Evening star., 1939-10-06
Rai|road-0iI Deal
Testimony Weighed
By Monopoly Body
Probers Study Whether
To Call OfficioIs to
Give Testimony
BY the Associated Press.

By the Associated Press.
The Federal Monopoly Committee
has taken under advisement the
question of asking major oil COM
pany and railroad oncials to testify
regarding an alleged plan to elimi-
nate independent Southeastern oil
dealers and truckers. =.
Eugene L. Orvis, Jersey City traf-
fic consultant. precipitated the issue
yesterday when he read into the
record a copy Of letter he at
tributed to j. j. Pelley, president Of
the Association of American Rail-
roads. Mr.. Orvis said the letter was
sent on January II, 1885, to officials
of 13 oil companies and confirmed
an agreement to "injure, If not de-
stroy" the business of all independent
oil dealers and petroleum truckers
in the entire Southeastern United
States.
Testimony Is Halted.
The committee halted Mr.. Orvis'
testimony at that point on the
ground that he could not testify of
his own knowledge as to the au-
thenticity of the letter.
In statement, Mr.. Pelley ex-
pressed belief that the letter re-
ferred to proposed arrangements
with the oil companies designed to
bring back to the railroads large
volume Of gasoline traffic lost to
trucks. Mr.. Pelley said, however,
the arrangements were never con-
cluded.
When halting Mr.. Orvis' testi-
mony, Senator OMahoney, Demo.
crat, Of Wyoming, committee chair
man, expressed belief that If the
letter proved genuine it lays the
basis OF an antitrust suit. Senator
OMahoney told newsmen the COM
mlttee would consider at a closed
session today the question of further
action.
Watson Snyder, Justice Depart
ment attorney conducting the oues-
tioning of Mr.. Orvis, recommended
that the committee subpoena Mr..
Pelley and the recipients of the let
tiers for questioning.
Agreed to Discontinue Trucking.
The letter attributed to Mr.. Pelley
said 1t was the writer's understand
ing that the oil companies had
agreed to discontinue trucking from
their water terminals and refineries
Tor distances in excess of 40 to so
miles, either by their own or hired
trucks. They also were said to have
agreed to discontinue delivering
their products to dealers or buyers
trucks at the terminals or refineries.
Railroads in Southeastern ter
rltory, In order to make this ar
rangement an effective one and to
stabilize the distribution of these
products the letter said, will use
their best efforts to bring about a
readjustment of interterritorial
rates on these products into South
eastern territory =.
Railroads in Southeastern terri
tory will reform as rapidly as seems
ADVISABLE existing leases covering
railroad property used for fillins
station purposes; they will discour-
age future leases Of this character
and will In no case make such leases
on terms more favorable to lessees
than under the reformation plan"
Mr.. Orvis said the letter went to
the Standard Oil Co. of New Jersey.
Texas Co., Sinclair Refining Co.,
Shell Eastern Petroleum Products.
Cities Service Co., Atlantic Refining
Co.. Standard Oil Co. of Kentucky,
Gulf Refining Co., American OH
Co., Pan-American Petroleum Co.
Pure Oil Co. of Tennessee. Wof-
ford Oil Co. of Georgia and Pure
Oil Co. of the Carolinas.