Waterbury evening Democrat., 1907-10-08
ROADS BUY OF TRUST
Refusing Lower Bids, Railroads
 Patronize Standard Oil.
COMBINES RIVAL TESTIFIES.

Tells How Louisville and Nashville
 Line Dropped Independent Concern
 and Paid Monopoly $3o,oo0 Over His
 Bid-UseIess to Compete.
 New York, Oct. S.-Oil trust counsel
 spent hours in trying to offset the
 bombshell the government threw into
 their camp last week by producing the
 secret agreement between the Stand
 ard Oil company and the com bined shipping lines to South Africa giving
 them a rate on oil to Delagoa bay low CT than the cost of handling and carry ing it.
 This secret rate, cut of more than 50 per cent below that which the New York Lubricating oil company is | forced to pay, is destined to extend | the oil trusts monopoly even to the South African field Philip Harrison, manager of the independent concern, was subjected to grueling cross ex- animation by Moritz Rosenthal for the Standard
 MT. Harrison told the Standard Oil lawyers that he had appealed to Mir. Smith, head of the bureau of corpora tions, believing that if there was no law to govern such unjust discrimina tion on the part of ocean carriers, such law might be passed.
 Why Railroads Buy of Trust.
 Didn't you know" demanded MT. Rosenthal, pointing a bony finger at the witness, "that these ocean lines were common carriers and that the bureau of corporations has no jurisdic- tion over carriers who come under the provisions of the interstate commerce act?'
 T knew" replied Mr. Harrison, that the interstate comm cree commits | sion could not regulate foreign com merce, but I did not know whether the bureau of corporations could ex- anime into the matter or not"
 "I'll tell you right here," broke in | Special Counsel Kellogg, that there | is such law"
 Orders to purchasing agents and the | mechanical departments of railroads to buy their lubricating oil from the l Standards Galena Signal oil company | come from the executive offices of the | roads, according to MT. Harrison. Spe- l cial Counsel Kellogg brought out the | fact that the competitors bids, though | and the contracts awarded to the mo- nopoly at higher prices than they had actually been paying to the independ- ent concern.
 Did you bid for the Atlantic Coast line and the C., B. and o." asked MT. Kellogg.
 We were made to understand that | we could not hope to compete with the Standard and that it would be useless for us to try" said MT Harrison.
 Paid the Standard More.
 The witness told of contract with the Louisville and Nashville made in 1903 for two years. At the expiration of the contract he had a conference with President M H. Smith of that road and was told that no further bids from his company would be consider ed. No reason was given, and later President Smith wrote a letter to Har- rison saying the oil of his company was as good as any the road ever used
 The contract with the independent guaranteed the following prices for a run of 1000 miles: One dollar and fifty-three cents for locomo- tives, 12 cents for passenger cars and 7.2 cents for freight cars. Before that the Galena fabricated the road at $169 for locomotives, 16 cents for passenger and 9 cents for freight cars. Mir. Kel- logg produced the L. and N. contract with the Galena company for 1906 at the prices of two years before. The road paid S3O.OO0 a year more to the trust than it had paid to the independ- ent concern. The witness told of a similar experience with the Central of Georgia.