Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-11-19
OIL OCTOPUS GROWTH
IOLDBY ROCKEFELLER
Head of Oil Company Relates
Expansion Step by Step of
Great Trust
ARcHBoLD CAME BY PURCHASE
Present Active Head of Standard Com
pany Secured by Buying in His Firm
| Constant Reaching Out to Combine
i Various Oil Interests Under corpor-
1 alton - Business Mot Always Good.

New York, Nov. 19--John D. Rookie
feller went on the witness stand when
the Standard Oil hearing was resumed
this morning. His counsel said Rock
efeller probably will be on the stand all
day. 1t was announced that after
Rockefellers cross examination by the
government counsel, John D. Arch
bold, vice president Of the Standard
Oil company, will take the witness
stand.
Rockefcller's counsel again called his
attention to the uncertainties of the oil
business in the early '70s, and asked
him what bearing the supply of raw
material had thereon.
sIt had the important bearing and
must always have such Importance, as
we never know when the supply may
give out, rendering the properties for
refining oil comparatively valueless,"
repl1eu ROckeIeller.
He added that in the early oil. bus
iness the supply of crude oil was linz
tied to a small area, coming principally
from Venango county, Pennsylvania.
Rockefeller said the oil business was
made hazardous proposition because
of the apprehension that the supply of
crude oil would be exhausted Some
of the oil wells are very short lived.
He recalled that a producers union
was formed at the time of the agitation
regarding the South Improvement COM
pany, and said it led to an association
Of oil retiners who were desirous of
having the supply Of crude oil not con-
trolled by interests antagonistic to
them and the refiners, and also wanted
to he assured of a market for their raw
material.
Desired "Pleasant ReIations."
eve desired pleasant relations with
the producers" said Rockefeller. In
December, 1872, Rockefeller said the
producers union and refners associa-
ton entered into an agreement, the
purpose Of which was "to secure as
high a price for crude oil as possible"
and introduce an element of regularity
tuating greatly The agreement fixed
the price Of crude oil at IS per barrel
at common points. The operation Of
the agreement, he said, stimulated the
over production Of oil beyond what the
refiners could use at that price. Ihe
temptation was very great with the
producers to develop more oil than they
had produced to the refiners The re-
finers could only take as much Oil as
the public would consume. AS result
the producers violated the agreement,
and sold oil under the price which had
been fixed The agreement did not last
long,. said Rockefeller.
Rabating Admitted.
Rockefeller's counsel asked him II 1t
is true that the rates obtained by him
during the period Of the Standards
war with the Pennsylvania railroad
were to crush and cripple the Empire
Transportation company so the STAN
dard might acquire it's property. 1T
is not" replied Rockefeller Rockefeller
said that when that transaction was
completed the Pennsylvania railroad
stopped refining, the railroad war
stopped, and an agreement was entered
into between the roads whereby they
obtained d percentage on the oil-car-
ryinr trade. He said the Standard
company guaranteed the Pennsylvania
railroad certain number of barrels
Of oil per year, and in consideration
the railroad company guaranteed to
pay back 10 per cent Of the rate on
the oil shipped.
ArchboId is Discovered.
Rockefeller then told of the pur-
chase by the Standard of number of
refining companies, including one of
which H H. Rogers was member, IN
order, he said, that the Standard might
secure better facilities and enlarge It's
export trade. The aggregate of the
property bought Rockefeller estimated
at 100000.
The further object of these pur-
chases, said Rockefeller, was to secure
valuable specialties in cans and
brands of oil Asked about Smiths
Ferry Oil Transportation company,
Rockefeller said he could not recalls
distinctly anything about that COM
pany. In 1876 the Standard purchased
the firms of Porter Moreland & Co.,
and Bennett, Warner & Co., of Titus
Vile. John d. Archbold was identified
with the former firm. Rockefeller said
the Acme Oil company was organized
to purchase the properties.
Goes Into Lubricating Business.
Rockefeller said his attention was
first directed TO lubricating oil about
1876. About 1878 the Standard pur-
chased the American Lubricating Oil
company. of Cleveland. and
the Mica Axle Grease company,
the purchases being made with
the idea of further diversifying
the business and to secure the lubricat-
ing trade.
'I want to bring your attention to
the Empire Transportation company
and what it's relations We're.
"The company was the owners of
cars and transporters of oil and other
products on the Pennsylvania railroad.
~ we understand. the company was