The Montgomery advertiser., 1908-11-25

gathering lines was very bad, said Mir Archboid.
 Counsel for the defense then sub mitted map of the pipe lines in 1869, which was placed in evidence. Maps of the pipe line situation in 1874 and 1877 also were submitted in evil dence.
 Mir. ArchboId said he had nothing to do with the organization of the National Transit Company in 1881, That company was organized by Stand ard interests to take over existing lines which Mir. Archbold named. He gave statistical information of the to- tai mileage of the Standards gather ing and trunk lines which was in 1882 3.515 miles; in 1899, 14.653. and In 1908. 54,61e miles. This increase, with the exception of one purchase. was brought about by construction of the Standard. Wherever oil was discovered, said Mir. Archbold. the pipe lines were extended
 Do now understand that the Stand ard is pumping oil from the midcon- tinent field to the seaboardT' asked Mir. Rosehthal, who conducted MT. Archbold's examination.
 Yes"
 "on production was a hazardous matter, and frequently fields were quickly exhausted and the refinerles were practically lost" said Mir. Arch. VOtds WHO Cibtu db eAdInple the plant at Cherry Grove, Pa. where the pro- duction suddenly dropped from 40,o0O barrels a dax in the spring to 1000 or 5000 barrels a day in the fall
 The Standard. Mir. Archbold said. purchased its crude oil through the Joseph Seep agency. Mir. Archbold o tSroughOat fse sse ofd o terrtory Saa assho ~ho bought from the producer. The pro- ducer may keep his oil in the tanks for sixty days free and thereafter he Is charged twenty-five cents per thousand gallons a day for storage. The witness said that the Standard did not arbitrarily fix the price paid for crude oil The law of supply and de- mand, the qualities of oil produced both in this country and throughout the world, together with the various amounts produced daily. all were con- sidered in fixing the price of crude oil. said Mr. Archbold.
 Mir. Archbold said the Standard found and was now finding much com petition abroad. This affected .he price paid for crude oil. It was the policy of the company. he said, to taIte care of All the crude oil produced. Crude oil was stored in tanks holding an average of 35.000 barrels. Mr Archbold said there was now stored in tanks S5,000,000 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?"
 'Yes."
 "All this enters into the price paid for crudeT"
 "Yes, that is SO"
 How long may this oil be kept?'
 altogether 1t is probable that this oil now being taken out in the mid continet field will not be used for ten years"
 What investment is represented in storage tanks7"
 Mr. Archbold enumerated the several form 0f investment, saying that the leaking of the more volatile forms caused a loss.
 Mir. Archbold said that in the early days it was question of bargain between the shipper and the railroad.
 'aThis continued until the passage of the Interstate Commerce law" said MT. Archbold, land this tremen- douB talk about our company being peculiar in it's relations toward the railroads was very unjust indeed The people who made the outcry have done 1t for ulterior reasons"
 Mfr Archbold said that in bargain ing for Porter Moorehead and Com pany for freight he had not done SO badly in many eases.
 Did you ever know your next door neighbor didT
 T did not except what could find by careful inquiry; then tried to beat him. when manufacturer got rate from a railroad the manufactur- CT made that basis of cost which re- suited in a benefit to the consumer. That was the general rule we worked under"
 Adjournment was taken until tomor- row.