Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-11-20
organized tc take over both properties.

organized &c take over DOtH pIOPeiIieS'
Mr.. Rockefeller said that the STANDARD
began acquiring pipe line interests II
! 1873 and increased its ownership from
|time to time until 1877 when they were
assembled into the United Pipe Line. The
| Standard also had the Americap TRANSFER
Pipes. The pipe lines were regarded al
| an important adjunct. Mr.. Rockefeller
then described the gathering Of pipe lines
| into a system to carry the oil from the
wells to the railroads before the trunk
| line system was established. There were
many small systems which could not
reach the oil wells because of financial
| inability to construct new lines. 1t was
| brought home 20 him. Mr.. Rockefeller
| said, that the improvements were neces-
sary and as the oil supply increased new
pipe lines were built and tanks were
erected 1t was big undertaking and
very interesting said Mr. Rockefeller.
1T was necessary to see that there should
be no waste of oil and no delays. Wher-
ever there was oil we had men to take
care Of it. Our conservative men felt
that we should not 60 into such expendi-
lures but our men in the field came In
and made pressing demands for 500. 900
barrels of tankage. We gave 1t to them
Millions of barrels Of tankage were built
and through it we saved much oil that
would otherwise have been lost under
the old system. 1t was Godsend to the
country that we moved boldly in the
matter.
Mr. Rockefeller said that all the pur
chases to which he referred were made
by the Standard Oil CO. of Ohio and that
the money was taken from its treasury
instead of being collected from the stock
holders. The stocks Of other companies
which were purchased were held by men,
bers Of the Standard Oil Co. of Ohio
for it's stockholders. He said that in
1879 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 & Chester were also
trustees for other stock held for the ben
eft of the Standards stockholders. The
capital stock of the Standard Oil Co. of
Ohio at that time was shown to be $500,
OOQ
A trust agreement made in 1852 affecting
the stockholders of the Standard Oil Co.
Of Ohio and Villas, Keith & Chester as
trustees was put in evidence. Attached
to il We're contracts made with the Erie
and New York Central Railroad Cos.
Commenting thereon, MIR. Rockefeller said
that the railroads wanted experienced
warehouse men to handle the oil on It's
arrival at terminals as much re-cooper-
age and boxing was necessary there, and
that was the reason for making the con-
tracts.
Mr.. Rockefeller was shown a pooling
contract for the distribution of oil car
rying between different railroads, fixing
rates on refined and crude oil and con-
tanning a provision for DRAW backs" to
refners for certain shipments to seaboard
The witness said that the contract was
drawn to put the different refining points
on parallel.
'The effect of this agreement was that
it would cost the men in Cleveland no
more to snip refined oil to seaboard than
shipment made from any other point
1t also assured refiners that the same
rates for shipment would be alike or all
lines" said Mr.. Rockefeller.
He added that the contract further show
ed that shippers of crude oil to seaboard
received % cents a barrel "Drawback'
II the plpcase rates were malntdlneh DIS
agreed upon by the piping companies.
MI. Rockefeller said he had not been
closely familiar with the freight business
for nearly 80 years.
"This agreement produced steadiness
and did away with the wiping out of
Cleveland as Thomas Scott promised to
do" he declared.
John G. Milhonrne. Mr.. Rockefeller's
counsel, announced that Mr.. Rookie feller's
direct examination was ended at this point,
and an adjournment was taken until to-
morrow, when Frank B. Kellogg, the gov
ernment's counsel said the cross-exami-
nation would begin.