Waterbury evening Democrat., 1908-11-19
JOHN D. SMILES
As He Tells the Story of Stand. ard OlI and lhe Wsy Be
 Ruus Il
ARCHBOLD MAY GO ON

New York, Nov 19-John D. Rock efeller went on the witness stand when the Standard oil hearing was resumed this forenoon His counsel said that MT Rockefeller will prob ably be on the stand all day.
 It was announced that after MT Rockefeller's cross examination by government counsel John D. Arch bold, vice president of the Standard Oil Co, will take the witness stand.
 The hearing was transferred to- day to larger room in order to ac- commodate numerous counsel and reporters. Policemen were stationed in the corridors and only those hay ing friends connected with the pro- ceedings were permitted to enter MT Rockefeller was smiling as he took the witness stand and resumed his testimony.
 MT Rockefeller's counsel again called his attention to the uncertain ties of the oil business in the early 70's and asked him what bearing the supply of raw material had thereon. It had an important bearing and must always have such importance as we never know when the supply may give our rendering the proper ties for the refining of oil compara- lively valueless," replied MT Rocke- feller. He added that in the early oil business the supply of crude oil was limited to small area coming principally from Venago county Pennsylvania.
 Mir Rockefeller said that the oil business was made hazardous be- cause of the apprehension that the supply of crude oil would be ex- hausted. Some of the oil wells were very short lived Mir Rockefeller counsel then asked him if he recall ed that a producers union was form ed at the time of the agitation re- garding the South Improvement Co
 Yes, replied MT Rockefeller, "it was formed a little later and was composed of large proportion of the oil producers : That led to an as- sociation of oil refiners who were de- sirous of having supply of crude oil which was not controlled by in- terests antagonistic to them and the refiners also wanted to be assured of market for their raw material
 We desired pleasant relations with the producers, said MT Rocke- feller
 In December. 1872, MT Rockefeller said, the producers union and the refiners' association entered into an agreement, the purpose of which was ito secure as high price for the crude oil as possible" and to intro duce an element of regularity into the business which had been fuctuat. ing greatly MT Rockefeller was un- able to give the number of producers in the union but it included large percentage of all of them and the refiners' association included a large proportion of the refiners. By direc- ton of his counsel. MT Rockefeller noted that the agreement fixed the price of all crude oil at $5 per bar rel at common points. The operation of that agreement he sail stimulated an over production of oil beyond what the refiners could use at that price. The temptation was very great with the producers to develop more oil than they had promised tc the refiners. The refiners could only take as much oil as the public would consume As result the producers violated the agreement and sold their oil under the price which had been fixed The agreement did moi last long said Mir Rockefeller.