The Washington times., 1906-07-12
General Manager TeSti-
fieS Before Interstate
Commission in
Washington
OTHER ROADS CHARGED
MUCH HIGHER RATE
Lawrence NicoIai, Oil Job
Der, Seized With Sudden
Illness and Prevented
From Taking Stand.

Before the Interstate Commerce
Commerce Commission today John Il.
Marchand, counsel for the commission,
proceeded TO elicit testimony from
George /. Peck, general manager Of
fhe Pennsylvania lines west of Pitts
burg. which. he believes. viii enrage
the railroad companies other than the
Pennsylvania, who have had contracts
for lubricating oil with the GaIena OIL
Company, Of Franklin. Pa He showed
the Pennsylvania lines got the lubri-I
cant for about 10 cents, although the
listed price was y cents. and that
other railroad companies paid much
more, Notwithstanding the fact that
their contracts assured them the lowest
prices charged anybody.
Mr.. Marchand was aided I'm his exam
snation by c. d. Chamberlain, of Cleve-
land, Ohio, secretary of the National
Petroleum Association, who has had a
part throughout the investigation,
which is carried on under the provis-
ions Of the TilIman-GiIespie resolution
adopted at the last session Of Congress
George B. Gordon, of Pittsburg. repre-
sented the Pennsylvania Railroad Com
pany's interests. r. w. Gun. Of Baltl-
more, represented the Standard OH
Company. The hearing was before
Commissioners Knapp. Prouty, Glenn
ents. and Cocltreu
Peck Takes Stand
Mr.. Peck took Tia stand at 11:15. He
was at once interrogated in relation TO
his contract with the Galena OIL Com
pany, facts bearing on which have
been brought out previously at the
hearing OF the commission in Chicago.
Mr. Peck identified contracts made by
the companies he directs with the
Galena Signal Oil Company for the pur-
chase OF lubricating oils. These con-
tracts We're exclusive, but the railroad
companies reserved the right TO test
other oils in the market The witness
testified this clause was for the pur-
pose Of determining whether the con-
tract continued TO be favorable. He
said he was satisfied with the contracts
when they We're made. The contracts
provided for payment for oil on
mileage basis. and the witness testified
IL was the policy of the oil company
10 reduce the oil used 10 the lowest
possible point consistent with good
fabrication
Discrimination Intimated.
In response to questions and sugges-
tions from Commissioner PrOuty. the
witness testified that the average price
of oil used under the contract was
about 1912 cents per gallon, while the
average list price of all the oils used
was something more than 1872 cents.
The Commissioner intimatcd that other
roads were charged the higher price,
and that the Pennsylvania, therefore,
was unduly and unreasOnably favored
Mr.. Peck said the original offer of the
Galena OH Company was 10 furnish
fabrication for the lines at I'D per cent
less than the company was then pay
ing. A special effort was made 10
bring the cost down TO the lowest pos
sible cost. The cost was made so low,
in fact. that the 10 per cent educuon
offer was withdrawn Ine contracts
expired on March ], 1906, and have not
been renewed They were not re-
newed because the contracts provided
for passes for certain officers of the
oil company and the Pennsylvania
stopped issuing passes on January 4
The witness said nc never owned any
stock of the Standard oil Company, the
Galena OH Company. and other a1illlat-
cd companies or the STANDARD; Mr.
Marchand had begun a long examination
OF the Standard Affiliations. where Mr..
Peck interrupted.
Owns No Oil Stock.
You need not continue TO enumerate."
any oil company"
Mr.. Peck said his companies were now
getting lubricaung oil from the Galena
on Company, on the basis of the old
contract. He said the fundamental pur-
nose Of the contract was 10 save money.
eft is very important 10 your road
for signal purposes. TO have "a standard
on ts il not?" asked Mr.. Gordon.
..In one sense" answered the witness.
quickly. Il prefer 10 say a uniform
oil"
NicoIai Taken Ill.
lawrence Nicolai, formerly en- inde-
Dendent oil jobber in Washington, was
10 have been interrogated by Mr..
Afarchand relative to the manner In
which he retired from business and the
connection of the Standard oil Company
with that event Mr.. Nicolai however.
was taken suddenly iu while Mr.. Peck
was on the stand and his examination
was passed over until some more favor
able opportunity.
While Mr. NiCOlais Illness was only
Temporary and he returned 10 the room
within a few minutes after he was as
sisted ont IL was thought best not 10
subject him to the ordeal OF an eN-