The enterprise. [volume] (Harlem, Mont.) 1899-1926, 1908-11-25

Rockefeller went on the witness stand
when the Standard Oil hearing was re-
sumed Thursday. Mr. Rockefeller was
on the stand all day. Mr. Rockefeller's
counsel again called his attention to
the uncertainties of the oil business in
the early 70's and asked him what
bearing the supply Of raw material
had thereon.
1T had an important bearing and
must always have such Importance, as
we never know when the supply might
give out, rendering the properties for
the refining of oil comparatively value
less" replied Mr.. Rockefeller. He add
ed that in the early oil business the
supply of crude oil was limited to a
small area, coming principally from
Venango county. Pennsylvania.
Denies Pact to Cripple.
Mr. Rockefeller's counsel asked him
II it were true 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.
ton Company so that the Standard
Oil Company might acquire it's prop,
erty.
ut is not" replied Mr.. Rockefeller.
Mr.. Rockefeller said that when the
transaction was completed and 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
Standard Oil interests were called
upon to make those arrangements ef-
fective. The witness said that the
war between the railroads to obtain
the oil trade had been democrat
lzing to the oil business.
Oil Business Hazardous.
Mr.. Rockefeller said that oil bust
ness was made a hazardous PROPOSE
ton because of the apprehension that
the supply of crude oil would be ex-
hausted Some of the oil wells were
short-lived.
Mr.. Rckefeller's counsel then asked
him If he recalled that producers
union was formed at the time of the
agitation regarding the South Improve
ment Company.
EYES," replied Mr. Rockefeller, ut
was formed little later and was COM
posed Of large proportion of the oil
producers"
That led to an association of oil re.
timers who were DESTROYS Of having a
supply Of crude oil which was not con.
trolled by interests antagonistic to
them, and the refiners also wanted to
be assured of a market for their raw
material. eve desired pleasant rela-
lions with the producers" said Mr..
Rockefeller.
Waited for High Price.
In December, 1872, Mr.. Rockefeller
said, the Producers union and the Re-
liners association entered into an
agreement, the purpose of which was
ITO secure as high price for the
crude oil as possible" and to introduce
an element of regularity into the bust
ness, which had been fluctuating great
ly. Mr.. Rockefeller said he was un-
able to give the number of producers
in the union, but it included a large
percentage Of all of them, and the Re-
finers' association included a large pro-
portion of the refiners.
BY direction of his counsel Mr..
Rockefeller noted that the agreement
fixed the price of crude oil at five
dollars barrel at common points.
The operation of that agreement, he
said, stimulated an overproduction of
oil beyond what the refiners could use
at that price.
The temptation was great with the
producers to develop more oil than
they had promised to the refiners.
The retiners could only take as much
oil as the public would consume. AS a
result the producers violated the
agreement and sold oil under the price
which had been fixed. The agreement
did not last long, said Mr.. Rookie
Teller.