The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1908-11-20

fI;nipped IT more profitably to other
aii. anGsi we had nothing to do with the
5a. tts,on OF traffic which the railroads
determlned upon.' -
MT Rockefeller said that the com.
Pany guaranteed the Pennsylvania rail
:, ao%u 80 certain number of barrels of oil
q year. and IN consideration the rail
I0aa IE eomp2Sy guaranteed to pay back
shipped. ' on 'ne oii
De dc then told Of the purchase of the
u w y; Caonden company of Parkersburp.
non m va, and the Pool Refining com,
pany, also of that city. The Caonden
Consolidated Oil company w was organ
i%ea TO take over both properties.
MT, Rockefeller said that the Stand.
ara Cll 6egan acquiring pipe line inter.
ests IN 1873, and Increased its owner.
SNIP from time to time until 1877. when
IpGey were assembled into the United
American Transfer Pipe Line. The pine
hnes were regarded as an important
adjunct. ''''0' ''A'
Gathering Up Pipe Lines.
Mr.. Rockefeller then described the
gatherlng of pipe lines into a system to
carry the oil from the wells to the
raiIroads before the trunk line system
was established. There were many
small systems which could not reach
the OIL wells because of financial in.
ability to construct new lines. 1t was
brought home to him, Mr.. RockefeIler
sald, that the improvements were ncces-
saryr and as the oil supply increased
new. pipe lines were built, "It was
4 big undertaking and very interest
lng-' said Mr. Rockefeller. "It was
necessary to see that there should be
no NO, waste of oil and no delays.
Wherever there. was oil we had men
to take care Of it. Our conservative
men felt that we should not go into
such expenditures. but our men in the
field came in and made pressing de-
mands for 100000 barrels of tankage
We gave it to them. Millions of bar.
rreels of tankage were built, and
would otherwise have been lost under
the old system. 1t was Godsend to
the country that we moved boldly in
the NATTER
Mr.. Rockefeller said that all the pur-
chases to which he referred were made
by the Standard Oil company of Ohio,
and that the money was taken from its
from the stockholders, The stock of
other companies which were purchased
was held by members of the Standard
Oil company of Ohio for its stock,
holders, He said that in 1870 this plan
of ownership was put in written form,
and when he was shown the paper on
the witness stand today he identified
it. 1t was shown by this paper that
Villas, Keith and Chester were also
trustees for other stock held for the
benefit Of the Standard g stockholders,
The capital stock of the Standard Oil
company of Ohio at that time was
shown to be s3,5oo,o0o.
Trust Agreement.
A trust agreement, made in 1882,
affecting the stockholders of the
Standard Oil company of Ohio, and
Villas, Keith and Chester, as trustees.
was put in evidence. Attached to 1T
New York Central railroad companies.
Commenting thereon, Mr.. Rockefeller
said that the railroads wanted ex-
perienccd warehouse men to handle the
oil on it's arrival at terminals, rs much
re .cooperage and boiling was necessary,
and that was the reason for making
the contracts.
Mr.. Rockefeller was shown polling
contract for the distribution of oil car
rying between different railroads, fix.
ing rates on refined and crude oil and
containing a provision for 'draw-
backs'' to refners for certain ship
ments TO seaboard. The witness SAID
the contract was drawn to put the dif-
ferent refining points on a parallel The
would cost the man in Cleveland no
more TO ship refined oil to seaboard
than q shipment made from any other
point.
rates for shipment would be se,,an aiike on On
all lines, said Mr.. Rockefeller; lie
added adj that the contract further showed
that shippers Of crude oil ts,1sbac to s9abGajd q
the pipage rates were maintained, as
agreed by the piping Sd Fad cG%Rabes naE been
cIdsejw Mrs rvoin familiar with the freight bust.
ness for nearly thirty years. ;.
'0This agreement produced stead H,,t
Of Of Cleveland, as Thomas Scott promised
to do" ,, NJ poorofo,,or,s %
counsel. announced that Mr.; Rockefei'
point poi and an adjournment y vas s k.Iiaaa taken
the fns'l government counsel, said the
cross-examination would begin.
r., +ropo have good appetite and