The Montgomery advertiser., 1908-11-20
ROCKEFELLER
 TALKS MUCH Tells of Uncertainty of
 Oil Business. EXPLAINS MANY PURCHASES Public Excluded from Court Room
 While He Testifies. Durias Reees. of the Court, OH Mag nass Chats with Sswspspet Men
 About Care of The
EXPLAINS MANY PURCHASES

ing Of the story or the nrst score VT years of the industrial development of the Standard oil Company. the testi- mony of John D. Rockefeller, President of the oil combine. on direct examina- ton in the Federal suit to dissolve the Standard Company, was brought to an unexpected close this afternoon. The head of the Standard told today of the processes and causes of the company's growth up to the trust agreement of 1882. and, after Identifying the parties to that agreement. counsel for the de- fense announced that MT. Rockefeller had concluded his direct testim ony and requested an adjournment until tomor- row.
 Friday lwili find Mir. Rockefeller on the witness stand under the sharp fire of the croas-examination of Frank B. Kellogg, special assistant attorney general. prosecuting the case for the government. The Acroas-examtnation by the government will be generally confined to the period from 1882 to 1882 except where the testimony has direct bearing on developments in the company's afkairs in it's later period. Counsel for the Standard let 1t be known tonight that the history of the company from the trust agreement of 1882 would be told on the witness stand by John D. @Archbold, vice-Pres-
  sapt with the combine's developments.
 MT. Rockefeller,s testimony today had to do principally with the acquisition of other refining companies together with the transportation concerns and pipe line systems which he declared were necessitated by the natural growth of the Standards business.
 VIII Call ArchhOla.
 It was announced that after Mr. Rocksfeller,s cross examination by the government, John D. Archhoid. vice president of the Standard oil Company . will take the witness stand,
 The hearing was txangferred today, to larger room In order % aecemQdate numerous counsel and Fepce1grs. Rplice~ men were stationed tn the eofxSdcps and only those having friends con- nected with the prnceedinga were per- mitted to enter Mr. Rockefeller was smiling as he took the witness stand and resumed his testimony,
 MT. Rockefellar's counsel again call, ed his attention to the uncertainties of raw nlateriaI had thereon
 Tt had Van important hearing and must always have such importance, as we never know when the supply may give out, rendering the properties for the refining of oil comparatively value- less,' replied Mir. Rockefeller. He add cd that in early oil business the sup. ply of crude oil was limited to small area coming principally from Venango county. Pa. sa
 MT. Rockefeller said that the oil business was made a hazardous prop osition because of the apprehension that the supply of crude oil would be exhausted. Some of the oil wells were very short lived. MT. Roclsefel- ler's counsel then asked him if he re- called that producers union was formed at the time of the agitation regarding the South Improvement Company.
 aYes," replied Mir. Rock kefeller, "lt was formed a little later and was composed of a large proportion of the oil producers.
 '.That led to an association of oil refiners who were deairous of having a supply of crude oil which was not controlled by, interests antagonistic to them and the refiners also wanted to be assured of market for their raw material.
 Producers and ReRimers.
 In December. 1872, MT. Rockefeller said, the producers union and the re- fners association entered into an agreement, the purpose Of which was 'to secure as high a price for the crude oil as possible" and to introduce an element of regularity into tho bus D&s [ greatly. Mir. Rockefeller said he was unable to give the number of pro- duceIs in the union, but it included a large percentage of all of them, and the refiners association included a large proportion of the reHners.
 By direction of his counsel. Mir. Rockefeller noted that the agreement fixed the price of crude oil at e6 per barrel at common points. Ths opera tion of that agreement. he said. stim- ulated an over production of oil be- yCnd what the refiners could use ct that price. The temptation was very great with the producers to develop more oil than they had promised to the refners. The refners 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. Rockefeller.
 To secure better facilities and to make shipments to Europe the Stand ard oil Company in 1878 purchased the plant of the Long Island Refining Company in Long Island City and be- gan to refne at the seaboard. The crude oil was brought through to the refinery by railroads. Mr. Rockefel- ,ler said that he recalled the DeVoe Manufacturing Company of Long Is- land, which canned oil and shipped 1t to the Far Eaat. where 1t was deliv- cred on mule back. He thought this firm was primarily a manufacturer of cans. Tn those days all export oil was shipped in barrels or in cans and in boxes and was called the case oil tradA
 10 further extend it's markets, the standard oil Company purchased the DeVoe Company and in 1876 bought about one-half of Chess Corley and Company. of Louisville, which had large domestic business in the south west A year later, Mir. Rockefeller aaid his company bought but the Inn perial Refining OH Company, of Oil City, Pa. which had been owned prin- cipally by Captain J J. Vandegrin and John Pitcairn. The Standard oil Company later organized the Imperial Rehning Company limited. to operate this plant The purpose of this pur-