Il y~ss al this time that we learned the Meh-
len Family Company belonged to the Stand
ard. Conditions became such that it looked
a. il We would have to go out Of business. '
The Price OF oil to Preston 4 Davis was,
however, reduced, but raised again in
1901. and the firm found itself in just as
bad a condition as it had been in 1897. Davis
testified that he went to the Standard Oil
cffcisls and told them that the price he
wss paving was excessive, but they said
t}eNrrice VAS set and he would have to
i,Hc il or leave IL. Then Davis said he be-
ran = look around - get oil from outside
~s-'lrc,,s.
Finally ne MAZE arrangements on Decem-
l"r -, 1909, to have q tank car delivered
,,or the Delaware and Lackawanna to the
U~gDElrl terminal. Davis sid he was
s1r,rt-ci when he got the Lackawanna
t5Jclircr the oil because he knew that there
was an agreement among the trunk lines
rri T., Celiver any oil in bulk at any Of the
terminals in New York harbor, but the
Delaware and Lackawanna solicitor said
rlpt they we're anxious to get all the bust
TCss they could.
Davis suggested that the company would
tear from the Standard Oil in regard to
to matter. but the solicitor said he didn't
caro-. Preston a Davis then made arrange
Irants to have a tank delivered at the Brook
lvn terminal every six days from the Titus
vile oil Works, and they built up a good
business. Among other contracts which
they got was one to supply Fort Hamilton
With oil. This, the witness testified, was
nbtsined in competition with the Standard
oil Company.
The first intimation which Preston Il
Davis had Of a disposition on the part OF
the railroad % refuse them further deliv-
cries was in the spring of 1906. The officials
objected to an oil spot on the ground where
their car always stood. Davis said he Of
tered 10 do anything that he could TO prevent
the spilling Of oil, and heard no more from
the . until the fall of 1905, when n
letter was forwarded to him from the Titus
vile Oil Works in which the announcement
was made by q. ". Horgan OF the Buffalo
freight Office that the railroad had decided
tn discontinue the delivery Of oil to the
Brooklyn terminal because Of the danger
from fire.
Davis hurried to zee Vice President Cald-
well. notifying him that il the ira ffc was
cut OF he would seek an Injunction and bring
the matter before the Interstate Commerce
Commission. Caldwell, according to Davis,
regarded his remarks as facetious. There
we're several other conferences in which
Davis says he was never able to find put any
thing definite about the complaint OF the
company except hat in a general way they
feared fire..
The delivery of the oil cars was continued
until August, 1906, when Davis got a letter
in which IL was asserted that it was the be-
lief Of the company that the OF hand
ling the cars constituted a menace to the
company's property. The complny's OBJ
lection, il was said, was TO the method by
which The oil waa transferred by hand into