The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1906-06-21
STANDARD GIVES
UP BIG CONTRACTS
Disclosures Result in the LII,
bricating Oil Graft Being
Stopped.
RUNS UP TO BILLION
Money Paid by Railroads to the Gian'
Trust During Last Decade Through
This Form of Tribute Is
Enormous.

Cleveland, June 2o.-Owing to the dis
closures made before the interstate
commerce commission the Standard Oil
company has thrown up its contract fol-
lubricating the Pennsylvania lines
west of Pittsburg, voluntarily surrend.
ering a revenue of more than $4,000 q
year.
With the cancellation of the agree
ment between the Pennsylvania and
the Galena Oil company, which is the
constituent company through which the
Standard furnishes all the railroads OF
the country with l~ubricating oil, comes
the knowledge hat the Pennsylvania
lines west of Pittsburg saved more
a more liberal contract than any other
railroad company enjoyed with the Ca.
lena for l~ubricating oils.
Figures Show Big Gifts.
This disclosure means, according tc
the attorneys for the commission, that
if, as charged before the commission,
the Standard Oil company is receiving
rebates from the railroads in the form
of excessive prices paid the Standard
for lu~bricating oils, the Pennsylvania
lines west of Pittsburg would have paid
! ,lRG SlttnudTN VII company Sl,Oll,6S9 IT
this form Of rebates during the last ten
years, had the railroad submitted to
paying the prices for oil which all other
railroads were willing to pay.
1t is also said to prove conclusively
that the prices paid by all other rail-.
roads in the country, except the Penn
sylvania ines west of Pittsburg, to the
Standard Oil for lubricating oils is al
least so per cent. in EXCESS of the prices
that could be obtained from independ.
ent companies. Whether the payment
Of Standards prices amounts to the
payment of rebates by the railroads Oh
not, it is a fact that at least ten big
railroad systems having terminals III
Chicago, for example, have paid the
Standard Oil company for the last ten
years in the neighborhood of SIG, OOO, 900
In excess Of the sum they would have
paid had they paid on the basis of the
contract enjoyed by the Pennsylvania
fines west of Pittsburg.
Runs Up to Billion.
That there are many more thar ter
cailroad systems which use as much
!ubricating oil as the Pennsylvania
lines west of Pittsburg is certain. The
sum paid Standard Oil by all the rail-
road systems of the country for lubri-
cation, therefore, during the last de-
cade in excess Of the sum they would
have paid under a Pennsylvania con-
tract would undoubtedly aggregate
more than 81, 900, 900, 900.
The saving which a been effected
to the Pennsylvania lines west of Pitts
burg is due to he refusal Of George L.
Peck, general manager, to submit to
The payment of prices for lubricating
which he had demonstrated to be eX-
brilliant and to his compelling the
Standard Oil people to give his COM
oany a reasonable contract or permit
Independent companies to lubricate tho
lines.
These facts were disclosed by ani-
aavits made by Mr.. Peck, together with
sworn financial statements made by
aim and filed with the Interstate Com
nerce commission in refutation Of the
charge that the Pennsylvania was pay
ing rebates to the Standard Oil COM
pany in the form of excessive prices
Tor lubricating oil.