Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-07
lubriCating Oil Man Tells His
Troubles to Kellogg.
HEARING OF STANDARD SUIT
Railroads Ignored Bids of Inde-
pendent Producers.
LOWER PRICES NO INDICTMENT
Was Warned He Could Do Nothing
With the New York Central.
New Evidence Accumulated

NEW YORK, October Phillip Harri-
son. manager Of the New York Lubricat-
ing Oil Company. an independent concern,
who testified Friday to the discrimination
in freight rates to South Africa in favor
of the Standard Oil Company, was again
called to the witness stand today by Spe-
cial Inquistor Frank b. kellogg in the
hearing of the governments suit for the
dissolution of the Standard Oil Company
of New Jersey.
In response to questions by Mr.. Kellogg
Mr. Harrison said he entered the lubricat-
ing oil business about fifteen years ago.
He was at one time employed by the
Vacuum Oil Company. subsidiary of the
Standard
Since you have been at the head of
the New York LubTicating Oil Company
have you bid for supplying lubricating oil
to railroads?"
Witness answered that he had He then
named several lines, but added that as
competition was so keen his company had
little success with the railroads.
and the c., b. and o." Mr.. Kellogg
asked.
I'VE were made to understand We could
not hope to compete with the Standard,
that II would be useless for US to try
Arter quoting prices at which his COM
pany sold oil to this road the witness
said he had conference with President
NJ. IL. Smith of the Louisville and Nash
Vile at which he learned that no further
bids would be considered from the New
York Lubricating Oil Company. No rea-
son was given, he said, and Mr.. Smith
even addressed a letter to Harrison in
which he said the oil of the Independent
concern was as good as any that had been
furnished to the road previously.
Il told Mr. Smith l regretted that my
company would not be permitted TO bid
as we had intended to reduce the price for
Iubricating locomotives from s1o3 to 81 40
per 1,oOO miles,
Roads Wasted Money.
Mr.. Kellogg produced a contract be-
tween the Louisville and Nashville and
the Galena Signal Oil Company for 1906,
showing that the railroad was then pay
Ing 31.69 for locomotives, IL cents for
passenger cars and 8 cents for freight
cars This was the same price charged
by the Standards subsidiary company
prior to the time the contract was en-
tered into with the New York Lubricating
Oil Company.
There was a saving to the Louisville
-,
laps $50 900 a year" Mr. Harrison said
MIR. Harrison was then asked If he had
had similar experience with other rail-
roads. and he mentioned the Central of
Georgia instance.
Witness said his company had fur
nished the Georgia railroad with lubri-
eating oil for four or five years at
guaranteed price OF 81 cents for locomo-
611 cents for freight cars. The Galena
S gnal Oil Company, however, secured
the contract about two years ago, he
said. at a higher price than the New
YORK LubricatIng OIL Company charged.
Railroads Were Hopeless.
Did the Georgia railroad give any rea-
son for not renewing its contract with
you?" asked Mr.. Kellogg.
No. sir, to the contrary; they all
spoke h.ch-y OF our OIL, saying that it
wa entirely satisfactory"
NJ: Harrison told OF having received
Inquiries about his company's oil from
MI Fairclild purchasing agent for the
New York Central.
! tod Mir Fairchild that we did not
cane 80 bid for lubr!catng railroads un-
less We coIld be assured that our fig
UrCs Won d not be taken To hammer other
quotations down. | reminded him that
s"vsrgi men .gh in the councils OF the
Standard on Company We're on the di-
Iecju:dte ut the New York Genital, and
u~Etd ~ he thought our company ad an
chance of getting any of the railroad $
business. provided our bid was favorable
To tbs Mr.. Farchlld replied that ..e did
not tlink We Cou.d get all of the New
No.k Centrai's business.
Il asked: Do you think we could get
any Of it, and he said, L don't know ="
New Evidence Found.
The result of the inspection of certain
books In the secretary and treasurer's
offices OF the Standard OIL Company by
staff of government accountants Will
probably be tod before Examiner Fer
ries today.
The fact that these accountants had
been at work on the Standard Oil books
for several days was not made public
until yesterday, when the evidence they
uncovered was whipped into shape to
present before the examiner. This in
spec ton of the books of the New Jersey
corporation. which controls the twenty
OIL concerns formerly in the dissolved
Standard oil trust of Ohio, was a point
for which Frank B. Kellogg, the gov
ernments counsel. had been looking
since the hearings began several weeks
ago. He had demanded statements fr ,m
Various books. and copies were made by
Standard Oil employees and exhibited in
cO,Tt.
But when Mr.. kellogg asked for the
records OF the old board of liquidation
trustees by which he wanted to show that
the present Standard Oil Company OF
New Jersey is really the same old trust
under new name. with the same inter
ests In control. he was told that the stock
transit books were missing.
Either today or tomorrow the govern
ment Will place on record the details OF
how the Pacific Coast OIL Company was
scduired by the Standard in 1900. and an
effort Will he made To show that the
Standard operated the company for a
Time as an u dependent comnanY the oh.