Los Angeles herald., 1907-09-25
Probe Contract Relations

by AssCciateo Frehs-
NEW YORK, Sept. 24.-More informa-
tion concerning the contract relations
existing between the Tidewater Pipe
company of Pennsylvania was developed
today when Robert Benson, general
manager of the Tidewater Oil company,
was again called to the stand in the
hearing of the federal suit against the
standard Oil company Mr.. Benson said
that the Standard fixed the price that
the Tidewater should pay for It's crude OIL
and also fixed the price of oil refined for
export.
"Were YOU consulted about the prices of
oil that you were to pay for the crude
oil?' asked Mr.. Morrison
mo. sir, we were not" replied MIR.
Benson.
Anthony N. Brady testified that he had
been a stockholder in the Manhattan OH
company of Ohio, the principal owners rf
which were E. C. Benedict and himself.
He said that the company owned wells
in Ohio and had refineries and tank cars.
what was your object in running this
company" asked Mr.. Kellogg.
principally to furnish oil for the Chi
cago Gas company and to make profit
on the sale of oil.' answered the wit
ness.
"You came into competition with the
Standard
'Yes, SIR
Mr.. Brady produced an agreement
whereby he in 1889 agreed to turn over to
the General Industrial Development syn
dicate of London 10000 shares or Man
haitian Oil company stock for II ana otner
valuable considerations.
Mr.. Brady produced a cablegram sent
him by one of the counsel for the Indus
trial Development company, accepting the
option The cablegram further stated
that ~. H. Cuthbert will call on you. He
has full power to act" 1t has been tes-
titled that ]. H. Cuthbert is an auditor
for the Standard company.
Mr.. Brady said the reason the Manhat-
tan company was sold was that syndi-
cate had made good offer for the plant
and that he agreed to sell If the Chicago
Gas company was guaranteed supply OF
oil Mr.. Brady said that he received a
contract guaranteeing him a supply of
oil from the Standard OIL at the time he
turned over the stock of the Manhattan
Oil company.
"Did YOU know that the Manhattan
company was being sold to the Standard
Oil?'
81 did not" answered Mr.. Brady
"But YOU demanded contract with the
Standard guaranteeing supply OF oil for
the gas companiesY
"Not that" answered Mr.. Brady. Il
only asked that the Chicago Gas COM
many he fully guaranteed, and the Stand
ard was the only name mentioned"
Mr.. Brady, as he concluded his tes-
timony. stated that when the sale was
made he did not know that 1t was to
the Standard He had paid no atten-
tion to the Manhattan company since
the sale.
Josiah Lombard, director Of the
Tidewater Oil company followed Mr..
Brady on the witness stand. Mr..
Lombard said that In 1872 the South
Improvement company entered into an
agreement with the New York Central
railway and obtained rebate OF % per
cent on all oil shipped.
"Did YOU go to see Mr.. Vanderbilt?
Eyes, / went to see him and he told me
the agreement had been indorsed by the
company" replied Mr.. Lombard.
Mr.. Lombard said there was great
public outcry against the agreement
when it became known. Mr. Lombard
said that John d. Rockefeller and H.
M Fiagler were stockholders In the
South Improvement company. Mr.
Rockefeller and Mr.. Archbold had
talked with him about the purchase of
the Lombard and Ayres company, but
nothing came of 1t; that he had been
assured by the Pennsylvania railroad
men that the difference In the rate for
transportation between the STANDARD
and the independent companies
amounted to nothing.