Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-04
HARGE OF w. w. TARBELL
Three Concerns Put Out of Business
Completely.
U. S. PIPE LINE BLOCKED
Pure Oil Company Maps Out It's Ter
ritory, Says Witness, to Avoid
Hostile Railways.
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK, October 4,-W. w. Tarbell
treasurer and general manager of the
Pure Oil Company and the United States
Pipe Line Company, took the stand as the
first witness today in the government suit
New Jersey.
Mr. Tarbell, 1t was said, was brother
of Ida Tarbell, the author, whose History
Of the Standard OIL Company" gave the
general public its first insight of late years
into the so-called trust methods of that
company in driving competitors out of the
field and gaining the ascendency and the
enormous profits it ultimately enjoyed.
Before Mr.. Tarbell took the stand he
asked that he might correct the impression
Tilford earlier in the suit, that the
Standard owned 80 per cent of the stock
OF the Pure OIL Company. He said the
fact was that the Standard owned 80 per
Line Company, of which the Pure Oil Com
pany owned 80 per cent. The Standard
owned no stock in the Pure Oil Company.
said Mr.. Tarbell.
Wesley H. Tilford treasurer Of the
Standard Oil Company, displaced Mr.. Tar
bell for a few minutes on the witness
stand at the request of John G. Milburn,
who wished to have him make certain cor
rect1ons in his testimony before signing it.
The corrections, which were all trifing
matters of detail, were not objected to by
Special 1nquisitor Kellogg, and they were
admitted to the record
Loan Of $2,OoO,ooo.
Mr.. Kellogg took advantage of the wit
ness being on the stand to ask him If he
knew James Mcdonald. The witness said
that he did. Mcdonald was active in Lon
don as a business manager for the COM
pany and as director Of the Anglo-Ameri-
can Company.
Strong are now the London directors Of the
company, according to Mr. Tilford Nc
Donald is no longer a member of the COM
pany.
"Will you kindly explain to me why the
American company should have accounts
receivable from Mr. Mcdonald sometimes
running as high as $2OOO0OO?'
The witness could not remember any rea
son for 1t, nor did he know who would
know anything about it.
You never heard Of any loan whatever
to Mr.. McDonald?"
NO, SIR
Did that loan represent the purchase of
the Manhattan?"
Il don't know"
Mr.. Kellogg then took up the New York
pipe line.
Did the Standard Oil Company of New
YORK ever own the pipe line running to
Brooklyn?'
Il don't know
You mean to say you are vice president
line?"
Il could look 1t up. That line was laid
many years ago.
The witness said also he did NOT know
who operated the line now, nor whether the
Standard OIL Company of New York ever
operated it. Mr.. Kellogg directed him to
find out the proper answer to these uues-
tions and also to learn at what valuation
the line Is now carried on the books as an
asset
The witness then gave way to Mr. Tar
Mr.. Morrison took up the examination of
the witness for the government.
Secret Protective Association.
In the usual preliminary examination the
witness said that he started in the oil busi-
ness in 1887, and that he was associated
His testimony was sought in order to get
in evidence the history of the oil industry
in the Pennsylvania fields
The witness said that he was at one
time member of the Producers Protective
Association, secret organization of 1900
members. which was intended to oppose the
aggressions OF the Standard Oil Company.
In 1894 the formation of the Producers
infi 10
with the Standard Oil Company might gain
entrance brought the opposition of the in
dependent producers to a focus
Mr.. Rosenthal objected to the whole tes-
tlmony OF the witness at this point on the
ground that he had no personal knowledge
or any OF the facts to which he testified
According to the rules of federal court pro-
cedure, however, all the testimony had to
be taken and the examination continued
after the objection was noted.
The capital stock cf his company or asso-
citation, said the witness, was SGOOOOO 1t
built tank cars and pipe lines, but never
operated the cars, because the freight rates
on the Pennsylvania and the Baltimore and
Ohio were prohibitive.
Three Companies Frozen Out.
Mr.. Tarbell said the United States Pibe
Line had great difficulty in reaching Marcus
Hook, Pa, its terminal. When the pipe, line
REACHED Hancock, Pa, in 1899, the Eric
railroad objected to its passing over It's
right of way and at Wilkesbarre the Penn
sylvania and Lackawanna railroads tried to
prevent the pipe line passing under their
tracks. Mr.. Tarbell said the National Tran
sit and the Tidewater Pipe Line companies
had secured the privilege of passing under
railroad tracks. He said that while the in
dependent pipe line was being constructed
the Standard cut prices and the independ-
ent refineries We're forced in some instances
to- sell refined oil under the cost of crude
oil. When the independent pipe line reach
ed Marcus Hook, the witne q said, further
cuts were made in prices by the Standard
and three Independent companies-the In
ternational Oil Company, Union Refining
Company and the S. Y. Ramage COMPANY
gave up the fight and sold out.
Mr.. Tarbell testified that the Pure OIL
Company laid out districts in which to do
business, SO as to keep away from Ger
tain railroads which were more to be feared