Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-07-12
FAVORED In CHARGES
P. r. RS CONTRACT WITH THE
GALENA OIL COMPANY.
Its Rolling Stock fabricated at Lower
Rates Than a Number of
Other Lines.

The interstate commerce commission to-
day heard further testimony In It's inves-
tigation of the oil industry and practices
of the alleged monopoly. The proceedings
were had under the Gillespie-TGllman reso-
luton adopted by the last session of Con-
gress. John T. Marchand, for the COM
mission, and c. D. Chamberlain. secretary
of the National Petroleum Association, d.
rected the inquiry. R. w. Gull of Balti-
more represented the Standard Oil Com
pany, and George B. Gordon of Pitts
burg the Pennsylvania railroad.
Testimony of Manager Peck.
The only witness was George l. Peck,
general manager of the Pennsylvania lines
west of Pittsburg, who was examined con-
corning the contract the road had with
the Galena OF Company of Franklin. Pa,
for the fabrication of rolling stock. 1t was
brought out that the western lines of
the Pennsylvania pay by contract SD cents
per thousand miles for passenger coaches
and SO cents for freight cars per thou
sand miles. This was said to amount TO
only about one-third of the invoice price for
lubricating oil. which is 27.3 cents per gal
Ion, which other railroads are supposed to
but do not always pay Mr.. Peck said
he had heard that other roads had SINH
lar favorable contracts.
10 cents g gallon and the cost in the open
market would have been 1898 cents per
gallon. The saving to his road, therefore,
was shown to be little more than two
cents a gallon. Under the contract, 81 80
PEI thousand miles is paid for the lubrica-
ton of locomotives which Mr. Peck said is
only about one-half the amount it cost TO
lubricate engines before the contract was
made
Mr.. Peck testified that the terms Of the
contract are now in operation though the
contract expired March /, 1906, and could
not be renewed because vitiated by the
PENNSYLVANIA railroads rule against Issuing
free transportation Passes to a limited
number OF employees of the Gaiena Oil
Company had formed a portion of the COM
peLsatio under the contract The oil
company now renders to the railroad a bill
for transportation of employees.
DO you own any stock in the Standard
Oil Company or affiliated companies, the
Galena, the Eclipse or any others?' asked
Mr.. Marchand
l You need not name any other compa-
MES said Mr.. Peck, "as 1 never owned
any oil stock
Experience of Other Roads.
1t was stated by Commissioner Prouty
that the the Oregon Short Line the North
ern Pacific, the Wisconsin Central and the
Chicago, Milwaukee and St Paul railroads
had contracts with the Galena on Com
pany for lubricatng oil to be furnished at
a stipulated figure, which shall be as low
as the lowest market price. BY the testi-
mony of Mr. Peck It was shown that the
Pennsylvania railroad. by It's contract. re-
ceived oil at a less figure than has been
paid by other roads, and therefore the con-
tracing roads named have had opened for
them an opportunity for recovery of the
price paid in excess of the cost to the Penn
sylvania lines
Lawrence S Nicolai, formerly an indie
pendent oil jObber In Washington, was ia
ken i'll during the proceedings and was
compelled to- return to his home at Balti-
more. The proceedings were adjourned at
the close of Mr.. Pecks testimony.