Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1900-01-18
The success of the Standard.

feller says:
8 @ To what advantages, or favors,
or methods of management do you
ascribe chiefly the success of the Stand
ard Oil Company!
A. ! ascribe the success of the Stand
ard to its consistent policy to make the
volume of its business large through the
merits and cheapness of its products.
1t has spared no expense in finding, Sc
curing and utilizing the best and cheap
est methods of manufacture. 1t has
sought for the best superintendent and
workmen and paid the best wages. 1t
has not hesitated to sacrifice old ma
chinery and old plants for new and bet
ter ones. 1t has placed its manutac-
tories at the points where they could
supply markets at the least expense. 1t
has not only sought markets for It's
principal products, but for all possible
by products, sparing no expense In IN
PRODUCING them to the public. 1t has
not hesitated to invest millions of dol
lars 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 de
livery of its products. 1t has spared no
expense in forcing its products into the
markets of the world, among people
civilized and uncivilized. 1t has had
faith in American oil, and has brought
together millions of money for the pur-
pose of making it what it is, and hold
ing its markets against the competition
of Russia and all the many countries
which are producers of oil and competi-
tors against American oil.
10 @ What are in your judgment
the chief advantages from industrial
combinations?
(a) Financially to stockholders.
(b) To the public.
A All the advantages which can be
derived from cooperation of persons
and aggregation of capital Much that
one man cannot do alone two can do to-
gether and once admit the fact that CO.
operation, or what is the same thing,
combination, is necessary on small
scale the limit depends solely upon the
necessities of business. Two persons in
partnership may be 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 Sc large that Il partnership ceases
to be proper instrumentality for Its
purposes, and then a corporation be-
comes a necessity. In most countries,
as in England this form of industrial
combination is sufficient for a business
co-extensive with the parent country,
but it is not so in this country. Our
federal form of government making
every corporation created by state
foreign TO every other state, renders 1t
necessary for persons doing business
through corporate agency to organize
corporations in some or many OF the
different states III 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 If the
business is extended to foreign coun-
| tris-and Americans are not today sat
| isfied with home markets alone it Will
be found helpful and possibly necessary
to organize corporations in such coun-
! tries, for Europeans are prejudiced
against foreign corporations as are the
people of many of our states. These
| different corporations thus become co
| operating agencies in the same business,
and are held together by common own
ership of their stocks.
1t IS too late to ague about advantages
of industrial combinations. They are
necessity And if Americans are to
have the privilege of extending their
| business in all the states of the Union,
and into foreign countries as well, they
are necessity on large scale, and re-
quire the agency Of more than one cor
| poration Their chief advantages are:
/. Command of necessary capital.
| = Extension Of limits of business
| 3 Increase of number of persons in
| terested in the business.
T. Economy in the business.
,. improvements and economies which
are derived from knowledge Of many
| interested persons of wide experience.
6. Power to give the public improved
products at less prices and still make
profit for stockholders.
7. Permanent work and good wages
| for laborers
| speak from my experience in the
| business with which ! have been init
| mately connected for about forty years.
| Our first combination was n partner
ship and afterward a corporation in
OHIO. That was sufficient for a local
refining business. But dependent solely
upon local business we would have
| failed wears ago We were forced to
extend our markets and to seek an eX-
port trade This latter made the sea
board cities "A necessary place of busl-
ness, and we soon discovered that
manufacturing for export could be
more economically carried on at the
seaboard, hence refineries at Brooklyn,
at Bayonne, at Philadelphia, and
necessary corporations iu New York,
New Jersey and Pennsylvania.
We soon discovered as the business
grew that the primary method OF trans
| porting oil III barrels could not last
| The package often cost more than the
| contents, and the forests of the country
were not sufficient TO supply the neces-
sary material for an extended length OF
time. Hence we devoted attention 10
| other methods Of transportation adopt
ed the pipe line system, and found capi-
tai for pipe line construction equal to
| the necessities of the business.
To operate pipe lines required fran
chises from the states in which they
were located, and consequently corpor
atoms in those states, just as railroads
running through different states aie
| forced to operate under separate state
| charters. TO perfect the pipe line sJs-
| tenn of transportation required IN the
neig hborhoOd of 800, 900 900 of capital
| This could rot be obtained or maintain
ed without industrial combination.
| The entire oil business is dependent
| upon this pipe line system Without
| it every well would shut down, every,
every foreign market would be closed
to rs.
The pipe line system required other
| iinproy such rs tank cars upon
| railways and finally the tank steamer.
| Capital had TO be furnished for them
and corporations created TO own and
! operate them
Every step taken was necessary in the
| business if 1t was TO be properly devel
oped, and only through such successive
| steps and by such an industrial combi-
nation is America to day 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 therefore from for
| ejgn lands nearly $50 900, O00 per year,
most of which is distributed in pay
ment Of American labor
| ! have given picture rather than Il
| detail of the growth of one indus-
trial combination. 1t is a pioneer, and
| its work has been Of incalculaDle value.
| There are others American prod be
sides oil for which the markets Of the
world can be opened, and legislators
| will he blind t. our best industrial in
terests if they undully hinder by legis-
| lation the combination Of persons and
capital requisite for the attainment Of
| so desirable an end