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United States of America, petitioner, v. Standard Oil Company of New Jersey et al., defendants online

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$7,661.79

Passenger-car service:

Coacb oil

Caroil 1,476.17 .205 302.61

Freight-car service:

Caroil 14,118.96 .205 2,894.39



Total actual cost 10, 858. 79

GUARANTEED COST.

Locomotive mileage 3,539,600 at 1.20 4,247.52

Pass. car " 3,963,069 at .065 257.60

Freight-car " 27,276,655 at .065 1,772.98

6,278.10

Excess cost 4, 680. 69

Percentage of excess 42

Record No. 6, page 215.
Claim book, page

PETITIONER'S EXHIBIT 483.

ERIE & WYOMING VALLEY RAILROAD.
Statement of operations for 11 montTis ended September 30, 1905.

ACTUAL COST.

Locomotive service;

Valve oil

En^ne oil

Car oil

Pin grease



Passenger-car service:
Car oil

Freight-car service:

Car oil

Valve & engine oil.



Gallons.
3,2081
6,n68i
1,269

l,62fiS


Price.

$0. 476
.276
.177
.075

.176
.178


Value.

$1,625.99

1,398.63

222. 39

122. 10


$3,269.01
38.44


218




4,827
54


860. 60
21.10


881.60







GUARANTEED COST.

Locomotive mileage 937,637 at 2.00 1.875.27

Pass. car " 315,856 .07 22.12

Freight-car " 14,403,120 .07 1,014.49



4,189.05



2,911.88



Excess cost 1,277. 17

Per cent of excess 30

Settlement fi'e No. 322.
Record No. 5, page No. 185.
Claim book, page No. 104.



1320 tr. S. A. vs. STANDARD OIL CO. OF NEW JEESBY ET AL.

PETITIONER'S EXHIBIT 484.

GULF & SHIP ISLAND RAILROAD.
Statement of operations for 12 "months ended June 1, 1905.

ACTUAL COST.

Locomotive service: Gallons. Pric«. Value.

Valve oil 2,957 $0.62 $1,. 537.63

Engjneoil 4,630| .32 1,481.88

Caroil 1,999 .22 241.78

3,261.29
Credit for empty oil barrels 129. 00

$3,132,29

Passenger-car service:

Caroil 1,184J .22 260.56

Credit for empty oil barrels 15. 00

.245. 56

Freight-car service:

Caroil 3,296 .22 72.5.12

Credit for empty oil barrels "19. 50

675.62

4,053.47
GUARANTEED COST.

Locomotive mileage 1,108,688 at 2.55 2,827.16

Pass. car " 1,304,119 .255 332.67

Freigllt-car " 8,308,499 .0835 693.77

3,853.50

Excess cost 199.97

Per cent of excess 4. 9

Settlement file No. 166.
Record No. 5, page No. 153.
Claim book, page No. 166.

PETITIONER'S EXHIBIT 485.

IOWA CENTRAL RAILWAY.
Statement of operations for year 1904-

ACTUAL COST.

Locomotive service: Gallons. Price. Value.

ValveoU 6,421J $0.48 $3,082.14

EngiaeoU 3,138| .28 878.84

Caroil 12,773J .18 2,219.18

Other lubricants 2. 78

$6,182.94

Passenger-car service:

Caroil 1,606 Various 289.(8

Freight-car service:

Caroil 9,825 Various 1,768.50

8,240.52
GUARANTEED COST.

Locomotive mileage 3,202,116 at 2.20 7,044.66

Pass, car " 2, 766, 537 . 101 „ „., „,

Freight-car '■ 26,711,627 .10) ^.«4'-»^

^ 9,992.48

Settlement file No. 241.
Record No. 6, page No. 213.
Claim book, page No. 16.



U. S. A. VS. STANDAED OIL CO. OF NEW JEESEY ET AL. 1321
PETITIONER'S EXHIBIT 486.

LOUISVILLE, HENDERSON & ST. LOUIS RAILWAY.

Statement of operations for 12 months ended June SO, 1905.

ACTUAL COST.



Locomotive service:

Valve oU

Engine oil

Car oil



■-car service:

Car oil

Freiglit-car service;
Car oil



Overcharge on lubricajits.



Gallons.
2,299i
3,614|
1,000



981
2,628



Price.

W.43

.28

.18



.18
.18



Value.
SI, 103. 28
1,022.29
1,800.00



GUARANTEED COST.



$2,305.57

176.58

473. 04

2,965.19
159. 85

2,795.34



Locomotive mileage.
Pass, car
Freight-car "



984,826
1,927,747
5,778,432



at 1.90
.09
.07



Excess cost

Per cent of excess ,



1,871.17
173. 50
404. 49



Settlement file No. 341.
Record No. 5, page No. 284.
Claim book, page No. 183.

PETITIONER'S EXHIBIT 487.

MINNEAPOLIS & ST. LOUIS RAILWAY.

Statement of operations for year ended June 30, 1905.

ACTUAL COST.



Locomotive service:

Valve oil

Engine oil

Car oil

Grease



Gallons.
3,925?



Price.
SO. 50
.30

9,879' .20

2,666i .03-. 04-. 08



Credit for empty oil bbls .

Passenger-car service:

Car oil

Grease



4,049f
320#



.20
. 03-. 04



Credit for empty oil bbls.

Freight-car service:

Car oil

H.B.C



4,7991-
3,469#



Credit for empty oil bbls.



Value.

11,972.90

28.01

1,975.83

169. 75



4,136.49
221. 60


809.95
11.40


821. 36
63. 20


959.93
106. 07


1,066.00
80.80



2,449.16



346. 18
12



13,914.89



985. 20



5,658.24



GUARANTEED COST.



Locomotive mileaee 2, 148, 237 at

Paa8.car " 4,657,946

FreightK3ar " 16,369,849

Settlement file No. 65.
Record No. 5, page No. 279.
Claim book, page No. 60.

32555— VOL 9—08 20



$2.50 $5,370.59
. 18 820. 43

.085 1,390.58



7,581.6a



1322 TJ. S. A. vs. STANDAKD OIL GO. OP NEW JERSEY BT AL.

PETITIONEB'S EXHIBIT 488.

EICHMOND, FEEDEEICKSBURG & POTOMAC EY., INCLUDING THE WASHINGTON

SOUTHEEN EAILWAY.



Statement of operations for 12 months ended June 30, 1905.

ACTUAL COST.



Locomotive service:
Valve oil



Engine oil .
Car oil



Passenger-car service;

Car oil

Coacti oil



Freiglit-car service:
Car oil



Ions.

lOH
4,304
1,4134
6, 470|


Price.
$0.51
.60
.48
.30
.28
.21
.20
.18

.20
.33


Value.




$2,882.41


6,971§
100


2,755.58




1,476.30


881
l,833i


176.20
606.83



$7,11129



783.03



Credit for empty oil barrels .



GUARANTEED COST.



8,697.94
331.60

8,366.44



Locomotive mileage 2,126,692 at $2.20 $4,678.72

Pass.car " 4,278,172 .18 641.73

Freight-car " 19,221,270 .10 1,922.12



Excess cost

Percent of excess.



Settlement file No. 286.
Eecord No. 5, page No. 280.
Claim book, page No. 69.



PETITIONEB'S EXHIBIT 489.

SOUTHERN INDIANA EAILWAY.
Statement of operations for year ended June 30, 1905.



7,242.57

1,123.87
13



ACTUAL COST.



Locomotive service:

Valve oil

Engine oil

Car oil

Grease



Gallons. Price.
5,005 $0.60

6,463 .30

1,317J .20



Credit for empty oil barrels.

Passenger-car service:

Car oil

Credit lor empty oil barrels .

Freigbt-car service:

Car oil

Credit for empty oil barrels .



7,273



.20



Value.

$2,602.50

1,938.90

263.60

30.81

4,735.71
266.00



141.60
14.00



1,454.60
146.00



$4,479.71
127.60



GUARANTEED COST.

Locomotive mileage 1,266,520 at $2.25 $2,349.67

Pass.car " 995,609 .20 199.12

Frelgbt-car " 7,006,433 .20 1,401.29



4,450.08



Excess cost

Per cent of excess.



Settlement file No. 293.
Record No. 5, page No. 249.
Claim book, page No. 234.



IT. S. A. VS. STANDARD OIL CO. OF NEW JERSEY ET AL. 1323

PETITIONER'S EXHIBIT 490.

VICKSBURG, SHEEVEPOET & PACIFIC EAILWAY.
Statement of operations for year ended June 30, 1905.



ACTUAL COST.



Locomotive service:

Valve oil

Car oil



Passenger-car service:
Car oil

Freight-car service:
Car oil



Credit ior empty barrels .



Gallons.
l,283i
3,735



1,572*
1,947



Price,
$0.50
.18



.18

.18



Value.
$641. 75
672. 30



GUARANTEED COST.



$1,314.06

283. 05

350.46

1,947.56
20.50

1,927.06



Locomotive mileage .
Pass, car
FreigM-car



Excess cost

Per cent ol escess.



844,732 at $1.30 $1,098.15
1,878,460 .14 265.78

7,412,423 .06 444.75



Settlement file No. 338.
Eecord No. 5, page No. 267.
Claim book, page No. 37.

PETITIONER'S EXHIBIT 491.

WEST VIEGINIA CENTEAL & PITTSBURG EAILWAY.

Statement of operations for year 1904.



ACTUAL COST.



Locomotive service:

Valve oil

Engine oil

Car oil



Passenger-car service:
Car oil

Freiglit.car service:
Car oil



Gallons.
2,745J
3,4431
2,1258



220
6,840



Price. Value.

$0.50 $1,372.76

.30 1,033.13

. 20 425. 16



.20
.20



Credit for empty oil barrels.



1,808.68



118.38



$2,831.04

44 00

1,368.00

4,243. 04
307.00

3,936. 04



GUABANTEBD COST.



Locomotive mileage 1, 189, 493 at

Pass.car " 826,534

Freight-car " 11,773,123

Settlement file No. 334.
Eecord No. 5, page No. 183.
Claim book, page No. 150.



$2.15 $2,557.41
.15 123.98

.11 1,295.04



1324 U. S. A. vs. STANDARD OIL GO. OF NEW JERSEY BT AL.

PETITIONER'S EXHIBIT 492.

Franklin, Pa., Feby. 11, 1896.
Mr. S. M. Provost,

General Manager, Pennsylvania R. R.,

PTiiladelpJiia, Pa.

Dear Sir: You will no doubt remember the proposition I made
you September 16, 1895, relative to a contract which we agreed to
execute with your company binding ourselves to furnish lubricants
for your locomotive and car equipment upon certain conditions.

I have had a talk with your superintendent of motive power, who
tells nie that no action has yet been taken in regard to the matter;
I gather from him also that jou are hardlj^ ready to enter into any
arrangement in the nature or form of a definite contract. That
being the case I beg to be allowed the privilege to demonstrate the
value of our lubricants by an actual and practical test on your loco-
motive and car equipment on the lines east of Pittsburg and Erie,
Pa., for such a period or term as in your judgment may be necessary
to satisfy yourself whether or not our oils are as satisfactory and
might not also be profitable to your company to contract with us for
your future use of our lubricants.

To enable you to make such trials we will furnish upon requisition
from your purchasing agent, or in any manner you may prefer, cyl-
inder or valve oils, machinery, coach, and freight-car oils, and
deliver them to such points as may be designated, we to pay the
freight charges to point of delivery.

We would deliver either in tank cars or in barrels, with the under-
standing that if in barrels your company would return the empty
barrels to us f. o. b. cars at the nearest point on your lines to our
works at Franklin, Pa., or if not returned or in bad condition that
we would be allowed by your company for such barrels at the rate
of $1.00 per barrel. We would also furnish any grease or cooling
compounds you may desire.

I am willing that such trial shall be profitable to your company
from a financial standpoint; I know that it will be from a practical
one since our lubricants are compounded by ourselves and contain
the best materials for the purpose that are produced. Our success
in the past justify us in making this statement.

In settling for the oils consumed during the period covered by the
trial I would give you the same advantages in all respects which I
offered you in the contract I formerly proposed and to accept in pay-
ment the figure per thousand car and locomotive miles, which was
the average cost to your companj'' for the previous year, less ten (10)
per cent of that figure. In other vrords we would make the cost to
your company ninety (90) per cent of that average for the period
stated.

We would bill the oil to your company at the following prices, but i
we would receipt for them upon payment of the cost per thousanai
miles above mentioned. Sibley's perfection valve oil 48 cents;!
Galena engine oil, 28 cents; Galena coach oil, 33 cents, and Galensl
car oil, 18 cents per gallon, respectively, and guarantee that thesel
prices are as low as we make to any other railroad company and if j
we reduce the prices to any other company we will give your com-l
pany the benefit of a like reduction.



IT. S. A. VS. STANDAED OIL CO. OF NEW JEESEY ET AL. 1325

In case you decide to grant our request, we would of course ask
le privilege of suggesting the adoption of some details necessary to
eep the accounts in such a manner as to give us necessary informa-
on and to give your company the most satisfactory service at a
linimum cost. The manner of settling hereunder to be agreed
pon between our auditor and your supermtendent of motive power;
fso at any time during the progress of this proposed trial if you
esire to enter into a definite contract for a term of three or five
ears we will agree to such a contract.

Awaiting your reply, we are.
Very truly yours,

Charles Miller, President.



1326 U. S. A. vs. STANDABD OIL CO. OF NEW JERSEY BT iL.

PETITIONER'S EXHIBIT 493.

This agreement, made this 12th day of November, A. D. 1895,
between the Pennsylvania Company, hereinafter designated the Rail-
way Company, as first party, and the Galena Oil Works (Limited),
of Franklin, Pennsylvania, hereinafter designated the Oil Company,
as second party, witnesseth;

1. The Railway Company agrees to purchase and use exclusively
the oil manufactured by the Oil Company, for lubricating passenger
and freight cars on the lines of road directly operated by the Rail-
way Company, or which may be operated during the life of this
agreement, but it reserves the right to test, at its own expense, other
lubricating materials during the existence of this agreement, to such
extent as it may desire.

2. The Oil Company agrees to furnish the Railway Company witjb
a full supply of car oil, mcluding grease or cooling compounds, for
lubricating passenger or freight cars, on the hnes of said Railway
Company, and agrees to deliver the same in carload lots at any of
the principal shops on its lines which may be designated from time
to time by the said Railway Company, with freight prepaid.

3. The Oil Company agrees to submit samples of the oils it intends
to furnish to the Railway Company under this agreement, for each
specific purpose. The samples shall be tested by the Railway Com-
pany, and if found satisfactory, the Oil Company agrees that all oils
furnished thereafter, under this contract, shall be of the same quality.
Shipments of oil will be tested by the Railway Company to deter-
mine its quahty as often as may be deemed necessary.

4. Upon the request of the Railway Company, the Oil Company
agrees to furnish experts free of charge to the Railway Company, in
order to look after the use of the oil thus furnished under this agree-
ment, with a view of reducing the cost of lubrication to the lowest
practicable point consistent with good service.

5. The Railway Company agrees to pay the Oil Company for the
oil and other materials mentioned in this agreement to be furnished
by it, and the rate of six and thirty-nine hundredths (6yVV) cents
per one thousand (1,000) passenger-car miles, and five and thirty-
one hundredths (5yW) cents per one thousand (1,000) freight-car
miles. Said rates being ten (10) per cent less than the average cost
per passenger-car mile for the period May to December (inclusive),
1894, and ten (10) per cent less than the average cost per freight-car
mile for the period, February to December (inclusive), 1894. The
Oil Company to have the privilege of verifying these figures. Should
the cost of lubrication be less than the guaranteed rate per thousand
car miles, then the Oil Company will only receive the invoice price,
viz., eighteen (18) cents per gallon for oil and four (4) cents per
pound for grease iiimished under this agreement.

6. The Railway Company also agrees to furnish an annual pass
over its hnes to Charles Miller, president of the Galena Oil Works,
Limited, so that he may give his personal attention to the use of the s
oil and other materials furnished by the said Oil Company, and
agrees to furnish free transportation to such experts as may be des-
ignated by the Oil Company, at the request of the Railway Company,
who may be detailed to look after the use of said oils on the lines of
the Railway Company.



U. S. A. VS. STANDABD OIL CO. OF NEW JERSEY ET AL. 1327

7. The Railway Company agrees to furnish the Franklin office of
the Oil Company, by mail, monthly statements of the consumption
of oil, and the cost of lubrication, on blanks furnished by the Oil
Company.

8. The Railway Company agrees to return the empty barrels used
in furnishing oil under this agreement, free on board cars, to the said
Oil Company, at Pittsburg, Pennsylvania, or Jamestown, Pennsyl-
vania.

9. It is understood and agreed between the parties, that full set-
tlement under the terms of this agreement, shall be made as soon as
practicable, after the expiration or this agreement.

10. This agreement shall continue for one year (1), commencing
December 1, 1895, and ending November 30, 1896; but the Railway
Company reserves the right to terminate same at any time on thirty
(30) days' notice in writing to said Oil Company, of its intention so
to do.

In testimony whereof, the parties hereto have caused these pres-
ents to be executed by their proper officers the day and year first
above written.

Pennsylvania Company,
By Joseph Wood, Genl. Manager.

The Galena Oil Works (Limited),
By Jno. a. Wilson.



[Copy.]

Pittsburg, Pa., Dec. 18/07 ['97].
Mr. C. H. Miller,

President, Galena Signal Oil Company, _

Franklin, Pa.
Dear Sm: Replying to your letter of Dec. 15th in regard to
renewing contract: We would prefer to let the contracts remain as
they are until the contract for lubricating locomotives expires, when
the whole subject can be taken up at once. This, I imderstand
will be satisfactory to you, and if you will call my attention to the
matter again about the time the locomotive contract expires, we can
then arrange for a meeting.

Yours truly, L- F. Loree,

Genl. Manager.



J, j;



==101 V1J



1328 U. S. A. vs. STANDARD OIL, CO. OF NEW JERSEY ET AL.

PETITIONER'S EXHIBIT 494.

This agreement, made this 2d day of March, A. D. 1896, between
the Pennsylvania Company, hereinafter designated the Railway Com-
pany, as first party, and the Galena Oil Works (Limited), of Franklin,
Pennsylvania, hereinafter designated the OU Company, as second
party, witnesseth:

1. The Railway Company agrees to purchase and use exclusirely
the oil manufactured by the Oil Company, for lubricating locomo-
tives and tenders on the lines of road directly operated by the Kail-
way Company, or which may be operated during the life of this
agreement.

2. The on Company agrees to furnish the Railway Company with
a full supply of cylinder and engine oils, for lubricating locomotives,
on the lines of said Railway Company, and agrees to deliver the
same in carload lots at any of the principal shops on its lines which
may be designated from time to time by the said Railway Company,
with freight prepaid.

3. The on Company agrees to submit samples of the oils it intends
to furnish the Railway Company under this agreement, for each
specific piurpose. The samples shall be tested by the Railway Com-
pany, and if found satisfactory, the Oil Company agrees that all oils
furnished under this contract, thereafter, shall be of the same quality.
Shipments of oil will be tested by the Railway Company to deter-
mine its quality, as often as may be deemed necessary.

4. Upon the request of the Railway Company, the Oil Company
agrees to furnish experts free of charge to the Railway Company, in
order to look after the use of the oil thus furnished under this agree-
ment, with a view of reducing the cost of lubrication to the lowest
practicable point consistent with perfect service.

5. The Railway Company agrees to pay the Oil Company for the
oil and other materials mentioned in this agreement to be furnished
by it, at the rate of seventy-four and six-tenths (74.6) cents per one
thousand (1,000) locomotive mUes, said rate being the average cost

ger one thousand (1,000) locomotive miles for year 1895^the Oil
ompany to have the privilege of verifying these figures. Should
the cost of lubrication be less than the guaranteed rate per thousand
mUes, then the Oil Company will receive only the invoice price, viz:
forty-eight (48) cents per gallon for the "Perfection" valve oil,
twenty-eight (28) cents per gallon for the "Galena" engine oil, and
four (4) cents per pound for the grease furnished under this agree-
ment.

6. The Railway Company agrees to furnish free transportation to
such experts as may be designated by the Oil Company, at the request
of the Railway Company, who may be detailed to look after the use
of said oil on the lines of the Railway Company.

7. The Railway Company agrees to furnish the Franldin office o^ the
Oil Company, by mail, monthly statements of the consumption of
oil, and the cost of lubrication, on blanks furnished by the Oil
Company.

8. The Railway Company agrees to rettirn the empty barrels used
in furnishing oil under this agreement, free on board cars, to the
said Oil Company, at Pittsburg, Pennsylvania, or Jamestown,
Pennsylvania.



U. S. A. VS. STANDAED OIL CO. OF NEW JERSEY ET AL. 1329

9. It is understood and agreed between the parties, that full set-
tlement under the terms of this agreement, shall be made as soon as
practicable, after the expiration of the agreement.

10. This agreement shall continue for one (1) year, commencing
March 1st, 1896, and ending February 28th, 1897, but the Railway
Company reserves the right to terminate same at any time on thirty
(30) days' notice in writmg to said Oil Company, of its intention so
to do.

In testimony whereof, the parties hereto have caused these pres-
ents to be executed by their proper officers the day and year first
above written.

Pennsylvania Company,
By L. F. LoREE, Genl. Manager.

The Galena Oil Works (Limited),
By Charles Miller, Prest.



1330 U. S. A. vs. STANDARD OIL CO. OF NEVi^ JERSEY ET AL.

PETITIONER'S EXHIBIT 495.

This agreement, made this 26th day of February, A. D. 1897, be-
tween the Pennsylvania Company, hereinafter designated the Rail-
way Company, as first party, and the Galena Oil Works (Limited),
of Franklin, Pennsylvania, hereinafter designated the Oil Company,
as second party, witnesseth:

1. The Railway Company agrees to purchase and use exclusively
the oil manufactured by the Oil Company, for lubricating locomo-
tives and tenders on the lines of road directly operated by the Rail-
way Company, or which may be operated during the life of this
agreement.

2. The Oil Company agrees to furnish the Railway Company with
a full supply of cylinder and engine oils, for lubricating locomotives,
on the lines of said Radway Company, and agrees to deliver the same
in carload lots at any of the principal shops on its lines which may be
designated from time to time by the said Railway Company, with
freight prepaid.

3. The Oil Company agrees to submit samples of the oils it iatends
to furnish the Railway Company under this agreement, for each
specific purpose. The samples shall be tested by the Railway Com-
pany, and it found satisfactory, the Oil Company agrees that all oils
furnished under this contract, thereafter, shall be of the same quality.
Shipments of od will be tested by the Railway Company to deter-
mine its quality as often as may be deemed necessary.

4. Upon the request of the Railway Company, the Oil Company
agrees to furnish experts free of charge to the Railway Company, in
order to look after the use of the oil thus furnished under this agree-
ment, with a view of reducing the cost of lubrication to the lowest
practicable point consistent with perfect service.

5. The Railway Company agrees to pay the Oil Company for the oil
and other materials mentioned in this agreement to be furnished by
it, at the rate of seventy-four and six-tenths cents per one thousand
locomotive miles (1,000), said rate being — per cent of the average
cost per one thousand (1,000) locomotive miles for the year 1895, the
Oil Cfompany to have the privilege of verifying these figures. Should
the cost of lubrication be less than the guaranteed rate per thousand
miles, then the Od Company will only receive the invoice price, viz,
forty-eight (48) cents per gallon for "Perfection Valve Oil, twenty-
eight cents per gallon for the Galena engine oil, and fovir (4) cents
per pound for the grease furnished under this agreement.

6. The Railway Company agrees to furnish free transportation to
such experts as may be designated by the OU Company, at the
request of the Railway Company, who may be detailed to look after
the use of said oU on the lines of said Railway Company.

7. The Railway Company agrees to furnish the Franklin office of the
Oil Company, by mail, monthly statements of the consumption of
oil, and the cost of lubrication, on blanks furnished by the Od Com-
pany.

8. The Railway Company agrees to return the empty barrels used
in furnishing oil under this agreement, free on board cars, to the
said Oil Company, at Pittsburg, Pennsylvania, or Jamestown, Penn-
sylvania.



U. S. A. VS. STANDAKD OIL CO. OF NEW JBESEY ET AL. 1331

9. It is understood and agreed between the two parties, that full
settlement imder the terms of this agreement, shall be made as soon
as practicable, after the expiration of this agreement.

10. This agreement shall continue for one year, commencing
March 1st, 1897, and ending February 28, 1898, but the Railway
Company reserves the right to terminate the same at any time on



Online Librarypetitioner United StatesUnited States of America, petitioner, v. Standard Oil Company of New Jersey et al., defendants → online text (page 23 of 36)