Omaha daily bee., 1908-11-20
TWENTY YEARS IN OIL
Rockefeller Finishes Re ~ de.
velOpment of Trade is ~
MANY RISKS IN J,
He Says Wells May Cease Pr,
at Any Time.
MORE DRAWBACKS AND REBATES
agreements With Railroads Tended
to Steady Conditions.
WILL BE CROss-EXAMTNED TODAY
Attorneys for oil Company Announce
That History of Combine from
1882 VIII BE Told by
ArchboId.
agreements With Railroads Tended
to Steady Conditions.
WILL BE CRoss-ExAMNED TODAY

the first score of years of the Industrial
development Of the Standard OH company
the testimony OF John d. Rockefeller pres!-
dent OF the OH combine. on direct examina-
tion in the federal suit to dissolve the
Standard oil company. was brought to an
unexpected close this afternoon.
The head Of the Standard Oil company
told today Of the processes and causes OF
the company's growth up to the trust agree
ment OF 1882, and after identifying the
parties to the agreement. counsel for the
defense announced that Mr. Rockefeller
had concluded his direct testimony and re-
quested an adjournment until tomorrow.
Friday will find Mr.. Rockefeller on the
witness stand under the sharp fire of cross
examination by Frank b. Kellogg. special
assistant attorney general prosecuting the
case for the government.
This will be generally confined to the
period from 1862 to 1882, except when the
testimony has direct bearing on develop
ments In the companys affairs in it's later
period. Counsel for the Standard oil COM
pany let II be known today that the history
OF the company from the trust agreement
of 1882 would be told on the witness stand
by John d. Archbold. vice president, who
Is conversant with the combines develop
ment.
Uncertainties of Business.
The hearing was transferred today to a
larger room IN order to accommodate nu-
merous counsel and reporters. Policemen
swere stationed in the corrodors and only
these having friends connected with the
proceedings were permitted to enter Mr..
Rockefeller was smiling as he took the
witness stand and resumed his testimony.
Mr. Rockefellers counsel again called his
attention to the Uncertainties of the of
business in the early seventies and asked
MIN what oearing the supply OF raw
material had thereon.
1T had an important bearing and must
always have such Importance. as we never
know when the supply may give out render
ing the properties for the refining OF oil
comparatively valueIess". replied Mr..
RoekefeIlas Hes added that in the early
oil business the. supply OF crude oil was
limited to small area coming principally
from vanago county, Pennsylvania.
Mr.. Rockefeller said that oil business
was made a hazardous proposition because
OF the apprehension that the supply of
crude oil would be exhausted. Some OF the
oil wells are very short lived. Mr.. Rookie
feller's counsel then asked him II he re-
called that a producers union was formed
at the time OF the agitation regarding the
South Improvement company.
Yes" said Mr.. Rockefeller. ut was
formed little later and was composed OF
large proportion of the oil producers"
Association OF RefIners Forced.
That led 70 an association of oil reflners
who were desirous OF having a supply of
crude oil which was not controlled by in
terests antagonistic 10 them. and the re-
flners also wanted to be assured of a
market for their raw material. I'VE de-
sired pleasant relations with the producers"
said Mr.. Rockefeller.
In December, isT2, Mr.. Rockefeller said.
the producers union and the refiners en-
tered into an agreement the purpose OF
which was to secure high price for
the crude oil as possible and to Introduce
an element OF regularity into the business.
which had been fiuctuating greatly. Mr..
Rockefeller said he was unable to give the
number Of PRODUCERS in the union but 1t
included large percentage OF ali of them,
and the re finers assoc alton ir clud a large
proportion OF the refiners.
BY direction OF his counsel. Mr.. Rookie
Teller noted that the agreement fixed the
price OF crude oil at s. per barrel at COM
mon points. The operation of that agree
rnent. he said. stimulated an over-produc-
tlon OF oil beyond what the refiners could
very great with the producers TO develop
more oil than they had promised to the
refiners. The refiners could only take as
much oil as the public would consume, As
"A result the producers violated the agree
ment and sold oil under the price which had
been fixed. The agreement did not last
long, said Mr. Rockefeller.
First Rsnaery on seAbOard.
70 secure better facilities and TO make
.-sSh4pf1ents TO Europe, the Standard oil
company III Is7s purchased the plant OF the
Long Island Refining company I'm Long
Island City and began 90 refine at the sea-
board. The crude oil was brought through
60 the refinery by railroads. Mr.. Rookie
feiier said he recalled the spevoe Manufac-
turing company of Long NIs!and, which
canned oil and shipped Il toNthe far cast.
where q was delivered mufeback He
thought this firm was primarily = manu-
facturer OF cans. In those days sll ex-
port OH was shipped in barrels or "A cans
in boxes. and was called the case oil frade.
TO further its markets the Standa5d oil
company purchased the Devoe conlpany.
and IN 1873 bought about cne-half "a the
Chess Cariey q co, Of Louisville. which
had large douestic business in the south
west A yeat later. Mr. Rockefeller said,
his eompAay bought out the Imperial Re
GnIns Oh company OF OH city, Pa, which
had been owned principally by Captain
]. j. vandegriff and John Pitcairn. The
standard Oh company later organized the
Imperial Refining company. limited TO
operate this plant. The purpose OF this
nurehase was to enlarge the STANDARD oil's
s~nort trade and the Imperial company
had direct lines for shipping TO the sea-
board.
Buys Out h. "a. Rogers.
Mr. Rockefeller then told OF the Standard
on eompany's purchase OF the firm of
charles N. Pratt Co. of Brooklyn.
OIL refiners. OF which H. H. Rogers was a
member IL also purchased the business
j, vv.rd Flew a Co, which had a large