Omaha daily bee., 1907-09-27
MILBURN ADVISED TERMINAL
Lawyer Of Standard Differs with
Prosecutor Kellogg.
OIL COMPANY DEFENDS RATE
Circulars Being sent Broadcast ana
Being Distributed by Dealers
Relative TO the Big Fine
Imposed by Lands.


was built in 1906 on the advice of John @.
Mllburn, OF counsel for the company. Mr..
Milburn is representing the Standard OIL
company in the federal hearing now In
progress in this city
1t is contended by the government that
the Centre Bridge station was built as
nominal delivery point In 1905 to evade the
Hepburn act which provided that pipe
line carriers shall submit schedules OF tariff
to their terminals. 1t is the governments
view that the company's real terminal Is
Bayonne N. ]. In today's hearing Frank
b. Kellogg. for the government, asked c. M.
Payne, an employe OF the Standard, who
advised the building of the delivery tanks
at Centre Bridge.
az did" inteVposed Mr.. Milburn, 'for /
thought. under the law. that there should
be delivery point there. thought 1t ex-
cellent advice"
II don't" said Mr.. Kellogg.
Mr. Payne who has general supervision
OF the pipe lines If the Standard OIL, on
cross-examnation testified that the pipe
lines Of the New York Transit company, or
the National Transit company, which 1t Is
sometimes called. were public carriers and
as such, to conform to the Hepburn law,
built delivery station at Unionville and
quoted tariffs for oil shipments to that
point. Mr.. Payne said that the pipe line
of the Standard from Unionville to tide
water was a private line and not amenable
! to the Hepburn law.
Company Conducts Campaign.
The Standard OIL company has issued in
the last month 100000 copies of its pamph-
! let labeled, From the Directors of the
Standard oil Company to It's Employees
4 .s.l.1 rl.o Hat 10
distributed not only to those to whom 1t is
! addressed, but sent broadcast among oil
consumers.
| 1t is given away, through dealers, with
the sale of a gallon of oil. The pamphlet,
a summary of which was published a
month or more ago. deals with the S2s24o,-
! 900 fine imposed upon the Standard OIL
company of Indiana by Judge Lands. In
| "a word in advance" 1t alleges that the
Standard Oil company In the victim of a
! persistent and adroit" attack on the part
! of the federal authorities. Then follows
statement by James A. Moffett president
/ of the Standard Oil company of Indiana,
in which he defends the 6-cent rate attacked
| by the government.
| Center Bridge Station.
| C. M. Payne. who. with H. c. Folger, jr.
owns the Corsicana Refining company Of
Texas, was on. the witness stand again to-
day to give testimony In the government
/ suit against the Standard OIL company and
gave further information concerning the
pipe lines OF the so-called Oil trust, over
=, which he has general supervision. Mr..
Payne said that at the terminus of the pipe
line of the National Transit company at
Centre Bridge, on the state line between
New Jersey and Pennsylvania, where the
company quotes its tariffs for shipment Of
crude oil, there was a pumping station.
ut is not delivery station, is it?" asked
Mr.. Kellogg after the witness had testified
that at Centre Bridge the oil from the pipes
Of the National company was pumped into
the pipes OF the Standard Oil company of
New Jersey.
ut is a pumping station" answered the
witness.
''I show you a statement of the National
Transit company showing that tanks were
built in Centre Bridge in 1906. What were
they for?"
For the purpose of making delivery at
a delivery station" replied Mr.. Payne.
ITO whom did you deliver the oil there?'
asked Mr. Kellogg, who contends that the
Standard Oil company has evaded the Hep
burn law of 1906. which provided that pipe
their terminals and that the real terminal
is Bayonne, N j.. at Tidewater.
ITO the Standard OIL company OF New
Jersey" answered Mr.. Payne.
do you deliver to anyone else?''
mo"
mo one else has asked for a delivery of
oil there?"
mo, not that I know Of" said Mr.. Payne.
Delivery of oil at Centre Bridge.
Now is it not the Southern Pipe Line
company that delivers oil at Center Bridge
instead of the National Transit company
II do not think so" said Mr.. Payne.
"You built the tanks at Center Bridge in
1906. Who advised you to build them?'
Il did," interrupted Mr.. Milburn of the
defendants counsel, "for 1 thought under
tho law that there should be delivery
point there. I thought it excellent legal
advice"
II don't" said Mr.. kellogg, who then
asked the witness the location of Fond
Grove.
1T is on the state line between Pennsyl-
vania and Maryland" said Mr.. Payne.
What pipe line companies connect at
Fond Grover"
The National Transit company linz con-
meets with the ppe lire of the Standard
oil company Of New Jersey"
rs there anything but tank and pump
ing station at Fond Grover"
IL do not think So" said Mr.. Payne.
Mr.. kellogg spread upon the record that
several pipe lines of subsidiary companies
of the Standard made a shipping point at
Marcus Hook, Pa. and that the oil through
the pipes came from Cygnet, o.
Don't you know IL the Standard has
a pipe line between New York and Brook
iyn?"l
Pipe Line 10 Brooklyn.
II do not know" Mr.. Payne said. II
have heard OF It and read that there was
a pipe line under the Hudson and East
rivers"
And as vice president Of the trunk pipe
lines you don't know II there is pipe line
between New York and Brooklyn?'
II have heard that there was, but do not
know OF IT OF my own knowledge" said
Mr.. Payne.
Now. let us see what you duties are as
vice president of the National Transit COM
pany." said Mr.. kellogg.
well, principally to sign my name to
papers," answered Mr.. Payne.
do you read these papers2"
u read some OF them" replied Mr.
4.