The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-11-21

with the Pennsylvania railroad In 1877, in
which the Pennsylvania agreed 10 pay
/ back 10 per GENT Of the freight rates
which the Standard paid. The witness
said this agreement followed the rate war
between the northern and southern lines.
and that there was an agreement where
by he was to eQualiZe the amount of
freight distributed between the different
railroads.
Some Letters Read.
Mr. Kellogg then read letters of Mr..
| O.Day TO Mr.. Cassell OF the Pennsylva-
MIA railroad in which the American
Transfer company received a rebate OF
I % cents barrel from the Lake Shore
road. and it was requested that the
| Pennsylvania give the same rebate 1t
was shown IN the letters that the Penn
sylvania did so. Don't you know that
Mr. O'Day and Mr.. Cassell both testified
that the American Transfer company
the Standard Oil conpany-was not only
own shipments but a rebate on the ship
ment Of oil by independent refineries2"
asked Mr.. Kellogg.
My attention has been called 20 such
testimony" said Mr. Rockefeller.
Mr.. Rockefeller said that he was pres
ident of the Standard and had general d.
rection OF il at that time.
Ibid you know of the contract whereby
the Standard was to obtain 20 cents a
barrel in rebate on outside shfpments?'
Il may have known of it, generally, at
the time, 1 had nothing to do with the
contract"
The witness said he could not recall
whether Mr.. Cassell mad testified that
these rebates were paid to the American
Transfer company.
Agreement Read.
Mr. Kellogg read the agreement which
showed that il provided that the Stand
ard Oil company was to ship 100000 bar
rels of oil a year When the government
counsel asked if other railroads besides
the Pennsylvania made a like agreement
of 10 per cent rebate. Mr.. Rockefeller
referred him to the man who negotiated
the agreements. Replying to Mr.. KEEL
logg as to whether the Standard Oil was
the only one TO get the rebate, he said the
greater volume of business given by the
Standard was in part responsible for the
rebate, and that in these days it was
the custom for large shippers to receive
consideration I'VE sought to secure what
all shippers were then seeking said Mr..
Rockefeller He did not recall what was
O'Day's connection with this matter, but
Mr.. O'Day was general manager of the
Columbia Conduit company, which was
purchased by the Standard in 1871. His
mind, he said. was engaged in more i'm
portant problems.
Recess was then taken for luncheon.
During the MONDAY intermission, Mr..
Rockefeller took to task the newspaper
reporters for printing his maxims on the
care of the stomach
Don't you boys think you violated my
conf1dence? he asked with a quiZZical
smile. II meant what l said for your
special benefit. But l suppose the ad-
vice is good for everybody. so don't care
very much"
Mr.. Rockefeller then asked one of the
artists who had been sketching him to
let him see the picture.
Il wish l had your TALENT said the
richest man in the world, gazing earnest
ly at the portrait of himself.
wish L had yours quickly re-
sponded the artist.
Mr. Rockefeller laughed heartily and
extended his hand. which the artist shook,
the Standard Oil man saying. We ought
to pool issues"
Transportation Rates.
After recess MIR. Kellogg took up with
MIR Rockefeller the rates for transporta-
ton of oil prior to the construction of
the trunk pipe lines. Prior to 1881. Mr..
Rockefeller said all of the crude oil
shipped to the SeabOard by the STANDARD
Henry M t1agler and John D. Arehbold
had much TO do with making the trans
portatlon arrangements. but William
Rockefeller did not take so important a
part in it. said the witness. Mr.. Rookie
Teller said he had no doubt that the state
OF Pennsylvania brought suit in 1879 to
ouct the United Pipe Line from that
state on the ground that ii was in CON
spiracy with the Pennsylvania railroad to
obtain preferential rates and drawbacks
He did not recall the names of the par
ties to an agreement for the dismissal of
the suit.
Don't you recall that Mr.. Cassatt tes-
titled that the Pennsylvania railroad paid
rebates to the Standard Oil, the Ameri-
can transfer company and the United
Pipe Line company" asked Mr.. Kellogg.
Mr. Cassatt may have testified to these
rebates do not know about it, as 1
had nothing to do with the payment.
This was number of years after / had
retired from participation in freight ar
Mr.. Rockefeller said he signed the
agreements by which the suit was dis
missed, but did not recall the details, al
though he remembered there was some
trouble about freight rates.
John DIS Memory Faulty.
Mr.. Kellogg then read the testimony of
A. j. Cassatt in a case brought by the
state of Pennsylvania against the Penn
sylvania railroad, in whoich Mr.. Cassatt
SAID that the Pennsylvania agreed to pay
the 10 per cent rebate to the Standard
because 1t might divert its trade to other
lines. Mr.. Rockefeller said he did not
recall Mr. Cassatt's testimony nor did
he remember the construction of an in
dependent pipe line for those refiners who
were unable TO obtain the same rate from
the Pennsylvania railroad as did the
Standard
recall the suit against your company for
receiving rebates?"
L may have had the knowledge at the
time"
Mr.. Kellogg then called the witness at
tention TO a terminal agreement by which
he said the Standard obtained the use
OF the terminals of the Erie and New
YORK Central railroads. and which he said
provided that all the oil transported by
any person over the New York Central
railroad could be delivered to the termi-
mails provided by the Standard at Hunt
er's Point.
Mr.. Kellogg asked if warehouse charges
We're made against the Independent oil
refiners at these terminals
Mr.. Rockefeller said they were made