The Montgomery advertiser., 1908-11-21

ported by any person over the New York Central Railroad could be deliv sred to the terminals provided by the Standard at Hunters Point.
 MT. Kellogg asked If warehouse charges were made against the inde- pendent oil refiners at these terminals.
 MT Rockefeller said they were made. He did not recall whether the other railroads paid the New York Central a certain per centage for warehousing the oil they carried.
 Replying to other questions, Mir. Rockefeller said he could not recall whether the Standard oil Company controlled the National Storage Com pany. which was the terminal of the Pennsylvania Railroad at Communipaw or whether he used those oil terminals from 1875 to 1881. He could not state how long the standard controlled the terminals of the Erie and the New York Central Raailroads, as he said. he was in the West, and that was a detail.
 "Did not the Standard make the ter mtnal rate which was charged to the independents?"
 "They were charged a fair ware house rate as provided in the agree ment"
 But you controlled all the terminals and made all the rates"
 we would not have been so unwise as to charge more than a fair rate"
 The witness said he had no doubt that the independent companies had other terminals in New York than those controlled by the Standard oil Company.
 "But you assessed the warehouse and freight charges against all of the in- dependents using your terminals?"
 Probably we did"
 MT. Kellogg asked whether the Standard did not buy twenty indepen- dent refineries prior to 1874 and dis mantle many of them.
 T should think hardly as many as that. We used the best of the refn- cries and dismantled the others" said MT. Rockefeller. He said that the Standard had little to say os the South Improvement Company but participat- ed in the meeting when 1t was organ ized. He did not think 1t was organ ized before he had purchased refinerles in Cleveland and he said he did not think that all of the stock in that com- pany was acquired by men who were later associated with him.
 MT. Kellogg then read the list of the stockholders of the South Improve ment Company and asked MT. Rocket feller about the agitation which fol- lowed the organization of this com pany.
 "i can hardly explain the reasons for the excitement of those gentlemen" |" replied MT. Rockefeller.
 twas it not the enormous rebates that the railroads were to pay?'
 "It was probably due to misappre- hension on the part of the independent shippers"
 MT. Rockefeller was still on the witt ness stand when the Standard oil hear ing was adjourned today until Monday morning. Mir. Kellogg said he would be unable to conclude the cross exami- nation of Mir. Rockefeller on Saturday if hearing was held on that day.
 Rebates on Oil.
 Mir. Rockefeller's attention was call ed to the agreement with the South Improvement Company and the rates provided therein for rebates on oil.
 "Is it not fact that all other parties. according to this agreement. were to be charged the full gross rate?"
 Probably so.'
 Isn't 1t that feature that created the excitement among the independents?''
 Tt might have been one of the causes, but I could hardly recollect af. ter forty years, all the causes"
 "You say the Standard did not agree with the propositions of the South Im- provement Company, but Is 1t not a fact the Standard oil signed mani- festo supporting the South Improve ment Company"
 Tt may have been. rather think 1t must have been the Standard oil Company, of Pittsburg. I have no rec ollection of the Standard OH Company of Cleveland signing it."
 Were you a stockholder of the South Improvement Company?
 T never received the certificate as far as I can recolleet."
 "Do you know that in March. 1872 there was a Standard oil Company oi Pittsburgh"
 T think so. I think 1t was a living concern
 Would 1t be natural that a com. pany like yours would join to the manifestoT'
 well. 1t is likely that Mr. Warden who had many interests in the region would have issued the circular"
 What understanding did you have of the agreement?
 T should cay that the agreement would have been to have helped the business of the producer, rehner and transporter"
 That Is. all who came in would profit. but how about those who did not come in?'
 The doors were open."
 How did you know the doors were open2"
 That was the theory of the gentle men who organized. All the refiners were expected to come into it."
 What communication was made to the Independents that they could come into this Rreement ?''
 T could not say
 Was not the contract kept secret for some time"
 Tt may have been SO"
 MT. Rockefeller said the plan waG quickly abandoned He said he did not know whether the independent re- liners in Cleveland were asked to come in.
 Did you inform the independents whom you bought that they might have the benefit of this agreement?'
 T don't recall. As fact I did not believe in this thing"
 How did the Independent rehneries which you bought know that they might have the benefit Of this agree ment?'
 T could not say.
 About the time of the South I'm. provement Company were freight rates increased?'
 That I could not saw"
 You spoke yesterday of pool agreement among several railroads toI dividing up traffic and freight rates fin 1874. Mir Milburn read to you a clause providing for drawback to the Stand. ard of the full rate they paid for al crude oil sent to Cleveland for export