Los Angeles herald., 1906-05-06
RAILROAD MAN SAYS
GARFIELD PERVERTS
THE FACTS IN CASE
BY Associated Press.


PHILADELPHIA, May 6.-Vice
President Thayer of the Pennsylvania
Railroad company, today made the fol-
lowing 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 with the traffic of the
Standard Oil company, is an inexcusa-
BILE and outrageous perverslon of the
facts.
"It is true that there has been in ef-
feet a special rate of 0 cents per bar
rel on oil from Olean to Rochester and
1t has not been withdrawn. This rate
was originally made in 1888 by the
Western New York & Pennsylvania
railroad, twelve years before the ac-
QUESTION of that company by the Penn
sylvania railroad in order to retain to
the railroad traffic which would. other
wise have gone by pipe line.
Says This Is No Secret
''It is not a secret and 1t never has
been a secret. The tariff was not
filed with the interstate commerce COM
mission because it applies to traffic
solely within the state.
"As the so-called saving Of $115,000 in
1904, 1 presume this is based on the
difference between. the special rate and
the regular classification rate.
This conveys the impression that a
large sum of money was illegitimately
given by the railroad, which, in view
of the facts above explained, is mani
festly 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.
Another Name for Manifesting
"Billing is another name used by
railroads for manifesting, which is
record of the shipment made for use
only of the railroad company in maxi
ing proper movement of the traffic,
taking proper account Of it. The pub
lie never sees a manifest, being inter
ested only in the bill of lading and
freight bill.
THE term blind is used when
manifests are made without the de-
tails being shown, a practice not in
frequent and not peculiar to the oil
traffic. Its purpose is to save clerical
work. This was fully explained to
Commissioner Garfields representatives
and it was clearly shown to him In the
case under discussion that the actual
freight money required by the issued
rate was collected and retained by
the railroad company
Cites but One Case
9. After an exhaustive examination
by the department Of commerce, our
books and accounts being freely pro-
duced both on state and interstate
traffic, it appears the only case that
Commissioner Garfield was able to
present for criticism in all our rela-
tions with the Standard Oil company
is the rate on oil between Olean and
Rochester, two points in the state of
New York, 100 miles apart, at each of
which points are located refineries of
the Standard Oil company, and be-
tween which a pipe line could readily
have been constructed.
"In the message from the president
the report Of Commits
sioner Garfield, reference is made to
the relations of the railroads to the
so-called sugar trust at New York and
to information communicated to the
president that the so-called sugar
trust rarely if ever pays the lawful
rate for transportation.
Declares Statements False
GAS the Pennsylvania Railroad COM
pany is known to participate largely
In the carriage of this traffic, it would
follow that such informa-
tion applied to that company, and in
view of this it is eminently proper that
answer thereto should be promptly
made on that company's behalf.
Having personal knowledge, L deny
most positively and emphatically that
the information is true so far as the
Pennsylvania Railroad company is
"On the contrary assert positively
that the traffic OF the so-called sugar
trust or other shippers Of sugar has
been carried for many years past at
the lawful published tariff rate, and
that no rebate or unlawful conces-
sion, direct or indirect. has been paid
by our company on this traffic.
"It is unfair and unjust to the pres
ident that he should be misled into
that any such condition of
affairs exists as stated"