The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-06-15
STANDARD FAILED
TO PAY CHARGES
Roundabout Rebate Methods of
the Lake Shore Rail-
road.
INDEPENDENTS WIN POINT
OIL HEARING IN CHICAGO YES
TERDAY.

Cleveland, June 1.-THE Interstate
Commerce commission re-opened the
investigation of the Standard Oil COM
pany here today. Judge C A. PTouty
was the only member Of the commits
sion present.
J. T. Marchand. chief counsel for the
commission, was assisted by Judge 5.
s. Mehard of Pittsburg.
In opening the session, Judge Prouty
said he had received a letter from Vir-
gfI p. Kline, chief counsel for the
Standard Oil company of Ohio on
June 7th, in which it was stated that
the STANDARD Oil company did not de-
sire at this time 10 offer any testi-
mony,
Mr.. Kline, who was present, cOrrOb-
Grated this statement and said that
this course was decided upon because
he believed that a full reply to all the
charges against the Standard Oil com
pany was now on 1le in the Office of
the commissioner Of corporations.
A Reluctant Witness.
Judge Prouty then asked if anybody
else desired to be heard and the only
response was from Chief Counsel Mar
chand. who said he had the testimony
of one witness TO offer. that of NJ. -.
fully. an auditor in the freight de-
partment Of the Lake Shore g. Michi-
gan Southern Railway company.
p Mr. Tully's testimony was concern
ing storage charges made against the
STANDARD Oil company at Chicago and
II was sought to draw from the wit
ness statements concerning the meth
DDS used by the railroad in keeping
such accounts, it being the contention
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
cleveland had afforded the local agent
at Chicago relief in this respect.
Mr. Marchand endeavOFed to show
that this was A roundabout way of Civ
ing the Standard Oil company a re-
bate. Close questioning on the part Of
counsel however, failed to obtain
definite information from the witness
regarding such allegations. Mr.. Tully
maintained that he did not possess the
Information with which to enlighten
the commission.
Commissioner Prouty took the wit
ness in hand and after a sharp examin-
alton ordered him to proceed to his
ONCE and obtain the accounts of the
Chicago Office for the last two years
containing the record of freight
charges me commission took a recess
until Mr.. Tully's return. The session
was resumed when Mr.. fully returned
with the accounts in question.
Roundabout Rebates.
Commissioner PrOuty, selecting sew
eral at random, proceeded to ask about
them. The reports examined showed
the storage charges averaging $500 a
month against the Standard Oil COM
pany, without any information as to
whether the charges were ever paid or
not Judge PTOuty by skiIful work sue
Ceeded in drawing from Mr.. TulIy the
admission that the agent at Chicago
was not required to send in the cash
for the storage charges, against the
STANDARD Oil company, but that the
account was balanced by a voucher
sent 10 the Cleveland office. This.
Tully said was done upon orders from
9. J. GTammeT. traffic manager of the
road. The practice, he said, had been
followed since 1908. but had ceased on
January / of this year.
There was no cross eXamina ton and
there being no other witnesses. ad-
JouTnment was taken without delay.
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.