New-York tribune., 1908-12-08
STANDARD STILL BUYING
DISTRIBUTING CONCERNS.
Nr. ArchboId Before Leaving Stand
Tells Of Recent accusations.


ard OH Company, left the witness stand yesterday
IN the suit 20 dissolve the company for violations
OF the anti-trufs laws. Henry NJ Tilford presi-
oent OF the Standard Of California called. His
cross-eNanlinaton under way when the hear
ing was adjourned until this morning II was said
by Moritz Rosenthal counsel for the company that
William Rockefeller would not be called and that
James Moffett. Of the Indiana company would fol-
low Mr.. Tiford
Mr.. RosenthaI. early in the day with impressive
solemnity, had Mr.. ArchboId identify the subpoena
served on him and say that it was because of the
service OF IL that he there testifying for the
defence This strengthened the government belief
that the heads the great corporation were called
primarily so that their immunity from criminal
prosecution might be established through cross
examinations limited to the direct examination.
Frank B. Kellogg, the government counsel, may
recall Mr. Archbold to-day Il the BarnsdalI con-
tract telling Of the s75oooOo loan is produced. Mr.
Rosenthal said yesterday that Ee did not have it.
but expected that he would to-day.
Mr.. RosenthaI in his redirect examination Of Mr
Archbod had him tell again of the improvements
made in business methods by the Standard notably
i'll the establishment of marketing stations which
wiped out the jobber; OF the purpose of the trust
agreement OF 1852 bringing the management of
the many companies more directly in harmony and
OF the utilization Of the byprodacts using parafine
Illustration.
Nj kellogg. in his Recommendation got Mr.
Archbold to admit that other companies were dis
1ributing their product in tank cars and selling
direct to the retailers as early as not earlier than
meTchantable things out Of the by-products the
great corporation simply following in the
footsteps Of its early competitors.
Then Mr. kellogg went over the organization Of
the Standard Oil Company of Indiana. and de-
spite Mr. Archbolds reluctance got him testify
that the company had net assets Of than
S24,oo0oo In 1906, blR the witness would admit
that the actual money used in the business was
only S1,up0p0o Then the government counsel asked
STILL BUYING OUT COMPETITORS.
Isn't ii fact that your company has through /
its various sub-companies bought large number |
OF distributing concerns in the last six or eight |
years engaged in business all over the United |
states?"
Where have found these concerns willing TO /
sell" Mr. Archbold answered instead of going
on IN the duplication OF facilities for certain /
locality We have dealt with these local traders and
nave succeeded as far possible 10 the good
VIII OF their business rather than 10 crowd them
out OF business, which might easily have been
done II has been a natural evolution and 1t has
been done amicable grounds
M AFchhoid said. in answer TO a question by
u 1'osehthaL JhaI after the opening of the mar
kefing stations with improved facilities for distr-
Ouuon the small dealer knew that his old method /
was doomed and sold his property and went out /
OF business He also read several extracts from
newspapers to show how hazardous the business
OF Oh producing was regarded between 1875 and
1885
Mr. TIlford taken by Mr. Rosenthal through
lhe history OF the Pacific Coast development Of the
oil business. and the operations in the midconti-
mental field The first began with the acquisition
II the Pacific Coast on Company. which was or
sanized later into the Standard Of California.
From eight marketing stations there was an IN
-ieaSs 10 eghty-six, which dot the coast now from
-alifornia 10 Alaska There are I3S stations the
Rocky Mountain district the witness said
When MT- Kellogg began his examination /
dr. Tilford could not remember many of The fig
lres and circumstances brought IN the direct ! &
when applied by the government coun-
- : the Tra7 sr8yK III aT h- N.-Sra |
business Of the Standard interests.
COAST RECORDS DESTROYED.
When AIr. TIIford was asked about the records Z
the business done the coast he said that only
lemcranda were kept there, that the statements I
.ere destroyed Mr.. Kellogg became urgent in his 1
lquiries, and Mr- Rosenthal nterposed with: 7
Is this conspiracy To extend the hearings to ! =
he Pacific COast2" G
Mr.. Kellogg dIscIaiued any such intention
Il learned that in 1870 the production IN Cali
1rna 4,S29 80 and in 1917 it 400S5,o0 bar
els The high prices in the Rocky Mountain states =
7ere explained due 10 transportation Difficult c
es. and the price cutting which occurred there L
everaI years ago begun, Air- Tilford said. by =
be Standards competitors Many questions Nj +
Ilford could not answer because lie explained, Il
( had charge only OF the sales end OF the bust =
ess since its beginning n the West b
II was brought out that the Pacific Coast OH | b
onpany had been bought for S76l0o0 and that III -
Us il had assets OF 81 This represented n
yuiprnent and crude oil IN storage. IN the mid u
3ntinentaI field all the price cutting was laid by Il
- witness at the door OF the Antitrust OIL Com 81
any OF Denver. MT. Tilford could not testify TO a.
q nroe+- Of the Continental OIL Company, but -
= kellogg read the figures from report, show n
2 that they increased in 1896 TO 19l per cent L
r Tilford would TO the statement that pl
e Continental controlled IS cent OF the trade st
,ts district but he could recall any Of the
,mpetitors- e
Mr. kellogg referred to contract which he SAID z
* entered into between the Standard of Iowa pC
ID the Pacific Coast oil Company with the Union "
] Company TO buy all OF the Union companys B
atar white oil but MI Tnford's mind blank y
gardinK that Do
Il never saw the original contract" said Mr- Til 6e
I'd "and not knowing the original how could I gi
call II or identify it now? 81
Didn't ask you year ago, when you were on n
stand. look il up?
y 6anende6 upon Nj Rosenthal 10 tell me what -,
look I'D" said Mr. Tilford Mr. Kellogg told le
m not 10 depend on M Rosenthal, but 10 look II e
himself, which he promised to do.
STATEMENTS NOT PREPARED. 10.
NJ Kellogg before the noon recess went the fr
{ Of statements he had asked Mr.. Archbold to ! s1
We prepared and produce, but he got none Of g U
en- The Mcdonald account. including the loan ar
g. zoo. coo could be produced, as il was on FL
e books of the AngIo-American company, in Lon 10
n Nj Rosenthal said that he would try TO get / sn
rescript the account. Mr.. ROsenthal said & 70
Of al the companies acquired wholly OF in part ~
the Standard would require many weeks OF in ~
stlgation and labor. He did not think that he so
l,ld Je able 10 furnish the list while the defences
Sc was IN progress The Standard counsel said
statement in the Industrial Commission report Ie'
owing the percentage OF business done by the no
,ndard oil interests was accurate A'
There is some prospect that many OF the stock % %
will Ha flcgn - Ia