New-York tribune., 1906-05-06
DENIED BY RAILROADS.
REPLIES TO GARFIELD.
p. r. r. Vice-President Says oil
Rate Was Not Secret.

Philadelphia, May 5-Vice- President Thayer
Of the Pennsylvania Railroad Company to-day
made the following statement concerning the re-
port Of Commissioner Garfield in the Standard
OIL inquiry:
The report of Commissioner Garfield. so far
as 1t refers to our company in its relations Win
the traffic Of the Standard Oil Company IS an
inexcusable and outrageous perversion OF the
facts.
It is true that there has been in effect a spe-
cial rate of nine cents a barrel on oil from Olean
to Rochester and il has not been Withdrawn
This rate was originally made in 1888 by the
Western New York & Pennsylvania Railroad
twelve years before the acquisition of that com
pany by the Pennsylvania Railroad in order 10
retain to the railroad traffic which would other
wise have gone by pipe line. Inc traHc 10 De
transported was crude oil and unfinished prod
ucts moving from refinery to anothers be-
longing to the same owners Attention having
been recently called to the wording OF the tarl1
which might be construed TO include rehned OIL,
and perhaps so enormously construed ana
pared with the total traffic. the wording or the
tariff was corrected so as to clearly conf1ne the
rate to crude oil and unfinished products thereof.
as intended. 1t is not a secret rate, and never
has been secret The tariff was not filed with
the Interstate Commerce Commission because II
applies to traffic solely within the state OF New
York and tariffs upon such traffic are never
fled with the commission whose jurisdiction COW
only interstate traffic 1t was not made. as
stated by the report, for the purpose of COM
bination with other rates to produce secret, low
through rates to New England, and was never
TO our knowledge used for such purposes,
AS TO the so-called Saving OF $116000 in
1904" I presume this is based on the difference
between the special rate and the regular classi-
fcation rate. This conveys the impression that
a large Of money was illegitimately given
by the railroad. which, in view OF the facts
above explained. is manifestly not true.
Reference is made to blind billing" as If 1t
were some secret device. This also is untrue.
The explanation of so-called blind billing" is
very simple. Billing is another name used by
railroads for manifesting which is a record
% oo1fn M MAJ for
road company, in making proper movement OF
the traffic and taking proper account of 1t. The
public never sees a manifest, being interested
only in the rate, the bill of lading and freight
bill
The term blind" is used when manifests are
made without the details being shown, a prac-
tice not infrequent, and not peculiar to the oil
traffic. It's purpose is to save clerical work
This was fully explained to Commissioner Gar
fields representative. and it was clearly shown
to him in the under discussion. that the
actual freight money required by the issued rate
was collected and retained by the railroad COM
pany.
partment of Commerce-our books and accounts
being freely produced both on state and inter
state traflc-it appears that the only case that
| Commissioner Garfield able to present for
criticism in all our relations with the Standard
OIL Company is this rate oil between Olear
/ and Rochester, two points in the state of New
York a distance of one hundred miles apart, al
each Of which points are located Tefneries of the
| Standard OIL Company. and between which a
/ nine line could readily have been constructed.
In the message from the President transmit
/ ting the report of Commissioner Garfield ref
erence is made to the relations of the railroads
/ to the so-caled Sugar Trust at New York
and to information communicated to the Presi-
dent that the so-caled Sugar Trust rarely, il
ever pays the lawful rate for TRANSPORTATION. AS
| the Pennsylvania Railroad Company is known
| TO participate largely in the carriage of this
traffic it would necessarily follow that such in
1 formation applied to that company. and in view
Of this It is eminently proper that thereto
/ should be promptly made that companys be-
| half Having personal knowledge. deny most
| positively and emphaticaly that such informa-
1 ton is true, far the Pennsylvania Rail
/ road Company is concerned. On the contrary.
assert positively that the traffic of the called
| Sugar Trust other shippers of such has
| been carried for many years past at the Lawful
published tariff rate, and that no rebate un-
| lawful concession. direct indirect, has beer
| paid by company on this traffic
| 1t is unfair and unjust to the President that
| he should be misled into believing that any such
| condition Of affairs exists as stated.