Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-06-14
STANDARD OIL PROBE
An Inquiry Reopened at cIeve-
land Today
BY THE /. C. COMMISSION
The Counsel Tor Defendants Sent
Letter,
NO DESIRE TO OFFER TESTIMONY
Only One Witness ON the Stand To-
day-The Evidence Submitted Com
cerned Storage Charges.
Y THE |. C. COMMISSION
10 DESIRE TO OFFER TESTIMONY


CLEVELAND Ohio, June 14.-The inter-
state commerce commission reopened the
investigation of the Standard OIL Company
here today. Judge c. A. Prouty was the
only member of the commission present. j.
r. Marchand, chief counsel for the COM
mission. was assisted by Judge s. s Me-
hard of Pittsburg.
In opening the session Judge Prouty said
that he had received letter from Virgil
B. Kline, chief counsel for the Standard
OIL Company Of Ohio. on June Z, In which
1t was stated that the Standard Oil Com
pany did not desire at this time to offer
any testimony.
Mr.. Kline, who was present, corroborated
this statement, and said that this course
was decided upon because he believed that
full reply to all the charges against the
Standard Oil Company was now on file In
the office Of the commissioner Of corpora
lions.
Mr.. Kline's letter bearing on the sub
ject as sent to the commission at WASH
ington was as follows:
Letter From Standard People.
CLEVELAND. Ohio. June 7, 1905
Hon. Judson C. Clements, Interstate Com
MERGE Commission. Washington, D. c.:
my Dear Sir: At the conclusion of the
hearing in this city. you requested me to
state tn writing what portion Of the testi-
mony heretofore given before the industrial
commission 1 might desire to offer: also
upon what subjects I might wish to sub
NIT evidence at some later date in behalf
of the Standard Oil Company.
IL only on Monday last received full
transcript Of the testimony recently taken
here SO far as 1t reflects upon the rela-
lions of the Standard Oil Company to the
railroads of the country, 1t has already
been fully answered by evidence rem
dered to Commissioner Garfield and on
file in his office. 1 find that a large part
Of the so-called evidence taken here re-
lates to alleged competitive abuses In
few isolated places in the country at large,
but deem 1t an unprofitable task to en-
ter into q war OF words with respect
thereto.
II note what you say in your letter OF
June /, speaking In behalf of the commits
sion, and regret that you do not see your
way clear to have me tender You the ex-
haustive answers by representatives Of the
company published In full In volume one
of the report Of the Industrial commission
which ! was prepared to do, but DO not
deem 1t important enough at this time in
view of the full evidence heretofore given
before that commission, to go over the
same ground again. and prefer to Withdraw
my request for a hearing, at least for the
Immediate future, which accordingly DO
VIRGIL P. KLINE"
One Witness Heard Today.
Judge Prouty then asked If anybody else
desired to be heard, and the only response
was from Chief Counsel Marchand. who
said he had the testimony of one witness
to offer that of IA. c.. Tully. an auditor In
the freight department of the Lake Shore
and Michigan Southern Railway Company
Mr.. Tuliys testimony was concerning
storage charges made against the STANDARD
OIL Company at Chicago. and 1t was sousat
to draw from the witness statements con-
corning the methods used by the rairotd
In keeping such accounts, n pelhs the Gun
tentlon of Mr. Marchand that the railroad
had allowed the storage charges against
the Standard Oil Company to go unpaid,
and that the auditors department In Cleve-
land had afforded the local agent at mi
cago relief in this respect
Mr.. Marchand endeavored TO show tAat
this was a roundabout way of giving the
Standard OIL Company rebate Close
questioning the part of counsel. now
ever, failed to obtain definite fnformasion
from the witness regarding Such aHeSai-
tons.
Mr. FULLY maintained that he did not
possess the information with which to en-
tighten the commission
Commissioner Prouty took the witness IN
hand and after sharp examination or
dered him to proceed to hts office and OBJ
tain the accounts OF the Chicago office for
the last two years containing the record
OF freight charges. The commission took
q recess until Mr.. Tulleys return.
Storage Charges $500 Month.
When Mr.. Tully returned he was accom-
panied by Henry L. Meyer, clerk who had
charge of the books in question. Mr.. Meyer
produced a bundle of storage reports from
the Chicago office. and Commissioner
nj nd
ceeded to ask Meyer about them. The re-
ports examined showed storage charges
averaging 500 per month against the Stan
dard Oil Company.
Having questioned Meyer without obtain
ting any information as to whether the
charges were ever paid or not, Judge
Prouty turned to Mr.. Tully again, and by
skillfu1 work succeeded in gradually draw
ing from him the admission that the agent
at Chicago was not required to send in the
cash for storage charges against the STAN
dard OH Company. but that the account
was balanced by voucher sent. to the
Cleveland Office. This. Tally said, was done
upon orders from G. J. Grammer, traffic
manager of the road. The practice, he said,
had been followed since 1903, but had
ceased on January of this year.
There was no REORGANIZATION, and
there being no other witnesses, adjourn
ment was taken without day.
Chief Counsel Marchand declared at the
close of the session that the failure OF Mr..
Kline to offer any testimony or put. in a
defense Of any kind was q complete victory
for the independent oil men.
Witness Change Of Front
'"Thfs session." said Mr.. Marchand, was
called solely at Mr.. Kline's request and
upon his statement that he desired to be
heard In answer to the numerous charges
made His change Of front ID surprising to
say the least, and think we can interpret
It a. meaning that our charges cannot be
refutkd- We were prepared to closely cross
examine any witnesses which Mr.. Kline
might produce, and we had q number OF
additional witnesses OF our own whom we
Intended to place on the stand H defense
was offered Meme having been offered.
however We did not need much ct the adj
ditionai evidence we had In hand"
Mr. Kline when asked for statement as
IN the Standard On Compauy's position
said he had no comment to make further
than that contained in his letter to the
communication and what he had said during
the session held today
OUT on POINT OF ORDER
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