Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-11-19


capitalists feared to risk money in oil
refining There were many schemes
foated on property of little value. Ow-
ing to the dissatisfaction with such
concerns it was hard to obtain money.
I remember that 1 visited j. P. Wade
in Cleveland and he told ME politely
and kindly that he would not invest
any money in the oil business"
Mr.. Rockefeller said that to cope
with changing conditions it was nee
essary to obtain capital and purchase
the Cleveland companies, which, the
witness said, enabled the Standard OIL
to borrow large sums of money by
having associated with it many of its
recognized friends.
I'VE realized said Mr.. Rockefeller,
that the larger company decreased the
cost of production and increased the
volume of business. The companies
We're purchased part in cash and part
in stock of the Standard Oil CO.. 8.
Did you use any cOercive means to
secure these companies?"
None whatever" said Mr.. RCcke-
Teller. They We're all fair negotiations.
1 may say for myself that they were
the kind of negotiations have always
used. / have used no other
You had faith in the business, Mr..
Rockefeller"
"Oh, yes he replied.
but some did not?"
Yes, that is So
In reply to series of questions by
counsel concerning the state of the re-
fnerv business ir the early seventies, Mr..
,llr.
stood that the business was on uncertain
ground and encountered unusual hazards.
There has been too many retineileS blllt.
the witness said, ana it was recognized
that an increased demand for oil would
have to he created
1T was always considered busfress
of risk the refining of oil SAID Mir.
Rockefeller, land it is a very hazardous
business today and not to be clas"ed
with banking or some railroad business.
After stating that there had beer steady
progress Mr.. Rockefeller was asked
about the payments made for tie com
panes. Il do not know what proper
ton was cash or stock, possibly half OF
cash and half stock" said Mr.. Rocketel-
Ter. THE general preference was for
good hard cash with which to invest In
something else. As one dear old man said
to me. YOU better strike that" Where
upon every body in the court laughed.
Mr.. Rockefeller was then questioned
with regard to the South Improvement
Co He said that while the Standard
took a little interest in it they had little
to do with it,
..rhev were hauling their oil over the
4 a..
Teller. "One of them. Mr., Peter Wat
son. was identified with Mr. Scott, pres
ident of the Pennsylvania Railroad.
Did you ever negotiate for the char
ter of the South Improvement co. ?"
81 never did," said Mr.. Rockefeller.
1--WE did not share their views and we
frankly told them so more than once
1t was not Il scheme which We our
selves would care for
why did you take an interest in it,
1T should be remembered that Mr.
Scott was u potent factor in the Pennsyl-
vania Railroad who was not to be dis
| regarded bv the railroads or shipper
We did not wish to break with these gen
tlemen, especially Mr.. Scott. We only
had a minority interest
Mr. Rockefeller SAID that the scheme of
| the South Improvement Co. was fal!ure
and never went into operation. having
| aroused great opposition among the OF: in
terests in Pennsylvania.
1T didn't take very long for our friends
the producers down there, to make oppo'
sition to it. they having the characters
ties of miners the world over" said Mr.
Rockefeller.
He was about to describe the formation
If the Producers Union. but on request
of the Standards counsel an adjournment
was taken at 423 until tomorrow. Mr.
| Rockefeller interrupted the motion of
counsel by saying that he was willing
| to remain as long as counsel desired. but
nodded assent to counsel when his law
yers shook their heads
A large crowd saw Mr.. Rockefeller leave
the customs building and depart for his
home up town.