Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1900-01-18
THE STANDARD OIL TRUST
I for the. purpose of lessening rates of

y - AAouA UdUAAlly LUZ
fire. For these services it obtained con-
tracts for special allowances on freight.
THESE never exceeded, to the best of
my present recollection. 10 per cent, but
In almost every instance it was discov-
cred subsequently that our competitors
better rates on freight han
ours.
HE NAMES THE RAILROADS.
Q. If SO. in what years were the adj
vantages largest and from what roads
were they received?
A. To the best of my recollection
the greatest rebates were paid from 1877
to 1879. During that time We a an
agreement for a special 10 per cent COM
I think the agreement was
with the Pennsylvania. the Erie
and the New York Central railroads.
Large rebates were also paid during
the summer of 1873. amounting, I believe
to 64h cents on refined oil. to equalize
eastern shipments by rail with ship
ments by Erie cana1. But these rebates
were paid to all who shipped by rail.
They were not discriminatory rates.
l am not now sure whether any other
road than the Pennsylvania collected the
full amount and paid these rebates. The
Erie and New York Central made the
reductions in rates to meet canal
shipments, but my impression Is that the
Erie, at least, did not collect the high
er rate from shippers and rebate 1t, as
did the Pennsylvania.
@. About what percentage of the prof.
Its of the Standard Uil came
from special advantages given by the
when these were greatest?
A. No percentage of the profits of the
Standard Oil came from ad-
vantages given by railroads at any time.
Whatever advantages it received in it's
efforts to reduce rates of freight
were deducted from the price of oil. The
to the Standard from low
freight rates consisted solely in the i'm
creased volume of its business arising
from the low price of it's products.
NOT PAID BY THE RAILROAD.
. Q. Did the Standard Oil ompan or
any of it affiliated companies ever re-
ceive, under n name whatever, any
from any railroad for oil shipped
tors? II SO. give particulars.
"A. l know of no such instance. 1t
seems that some arrangement of that
nature was entered into by one of our
in Ohio. being the same case which
has been t~estifed TO by George Rice.
When notice of this agreement was
brought to the officers of the company
for which it was made it was prompt
ly. ~repudiated and the o received.
small amount, Il think under three
hundred. was refunded. And this was
done not because of any notice, action
court or judicial opinion, but prompt
~ as soon as reported and before we
had had any knowledge of judicial pro-
ceedings.
Q. Has the Standard OIL company re-
any financial favors from any
since 1887?
A. To my knowledge, none whatever.
Q. Has the ownership Of stock in rail-.
road commands nv nf7ooro oF thu Cfo~5
ard OIL company given the Standard ad-
vantages with those railroads over it's
competitors? If so, give particulars.
A. 1t has not. Stockholders and Of
ficers of the Standard have invested in
stock of railway companies. But in no
have they done so for the pur-
pose of influencing the policy Of the rail-
companies, nor to the best of my
and belief has any attempt
ever been made through such ownership
to influence any railway in favor of the
Standard.
CAUSE OF TRUSTS SUCCESS.
O.. To what advantages, or favors, or
of management do you ascribe
chiefly the success of the Standard o.,
A. I 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 it's products.
1t mas spared no expense in finding,
securing and utilizing the best and cheap
est methods of manufacture. 1t has
sought for the best superintendent ana
Workmen, and paid the best wages. It
not hesitated to sacrifice old machin-
cry and old plants for new and better
ones. 1t has placed it's manufactures
at the points where they could supply
markets at the least expense.
1t has not only sought markets for
ifc Jnrfroino1 o~o1,,oto h,,< &c., ~ -z-z:
BILE by-products, sparing no expense in
introducing them to the public. 1t has
not hesitated to invest millions of dol
lars in methods for cheapening the gath
erfng 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
and delivery of its products. It
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 urpos of making it what it is,
and holding its markets against the COM
of Russia and all the many coun-
tries which are producers of oil and COM
against American oil.
ADVANTAGES OF TRUSTS.
Q. What are in YOU Judgment the
chief advantages from Industrial combin-
ations-(a) Financially to stockholders:
(b) to the public?
A. All the advantages which can be
from a cooperation of persons
and aggregation of capital. Much that
one man cannot do alone two can do
together, n ono admit the fact that
cooperation or, what is the same thing,
is necessary on q small
scale, the limit depends solely upon the
necessities Of business.
Two persons in partnership may be 4
large combination for a small
business, but If the business grows or
be made to grow, more persons and
capital must be taken in. The busl-
ness may grow so large that a partner
ship ceases to be a proper instrumental
ity for its purposes and then a corpor-