The Montgomery advertiser., 1908-11-19

 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. Come of those who aided him in obtaining funds were Amasa Stone and Benjamin Brew ster.
 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 cooperage. where it was gone over, before 1t was placed on board ship. n
 Mir. Rockefeller said that to further save expenses. the company found it profitable to ltgh ter its own oil from the cars to the warehouses in this city. He added
 We made these Improvements as fast as we could provide capital for them, Other companies had to pay the expenses of ligh terage. which, with the commissions for selling oiI and the warehouse charge, made their charges heavier than ours.''
 Hard times came upon the oil trade In the 7O's said the witness. The busi- ness was much oyerdone because refine- rus uAQ DcEn GFeCLGQ so THDl0lY that the profit was much lessened.
 A recess of five minutes was then taken to ventilate the room and In the meantime Mir. Rockefeller went over and talked with the newspaper men. He suggested that they ought to have a room five times as large, but MT. Mif- burn said there would be five times as many people if they did-that the only way would be to charge admission.
 fG.a<. H.. .t- Et. IF they are as nice as the people here. We want to introduce all the econo- mics. you know"
 Competitive CompmnAes-
 When asked after the recess if coer- cive measures were employed in &C., qutring the stock of other oil comma nies in Ohio. Mt. Rockefeller replied:
 Nqne whatever. -
 He continued: For myself I can say that the methods used always were absolutely fair."e>
 Did you have negotiations after the organization of the Standard oil Com pany of Ohio with other interests look ing to their purchaser Mir. Rockefel- Ter was asked.
 "Yes. in the last part of 1871. We consummated negotiations for the firm of Clark, Payne and Company. This company was very considerable re- Aath6 SSABP&hyB A~&t GO uS m Size. The members were Col. Oliver Fl. Payne. James H. Clark and John Hunt ington.
 "The next one that we bought if | am right, was the Alexander Schof1eld & Go. They were next In importance in the business"
 ''Dtd these negotiations result in controlling Clark. Payne and Com pany7' ...zs4-
 "Yes."
 Were there other negotiations?"
 ''Yes. there were other refining con- cerns having lesser importance which we purchased. don't remember the names. I should say that had nego- tiations with six or eight concerns. These concerns were all in Cleveland. could not say definitely how many were purchased. There might have been a dozen, more or less, beginning with Clark. Payne and Company. They were not all at one time. Some were in 1871 and early in 1872. and sume in the last of Is70.'
 How did these negotiations arise ?"
 'In the natural way" said Mir Rock. efeller We e.'were all friends and en- ioyed our prosperity together. We recognized that changing conditions were lessening the chances of profits. We were unsuccessful in obtaining large capital at that time and many capitalists feared to risk money in oil refining. There were many schemes fioated on. property of. little value. owing to the dIssa atfsfaction with such concerns 1t was hard to obtain money.
 '1 remember that I visited J. P. Wade in Cleveland and he told me po- litely and kindly that he would not in- vest any meney in the oil business"
 The hearing adjourRed at t4:22 D. m. with .Mr. Rockefeller still on the wit ness stand It will be resumed tomor- row. morning. ,-
 MT. Rockefeller said that to cope with changing conditions it was necessary to obtain capital and purchase the cleve- land companies, which, the witness large sums of money by having asso- friends.
 We realized" said MT. Rockefeller, that the larger company decreased the sost of production and increased the volume of business The companies were purch ased part in cash anl part n stock of the Standard Company
 No COerclve Means.
 Did you use any coercive means to secure these companies?" None whatever said Mir. Rockefel- l CT. They were all fair negotiations. may say for myself that they were | he kind of negotiations I have always | lsed. I have used no other" You had faith in the business, MT. |  ''oh, yes" he replied.
 But some did not?"
 Yes, that is so." Concerning the state of the refinery business in the early 70s, 8Ir. Rccke- eller said it was generally understood hat the business was on uncertain round and encountered unusual kaz- rdS There had been too many refine- ies built, and it was recognized that n increased demand for oil would ave to be created. 4
 Tt was always considered a busi- ess of risk. the refining cs otl." said IT, Rockefeller, and It's very haz- rdous business today and not to be lassed with banking or some railroad usiness." ,"
 Mir. Rockefeller then was asked about he payments made for the companies. II do not know what proportion was ash or stock; possibly half of cash | nd half of stock" said Mir. RockefeI- sr- The general preference was for ood hard cash with which to invest in ing else. As one dear old man aid to me- You better strike that" everybody in the court oom laughed.
 Regarding the South Improvement company. Mir. Rockefeller said that 'hile the Standard took a little in crest in it, they had little to do rith it.
 "We did not entertain the views of iose in charge of it. and we were not sympathy with it. he added. He ave the names of those identified with le South Improvement Company stat