Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-11-25
Oil King Testifies About His Holdingl
of Railroad Securities.
HE ALSO HAS SOME STOCKS
Owns Part Of Many Big Railway
Systems.
BEGINS HIS STORY
Furnishes Mass Of Detail About De.
velopment Of Business.
PIPE LINES GREATLY EXTENDED

Corporation Huys All Crude OIL that
is Offrred--On PIped from
oklahoma TO Sea-
board.
NEW YORK. Nov 2t-Cioslng his tes-
timony in the federal suit to dissolve the
STANDARD oil company John d, Rockefel-
lcr threw some unexpected light on the
popular question OF what channels Of
investment he turned his tremendous earn
ings from the oil production, Mr.. Rock
efeller was loath to state the names Of
the railroads 10 which his investments
we're made, but did so after entering his
objection. The head Of the so-called oil
trust declared that his holdings in rail-
roads consisted chiefly in bonds and that.
with the exception OF few roads in
which he held only small amounts Of
stocks, he preferred the bonds as a form
Of investment. Mr.. Rockefeller's appear
ance on the witness stand today will
likely be the last in court proceeding.
lie appeared to be greatly delighted that
his long ordeal as witness was over,
and hurriediy left the room when counsel
excused him.
Mr.. Rockefeller said that he did not
think that he should be made to tell this
form of his investments. declaring "that
the gentlemen over there In the stock
exchange might not think It very wise"
After some legal contention by counsel,
Mr.. Rockefeller said he held stock In the
Delaware Lackswanna & Western. the
New York Central. 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 Pacific or the Southern
Pacific Mr.. Rockefeller said he opposed
the keeping Of millions OF dollars OF sur
plus by the Standard.
Big Block OF OIL.
Kellogg read what he said was list
OF stocks obtained by that company in
1899. for which II had exchanged its own
shares. He said that A2,T97 out OF ;ctal
OF 9s3,3S3 shares first issued were in the
name of John ID, Rockefeller. Nc. RoOk-
efclier said he did not own 81 much
stock as that but did own 256. 50 shares
Of the Standard oil company of New Jer-
sey at that time, and that he Acceptc,l-
the other stock and distributed It to the
proper stockholders. He added thai frS-
| quently holders Of certificates Of the
Standard Oil trust exchanged them for
stocks in the Standard Oh company OF
New Jersey, rather than accept shares
OF the various subsidiary companies.
IT turned over my trust certificates to
the liquidatng trustees" said Mr.. Rookie
feler. "and obtained paper on which I
secured shares in the constituent compan-
les which l turned into the Standard Oil
company OF New Jersey"
ArchbOId Furnishes Information.
John ID. Archbold. vice president OF the
Standard proved mine of detailed in
formation under the direction of the COM
panys counsel regarding the early pro-
duction OF crude oil and the development
Of the pipe line system.
I Mr.. Archbold will likely be on the stand
| for several days. He gave his answers
in short. brisk manner and seemed pos
sessed of infinite details Of the Stand
ards business from its inception to the
present time.
After telling OF his earlier experiences
| in the oil industry, Mr.. Archbold said spec
uiation In oil stocks was rampant and even
! the price Of oil was speculsted in. which
demoralized the business and made It haz-
ardous for the manufacturer. The manage
ment of gathering lines was very bad,
said Mr.. ATchbold. Counsel for the defense
| then submitted a map OF the pipe line in
I 1863. which was placed In evidence. Maps
of the pipe line situation In 1874 and 1871
also were submitted IN evidence Mr. Arch
bold said he had nothing 10 do with organi-
cation OF the National Transit company In
1881 That company was organized by
Standard interests to take over existing
lines. which Mr. Archboid named He
gave statistical Information OF the total
mileage Of the Standard gathering and
trunk lines which was in 1852 Sbal miles, in
1893 H.S5s and in 1908 Asis miles.
This increase. with the exception Of one
purchase, was brought about by construc-
ton by the Standard Wherever oil was
discovered. said Mr.. Archbold, the pipe
lines were extended.
OIL 'Piped Long Distances.
DO / understand that the Standard Is
pumping oil from the midcontinent field
to the seabosrdg' asked Mr.. Rosenthal,
who conducted MIR. Arehbold's exam4na-
ton
Yes"
oil production was a hazardous matter
and frequently fields were quickly ex-
hausted and the Investment in refineries
was practically lost. said Mr. Archbold.
who cited as an example the Cherry
Grove" field in Pennsylvanla, where the
production suddenly dropped from 1000
barrels a day in the spring to 400 OF 500
barrels a day in the fall.
Mr.. Archbold said the Standard found
and was now finding much competi ion
abroad. This affected the price paid Tor
crude oil. II was the policy OF the COM
ipsny he said, to take care Of all the
crude OF PRODUCED. Crude oil was stored in
tanks holding on an average 300 barrels.
Mr. ArchbOld said that there was now
stored in tanks $4,000 barrels OF oil wait
Ing for use.
How long may this oil be hed?'
Altogether IL is improbable that this oil
now being taken out OF the mid-continc mt
field will be used for ten years"
In the Days OF Rebates.
Mr.. Archbold said that In the early dsy $
II was a question OF a bargain between the
shipper and the railroad.
This continued until the passage OF the
Interstate Commerce law, said Mr Area