The Montgomery advertiser., 1908-12-04
TARIFF CROPS
 INTO HEARING
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 (Continued from Page One.) had had trade agreement with 1t. He could not say whether the Standard and a Russian company divided the German market.
 The source of the Standards crude oil production was Inquired Into In de- tail by MT. Kellogg.
 Suppose the producer doesn't accept the price, all he can do Is to kickY' asked Mr. Kellogg.
 "Oh, no. He can find other purchas- CTS if he will, or he can store his oil and wait for a better price. Further. he could stop production and await bet ter prices"
 Mir. Archbold said the Standard would transport any crude oil for independ- ent producers over all It's pipe lines which were common carriers in con- formity with the tariffs filed with the Interstate Commerce Commission. MT. Kellogg asserted that no Independent refneries existed at any of the points at which tariffs were made. Mir. Arch bold said that the pipe lines should not be classed as common carriers.
 'Is 1t not a fact that when the Hep burn law was passed, you transferred the pipe lines across Maryland and New Jersey which were owned by your Pennsylvania Company, to prevent them from becoming common car riers?"
 We have at all times shaped our business In conformity with the laws, under advice of counsel" replied Mir. Archbold.
 Recess was then taken for luncheon. Mir. Kellogg asked if 1t was not & fact that the laying of small gathering lines to new wells was charged to ope- rating expenses. Mir. Archbold said he did not think so.
 The Trainer Loans. The accounts of the Southern Pipe Line Company from 1899 to 1905, show ing loans to P. s. Trainer. varying from $2,500.000 to nearly S5.000, 900 each year and aggregating $22.000,0OO. were inquired into by Mr. Kellogg.
 The balance sheets of the Southern Pipe Line Company show the following t4,s9s.ooO; 1901. s2.745.62S; 1902, $s.- 256,s67; 1903. $2.s63,729; 1904, $3,s15,- S36; i905.- $2,341.344. Now Mir. Trainer has testihed that he knows nothing about these loans, and that the money was not paid to him. Do you know anything about these loans2" T do not" said MT. Archbold. "It may have represented adjustment be- tween refining companies which MT. Trainer supplied. I don't know the reason"
 MT. ArchboId was questioned about contract, that existed between the National Transit NCompany and the Pennsylvania Railroad in 1884. whereby the Pennsylvania was to obtain 26 per cent of all crude oil shipped to the seaboard MT. Kellogg wanted to know 1T 1t was not fact that under the con tract the Standard paid a part of the railroad rate to the Pennsylvania on the crude oil which the National Tran sit Company carried in it's pipes and which the Pennsylvania did not carry. MT. Archbold said he was not prepared to give information regarding the con- tract, which the witness said, was abated in 1893.
 celled?"
 Because 1t was thought best to put the contract definitely out of thu way"
 Is 1t not a fact that the railroads held up the rates which are practically prohibitive to an independent shipper?'
 T am not a railroad man."
 MT. Archbold said that there were many independent rehners today who ship by railroads. Those independents who went out of business went volun- tartly and amicably, as they realized their plants were not fitted to survive. MT. Archbold raised laugh when he SN~HA AdQ 0CuOuhCCu the south lm- proVement Company, declaring that 1t was an outrage on those included in it.
 MT. Kellogg called attention ao the evidence that the Standard later went into 1t.
 MT. ArchboId said he had been told afterwards that the Standard was to be in the agreement with the South Improvement Company, which included irvine r~af l.. unn- early contract between the Standard and the Pennsylvania Railroad where by the Pennsylvania gave a drawback of ten per cent on all crude oil shipped to seaboard in return for certain amounts of oil to be shipped over the Pennsylvania, was inquired into. MT. Archbold said there was no secrecy about the contract. He said that the ten per cent was fair return for even ing the process of oil shipments which the Standard guaranteed. Mir. Kellogg sought to show by a contract between Daniel O'Day of the American Trans fer Company and the Pennsylvania Railroad. that the Pennsylvania gave a rate rebate of twenty cents a barrel to the Standard on all oil shipped by others.
 MT. Archbold said that he did not think that was possible. Mir. Kellogg wanted to know about the stipulation made between the Acme Company and the Pennsylvania, whereby the rates for oil transportation should be made public.
 That was probably put in there for the benefit of the howlers. It didn't amount to a hill of beans and was all fol de roll there was no established tar if rates in those days. We had to bar gain for our shipping. I always got the best rate I could
 The attention of Mir. Archbold was | called to the testimony of Alexander J. Cassatt. then vice president of the Pennsylvania Railroad that the rail- road paid a rebate to the American Transfer Company on all oil shipped over the Pennsylvania. MT. Archbold said he recollected there were some suits
 Do you know that MT. Cassatt tes- tified that the Standard received lower rates than any other shipper?"
 T do not know that he so testified"
 MT. Kellogg desired to know if 1t was not a fact that the price of refined oil to retailers throughout the country to- day was higher than 1t was in 1890 MT. Archbold said he did not think sos
 'Is it fact that the marketing sta tions have reduced the price of oil to their retaileFS?"