Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1908-11-28
kRCHB0LD TELLS
OF OIL FIGHTS
Trust Vice President Watched
Rivals and TrledtOBedt Them.
100000 BARRELS STORED

I
Tremendous Earnings In Railroad
Securities, Mostly Ronds-OeeIares
He Opposed the Keeping Of Millions
Of Dollars Surplus BY the Standard
OIL Company.
/ New York. Nov. 25.--Closlng his tes-
timony in the federal suit 70 dissolve
the Standard oil company, John D.
Rockefeller threw some unexpected
light on the popular question Of into
what channels OF investment he turned
his tremendous earnings from the oil
, combination. Mr. Rockefeller was
loath 20 state the names OF the rail
roads in which his investments we're
made. but did so after entering his OBJ
lection The head of the so-called oil
trust declared that his holdings in
railroads consisted chiefly In bonds.
and that, with the exception OF a few
roads in which he held only small
amounts Of stock. he preferred the
bonds as y form OF investment MI
Rockefeller appeared greatly delighted
that his long ordeal as a witness was
over and hurriedly left the room when
counsel excused him.
Mr.. Rockefeller said that he did not
think that he should be made to tell
the form OF his Investments. declaring
that the gentlemen over there in the
stock exchange might not think IL very
wise" After some legal contention
by counsel, Mr. Rockefeller said he
40 In IN n
wanna & Western. the New York Cen
trail the Pennsylvania the Western
Maryland. the Missouri Pacific. the
TEXAS Pacific and the Colorado South
ern. He said he owned no shares in
either the Union OF the Southern Pa
cihc Mr.. Rockefeller said he opposed
the keeping OF millions OF dollars OF
surplus by the Standard.
During the cross-examination the
following facts were brought out:
Original investment OF Standard Oil
company. S67.00O,OOO; dividends. $751;
100000: surplus. $500 100000.
Stock dividend in 1856. when com
pany had capital OF S9S.S2S.OO0. was
tl5.OOO.OOO.
Up 10 1906 company's net earnings
were 1851 s22 .9O4
Dividend In 1907. about $50. 600. 900.
Net earnings from 1889 to 1906.
about $490.00O.OOO Net earnings for
1907. about $50 600 600.
Nevertheless the business Is haz-
ardous. Always present Is the fear
Of fire. since oil is an explosive pro-
duct.
The Pennsylvania railroad ia 1877
agreed 10 give a rebate OF 10 per cent
OF freight rates. but. says Mr.. Rookie
Teller. I'VE sought 70 secure what ali
shippers then and now seek"
Later the company got from the
Pennsy rebate OF 20 cents a barrel on
its own shipments and rebate on
shipments by Independent refners. too
John d. Archbold. vice president OF
the Standard. proved a mine OF detail
ed information, under the direction Of
the company's counsel. regarding the
early production OF crude oil and the
development OF the pipe line system.
Mr.. Archbold gave his answers in
short. brisk manner and seemed pos
sessed OF infinite details OF the Stand
ards business from its inception 10 the
, present time.
! Mr. ArchbOld beamed with satisfac-
ton in telling OF the Standards early
history. His clear blue eyes twinkled
when he told Of the industrial fights.
saying that he kept careful watch on
his competitor and then tried to beat
him"
Mr Archbold said the Standard
found and was now finding much COM
petition abroad. This affected the price
paid for crude oil. II was the policy
OF the company. he said, to take care
of all the crude oil produced. Crude
oil was stored in tanks holding on an
average $4,000 barrels. Mr.. Archbold
said that there was now stored in
tanks $1,000 coo barrels Of oil waiting
for use
why has that been stored?"
Because the production has been
ahead OF the demand"
And in spite OF that the Standard
has kept on buying?"
1 Eyes"
"How long may this oil be heId?"
Altogether IL is improbable that
this oil now being taken out of the
mid-continent field will be used for ten
p years"
Mr.. Archbold said that IN the early
/ between the shipper and the railroad.
This continued until the passage OF
the interstate commerce law" said
Mr.. Archbold. land this tremendous
talk about our company being peculiar
in its relation toward the railroads was
very unjust. indeed. The people who
made the cutlery hava done 1t for Ill
terror reason"
did you ever know what your next
door neighbor did,"
II did not except what could find
BY careful inquiry; then tried TO beat
him. When n manufacturer got a rate
from a railroad the manufacturer
made that a basis OF cost which re-
suited in q benefit TO the consumer.
That was the general rule worked
under"
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