Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-11-20

Mr.. Kellogg then read letters of Mr.
O'Day to Mr.. Cassatt of the PennsylVa-
mia railroad. in which 1t was stated that
the American Transfer Company received
rebate of 90 cents barrel from the
Lake Shore road and 1t was requested
that the Pennsylvania give the same re-
bate 1t was shown in the letters that
the Pennsylvania did so.
Had Heard of Rebates.
Don't you know that Mr.. ODay and
Mr. Cassatt both testified that the Ameri-
TAN Transfer Company-the Standard OH
Company-was not only paid a rebate or
10 cents a barrel on its own shipments,
but a rebate on the shipment OF oil by
independent refineries?" asked Mr.. kel-
logg
My attention has been called to such
testimony" said Mr.. Rockefeller.
Mr.. Rockefeller said that he was presl-
dent of the Standard and had general d.
tection of it at that time.
Did you know of the contract whereby
the Standard was to obtain 20 cents a
barrel in rebate on outside shipments?
II may have known of 1t generally at
the time. l had nothing to do with the
contract"
The witness said he could not recall
whether Mr.. Cassatt had testified that
these rebates were paid to the American
Transfer Company. His mind he said.
was engaged in more important prob
lens.
Recess was then taken for luncheon.
Fight With Pennsylvania Railroad.
In his testimony after the recess yes
terday afternoon Mr.. Rockefeller said
that when the Empire Transportation
Company was organized our interests
presented the matter to the railroads and
protested to the Pennsylvania.
We stopped our shipments over the
Pennsylvania and used other lines" he
continued. We objected to the Pennsyl-
vania railroad engaging in the refining
business. We didn't know where we stood.
They were shipping their own oil over
their own lines and discriminating against
us.
Other railroads agreed to stand by us.
but there was much bitterness between
the railroads. We made our shipments
over the Lake Shore. New York Central
and Erie. Afterward we purchased the
Empire Transportation Company and the
pipe lines to which / have referred The
pennsylvania railroad acquired the cars
OF the Empire Company and issued car
trust certificates, which we purchased"
Mr., Rockefeller's counsel asked him II
1t were true that the rates obtained by
him during the period of the Standard OIL
Company's war with the Pennsylvania
railroad were to crush and cripple the
Empire Transportation Company so that
the Standard Oil Company might acquire
Its property.
1T is not. replied Mr. Rockefeller.
Agreement With Railroads.
Mr.. Rockefeller said that when the
transaction was completed and the Penn
sylvania railroad stopped refining. the
railroad war stopped and an agreement
was entered into between the roads where
by they obtained percentage of the OIL
carrying trade.
The Standard Oil interests were called
upon to make these arrangements effect
i've. The witness said that the war be-
tween the railroads to obtain the oil trade
had been demoralizing to the oil business.
Mr.. Rockefeller's attention then was
called to an agreement between William
Rockefeller and Thomas Scott, president
OF the Pennsylvania railroad. which had
been approved by all the oil-carrying
railroads.
Sometimes. In seeing that the exact
division of the traffic was being carried
out. we shipped our oil to our own disad-
vantage when we could have shipped 1t
more prof1tably by other lines" said Mr..
Rockefeller. I'VE had nothing to do with
the division of traffic which the railroads
determined upon"
Arrangement for Rebate.
Mr.. Rockefeller said that the company
guaranteed the Pennsylvania railroad a
certain number of barrels Of oil a year
and in consideration the railroad COM
pany guaranteed to pay back 10 per cent
of the rate on the oil shipped.
He then told of the purchase OF the J
N. Camden Company of Parkersburg
and the Pool Refining Company, also OF
that city.
The Camden Consolidated OIL Com
pany was organized to take over both
properties.
began acquiring pipe line interests In
1878 and increased its ownership from
time to time until 1877, when they were
assembled into the United Pipe Line.
The Standard also had the American
Transfer Pipes. The pipe lines were re-
garded as an important adjunct
Mr.. Rockefeller then described the gath
ering of pipe lines into system to carry
the oil from the wells to the railroads
before the trunk line system was estab-
which could not reach the oil wells be-
cause of financial inability to construct
new lines
1t was brought home to him. Mr.
Rockefeller said, that the improvements
were necessary, and as the Oil supply
Increased new pipe lines were built and
tanks erected
Explains Trust Agreement.
A trust agreement made in 1852 affect
Ing the stockholders of the Standard Oil
Company of Ohio and Villas, Keith and
Chester as trustees was put In evidence.
Attached to it were contracts made with
the Erie and New York Central railroad
companies Commenting thereon. Mr.
Rockefeller said that the railroads wanted
experienced warehouse men to handle the
oil on Its arrival at terminals, as much
recooperage and boxing was necessary
there. and that was the reason for MAX
Ing the contracts.
Mr.. Rockefeller was shown a. pooling
contract for the distribution Of oil carry.
ing between different railroads. fixing
rates on refined and crude oil and con.
tanning a provision for drawback" To
re1ners for certain shipments to sea-
board. The witness said the contract wa
orawn TO put the different refining points
on a parallel
The effect Of this agreement was that
1t would cost the man I'm Cleveland no
more to ship refined oil to seaboard than
a Shipment made from any other point
1t also assured refiners that the same
rates for shipment would be alike on ali
hnes'" said Mr.. Rockefeller.
How to Preserve Health.
During the recess yesterday afternoon
Mr.. Rockefeller chatted with the news.
paper men about the care Of his health
When / was young man." he said
Il used to work day and night but
never forgot that I had a stomach. Yor
can work long hoiIrc ~ vo,, are o..~<.