The Montgomery advertiser., 1907-10-04
|MoNOPdY ON
 Ls 5RICANTS Standard Oil Really Con
 trols Market. MANY DISCLOSURES YESTERDAY Testimony Adduced Unfavorable to
 Trust Interests. It Was shown That one Concern Fur nishes s7 Per Cent of Railway Mileage With .Lubricatins
MANY DISCLOSURES YESTERDAY


 Signal oil Company subsidiary of the Standard oil Company. controls s7 per cent of the lubricating oil business with the railroads of the United States and that the prices for it's products are not uniform with all railroads was written in the records of today's hearing of the federal suit against the so-called oil trust.
 O. c. Steinbrenner, an accountant for the Galena Company told in detail how contracts were made with rail- roads whereby they were guaranteed a maximum cost for the fabrication of the road, based on mileage for en- zines and cars and when the maximum cost was found at the end of certain periods to fall short of the Standard invoiced price which all railroads paid when they received the oil. the Galena Company made refund of the diner ence.
 From statements compiled from the Galena Companys books Mr. Kellogg was able to show that In some cases the amount of the refund was nearly 50 per cent of the invoice price. MT. Steinbranner testified that the fubri- eating oil furnished to the Pennsyi- vania Railroad was sold at loss.
 The Favored Roads.
 TuG tdAlGHA AUAu2tft ttAp0 tAG kStsAttA ard invoice price of valve oil for en- zines last year at 4s cents gallon, and Mir Kellogg drew from the wit nees that the Pennsylvania railroad af- ter the refund was deducted obtained it's, oil for 24 cents. MT. StetnbrenneI testinea that the New York Central Delaware and Hudson and Southern Railroad paid 4S cents gallon. or the full invoice price without refund. me Baltimore and Ohio Railroad paid ss cents a gallon, while the Toledo. Pe' aria ana Western obtained it's oil Tor 26 cents. Mfr Steinbrenner said tna' the fixing of the minimum cost of iu- bricattnR oil to a railroad was mat ter of hard bargaining.
 A letter written by President Miller cf the Gelana campany Tn 1925, bs yics-F President MagU1aE of Ins rttts. hura. Shawmuf and Northern Railroae and placed in evidence today sLa,ee That the Galena Company was supply, inr s7 I.2 per cent of the total mileage oS the United states. Canada and Mex too one of the railroads that the Ga- lena Company did not supply with oil Mr Steinbrerlner said, was the T1oe- water Railroad, owned by Henry II: Rogers, Vice President of the StandaTo oil Company. The witness said the Galena Company had tried 70 oD.ahn
  rnsa but had failed. MT. Kellogg sug- serfad that perhaps Mir. Rogers thought he could get better oil else where.
 when the hearing was resumed to- day evidence was adduced Wnicn MT KelloGg said he believes proves tne contention of the government tnat Lhe oil combine. through its supsioiaries the Galena Signal oil company u au inc Waters-Pieree oil Company. nave a monopoly Of the raiiroao oil business.
 q N Streinbrenner, auditor of the raiIroad department of the Galena signal oil Company. was the hrst wIt- ness today. He said the the only com nanies which he knew sold lubricat- ing oils were the Galena Signal Oil Company and the Waters-Piere OH Company.
 Tine waters Pierce Company. he tes- tiled, obtains it's oil from the Gaiens signal oil Company which in turn se- cures it's supply from the Standard oil Company at the same price 1t is sold to the railroads. The Galsna Signal Oil Company gets no refund.
 MT. Kellogg then read letter from Charles Miller, president of the Ga- lena signal .oil Company, written on Feb. 23, 1905. to D. D. Marony vice president of the Pittsburg, Shawmut and Northern railroad. in which MT. Miller stated that the Galena Signal OiI Comnany was supplying s7 1-3 per cent of the total railway mileage of inc United States, Canada and Mexico with lubricating oil.
 Underwater Road Only Exception.
 MT. Steinbrenner said he thought the Galena Company supplied about 95 per cent of the total railway mileage. The tidewater Railroad owned prin- cipally by H. H. Rogers, does not use lubricating oil furnished by the Ga- lena Company.
 we made the Tidewater Railroad a good proposition" said MT. Steinbren- ner, but we were unable to secure the contract"
 Contracts between the Baltimore and Ohio Railroad and other railroads with the Galena Signal oil Company were placed ip evidence. showing the price charged for various kinds of oil.
 MT. Kellogg called attention of the witness to 8 clause in the contract declined 25 cents below $3.S0 8 bar rel, a reduction would be made to the railroads.
 The witness said no such reduc- ton had been made during the four teen years of his connection with the Galena signal oil Company Mir. Kel- Iogg asked if 1t were not a fact that Franklin crude oil Is not the hasis for the manufacture of crude oil. but the witness said he didn't know.
 The Galena oil Company. he said, sells between 50O, 1000 and 60o,000 bar reIs of lubricating oil each year.
 Don't you know that the output of Franklin crude all Is only 10000 barrels a year?" aske6 MT. Kellogg.
 The witness said he did not know.
 MT. Kellogg called attention to clause In the GaIena Company's con- tract with the railroads by which a refund was to be allowed the roads in case the cost of locomotive oil ex- ceeded $l.75 per 1000 miles.
 MT Steinbremer said that under this clause the Galena refunded, to the Pennsylvania Railroad lines east of Pittsburg about forty-four per cent and on the Pittsburg, Fort Wayne and Chicago line about fifty-nine per cent on its purchases of lubricating oil.
 Mr KaIioRg sought to Gpread uDOn