New-York tribune., 1908-12-09
LIMIT OIL PRODUCTION
CONTRACTS MADE IN 1904.
Wuness admits Agree
ments in Pacific Coast Trade.

Frank b Kellogg counsel for the government In
The suit TO dissolve the Standard OIL Company. got
admissions yesterday regarding contracts made oy
the Standard of California with competing com
panies in the Pacific Coast field which he said ne
believed established evidence of restraint OF trace
there late 1904. II. NJ Tiford president oi
the Coast company. admitted the existence OF con-
tracts with two companies in which the production
OF crude oil was controlled by purchase wiich
limited the output
Moritz RosenthaI counsel for the Standard. e1-
planned the contracts by saying that the hmiting
Of the quantity of crude oil TO be purchased was
equitable as II would not have been right that the
big corporation should take all the oil produceo
and be compelled to store great quantities Of It
II a producer did not like the limitation he SAID
he was at liberty to sell all OF his crude oil as he
felt incIined-if he could find a buyer.
But If we take his crude Mt. Rosenthal said.
when he needs a buyer. we feel that we nave
right TO limit his sale of crude; that is. that he
should supply others. If he should not agree
to our restriction. he would not be forced 10 enter
into the contract. 1t was policy consistent win
good morals and good business
Mr.. kellogg took up the greater part OF the
morning yesterday in attempt TO get Mr.. Tfltord
10 admit that copy OF a contract alleged to have
been made with the Union Oil Company, to take
barrels of crude oil year from It, was aC-
curate. Mr.. Tuford insisted for long time that
he could not tell and that he could not produce
the original as II had been destroyed in the San
Francisco earthquake but at last he admitted
that it might he a true copy. This contract also
provided that the Union company should not mar
ket refined oil.
Nj Tilford would not admit that the Standard
sold IS per cent of the oil marketed on the racine
but admitted that his company had about He""'
barrels of oil in storage in 1905. There also were
contracts with the Puento oil Company giving
the Standard practical control of its output
Mr. TiIford said that the retailer got his supplies
from both the Union and the Standard. mixing
them in his tanks before selling his Illuminating
oil TO the consumer.
Mr. Rosenthal had Mr. Tilford testify that when
the Standard oil Company of California increased
its Capitalization an additional A6,cnoooo the money
was contributed by the Standard of New Jersey.
sheet. were x21 0nnnnn Mr.. kellogg abruptly brought
afternoon session adjournment was taken to this
morning.
The Standard completed the historic side of its
case yesterday when Mr. Tilford left the stand
The economic principles Of the great corporation
with details regarding the conditions that led to
its policies and explain why the prohts OF the
business have been so enormous. will be the nature
Of the testimony which will be given to-day ana
for several DAYS following. College professors aud
economists Of national reputation will testify for
the company
James Mofett president Of the Indiana Standard
and William Rockefeller probably will not be
called under the present plan. Mr.. Kellogg may
ask for he recall Of John D. Rockefeller and Mr..
ArchboId Mr Rosenthal did not have the Barns
dali contract ready yesterday but said he was
expecting it any DAY.