New-York tribune., 1908-12-04
TUENTY-TU'O MILLIONS
TO u. s. TRAINER.
Or. Archb0ld Thinks 1t Has Some
Sort of adjustment Bet5ceen
Refneies and Pipe Line.


sidiary. The vice-president of the great cor
poration said that he had never heard Of the
loan but believed it was some sort Of ADJUST
ment between the refneries represented by Mr.
Trainer and the pipe line
This S22.O000O was charged to Mr.. Trainer
on the books Of the Southern company IN
amounts of from 100000 to s4n0O00O and
covered period from 1899 10 and including
1904 Last autumn Mr. Trainer testified that
he had never heard Of it. 1t had already been
established that the Standard lent s7.5oO.oc0 t.
Thomas y RarnsdaH and s2.7O0Ooo to James
Mcdonald
The only loan that has been even partly ex-
planned was the one to BarnsdaI. Mr.. Archbold
said soon after he went the stand that hs
had been unable to find copy OF the contract
which. it was expected. would clear up that
point. Mo-ttz ROsenthaI, the Standard counsel,
sent telegram to Pittsburg for the original.
with the consent Of Frank B. Kellogg, the gov
ernment attorney. II Is expected to be here for
use at the resumption of the hearing on Mon
day.
Mr. Kellogg in his examination yester-
day took Mr.. Archbold from California TO tbs
Dutch East Indies in the search for concealed
purposes in the expansion Of the Standard OIL
Company's business The witness said that all
talk about the company being favored by ths
tariff was bosh There was competition abroad,
he said. but the dominating interests were IN
union composed of the Standard and the prop
critics controlled by the Rothschilds and the
Deutsche Bank.
THE STANDARD IN EUROPE
Marketing stations had been established IN
Europe, and he said the favored nation clause
in the tariff act prevailed 50 far as European
countries with the exception OF Russia and Ru-
mania. were concerned The two latter were
producing nations. levied high tariff on foreign
oils. and in return high tariff was levied on
their oils by this country. That was their own
fault Mr.. Archbold said They could get reci-
procity advantages if they wished them The
greatest consuming nations were practically
open market for the Standard. but it said
with pride by the witness that his cornpany's
oils were sold in Russia. That was largely be-
cause the Standard owns wells there He did
not say what the production was
AR Kellogg went into thfs foreign trade 70
show that the so-called trust should not receive
credit for developing the European market. H
had table showing the growth in percentages
In 1871 American refnerfes sent 152.1s5.61T gal
Ions or 20 per cent OF the production of this
country. to Europe In 1907. out Of a produc-
tion of 6916.oOOOoO gallons. 1924 100000 gallons.
or IS per cent sent abroad But It vas
admitted by the government that the CoTpart-
son was hardly fair. great volume Of the
oil produced here was only ft for fuel
"
refining
Tremendous profits we're admitted In the Lima
fields. where the Standard oil Company began
10 buy oil soon after the wells we're opened. and
in 1890 produced 5000 600 out Of the $4,000 ono
barrels produced. Nearly all the production
was controlled soon afterv ard While this buy
ing and storing in progress the company
was building a great refinery at Whiting. md
II bought the crude oil for * cents barrel.
-L.-fl .aFI
that the product was not refnabie- But as soon
as the supply was controlled a process OF re-
fning was put into operation and the prices
scared 1t was admitted that the Standard oil
Company Of Indiana realized much as 1000
per cent on It's investment The company vas
capitalized at first for $1,000 OHo. It's captaliza>
tfon is s26.o0OOOo-
2 R R REBATES AGAIN
Pennsylvania Railroad rebates came in for
another OverhauIing. and Mr. Archbold freely
admitted that he got all the concessions hs
could from every railroad leading to the mar
kets All the other refining companies did the
same and he got his share. he said with smile.
1t was an uncertain thing. however. ne said. fcr
while he might believe he had beaten other ship
pers the roads official might have given another
the advantage
The federal counsel got admission that tbs
pooling contract with the railroads favor1nz the
it was not in active operation after the PASSAGE
Of the Interstate Commerce act. in 1857 Mr..
Archbold did not give definite information abour
the conveyance of the terminal extensions Of tbs
pipe lines 70 the New Jersey company after tbs
Hepburn bill became a Law. in 1905 The gov
ernment has beer after information regarding
this for some time.
When the Hepburn act became Operativs
pumping stations were built at UnionviIs.
y Y. on the northern New Jersey border.
where a pipe line extended to the seabOard, ae
Centre Bridge y. J.. where another line
thus cut and at Fawn Grove. on the Pennsyi-
vania- Maryland line Mr.. Kellogg tried TO show
that these stations were established to evsds
the Hepburn act making the pipe lines COM
mon carriers. Mr. Archbold said that the
pine lines would not refuse to take oils 20 thess
stations.
Asked if the lines touched at any place near
independent rehneries. he said that that was
the lookout of the latte. He declared that ths
law was being faithfully obeyed. and when
asked about certain pipe line details said that
they were questions Of bookkeeping. with
which he was not familiar. He also said that
the pipe line management was not directly in
his charge.
HOW OIL PRICES WE'RE FIXED
Mr. Kellogg wanted 20 know how the price %
oil was fixed. Mr. ArchboId said that ths
seep agency at oil city. controlled by ths
standard. figured out how much it could pay
for the crude oil The price decided on Tiers
was sent 10 No ~ Broadway. where Mr.. Arch
bold and his associates gave il consideration
and then fixed the price they would pay II
producers refused to sen for that price ne
said they might sell to other companies or