New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-22
J. HENRY SCHROEDER 6 co.
OIL RATES HEARING.
FaUOntism to Standard Charged bg
Central Freight association.

Washington May 21-Hearings were begun
before the Interstate Commerce Commission to-
day involving the freight rates petroleum
and its products, particularly in the territory Of
the Central Freight Association. The COM
plainants allege that they are Disseminated
against in favor of the Standard oil Company.
II is further charged that whenever the rail-
roads come into competition with water carriers
they give reduced rates. hut If their competitor
is pipe line owned and controlled by the stand
ard oil Company the rates are increased 10 a
point where they become unjust and dscrimina-
tory.
The complainant in the case heard to-day
the National Petroleum Association. of Cleve-
land. Two cases against various railroads were
adjusted satisfactorily 10 ali parties, the COM
mission announcing the settlement yesterday.
The carriers reduced their rates in accordance
with the petitions.
The first case heard to-day was aganst the
Ann Arhor Railroad and about fifty other car
rier lines in the Central Freight Association ter
rit"ry. Chairman Knapp and Commissioners
Clements. .routy, Cockrell and Lane on
the bench. c. n Chamberlain and f J Baudin,
Of Cleveland, appeared for the complainant,
while the defendant lines were represented by
w. j. Calhoun, Of Chicago II. A Taylor, of the
Erie Railroad, and c. c. Northrup, OF the South
err Railway.
Mr.. Calhoun expressed astonishment at some
of the statements made 10y Mr. Chamberlain and
asserted that he was prepared Il show that the
rates fair. just and uniform. He declared
it II BE- The purpose the carriers to make rates
that would be entirely uniform Throughout, the
territory affected.
In response to inquiries by Chairman Knap3
and Commissonce Prouty Mr. ChamherlaiE.
while complaining th1t the rates were not uni
form. said he could not make alIega tions as to
specific rates which he regarded as unjust Such
specific allegations he regarded unnecessary
in view of the general character Of the in
vestigatiop. He ins sted tina: the general con
dition of the al! yates in the territory was un-
uniform: and unjust
OHs two witnesses were eXamined-J. L.
Marble. q merchant in petroleum, products at
Worcesser, Mass, and Mr.. By!es. an INDEPENDENT
oil refine" at oil City. Penn. Mr.. Marble testi-
fed tina. since the installation Of the tank ear
and tank wagon system Of the Standard cN,
Company the railroad freiPhf rates OIL in less
than carload lots had been Increases. MI.
Byies testified that the rates N tn railroads. on
oil were Increased and had remained high since
the Standard oil Company had ~. in It's pipe
line system.
ON cross-examination- Mr.. Byles admitted thar
when ne started in business he had capital Of
about $lGDG. and that now his business, Win
out further additions to the original capital. was
worth S3GN,Oio. He said that having learned
that the railroads were giving rebates 10 on
Shippers he l;du utCiueu 10 secure lSudAtS iit'-
self. and that he had asked for and had OBJ
tanned them.
At this statement the commissioners became
Interested. Commissioner Clements inquired:
When did You say this wasF
Back I'm 1851, replied Mr.. Byles.
1T seems perfectly evident suggested Mr.,
Wilson, of the defendants counsel, that this
witness has not been seriously Disseminated
against"
At the afternoon session Of the hearing the
case of the association against the Chicago.
milwaukee, & ST. Paul and others, on the charge
that the rate Of % cents hundred pounds
from Chicago Peoria and Milwaukee TO ST,
Paul Minneapolis and Duluth, and the rate or
81 cents hundred from the same points to
sonable and discriminatory, was taken up by
consent although the other case had not heen
. finished In statement to the commission, hr.
Dawes for the defendant line, said that
through rate tn Minneapolis, 81. Paul Duluth
from points east of Chicago had been in force
since January |, and that the local rate on oil
from Chicago TO Sc. Paul and the other points
had no effect on the complainant. il had no
shipmentS from points west of Toledo. The
through rate. he explained, was three and a half
cents a hundred pounds less than the sum OF
the local rates. and in the complainants petit
tion no complaint made of that. He con-
tended that the complainant could not object
TO the Chicago-st. faul local rate as 1t uiu NOT
ship that rate.
..Of course" said Mr.. Dawes. 1--WE recognize
the power of the commission to review the local
"a from Chicago to St Paul and i'll its wis
dom To change ii, but If you reduce that rate
Won simply will favor the Standard oil Com
many which is the only shipper of oil from
Chicago to St Paul
commission should proceed with the case, all
&ha,,at, ba admitted that he did not know that