Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-11-19
MADE TO LIFT PRICES
Rockefeller Tells About the
First Oil Combine.
WAS WITH PRODUCERS
Standard Company Had Agreement
With Them Back in 1872.
BOUGHT OUT OTHER CONCERNS
History of Oil Trade Developments
Gone Into in Detail by
Star Witness. :
BOUGHT OUT OTHER CONCERNS
Special Dispatch To The Star.

Special Dispatch to The Star.
NEW YORK, November 19.-The
Standard Oil hearing was resumed this
morning in room 800 at the custom
house. This is the civil service exami-
nation room, and considerably larger
than that in which the hearing WAS
held yesterday. The witness chair
which Mr. Rockefeller was to occupy
was elevated upon platform so that
every one present could see. The law
yerS who appear in the case occupied
table set in the center of the room,
below the platform, while the news
paper men were arranged at two long
rows of desks tlanking this. Every
table and chair was occupied long be
fore the appearance of the star, John
d. himself, and a line of spectators
stood patiently at the rear of the room,
behind a barrier of desks.
Mr Rockefeller appeared at o5o
O'Clock exactly, punctual to the minute.
He was dressed he was yesterday.
He lifted the tails of his business coat
carefully as he sat down in the witness
chair. John Millburn questioned him.
Mr.. Rockefeller leaned forward with his
hand on his knee.
Uncertainties of the Business.
Mr.. Millburn asked the witness about
the uncertainties of the early oil bust
ness. Mr.. Rockefeller said that the oil
business was made a hazardous propo-
sition because of the apprehension that
the supply Of crude oil would be ex-
hausted. Some of the oil wells were
very short-lived. Mr. Rockefellers coun-
sci then asked him if he recalled that
producers union was formed at the
time of the agitation regarding the South
Improvement Company.
Yes replied MIR. Rockefeller. ''It was
formed little later and was composed OF
a large proportion of the oil producers.
THAT -led-to- an association of oil re-
iners who were desrous of having
supply of crude oil which was not con-
tro1ed by interests antagonistic to them,
and the refinerieS also wanted to be as
sured of a market for their raw material.
We desired pleasant relations with the
producers said Mr.. Rockefeller.
Combined to Raise Prices.
In December. 1872. Mr.. Rockefeller said.
the Producers Union and the Refiners' As
sociation entered into an agreement, the
purpose of which was Ito secure as high
a price for the crude oil as possible" and
to introduce an element OF regularity into
the business which had fluctuated great
Iy. Mr.. Rockefeller said he was unable
to give the number of producers in the
union. but it included a large percentage
of all of them, and the RetinerS' Association
included large proportion of the retiners
BY direction of his counsel Mr.. Rookie
feller noted that the agreement fixed the
price of crude oil at s. per barrel at
common points. The operation of that
agreement, he said, stimulated an over
production of oil beycnd what the refiners
could use at that price. The temptation
was very great with the producers to de-
veIop more oil than they had promised to
the refiners. The refiners could only take
as much oil as the public would consume.
AS a result the producers violated the
q agreement and sold oil under the price
which had been fixed. The agreement did
not last long, said Mr. Rockefeller.
The Long Island Company.
In order to secure dockage facilities and
to make shipments to Europe the Stand
ard OH Company i'm 1873 purchased the
pant of the Long Island Refining Com
pany in Long Island City and began To
refine oil at the seaboard. The crude oil
was brought through TO tn. refinery by
railroads. Mr.. Rockefeller said that he
recalled the De Voc Manufacturing Com
pany of Long Island, which canned oil
and shipped it to the far east. where II
was delivered on mule back. He thought
this firm was primarily a manufacturer
of cans. In those days all'export oil was
shipped in barrels or cans, in boxes, and
was called the case oil trade.
To further extend its markets the
Standard Oil Company purchased the DE
Voc Company, and in 1873 bought about
one-half of the Chess -Carley company of
Louisville. which had a large domestic
business in the southwest A year later.
Mr. Rockefeller said, his company bought
out the Imperial Refining Oil Company of
Oil City, Pa. which had been owned prin-
cpally by Capt. j. j. Van De Griff and
John Pitcairn The Standard Oil Com
pany later organized the Imperial Ref1n-
ing Company Limited. TO operate TINS
plant The purpose of this purchase was
to enlarge the Standard OILS export trade
and the Imperial company had direct lihes
for shipping TO the seaboard
Mr. Rockefeller then told of the Stand
ards purchase of the business or the
firm of Charles A. Pratt & Co. of Brook
lyn, oil refiners, of which III. IL. Rogers
business of Warden. F'rew & Co, which
had a large plant in Philadelphia, includ-
ing the plant of the Atlantic Refining
Company, the Model Oil Company and re-
fneries in Pittsburg, the latter being un-
der the name Of the Standard Oil Com
pany OF Pttsburg. The aggregate value
of the property purchased from Charles
NJ Pratt & co. and from Warden. Frew
co. MI. ROckelelIef dl Ho,upp,-
90
Object of the Purchases.
The object OF these purchases, said Mr..
Rockefeller was To extend the export
business and secure the valuable special
ties i'm cans and of the brands of oil.
Asked about the Smiths Ferry Oil
Company. Mr.. Rockefel-
ler said he could not recall distinctly
about thai company. There
were pipes and something, but I don't
recall" said he Il am hazy at the mo-
mcnt. I know there was such "a place
in the early days"
Il come 80 your dealings i'm 1873 with
Porter. Moreland * Co and Bennett
Warner & Co.." said the examining at
toIney.
They were located in Titusville. John
l.. Archbold was identified with Porter,
Moreland &, CO..
Mr.. Rockefeller said negotiations for
the purchase of these firms were con-
in 1870 with the object of eX-
tending the companys business. The
Acme Oil Company was organized 10 pur-
chase the properties.
Mr.. Rockefeller said his attention first
was directed to lubricating oil about
1876 About 1878 the Standard Oil
Company purchased the American Luz
bricating Oil Company of Cleveland and
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