Los Angeles herald., 1908-11-20
ARCHBOLD TO TELL
STANDARD HISTORY
Continued from Page one)

they we're assembled into the United
pipe line. The Standard also had the
American Transfer pipe line. The pipe
lines were regarded as an important
adjunct. Mr.. Rockefeller then de-
scribed the gathering of pipe lines INTO
a system to carry the OIL from Iile
wells to the railroads before the trunk
line system was established;
There were many small systems
which could not reach the oil wells be-
cause of financial inability to construct
new lines. 1t was brought home to
him. MIR. Rockefeller said, that the
improvements were necessary, ana as
the oil supply increased new pipe lines
were built. ut was a big undertake
ing and very interesting" said Mr..
Rockefeller. ut was necessary to see
that there should be no waste OF oil
and no delays. Wherever there was
oili we had men to take care of It,.
Our conservative men felt that we
should not go into such expenditures,
but our men in the field came in ana
made pressing demands for 100000 bar
rels Of tankage. We gave II TO theiIl.
Millions of barrels of tankage were
built and through 1t we saved much
oil that would otherwise have been
lost under the old system. 1t was a
godsend to the country that we moved
boldly in the matter"
Mr.. Rockefeller said that all the pur-
chases to which he referred We're
made by the Standard Oil company OF
Ohio. and that the money was taken
from its treasury instead of being col
lected from the stockholders. The
stock of other companies which was
purchased was held by members of the
Standard Oil Company OF Ohio for It's
stockholders. He said that in 1873
this plan of ownership was put in
written form, and when he was shown
the paper on the witness stand today
he identified it.
1t was shown by this paper that
Villas. Keith and Chester also We're
trustees for other stock held for the
benefit of the tSandard's stockholders.
The capital stock of the Standard Oil
Company of Ohio at that time was
shown to be SO, 800, 900.
A trust agreement made In 1852 at
fecting the stockholders of the Stand
ard Oil Company of Ohio, and Villas,
put into evidence. Attached to it were
contracts made with the Erie and New
York Central Railroad companies
Commenting upon it, Mr. Rockefeller
said the railroads wanted experienced
warehousemen to handle the oil upon
arrival at it's terminals, as much re-
cooperage and rebOlting was neces-
sary, and that that was the reason for
making the contracts.
Mr. Rockefeller was shown pooling
contract for the distribution of oil
carving between different railroads,
fixing rates on refined and crude oil
and containing a provision for draw
backs" to refiners for certain ship
ments to seaboard. The witness said
the contract was drawn to put the diff
ferent refining points on a parallel
The effect of this agreement was that
it would cost the man in Cleveland no
more to ship refinedsoil to seaboard
than a shipment made from any other
point.
1t also assured refiners that the same
rates for shipments would be alike on
ali lines. said Mr.. Rockefeller. He
added the contract further showed that
the shippers of crude oil to seaboard
received 1920 barrel drawback if the
pipeage rates were maintained, as
agreed upon by the piping company.
Mr. Rockefeller said he had not
been closely familiar with the freight
business for more than thirty years.
HThis agreement produced steadiness
and did away with the wiping out of
Cleveland, as Thomas Scott promised
to do" he declared.
John G. Milburn, Mr. Rockefeller s
counsel, announced that Mr.. Rockefel-
ler's direct examination ended at this
point, and an adjournment was taken
until tomorrow, when the eross-exami-
nation will be begun.