Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-11-25

The crOSS-eXamlnatlOn VI VI. A@oSheA~'
| Ter was concluded shortly after the OPEN
| ing of the afternoon SESSION john u.
Milburn. counsel for the Standard OIL
| then began a redirect examination OF the
witness.
| Mr.. Rcckefellers redirect examination
was concluded in a few minutes ana ne
was followed on the stand by John -
Archbold, vice president of the standard
| Oil Co.
At the afternoon session, Mr.. Kellogg
asked Mr.. Rockefeller if he had 3urchas-
ed bonds Of the principal railroad COM
nanies or their subsidiaries during the
last 10 wears Mr.. Rockefeller replied that
| ne had.
"you can't give their names??" asked
Mr.. Kellogg.
TT would be utterly impossible
| This ended Nh I,ockefeller's cross-ex-
animation.
| On re-ridect examination Mr. Milburn
| asked:
Have YOU ever at any time Sought 70
| influence any railroad with respect 10
it's rates or supplies with reference to the
Standard Oil Coz"
| II have not. AS far as 1 know none
of INV associates has ever done So"
This ended the redirect examination
1t was brought out on re-cross-eXamina'
ton that Mr.. Rockefeller appeared as a
witness as a result OF a subpoena IS
sued bv the Standard Oil Co. OF New
| Jersey, that he had expected to be called
and that he had been in conference.
At this point Mr.. Milburn said to Che
witness that he was excused.
Must go?" asked Mr.. Rockefeller
"You are not compelled to go, but you
are through" said Mr.. Milburn
Mr.. Rockefeller then left the room. Mr
Kellogg reserved the right to cross-eNam-
| inc Mr.. Rockefeller later if desired.
John y. Archibald, vice president OF
the Standard Oil Co. of New Jersey, was
then called to the stand.
After telling of his earlier experiences
in the oil industry MI .Archhold said the
introduction of railroad Oil for dones-
| tic use was most difficult because of OPP
position Of the public as result OF us
odor and burning qualities. From 1870 to
1875 the multiplication OF ref1ne11es
brought about a surplus which caused
wide fluctuations Of prices OF OIL. Ihere
were no systems of reserve or Storage ne
added. Speculation in Oil STOCKS was
rampant and even the price of oil was
specialized in, which demoralized the pus-
mess and made it hazardous Tor thc mah-
ufacturer. The management OF gather-
| ing lines was very bad. said Mr.. Alch-
| bold Counsel for the defence then SUP
mitted maps of the pipe lines in 1867 1919
| and 1877 which were submitted IN evil
dence.
Mr.. Archbold said he had nothing to
| do with the organization OF the Ma
tional Transit Co. which was formed
| in 1851 by Standard interests to take
over existing lines which Mr.. Archbold
named He gave statistical Information
| Of the total mileage of the Standard S
gathering and trunk lines which was IN
| 1882 1881 miles, and in 1908 54,616 miles
With the exception of one purchase the
| increased mileage was through con-
struction by the Standard, said Mr..
| Archbold.
re described the extent of pipe line
| systems III this country In the early
| days. Wherever oil was discovered
| said Mr.. Archbold. the pipe lines were
extended to furnish means Tor taxing
I'm the oil as IVES desired.
l
| is pumping oil from the mid-continent
fields to the seaboard?' asked Mr..
| Rossinthan, who conducted Mr. Arch
| bold's examination.
yes" Oil production was hazard
| GUS matter and frequently fields were
quickly exhausted and the investment
| in refineries was practically lost, said
| Mr.. Archbold who cited as an example
| the Cherry Grove field in Pennsylvania.
| where the production suddenly dropped
| from 10000 barrels a day in the spring
| to 1000 or 5000 barrels day in the fall.
The Standard Mr.. Archbold said,
purchased it's crude oil through the Jo-
seph Seep agency. Mr.. Archbold said
| Mr. Seep had local agents throughout
| the oil territory who bought from the
producers Mr. Archbold said the pro-
| Queer accepts a certificate when his
| oil enters the pipe line. The producer
| may keep his oil in the pipe for 30 days
without cost and thereafter he is
| charged Is cents per thousand barrels
| day for storage.
1.-The Standards system is considered
| the most effective and efficient for the
| handling of any product and the OIL
| producing class are satisfied as 1t gives
| them a constant outlet for their OIL.
| said Mr.. Archbold. The witness said
| that the Standard did not arbitrarily
fix the price paid for crude oil. The law
of supply and demand, the qualities of
oil produced, both in this country and
throughout the world, together with
the various amounts PRODUCED daily, all
We're considered in fixing the price OF
| crude oil, said MIR. Archbold.
| Mr.. Archbold said the Standard
found and was now finding much com
| petition abroad. This effected the price
for crude Oil 1t was the policy OF the
company, he said, to take care of all
the crude oil produced. Crude oil was
| stored in tanks holding on an average
$4,000 barrels. Mr.. Archbold said that
there was now stored in tanks $1,000,
COO 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