The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-11-19


to obtain capital and purchase the CIeve-
land companies. which. the witness said
| enabled the Standard to borrow large
sums of money by having associated witt
IL many of its recognized friends
Part Cash; Part Stock.
I'VE realized" said Mr.. Rockefeller
that the larger company decreased the
cost OF production and increased the vol
ume of business The companies Were
purchased part in cash and part in stocli
of the Standard company
! did you use any coercive means to Sc
| cure these cGmpanies?'
None whatever. said Mr. Rockefeller
| '"They were all fair negotiations. / may
say for myself that they were the kind OF
negotiations have always used. have
You had faith in the business. Mr..
Rockefeller?"
"Oh, yes he replied.
But some did not?''
Yes that is So
Concerning the state of the refining
business in the early EOS. Mr.. Rockefel-
Ter said * was generally understood that
il was on uncertain ground and encoun-
tered unusual hazards. There mad been
too many refineries built and IT was rec
ognized that an increased demand for
oil would have to be created.
Hazardous Business.
1T was always considered business
of risk, the refining of OIL. said Mr..
business today and not to be classed with
banking some railroad businesses"
Mr.. Rockefeller then was asked about
the payments made for the companies.
Il do not know what proportion was
cash or stock: possibly half of cash and
half of stock. said Mr.. Rockefeller. 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 out" whsreupon ever.T-
body in the court laughed. Regarding the
efeller said that while the Standard took
a little interest in 1t, they mad little TO 90
with it.
1--WE did not entertain the views of those
in charge of il. and were not in sympathy
with it." he added. He gave the names
of those identified with the South I'M
provement company, stating that they
were identified with the Pennsylvania oil
field.
''They were hauling their oil. over the
Pennsylvania railroad" said Mr. Rock
the Pennsylvania oil field. One of them.
Peter Watson. was identified with Mr..
Scott. president of the Pennsylvania rail-
road"
did YOU ever negotiate for the charter
of the South Improvement company"
Scheme Passed Up.
At never did,. said Mr.. Rockefeller,
I'VE did not share their views and We
frankly told them so more than once. IL
was not scheme which we ourselves
would care for"
why did you take an interest in it,
1T should be remembered that Mr..
Scott was a potent factor in the Pennsyl-
vania railroad, who was not to be disre-
garded by the railroads or shippers. We
did not wish TO break with these gentle
men, especially with Mr.. Scott We only
had a minority interest
The scheme of the South Improvement
company, he declared. was failure and
never went into operation il having
aroused great opposition among the oil
interests in Pennsylvania.
1T did not take very long for our
friends the producers down there, 60
make opposition to II, they having the
characteristics OF miners the world over,
said Mr.. Rockefeller. who was about 70
tell of the formation of the producers
union, when. on request of the Standards
an adjournment was taken until
tomorrow.
Mr. Rockefeller interrupted the motion,
stating that he was willing to remain as
long as desired. but nodded assent to
counsel when his lawyers shook their
heads
A large crowd say Mr.. Rockefeller leave
the Customs building and depart for his
home.