The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-09-24
INTEND TO MEET
EVERY ATTACK
Line of Defense of the oil 0Cto-
pus Disclosed by Questions
Put by Mr.. MiIburn.
TILFORD CROSS EXAMINED
GOVERNMENT ATTORNEY LOAD
ED WITH FACTS.

New York. Sept 23-The line of de- |
tense of the Standard oil Company of |
New Jersey to the allegations made by |
the federal government in its suit against
the company was indicated in the oil
hearing today when w. II. Tilford, treas
urer of the Standard Oil company, was
cross-examiaed on the witness stand by
John G. Milburn, chief of counsel for
the defendants. Mr.. Milburn's interroga- !
tories to the witness were designed 10
show that in the oil fight in Colorado be
tween the Standard and the Independent !
companies the first to cut prices was the
Independent companies, and that there
We're no troubles made for the lndepend-
ent companies except those which arose
from natural causes. Mr.. Ttlford eX-
planned that the reason why the supply
OF crude oil had been cut down TO the
sixteen Independents In the Pittsburg
field just before the agreement was made
with the Standard was because the oil
supply in that district was diminishing.
Mr.. Milburn developed that the oil firm
of SchOfield. SChurmer Teagle, Of
Cleveland, an independent company, was
not forced into the Standards control, but
had been taken over after many sugges-
tons from the officers of the Schofield,
Schurmer company. The questions that
adduCed this testimony. and others put
TO the witness showed that the defend
ants intend to meet the government on
every point raised in the long bill of com
plant.
TiIford's Testimony.
". II. Tilford treasurer of the Standard
OIL company gave further testimony to-
day In the governments action against
the company.
Mr. Tilford testified. after looking over
the records. on Saturday. that the Man
haitian Oil company. of Ohio. had sold 10
the Standard company 754 tank cars, be
tween 1893 and 1901. The purchase was
made for the Standard company by d
subsidiary company, the Union Tank line
MIR. Tiiford could not say If the Standa I'D
made any contract to supply certain gas
companies with oil. when 1t took over the
Manhattan company. A
As a matter of fact don't you know
that the Standard made a contract with
the indianapolis Gas company and the
Peoples Gas Light and Coke company of
ChicagO?'
= Yes, such a contract was made in 1885,
said Mr.. Tilford.
And was not that contract made be-
cause E c. Benedict and Anthony n
Brady would not sell the Manhattan Oil
company unless gas companies were
guaranteed a supply of gas for ten
years.?
u don't know that the contract was
made for that reason answered Mr.. Til
ford i know the contract was made for
two years
Avoiding an Injunction.
Mr.. Kellogg asked if it was not fact
that the only stock OF the twenty-nine
subsidiary companies distributed between
1892 and 1899 was 474,519 out of 92,5OO
shares, which were distributed to certain
stockholders, including John d. Rockefel-
Ter, William Rockefeller, Henry NJ. Flag
Ter, II. H Rogers and fourteen others.
Mr.. T1lfOrd said he did not know Mr.
kellogg said he purpOsed showing that in
order TO avoid the Injunction of the court
preventing the voting of trustees certffi-
Gates, these trustees liquidated a suffi-
cient amount of trustees certificates for a
majority of the stock of the subsidiary
companies and that they as individual
stockholders still maintain control of the
company.
Mr. Tilford did not illuminate the issue
which Mr.. Kellogg desired to make clear
and Mr.. Miburn interpOsed that the rec
o. oros were sufficient evidence The wit
ness was unable to say whether these IA
GIG trustees certificates We're the only
certificates iquidated after 1892
Characterization.
Mr. Milburn took up the cross-examina-
ton of MIR. Tilford, who testified that the
Standard Oil company had about 5000
stockholders
Mr. Tilford, on cross-examination, said
that the Pure OIL company. the Columbia
Oil company, Texas Oil company and the
Gulf Refining Oil company exported oil.
As to the understanding with sixteen in
dependent companies in and about Pitts
burg. whereby the Independents obtained
& maximum supply of oil from the Stand
ard, on condition that they sell to the
Standard their output of refined oil for
exporting Mr. TilfOrd said that, previous
TO the arrangement, the Standard Oil
company sold these Independents crude
oil from western Pennsylvania, southern
Ohio and West Virginia.
was there an increasing demand for
oil from those fields at that timer Mr..
Milburn asked.
Yes, sir
Give me the figures
well. in 1896. we supplied the indie
pendents with $4,000 barrels, and with
1.755.O0O barrels in 1903" replied the wit
ness.
Demand Was Too Heavy.
This oil was considered the finest in
the market and the demand for il was
too much for the field" Mr.. Tilford con-
tinued, "and the Standard notified par
ties to the contract that they could not
get all the oil they demanded"
Mr. TilfOrd said it was agreed that
the Independents were to be furnished
with 4.500 barrels of crude oil a day and
that the Standard was TO purchase from
them 427 barrels Of refined expOrt oil
each day He denied that there was
any manipulation Of prices Of export oil
by the Standard or any intention TO
make things disagreeable for the indie
pendents- When questioned about the
oil fight in Colorado, in which the Con-
tinentai and Rocky Mountain cOmpanies
engaged. Mr.. Tilford said that all he
knew was that the independents started
the fight.
He said that the Standard company
had purchased the oil firm of Schofield
the officers OF the SchOfield plant had
repeatedly offered the company for sale
On redirect examination, Mr. kellogg
sought TO draw from the witness that
where the Standard had an unopposed
field it sold oil for over 10 cents. and
Continued on Page 2.