New-York tribune., 1906-12-01
ACCUSED BY OIL MEN.
LACKAW4NNA ROAD UP.
Independent Distributors Charge
Conspiracy soith Standard.

The Interstate Commerce Commission met in
the Federal Building In this city yesterday 10
hear testimony in the complaint OF Preston &
Davis. independent oil distributors, in Brook
lyn. against the Delaware, Lackawanna q west
ern Railroad Company, on account OF the REFUSAL
of the railroad company TO continue the trans
portation of oil in tank cars from the Tltusvilte
Oil Works In PENNSYLVANIA to Preston Davis,
at the Wallabout Basin freight yards, In Brook
lyn. The complaint involves q charge that the
railroad company and the Standard Oil Com
pany are In a conspiracy TO drive the indepen-
dent oil distributors in Brooklyn out of business.
EX-State Senator David F. Davis a member
of the complaining firm. a witness in yes
terdays session, and will be under cross-exem-
ination when the investigation is resumed this
morning. He testified that from 1890, when his
firm was organized TO 1902, the firm bought oil
from the Standard Oil Company, and delivered
IT TO consumers in Brooklyn by the tank wagons.
AT the time the Standard Oil Company
had a branch company in the field distributing
oil to Brooklyn consumers. In 1897 the standard
Oil Company increased the price of oil to the
independent distributors. while its disturbing
branch in Brooklyn reduced the price TO con-
Compelled to meet the cut in price, Preston
& Davis could make no money in the business,
Mr.. Davis testified, until he made contract
with the Titusville Oil Works for the shipment
of tank of 5000 gallons once a week. Be
fore making the contract he conferred with
solicitor for the Lackawanna, and was assured
that the railroad would transport the oil In bulk
TO the Wallabout terminal. After that. for three
years, the firm received its oil from the Penn
sylvania ref1neries in tank over the Lacka-
wanna The firms tank wagons took the oil
direct from the tank cars at the Wallabout
yards. Mr.. Davis heard that the Standard Oh
agents had protested against the 1ackaWannae e
transportation of oil in bulk to the city as a
violation OF a secret agreement entered into
between the Standard oil Company and the
railroads. but it was not until the spring of
1905 that the railroad company made move to
stop transporting oil for the firm.
The first warning was sent to the Tftusville
OIL Works in the form of a letter saying that
the railroad company objected to the method OF
transferring oil from the tank cars to the tank
wagons in Brooklyn Mr.. Davis said It was
true that a little oil was spilled in the transfer
but he asserted that the quantity was too small
to cause any danger of fire in the freight yard
He had conferences with Lackawanna officials,
who said they wanted to quit transporting oil
for the firm, but failed to state any specific faut
in the method Of transferring the oil from the
tank cars At length, on August ~ last, ne
called to conference at the Lackawanna
offices, in William street. and served with a
to transport oil for his firm after October 10.
Mr.. Davis testified that he had observed con-
ditions at other freight yards on the Lacka-
wanna and had found that the company trans
ported oil for distributors at various points out
side of Brooklyn. making objection to the
method of transferring oil from the tank cars.
He furnished a mass or correspondence Win
Lackawanna officials in support of his charge
that his firm had been treated unfairly by the
company
P ]. Flynn general freight agent of the
Lackawanna. testified that the trunk lines had
ont into a delivery
petroleum in the city in the interests Of safety.
The Standard Oil people. he said, had made a
complaint against the deliveries of oil a+ the
Wallabout Yards but the Lackawanna decided
to stop them on account of the danger from
fire
President Truesdale testified that William
Rockefeller and John d. Rockefeller. jr, were
among the directors of the IaCkawanna. He
said he had no recollection of complaints against
Preston 6: Davis except through NiCe-President
Caldwell, of the LaCkawanna
Did you hear that the deliveries Of oil at the
WaIIabou: yards a violation Of the trunk
line agreement?'' asked.
only through Mr. CALDWELL, he replied.