Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-03
METHODS EXPLOITED
Revelations in the Standard Oil
Hearing Today.
AT THE KELLOGG PROBE
Monopoly of Lubricating Oil Business
Is Alleged.
GALENA co. Piled WITH QUERIES
The Bill of Complaint Alleged Control
of Sale to Railroads of
the Country.

iHS ci tIle FEDERAL suit Tor the dissolution of
the Standard Oil Company of New Jersey
was resumed today evidence was adduced
which Frank B. Kellogg. conducting the
governments case. said he believes proves
the contention of the government that the
oil combine, through it's subsidiaries the
Galena Signal Oil Company and the Water
Pierce Oh Company, have a monopoly of
the railroad lubricatng oil business and
that it not only charges excessive prices
but that it discriminates against certain
railroads in the prices charged for its
product. The Standard manufactures en-
gine, valve, car and coach oil, and Mr.. Kel-
lOgg said he would show that it controlled
81 per cent of the business
c. c. Steinbrenner, auditor of the railway
department Of the Galena Signal Oil Com
pany, was the first witness called today
He said that the only companies which he
knew sold lubricating oils to railroads were
the Galena Signal Oil Company and the
Waters-Pierce Oil Company.
Get Oil at the Same Price.
The Waters Pierce Company. he testified,
obtains its oil from the Galena Signal Oil
Company, which in turn secures it's supply
from the Standard Oil Company at the
same price as it is sold to the railroads
The Galena Signal Oil Company got no re-
fund.
Mr.. Kellogg then read a letter from
Charles Miller. president of the Galena Sig
nal Oil Company, written on February 23
1905, to d. D. Marony, vice president of the
Pittsburg, Shawmut and Northern railroad
in which Mr. Miller ated that the Galena
Signal Oil Company was supplying 911s per
cent CT the total railway mileage of the
United States, Canada and Mexico with
lubrica ting oil.
Supplied About 95 Per Cent of Roads.
According to the bill of complaint the
cost of lubricatng oil to the rai:roads is
in the aggregate $i2O0,G0o per annum,
and it is alleged that the pres charged
by the Galena and Waters Pierce COM
panies for this grade CT oil are from 80 to
100 per cent more than the actual value and
reasonable price of such oils.
Are you familiar with the contracts of
the railroads for lubricatng oi.?' was Mr.
Ke.logg's first question to Mr.. Steinbren-
ner.
Witness said yes: he was
What companies in this country sell
lubricating oil?'
The Waters Pierce and the Galena Sig
nal Oil Company are all of which l have
any knowledge"
The witness said his company sod lubri-
eating oil to the Waters-Plerce Company,
and it was in turn sold to the railroads.
The Waters-Pierce Company, he sad.
bought the oil at the same invoice price
charged to the railroads, but received a
commission on al! sales. He said he did
not know what commission it was.
What percentage of the railroads in this
country do the WatersPie:ce and the Ga
lena Signal supply with lUbricating oil?"
About 50 per cent
Mr.. Kellogg showed the witness a letter
purporting 10 have been written by Charl1s s
Miller, president of the Galena Signal Oil
Company to d. +. Maroney, vice president
of the Pittseurg, Shawmut and Northern
railroad, December -: 1903, in which il is
admitted that the Gaiena and Waters
Pierce companies were at that time sup
plying 1T12 per cent of the total railway
mileage in the United States, Mexico and
Canada with lubricating Oil. The letter
then offered in evidence
Rogers and His Road.
DO you know of any railroads tha, are
not using your oii?'
Yes. sir; the Tidewater is one"
Why, II. II Rogers owns that road,
doesn't he?'
Yes l believe So"
Probably Mr.. Rogers thinks he can get
better oil somewhere else;'' commented Mr..
Kellogg.
Mr. Kellogg handed the witness num-
Der of contracts and asked if they We're
made between the ua!enl Signal Oil Com
pany and the various railroads: MIR. Stein
brenner said they Were. Mr., Kellogg then
quoted the prices in the contracts anI
asked if those prices were uniform
throughout the country.
lHey are, Iepl q tNe witness, exec pt
in territories where there is an added
charge for freightage.'
M. Stennbrenner, VINO is auditor of the
Galena Signal, appeared to be particularly
well informed on the lubr. eating oil bust
ness. He defined the various grades Of
lubricating oil, such valve oil, engine
Oil, coach oil and car oil, and explained the
difference in their relative prices. Accord
ing TO him, the Galena Signal Oil Company
makes from 100000 to 100 coo barrels of
lubr br.cating oil a year.
Clause in Contract Read
Mr.. Kellogg read from one of the con-
tracts a clause guaranteeing that the cost
of lubricating oil to the railrHads per 600
miles would not be in excess of 81 10 for a
locomotive, 10 cents each for passenger
cars, and Z cents for freight cars The
witness said that was the uniform maxi |
mum price.
Mr.. kellogg showed that the contracts
provided that when the price of Franklin, |
a corresponding decrease in the price of
lubrcating OIL
Witness said he had heard of no such |
in fourteen years. The pro-
vision was made, he thought, because |
Fra nkln Crude was the base of the Ga |
lena Signals lubricating oil.
When, however, Mr.. Kellogg, asked, if |
it was not fact that the Franklin crude |
oil product only about 10000 barrels, |
making it impossible for the Gaena Signal |
to manufacture 100000 barrels from that |
explanation. He said he did not know
what the output of Franklin Crude was.
n