New-York tribune., 1908-05-26
WHEN STANDARD LOSES
RAILROAD CONTRACTS UP.
Some Lines Pay Much More for Ot
than Others. Sags Witness.

The Importance Of lubricaring oil in the safe and
economical running OF railroad was dwelt on at
great length yesterday in the defence entered os
-ne Standard Oil Company to the action orouehl
by the government to dissolve that corporation and
its allied companies. The hearing before Franklin
Ferriss. special examiner. was resumed after sew
eral months recess, in the new Custom House
Only TWO witnesses examined yesterday
C. c Steinbrenner, Of the Galena Signal Oh Com
pany. and Edward ". Mchenna. second vice-pres-
dent OF the Chicago Milwaukee & St Paul Rail
way. Many well known railroad officers have
been subpenaed. and the hearing, which was ad-
3ourned until to-day. is likely 10 last week or two
according 10 Referee Ferriss
The government is represented by Frank B.
kellogg. of Paul. special United States Attor-
ney General, who is aided by Special Assistant
Attorney General J. Harwood Graves L d Du-
rond- deputy commissioner Of corporations in the
Department Of Commerce and Labor; ". B. Hunter
special agent OF the bureau Of corporations. ard
c. B Morrison, OF Chicago. The Standard Gil
Company defended by Moritz Rosenthal. Of
Chicago. and Frank L. Crawford. John G. Milburn
dropped in at the afternoon session, and Will take
3 hand in the defence hereafter
After Mr.. Steinbrenner had corrected some Of
his former testimony his Cross-examination
taken up by Mr.. Kellogg who wanted TO know
whether the Chicago. Milwaukee q St Paul road
hadn't been paying two and one-half times much
for OIL as had the Pennsylvania system Mr.. Stein
brenner SAID this was the
You have been losing money the Pennsyl-
rania contract for ten years?' inquired Mr.. Kel-
logg.
Yes"
You make il up on other roads?''
NO"
--Weu. your company has been earning 100 per
cent o2 its capital stock
But we make il up on our general business
To further questions Mr. Steinbrenner said the
Galena Oil Company furnished oil 10 the Penn
sylrania and the Southern Pacific at a loss, but
Al an of he
plying those roads.
we hope 70 get the full invoice price in time
explained the witness.
you don't want the roads TO fall into the hands
Of the independent companies. either" Nj Kellogg
suggested.
'Of course not
You have pretty near all the roads in the United
STATES now?'
Pretty near"
Expect 70 get them all in tin1eo
Yes. hope to-
Mr.. Kellogg then brought out evidence that the
Pennsylvania paid less lubricating oil now than
Il did in lseS giving II 1917 only 30 per cent OF the
invoice price and west Of Pittsburg. while the
New York Central paid 100 per cent
The witness said he DID not know whether there
were any Standard Oh directors on the board Of
directors OF any Of these roads He said he had
not read the answers fled when Mr.. Kellogg told
him that il the answers il had been said that
William Rockefeller was a director Of the Central
and Il 4 Rogers, c. II. Harkness and William
RockefeIer were directors OF The St Paul road
e-President Mchenra OF the Chicago. MI
1vaukee & ST. Paul was called 70 the stand in
the afternoon With his road. he said, the Galena
cornpa1y made contracts 70 furnish fabrication
based on each thousand locomotive miles operated
i the railroad saved OF this computation. the sum
was refunded Il BY the oil company at the end
the year. Any extravaganza or extra amount
used was at the expense OF the oil company No
other OIL company, he said, made such desirable
contract
On cross-exanaination. Mr.. Kellogg wanted to
know j he had attempted TO befog some one n
The estimates The witness denied this