The Farmville herald. [volume] (Farmville, Va.) 1890-1934, 1908-11-27
ARCHDOLD TELLS
OF OIL FIGHTS
Trust Vice President Watched
Rivals andTTIedtOBeat Them.
O5,OOO,OOO BARRELS STORED

John D. Rockefeller In Closing His
Testimony Tells Of Investing His
Tremendous Earnings In Railroad
Securities, Mostly eonds-Deelares
He Opposed the Keeping Of Millions
Of Dollars Surplus BY the Standard
oil Company.
New York. Nov. 25.-Closing bis tes-
tlmony in the federal suit 20 dissolve
the Standard oil company, John d.
Rockefeller threw some unexpected
light on the popular question Of into
what channels OF investment he turned
his tremendous earnings from the oil
combination. Mr.. Rockefeller was
loath 10 state the names OF the rail.
roads In which his investments were
made. but did 50 after entering his OBJ
lection. The head OF the socalled oil
trust declared that his holdings In
railroads consisted chiefly In bonds.
and that, with the exception Of few
roads in which he held only small
amounts Of stock. be preferred the
bonds as form Of investment Mr..
Rockefeller appeared greatly delighted
that his long ordeal as a witness was
over and hurriedly left the room when
counsel excused him.
Mr.. Rockefeller said that he did not
think that he should be made 20 tell
the form OF his investments, declaring
that the gentlemen over there IN the
stock exchange might not think IL very
wise" After some legal contention
BY counsel Mr.. Rockefeller said he
held stock in the Delaware. Lacka'
wanna G. Western. the New York Cen
trail. the Pennsylvania, the Western
Maryland, the Missouri Pacific. the
Texas Pacific and the Colorado South
ern. He said he owned no shares in
either the Union or the Southern Pa
clhc. Mr.. Rockefeller said he opposed
the keeping OF millions Of dollars OF
surplus by the Standard.
During the cross-examination the
following facts were brought out:
Original investment OF Standard OIL
company. S6IO0O0Oo; dividends, $751;
600 900; surplus. s300.000000.
Stock dividend in 1856, when com
pany had capital OF s9ss2s,000, was
tl5.OOO.OOO.
Up TO 1905. companys net earnings
were 1851 .s22.9O4
Dividend in 1907, about $50 100000.
Net earnings froin 1889 10 1906,
about s4s0. 10000 Net earnings for
1907. about sSOOOo.o0O.
Nevertheless the business Is haz-
ardous. Always present is the fear
OF fire, since oil is an explosive pro-
duct.
The Pennsylvania railroad In 1877
agreed 10 give a rebate Of 10 per cent
OF freight rates. but, says Mt Rocke-
feller. I'VE sought to secure what all
shippers then and now seek"
Later the company got from the
Pennsy a rebate Of 20 cents barrel on
its own shipments and a rebate on
shipments by independent rehners, too.
John d. Archbold. vice president OF
the Standard, proved a mine OF detail
cd information, under the direction OF
the company's counsel. regarding the
! early production OF crude oil and the
,, development OF the pipe line system.
. Mr.. Archbold gave his answers In
short. brisk manner and seemed pos
sessed OF infinite details OF the Stand
ards business from its inception to the
present time.
Mr.. Archbold beamed with satsiac
ton in telling OF the Standards early
history. His clear blue eyes twinkled
when he told Of the Industrial nghts
, saving that he kept careful watch on
bis competitor and then tried to beat
. him"
!, Mr. Archbold said the Standard
found and was now finding much com
petition abroad This affected the price
/, paid for crude oil II was the policy
Of the company. he said. to take care
7 OF all the crude OIL produced. Crude
oil was stored in tanks holding on ar
average $4,000 barrels. Mr.. Archbol'
said that there was now stored IL
tanks $1,000 900 barrels OF oil waitin'
FOR use.
y why has that been storedl'
Because the production has beei
, ahead Of the demand"
"And In spite OF that the STANDARD
has kept on buying7'
~ "Yes"
.e "How long may this oil be held7"
IS altogether II is improbable tha
20 this oil now being taken out OF th
Is mid.contlnent field will be used for te
years"
Mr. Archbold said that IN the earl
days II was a question OF a bargai
u between the shipper and the railroad.
m "This continued until the passage Z
s. the interstate commerce law sal
C. Mr.. Archbold, "and this tremendou
le talk about our company being peculls
N in its relation toward the railroads wa
is very unjust. indeed. The people VIII
n made the outcry have done Il for u
n tsrior reason"
At "Did you ever know what your ne'
IN door neighbor did?"
'I aid not except what could m
IN BY careful inquiry; then tried 10 be-
It. him. When o manufacturer got raj
I'd from railroad the manufacture
1n made that a basis OF cost which r
n sulted IN q benefit 20 the consume
N / =. ~ .....-of rrfa I works