The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1908-11-25

was haue naZaruouS proposition be-
cause or the apprehension that the
supply OF crude oil would become ex-
hausted. He then recalled the organ
ization of producers union in the
70s' about the time of the agitation of
the south Improvement company. This
led, he said, to an association of oil
refiners, who were desirous of having
a supply of crude oil which was not
controlled by interests antagonistic to
them. He said that in December, 1872,
the Producers union and the Reflners'
association entered into an agreement
"to secure as high a price for crude
oil as possible.'
The agreement did not last long, he
said, because the Producers violated
it by selling crude oil under the fixed
price.
MIR. Rockefeller said his attention
first was directed to lubricating oil
about 1876. About 1873 the Standard
Oil company purchased the American
Lubricating Oil company of Cleveland
and the Mica Axle Grease company
with the idea OF further diversity
ing the business and secure a lubricat-
ing trade.
Mr. Rockefeller referred to the En-
pire transportation company, which
owned cars, transported oil and other
products over the Pennsylvania rail
road and engaged in the refining Of oil.
1t was understood that this company
was controlled by the PENNSYLVANIA
and other roads, fearing that a loss
of their oil trade would follow, hega!,
cutting rates heavily.
"Our interests stopped our ship
ments over the Pennsylvania and used
other lines" he said. eve objected
to the Pennsylvania railroads engag-
ing in the refining business. They
We're shipping their own oil over their
own lines and discriminating against
us. Other railroads agreed to stand
by us, but there was much bitterness
between the railroads. Afterwards we
purchased the Empire Transportation
company and its pipe lines"
He denied that the rates obtained
by him during the period Of the Stan
dard Oil company's war with the
Pennsylvania railroad were to crush
and cripple the Empire Transporta-
tion company so that the Standard Oil
company might acquire its property.
Mr.. Rockefeller said that when the
pennsylvania railroad stopped refining
the railroad war stopped and an agree
ment was entered into between the
roads whereby they obtained a per-
centage OF the oil carrying trade. The
war between the railroads to obtain
the oil trade had been demoral.1lng to
the oil business.
Mr. Rookefeller's attention then wa
called to an agreement between WI
liam Rockefeller and Thomas Scott
president Of the PENNSYLVANIA rail.
road, which had been approved by al
the oil carrying railroads.
Mr.. Rockefeller said that the com
rany guaranteed the Pennsylvania.
railroad certain number Of barrel,
Of oil year and in consideration the
railroad guaranteed to pay back IL
per cent Of the rate on oil rate.
Mr.. Rockefeller said that the stan
dard began acquiring pipe line inter.
ests in 1873 and increased its owner.
ship from time TO time until 1877
when they were assembled into thc
United Pipe line. The Standard ais
had the American Transfer pipes. Hc
said that all the purchases to VIII; II
he referred were made by the Stan.
dprd Oil company Of Ohio and tha:
the money was taken from its treas.
ury.
y trust agreement made in 1882 az
iectlnS The stockholders Of the Stan
dard OF! company of Ohio and Villas,
keith q Chester, as trustees was put
In evidence. Attached to it were con
tracts made with the Erie and New
York Central Railroad companies.
MIR. Rockefeller was shown a pool
ing contract FOR the distribution of OF,
carrying between different railroads.
liking rates on refined and crude oil
and containing a provision for draw
backs to refners for certain shin
ments to the seaboard. The witness
said the contract was drawn to put
the different refining points on paral-
lei.
The effect Of this agreement was
that 1t would cost the man in Cleve-
land no more to ship refined oil to
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