Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-11-20

The hearing was transferred To-Day
to larger room in order to accOmmo-
date numerous counsel and reporters.
Policemen were stationed in the cor
ridors and only those having friends
connected with the proceedings were
permitted to enter. Mr.. Rockefeller
was smiling as he took the witness
stand and resumed his testimony.
MIR. Rockefeller's counsel again call
his attention to the uncertainties of
the oil business in the early 70's and
asked him what bearing the supply OF
raw material had thereon.
ut had an important bearing and
must always have such importance, as
we never know when the supply may
give out. rendering the properties for
the refining of oil comparatively value
less" replied Mr.. Rockefeller. He add
ed that in the early oil business the
supply of crude oil was limited to
a small area, coming principally from
Venango county. Pennsylvania.
Mr.. Rockefeller said that the oil
business was made hazardous because
of the apprehension that the supply
of crude oil would be exhausted.
Some of the oil wells were very short
lived. Mr.. Rockefeller's counsel then
asked him if he recalled that pro-
ducers union was formed at the time
If the agitation regarding the South
Improvement Co.
yes, replied Mr.. Rockefeller. "lt
was formed a little later and was COM
posed of large proportion Of the oil
producers"
That led to an association Of oil re-
finers who were DESTROYS Of having
supply of crude oil which was not con-
trolled by interests antagonistic to
them and the refiners also waited to
be assured of a market for their raw
materials"
eve desired pleasant acquaintance
with the producers, said Mr.. Rookie
Teller.
In December. 1872. Mr.. Rockefeller
said. the "Producers' Union and the
Refiners' Association entered into an
agreement, the purpose of which was
'to secure as high price for the
crude oil as possible" and to introduce
an element of regularity into the bust
ness which had been fluctuating great
Nv. Mt Rockefeller was unable to give
the number of producers in the union
but it included large percentage of
all of them and the Refiners' Associa-
ton included a large proportion of the
refiners. BY direction Of his counsel
Mr.. Rockefeller noted that the agree
ment was to produce all crude oil at
IS a barrel at all common points. The
preparation of that agreement he said
stimulated an Over-prCductiOn of oil
beyond what could be used at that
price The temptation was very great
with the producers to produce more
oil than they had promised to the
refiners. The refiners could only take
as much oil as the public would con-
sumo. AS result the producers vio-
lated the agreement and sold Oil I'M
der the price which had been fixed.
The agreement did not last long. said
Mr.. Rockefeller.
In order to secure dockage facilities
and to make shipments to Europe, the
Standard Oil Co. purchased the plant
of the Long Island Refining Co. In
Long Island in 1873 and began to re-
fine oil at the seaboard.
The crude oil was brought to the re-
finery by railroads. Mr.. Rockefeller
said that he recalled the Devoe Man
ufacturing Co. of Long Island which
canned oil and shipped it to the Far
East where it was delivered on mule
back. He thought this firm was prim-
arily a manufacturer of cans. In those
days export oil was shipped in bar