New-York tribune., 1907-09-27
PUMPS AT THE BORDERS
J. O.. MTLBURN,S SCHEME.
HO5C STANDARD Met Hepburn Lao
Some Huge Profits.

IL the mInd OF JOln 3lllDuTn, CnAeA
counsel for the Standard Oil Company Of New
Jersey in the suit TO dissolve that corporation.
that generated the idea Of erecting pumping
stations on the border lines Of states that made
the Standard of New Jersey not a common car
rier in so far as it's control over the pipe lines
was concerned Because it is not a common
carrier either in New Jersey Maryland. il
need not in conformity with the requirements
of the Hepburn act. file tariffs for the trans
portatiOn of oil with the Interstate Commerce.
Commission. that all dealers in oil NAV read
and be benefited
Early in the hearing yesterday Frank 3. Kel-
logg, of counsel for the gOvernmNt. found out
from Calvin n. Payne. general manager Of the
trusts pipe lines, that during his absence in
Europe IN the summer OF 1896 a pumping sta
ton had been erected at FawngrOve. Penn.
similar to those that were put up at the same
time at UnionviIe. N Y. and Centre Bridge.
Penn. Like these other points. important only
on Standard Oil maps. FawngrOve Is almost
right on top of an imaginary line which sepa-
rates the territories of the two commonwealth
of Maryland and Pennsylvania Now, the Stan
dard Oil Company Of New Jersey owns the pipe
lines that run across to it's refinery ar Baltt-
more (and at the seaboard). but. as in the case
Of its Bayonne terminal, no rates to that sea-
board terminal are fled with the Intarstats
Commerce Commission.
The Standard. it would appear. takes the posi-
ton that as it owns the pipe lines in New Jer-
sey and also those in Maryland 1t IS not engaged
In interstate. but intrasate trade. and therefore
the filing of the schedules is not required OF
course the Standard never thought Of putting
up these pumping stations-at least. It didn't DO
so until after the Hepburn act was passed, on
June % q year ago. Mr. Payne did know. when
recalled TO the stand yesterday. that the STAN
dard of New Jersey engaged IN making no
through tariffs from the Indiana, Ohio and
Pennsylvania oil fields The stations were put
UP while Mr.. Payne was away. Yesterday Mr..
Kellogg asked him why.
II don't know. unless for some legal reason
the vfce-president of the National Transit Com
pany replied
Asked for the reason. Mr.. Payne couldn's
say. Then Mr.. MIburn volunteered the infor-
nation that 1t was he himself who had given
the suggestion that the stations be built con-
veniently close 70 the border lines OF states, IN
which important seaboard terminals were To-
Gated
"If you will have the source OF that ADVICE
said Mr. Nilburn. now you have It. And
thought IT was excellent advice"
'It seems like pretty bad advice to me-" said
Mr.. kellogg
Well perhaps" said Mr.. B1Ilburn but Il has
not turned out that way yet"
Fawngrove has about two hundred inhabt-
tants. There are no refneries there. and ap-
parently no good reason why oil dealers should
be especially interested IN learning the tariff
from the oil fields to this hamlet OF two hun
dred inhabitants It is prominent. however.
on the Interstate Commerce Commissions tar
ifs. while there IS no mention Of Baltimore
Mr. MiIburn said several times during the ex-
animation OF Mr.. Payne that the Standard OF
New Jersey was only engaged in intrasrate
md rIa
tool.the witness in hard and tried to show thar
| IN the erection of the pumping stations at the
state lines the National Transit Company and
the Standard OF New Jersey were only at
tempting to comply with the law. Still Mr..
Payne admitted that previous TO November.
1905. when the Hepburn bills provisions were
being debated by Congress. there had been no
need felt 10 erect such stations. and that it had
never been found necessary TO put pumping
station so close. say to the border line OF Ohio
and Indiana. Properly speaking, OHIO and IN
diana have seapOrts-
Mr.. Payne is general manager OF the National
Transit Company. but he did not know that
there was a pipe line across Manhattan to
Brooklyn. Mr. Kellogg showed the witness a
statement that this line was rented last year
for $43S 191 03-
Mr. PAYNE was followed 20 the witness stand
by George ChesebrO. y controller in the employ
OF the National Transit Company Alr- CilSS1-
bro was asked TO identify some trial balance
sheets of the Indiana Pipe Line Company and
of the Buckeye Pipe Line Company These are
subsidiaries of the National Transit Company,
one controlling the pipe lines in Indiana, the
other those in Ohio. The going is good for
Standard interests in these properties. for IN
1903 alone on a capitalization OF S5OOOO0 and
a total investment OF S2.22S.15S 30. the Indiana
company had total profits Of S4.196,664. Mr.
Chesebro will go on the stand again to-day TO
verify some more figures that tell what q hand
some yearly amount the Standard makes out OF
fits pipe lines.
MIR. kellogg said yesterday that he had no
lively cxpectation'' Of sending out subpoenas fo-
Henry NJ FlagIer. secretary OF the old hquf-
dating trust nor for any Of the five other
leaders in Standard OIL To enable Mr.. Milourn
TO he present at the dedication OF the Mckinley
memorial monument in Canton. Ohio, next Mon
dav the hearing OF the suit viii be adjourned
this afternoon until next Wednesday or Thurs-
day.
John d ArchboId ce-president OF the STAND
ard oil Company. issued general notice yes
terday that false and injurious statements were
being scattered broadcast as from a 'representa~
tive Of the Standard oil Company" and warn
ing the public that no credit should be given TO
any statement purpOrting 10 emanate from tho
Standard OIL Company unless signed by an ex-
ecuttve official OF the company its designated
attorney
ATTEMPTED BRIBERY IN OIL CASE