The Birmingham age-herald., 1907-10-04
Extent of Oil Trust Is Again Demonstrated By Mr.
 Kellogg
REBAT|NG HAS BEEN TIE
 RULE FOR MANY YEARS
Certain Railroads Received as Much as 50 Per Cent Of Standard Price From the Galena Oil Com
 pany of Illinois.

New York, October 3.-1>hat the Galena 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 the days hearing of the federal court against the so-called oil trust.
 c. c. Steinbrenner, an accountant for the Galena company, told in detail how contracts were made with railroads whereby they were guaranteed maxi mum cost for the fabrication of the road, based on mileage of engines and cars, and when the maximum cost was found at the end of certain periods to fall short of the standard invoked price, which all railroads paid when they received the oil, the Galena company made a refund of the difference.
 From statements compiled from the Ga- lena 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 prices. MT. Steinpren- ner testified that the lubrcating oil fur nished to the Pennsylvania railroad was sold at a loss. The Galena company fixed the standard invoice price of valve oil for engines last year at 4s cents gallon, and MT. keIiosg drew from the witness that the Pennsylvania railroad, after the re- fund was deducted obtained it's oil for A cents.
 Mr. Steinbrenner testified that the New York Central, Delaware and Hudson and Southern railroads paid 4S cents a ga-on, or the full invoice price without refund.
 The Baltimore and Ohio railroad paid Bs cents a gallon, while the Toledo, Peoria and Western obtained it's oil for 26 cents. Mir Stenbrenner said that the fixing of the minimum cost of 1ubricatng oil to railroad was a matter of hard bargain ing
 A letter written by President Miller Of the Galena company in 1905 to Vice Prcsi- dent Marony of the Pittsburg. Shawmut and Northern railroad and placed In evil dence today, stated that the Galena com pany controlled 97 per cent of the total mileage of United States and Canada and Mexico.
 One of the railroads that the Galena company did not supply with oil. MT. Steinbrenner said, was the Tidewater rail- road, owned by Henry H. Rogers, vice president of the Standard oil company Witness said the Galena company had tried to obtain the contract with the Tide water railroad, but had failed. Mir Kel- logg suggested that perhaps MT. Rogers thought he could get better oil elsewhere.
 Control of Business.
 When the hearing was resumed today evidence was adduced which MT. Kellogg said he believes proves the contention of the government that the oil combine through its subsidiaries. the Galena Sig nal oil company and the Waters-Picrce oil company. have monopoly Of sne railroad lubricating oil business.
 c. N Steinbrenner. auditor of the rail- way department of the Galena Signal Oil company. was the first witness today. He stated that the only companies which he knew sold lubricating oils to railroads were the Galena Signal oil company and the Waters-Pierce Oil company.
 The Waters-Pier company. he testified, obtains it's 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 gets no refund.
 MT. Kellogg then read a letter from Charles Miller, president of the Galena Signal Oil company, written on February 23, 1905 to D. Marony, vice president of the Pttsburg, Shawnut and Northern railroad, in which MT. Miller stated that the Galena Signal Oil company was sup plying 971a per cent of the total railway mileage of the United States, Canada and Mexico with lubricating oil.
 MT. Steinbrenner said that he thought the Galena company supplied about 95 lror. of tta tot al rail luyov ,,,tla Tidewater railroad. owned principally by H. H. Rogers, does not use lubrcating oils furnished by the Galena company
 We made the Tidewater railroad a good proposition said MT. Steinbrenner, but we were unable to secure the con- tract"
 Contracts between the Baltimore and Ohio railroad and other railroads with the Galena Signal Oil company were placed in evidence, showing the price charged for various kinds of oil
 MT. Kellogg called the attention of the witness to clause in the contract stating that if Franklin crude oil declined 25 cents below $390 barrel a reduction would be made to the railroads.
 The witness said no such reduction had been made during the IA years of his con- nection with the Galena Signal company Mr. Kellogg asked if 1t were not fact that Franklin crude oil is not the basis for the manufacture of lubricating oil, but the witness said he did not know.
 The Galena company, he said. sells be- tween 50O,OO0 and 600, 900 barrels of lubricat- ing oil each year.
 Don't you know that the output of Franklin crude oil is only 10000 barrels year?" asked Mir. Kellogg.
 The witness said he did not know.
 Refund On Purchases.
 Mir. Kellogg called attention to a clause in the Galena companys contract with