Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-11-19

organization of the Standard Oil COM
pany of Ohio with other interests look
ing to their purchaser" Mr.. Rookie
Teller was asked after the recess.
eyes, in the last part of 1871. We
consummated negotiations for the
(then) firm of Clark, Payne & Co. This
company was a very considerable re-
filming company, next to US in size. The
members were Col. Oliver Payne, James
H. Clark and John Huntington.
The Next One Bought
"The next one that We bought, If
am right, was the Alexander. Schofield
& Co. They were next in Importance
in the business.
ibid these negotiations result in con-
trolling Clark, Payne & Cop
"Yes."
Were there other negotiations? %
Eyes, there We're other refining COM
panies having lesser Importance which
we purchased. I don't remember their
names. 1 should say 1 had negotiated
with six or eight concerns. These con-
| Germs were all in Cleveland.
Il could not say definitely how many
were purchased. There might have been
a dozen, more or less, beginning with
| Clark, Payne e co. They were not all
at one time. Some were 1871 and early
in 1872 and some in the last of 1870"
How did these negotiations arise?"
I'm the natural way" said Mr..
Rockefeller. eve were all friends and
enjoyed prosperity together We found
that changed conditions were lessening
the chances of profits. We were UNI
successful in obtaining larger capital
at that time and many capitalists
feared to risk money in oil refining
Many Wildcat Schemes
'There were many schemes foated on
property of little value. Owing to the
dissatisfaction with such concerns 1t
was hard to obtain money.
"I remember I visited j. H. Wade in
Cleveland and he told me politely and
/ firmly that he would not invest any
money in the oil business"
! Mr.. Rockefeller said that to cope With
| the changing conditions it was neces-
sary to obtain capital and purchase the
| Cleveland compines which he said, en-
abIed the Standard to borrow large
sums Of money by having associated
with it many of its recognized friends.
I'VE realized" said Mr.. Rockefeller,
chat the larger company decreased
the cost of production and increased
the volume of business. The companies
were purchased part in cash and part
in stock of the Standard company"
did you use any coercive means to
secure these companies?"
None whatever, said Mr. Rookie
Teller. "They were all fair negotia-
tions. I may say for myself that they
were the kind of negotiations have
always used. l have used no other"
Had Faith in Oil
"You had faith in the business, Mr..
Rockefeller"
"Oh, yes" he replied.
but some did not?"
sfYas that is So
Concerning the state of the refinery
business in the early '70s Mr.. Rookie
Teller saia it was generally understood
that it was on uncertain ground and
encountered unusual hazards. Too
many refineries had been built, and
it was recognized that an increased
demand for oil would have to be Gre
ated.
cit was always considered a business
of risk, the refining of OIL" said Mr..
Rockefeller, land it is a very hazard
Gus business today and not to be
classed with banking or some railroad
| businesses"
Mr. Rockefeller then was asked about
the payments made for the companies.
81 do not know what proportion was
cash or stock possibly half of cash
and half stock" he said. 1.-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" whereupon
everybody in the court laughed.
Had Little in Common
Regarding the South. Improvement
company, Mr.. Rockefeller said that
while the Standard took a little inter-
est in it the company had little to do
with 1t.
I'VE did not entertain the views OF
those in charge of it. and we were not
in sympathy with it," he added.
He gave the names of those identi-
fed with the South Improvement COM
pany, stating they were identified with
the Pennsylvania oil field.
'FThey were hauling their oil over the
Pennsylvania railroad" said Mr..
Rockefeller. "These gentlemen We're
active in the Pennsylvania oil field. One
of them, Peter Watson, was identified
with Mr.. Scott, president of the Penn
| sylvania railroad"
Ibid you ever negotiate for the
charter of the South Improvement COM
pany?"
II never did, said Mr.. Rockefeller.
1--WE did not share their views and we
frankly told them so more than once.