Evening star., 1900-01-10

jas W.3t
supply markets at the least expense. 1t
has not only sought markets for its prin-
cipal products. but for all possible by
products, sparing no expense in introducing
them to the public 1t has not heSitated to
invest millions of dollars in methods for
cheapening the gathering and distribution
of oils, by pipe lines, special cars, tank
steamers and tank wagons. 1t has erected
tank stations at every important railroad
station to cheaper the storage and deliv-
cry of its products. 1t has spared no ex-
pense in forcing its products into the mar
ketS of the world among people civilized
and uncivilized. 1t has had faith in Amerf-
can oil, and has brought together millions
of money for the purpose of making it
what it is, and holding its markets against
the competition of Russia and all the MANY
countries which are producers of oil and
competitors against American oil.
Advantages of Combinations.
10 Q. What are in your Judgment the
chief advantages from industrial combina-
tions?
(a) Financially to stockholders.
(b) To the public.
A. All the advantages which can be de-
rived from a cooperation of persons and
aggregation Of capital. Much that one man
cannot do alone two can DO together, and
once admit the fact that cooperation, or
necessary on a small scale, the limit de-
pends solely upon the necessities of bus
mess. Two persons in partnership may be
a sufficiently large combination for a small
business but If the business grows or can
be made to grow, more persons and more
capital must be taken in. The business
may grow so large that a partnership
ceases to be a proper instrumentality for
Its purposes, and then n corporation be-
comes a necessity In most countries, as In
England, this form of industrial combina-
tlon is sufficient for a business co-eXtenSive
with the parent country, but it is not so in
this countr. Our federal form of govern
ment making every corpora ton created by
a state foreign to every other state renders
it necessary for persons doing business
through corporate agency to organize cor
pofauonS IN some or many of the different
states in which their business is located
Instead of doing business through the
agency of one corporation they must do
business through the agencies of several
corporations II the business is extended to
foreign countries-and Americans are not
today satisfied with home markets alone
it will be found helpful and possibly neces-
sary to organize corporations in such coun-
tries, Tor Europeans are prejudiced against
foreign corporations as are the people of
many of our states These different cor
poraions thus become cooperating agencies
in the same business. and are held tupether
nv common ownership # their stocks
1t is too late to argue about advantages
OF industrial combinations. They are a ne
cessity And II Americans are 70 nave lne
privilege of extending their business il, all
the states of the Union, and into foreign
countries as well, they are a necessity on a
large scale, and require the agency of more
than one corporation. Their chief advan-
tages are:
l. Command of necessary capital
2. Extension of limits of business.
3. Increase Of number Of persons interest
ed in the business.
4. Economy in the business
. fnDrDVpfn1ntS ma
derived from knowledge of many Interested
persons of wide experience
t. Power to give the public improved
PRODUCTS at less prices and still make a
profit for stockholders.
:. Permanent work and good wages for
laborers.
Mr. ROckefe1ler's Experience
l speak from my experience in the busi
ness with which l have been intimately
connected for about forty years Our first
ccmblhatlon was partnership and after
ward corporation in Ohio. That was suf-
hclent Tor a local refining business But de-
pendent solely upon local business we
would have failed years ago. We were
forced TO extend our markets and to seek
lor export trade. This latter made the sea-
board cities a necessary place of business
ana we soon discovered that manufa curing
Tor export could be more economically oar
Iled on at the seaboard, hence refineries at
n
necessary corporations in New York NJ,
Jersey and Pennsylvania
We soon discovered as the business GREW
thai lhe primary method of Transporting
OIL In barrels could not last The package
often cost more than the contents md
the forests of the country We're not sufti
ctent to supply the necessary material for
an extended length of time Hence we
devoted attention to other methods of
transportation, adopted the pipe line svs
TEN, ana found capital for pipe line con-
struclon equal to the necessities of the
business. N
To operate pipe lines required franchises
from the states in which they were To-
Gated and consequently corporations in
those states, Just as railroads running
through different states are forced tn
operate under separate state charters To
perfect the pipe line system of TRANSPORTS
tion required in the neighborhood of
S9oWo,Go Of capital. This could not be
obtained or maintained without Industrial
combination. The entire oil business is
dependent upon this pipe line system.
Without 1t every well would shut down
every foreign market would be closed to us
The pipe line system required other i'm
proVements, such as tank cars upon rail-
ways and finally the tank steamer. Cant
tai had to be furnished for them and cor
porauonS created to own and operate them
Every Step Necessary.
Every step taken was necessary in the
business if it was to be properly developed.
anu ohis SUCH successive steps
and by such an industrial combination Is
America today enabled to utilize the bounty
which its land pours forth, and to furnish
the world with the best and cheapest light
ever known. receiving in return therefor
from foreign lands nearly $50, ,OOO, 600 per
year, most of which is distributed in pay
ment of American labor.
/ have given picture rather than de-
tail of the growth of one industrial combi-
nation. 1t is a pioneer, and its work has
been of incalculable value. There are
other American products besides oil for
which the markets of the world can be
opened, and legislators will be blind to our
best industrial interests if they unduly
hinder by legislation the combination of
persons and capital requisite for the at
tainment of so desirable an end.
IL. Q. What are the chief disadvantages
or dangers TO the public arising from them?
Disadvantages to the Public.
\. The dangers are that the power con-
ferred by combination may be abused. that
combinations may be formed for specula-
ton in stocks, rather than for conducting
business. and that for this purpose prices
may be temporarily raised instead of be-
ing lowered. These abuses are possible to
a greater or less extent in all combinations
lar htrf !, 70,