New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-11-19

creased their holding capacity also by two
three four and five gallons It also insured an
| adequate supply.
MIR. Rockefeller said that his company was
alone in making barrels for its own use for a
number of years, and this gave il a big advan-
tage. he said that this additional business rep
resented very good profit The company had
the capital TO do the business. This was a de-
cided innovation. the witness said, But there
were others.
o-Let rae mention another matter. and that is
the establishment of your own house in New fork
State If that Innovation. and one which re-
ness. as well other advantages Ait Was
of advantage TO coming as closely as posSioie
into contact with the exporters of OIL making their
your % s markets Of TING
world. That was part of the study OF OUT New New
of the warehouses the same general ideas of econ
omy would be followed in the barrel making ana
it was a profitable part of our work. 1t was
saving and help and benefit might II aaG
ton with the warehousing business we were CON
ness deveoped and IN establishing ourselves and
our credit at New York we were enabled to Sc
could secure the same for in the West
Q.-Yeu were always large borrowers a.
10 say always had a good credit, for we always
5s eur sSeh p and through ayne with US
leading capitalists, was great advantage to us
80 80
This getting Of money was one OF the
pany's great advantages. Borrowing facilities
with the New York banks rapidly extend
ed That was the cheapest money market in the
country Mr.. Rockefeller went back to explain
that his company was enabled to interest
wealthy men when it was organized. These
had followed the progress of the business, and
in addition to investing they were always ready
to lend They were Stillman Witt, Amasa Stone.
and in New York Oliver Jennings and Benja-
min Brewster, and in Cleveland 7. P. Handy,
then president of one of the banks. The money
borrowed was for the expansion of the business
and its economical conduct and development
Mr. Rockefeller told of the regular methods of
shipping the oil TO New York for export, and
then another economy was introduced. The
company got its own lighters. There were other
economies but Mr. Rockefeller could not recall
them all.
No other refners had adopted the economies
practised by the Standard, the witness said; at
least in the early 70s. They had to pay light
erage, commissions and warehousing expenses.
The break in the great profits. caused by over
production, came in 1870.
Recess came at this time, and Mr.. Rockefeller
hands in trousers pockets. began to reninisce.
This testimony here to-day brings back TO
my mind so clearly early days in Cleveland
where we were all friends and neighbors to-
getheI." he said. How well l remember that
day in Cleveland when l went into the bank of
7. P. Handy, who afterward became one of my
dearest friends. l wanted TO borrow money, but
l didn't have any collateral, any one 10 in
dorse my note l told him what l wanted to do
with it, and then he asked me how much l
wanted. need $4,000 I SAID, and 1 got it. To
that loan l attribute whatever success l have
had in life since"
he Mr. told Of
purchase of competitors in 1871. The Standard
bought Clark, Payne az Co, next to the Standard
in size. The members of the company were
Oliver H Payne, James H Clark and John
Huntington. The next concern bought was
Alexander Schofield & Co. Other refners sold
TO the Standard at that time-six or eight, the
witness said. all of Cleveland. There might
have been a dozen. Mr.. Milburn wanted the
particulars.
Q-IJoW did these negotiations. arise An the
Q...weli to begin with. were you all Cleveland
mems mn. I've %eTelelgb oIs acq,iaintances,
trlenus-haVlns our prosperity there together IN the
business in the good days and beginning generally
jessenhg OF good returns 3roIr The
refining business on account OF the oyerproduction
OF fehneo OH or OF the overproduction OF REIN
Q.-Was it a recognized fact at that time be-
cause OF the condition OF the business that all bust
I messes 70 GO on were going to require more and
pressed Used WITH that and we were making efforts as
stated, Of vheSe larC
ono not tell you that We made utter failures in
very large capitalists, who afraid of the risks
OF me refining business. They had been made IA
Isr, IN me early 90 6, with many enterprises.
notably in connection with oil PRODUCING that had
sions In those Years NAM sbess TAI IA aPPtene
51e Faut were hoated on perhaps large capital
prices which were advanced under the stimulus of
money. Wheever had money and was lnw:fse enough
"a &c p,i uses OF those inflated shares had Oc
other and happ}e to r Know one o osPifss1 to an
because when nv brober '% was spooT very Nell
i @,a 20 oHlid up credit. and far we could
iIal 1or or growing business, was visiting such
I ITg as =; n Wade neighbor Of mine, another
isTgc captalist and other capitalists there, who
sf fbe me Te5g nGly and politely but said to
tai in the refining business NV eS' any ''p
Q,-,Now. those. negotiations that you have re-
TERED f to: and those purchases. what was the
eTiies? I've bought the PROPERTIES rte we PROP be
cane e {Re owners IN re- Of s the properties
became beam the owner Of those properties? A,-The
o|er ~ th9Se 6 properties prop at Cleveland Ohio
Tor them in cash or in the stock of the STANDARD
enable Us 10 have the additional shares We
gsye ne preference TO the company selling out
the stock at par which was its then value.
1t was at this point that the question about
coercion was asked. Mr. Rockefeller had con-
Quoted many OF the negotiations himself and
when Mr.. Milburn asked:
Were there any -coercive measures used by
you in making these purchases?, Mr. Rookie
Teller came back like a, fash with:
None whatever; none whatever"
They were fair negotiations between parties
representing their own interests?" Mr. Mlburp
asked.
Fair negotiations; and may say for myself
it is the kind Of negotiations have ALWAYS
made, and no other" came the answer with a
sran Mr Afll.,rr continued