The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-11-19

cause they reduced leakage, but they
were increased in size, increasing the
capacity by nearly five gallons. These
barrels cost us. when we manufacture
ed them, about half of the price, $3.50,
which We formerly paid for them. The
things that we used from time to time
we were enabled to produce at prices
| lower than that which we previously
paid. as our capital increased"
Goes After Export Trade.
Let me ask you about the house
which you established here
Yes, that was an advantage. 1t
gave us an opportunity to learn of the
foreign markets and the export trade.
We were constantly in need of increas-
! ing capital as our business developed,
and in New York we were enabled to
secure larger sums of money at lower
rates than in the West. We were al
ways able to obtain large sums of
money, and, am thankful to say, We
always had good credit. We always
kept our covenants and paid our bills.
| Our ability to secure large loans was
| of great advantage to us. Thus we
extended our facilities with New
York bankers with whom we KEEP our
deposits, and we got our money at the
cheapest rates in the cheapest money
market in the world.
Through the acquaintance made by
William Rockefeller with wealthy men
in New York connections were formed
enabling the company to borrow large
sums for the further extension of the
business, the witness stated Some of
those who aided him in obtaining
funds were Amasa Stone and Benja-
min Brewster. New York, he said,
was the largest exporting point at that
time and is today. The refined oil
passed through the warehouse here,
after which it went to the coopert ge,
where it was gone over before it was
placed on board ship"
More Expenses Saved.
Mr.. Rockefeller said that further to
save expenses the company found it
profitable to lighter its own oil from
the cars to the warehouses in this
city. He added: I'VE made these
improvements as fast as we could pro-
vide capital for them. Other compan-
les he'd to pay the expense of lighter
age, which, with the commissions for
selling oil and the wal ehouse charge,
made their charges heavier than
ours
Hard times came upon the oil trade
early in the '70s. The business was
much overdone because refineries had
been erected so rapidly that the profit
was much lessened.
Competition Brought Up.
did you have negotiations after
!, the organization of the Standard Oil
company of Ohio with other interests
looking to their purchaser
:: Yes, in the last part of 1871 We
contaminated negotiations for the
then firm of Clark, Payne & Co.
This was very considerable refining
company, next to us in size. The men,
, bers were Colonel Oliver H. Payne,
James H. Clark and John Huntington.
The next one that We bought, if | am
. right, was the Alexander Schofield &
Co. They were next in importance in
the business"
Did these negotiations result in
|
Yes"
Were there other negotiations?"
Yes, there were other refining con-
Germs having lesser Importance which
, We purchased. / don't remember the
names. I should say that l had nego-
tlated with six or eight concerns
These concerns were all in Cleveland
l could not say definitely how many
; were purchased. There might have
been dozen, more or less, beginning
with Clark, Payne & Co. They were
not all at one time. Some We're in
1871 and early in 1872 and some in the
/ last of 1870.
Says Risk Was Feared.
How did these negotiations arise?7
In the natural way. We were all
, friends and enjoyed our prosperity to-
gether. We recognized that chaging
; conditions were lessening the chances
/ of profits. We were unsuccessful in
t obtaining large capital at that time
: and many capitalists feared to risk
. money in oil refining. There were
. many schemes f1oated on property OF
: little value. Owing to the dissatisfac.
/ ton with such concerns, it was hard
5 to obtain money. ! remember that
S visited ]. H. Wade in Cleveland, and
l he told me politely and kindly that he
i would not invest any money in the oil
: business. We realized that the larger
!, company decreased the cost of produc.
: ton and increased the volume of bust