Milford chronicle. [volume] (Milford, Del.) 1878-1974, 1908-11-27
ARCHBOLD TELLS
OF OIL FIGHTS
Trust Vice President Watched
Rivals and TTIedtO BeatThem.
100000 BARRELS STORED

Securities, Mostly Bonds-DeeIares
He Opposed the Keeping Of Millions
Of Dollars Surplus BY the Standard
OIL Company.
New York. Nov. 25.-Closing his tes-
timony in the federal suit to dissolve
the Standard Oil company, John D.
Rockefeller threw some unexpected
light on the popular question of into
what channels of investment he turned
his tremendous earnings from the oil
combination. Mr.. Rockefeller was
loath to state the names of the rail
roads in which his investments were
made, but did so after entering his OBJ
lection. The head of the so-called oil
trust declared that his holdings in
railroads consisted chiefly in bonds,
and that, with the exception of a few
roads in which he held only small
amounts of stock, he preferred the
bonds as a form of investment Mr..
Rockefeller appeared greatly delighted
that his long ordeal as a witness was
over and hurriedly left the room when
counsel excused him.
Mr.. Rockefeller said that he did not
think that he should be made to tell
the 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, Lacka- |
wanna & Western, the New York Cen
trail, the Pennsylvania, the Western |
Maryland, the Missouri Pacific, the /
Texas Pacific and the Colorado South
eTn. He said he owned no shares in |
either the Union or the Southern Pa |
ciac. Mr.. Rockefeller said he opposed |
the keeping of millions of dollars Of
surplus by the Standard.
During the cross-examination the
following facts were brought out:
Original investment of Standard Oil
company. $67,OOO,OOO; dividends, $751;
100000; surplus, s3OO,OOO,OOO.
Stock dividend in 1886, when COM
pany had capital of $9S,S2s,OOO, was
SIS, 100000.
Up to 1906, company's net earnings
were 1851, 922,9O4
Dividend in 1907, about 100000.
Net earnings from 1889 to 1906,
about s49O.OOO,OOO Net earnings for
1907, about $50 ,O00,0 OO
Nevertheless the business is haz-
ardOus. Always present is the fear
of fire, since oil is an explosive pro
duct
The Pennsylvania railroad in 1877
agreed to give a rebate of 10 per cent
Of freight rates, but, says Mr.. Rookie
Teller, I'VE sought to secure what all
shippers then and now seek"
Later the company got from the
Pennsy a rebate of 20 cents barrel on
its own shipments and a rebate on
shipments by independent refners, too.
John D. ArchbOld, vice president of
the Standard, proved a mine of detail
ed information, under the direction of
the cOmpanys counsel, regarding the
early production of crude oil and the
of the pipe line system.
Mr.. ArchbOld 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.
Mr.. Archbold beamed with satisfac-
ton in telling Of the Standards early
history. His clear blue eyes twinkled
when he told Of the industrial fights.
saying that he kept careful watch on
his competitor and then tried to beat !
him"
Mr.. Archbold said the Standard
Iound and was now finding much com
petition abroad. This affected the price ]
paid for crude OIL. It was the policy
IF the company, he said, to take, care
" all the crude oil produced. Crude
Ill was stored. in tanks holding on an
average $4,000 barrels. Mr.. Archbold /
Iaid that there was now stored in
anks $1,000 900 barrels of oil waiting
or use.
"Why has that been stored?"
because the production has been
head of the demand"
And in spite of that the Standard Z
las kept on buying?" s
YES" t
How long may this oil be held?" /
Altogether II is improbable that {
his oil now being taken out of the I
field will be used for ten .
ears" r
Mr.. ArchboId said that in the early
ays it was a question of a bargain
etween the shipper and the railroad.
''This continued until the passage Of t
he interstate commerce law" said O
Or. Archbold, land this tremendous e
ak about our company being peculiar t
q its relation toward the railroads was s
cry unjust, indeed. The people who a
made the cutlery have done it for ul- f
erior reason" 2
Ibid you ever know what your next '
DOR neighbor did," Il
81 did not except what could find r
y careful inquiry; then tried to beat
i'm. When 4 manufacturer got a rate v
rom a railroad the manufacturer I,
,ada that n basis of cost which re- 81