The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-11-20

into the United Pipe Line. The Standard
also had the American Transfer Pipe
Line The pipe lines were regarded as an
Mr. Rockefeller then described the
gathering of pipe lines into system to
carry the oil from the wells to the rail-
roads before the trunk line system was
established There We're many small sys-
tens which could not reach the oil wells
because of financial inability to construct
new lines. 1t was brought home to him,
Mr.. Rockefeller said, that the improve
ments were necessary and as the oil sup
ply increased new pipe lines were built.
1t was a big undertaking and very in
teresting, said Mr.. Rockefeller. 1T was
necessary to see that there should be no
waste CT oil and no delays Wherever
there was oil we had men TO take care
OF H. Our conservative men felt that we
should not go into such expenditures. but
our men in the field came in and made
pressing demands for 10000 barrels OF
tankage. We gave it to them Millions
of barrels OF tankage were built and
through il we saved much oil that would
otherwise have been lost under the old
system 1t was q godsend to the coun-
try that we moved boldly in the matter
Had Written Agreement.
Mr.. Rockefeller said that all the pur-
chases to which he referred were made
by the Standard Oil company of Ohio and
that money was taken from its treasury
instead of being collected from the stock
holders. The stock of other companies
which was purchased was held by mem
bers of the Standard Oil company of Ohio
for its stockholders He sail that in 1879
this plan of ownership was put in writ
ten form. and when he was shown the
paper on the witness stand today he iden-
titled it. 1t was shown by this paper
that Villas, Keith and Chester We're also
trustees for other stock held for the ben
eft OF the Standards stockholders. The
capital stock of the Standard Oil com
pany of Ohio at that time was shown
to be $3,500.0e0
A trust agreement made in 1852. affect
ing the stockholders of the Standard Oil
company of Ohio and Villas. Keith and
Chester, trustees, was put in evidence
Attached to it were contracts made with
the Erie and New York Central Railroad
companies. Commenting theT con, Nj.
Rockefeller said that the railroads want
ed experienced warehouse men to handle
the oil on its arrival at terminals, as
much recooperage and boiling were nee
essary, and that was the reason for max
ing the contracts.
Pooling Contract.
Mr. Rockefeller was shown a pooling
contract for the distribution of oil-carry-
ing between different railroads, fixing
rates on refined and crude oil and con-
tanning a provision for drawbacks to
refiners for certain shipments to seaboard.
The witness said the contract was drawn
to put the different refining points on 4
parallel. The effect of this agreement
was that il would cost the man in Cleve-
land no more to ship refined oil TO
seaboard than a shipment made from any
other point.
It also assured refiners that the same
rates for shipment would be alike on
all lines, said Mr.. Rockefeller He add
ed that the contract further showed that
shippers of crude oil to seaboard received
q cents barrel drawback if the pipage
rates were maintained, as agreed upon by
the piping companies.
Mr.. Rockefeller said he had not been
closely familiar with the freight bust
ness for nearly thirty years
This agreement produced steadiness
and did away with the wlping out Of
Cleveland, as Thomas Scott promised to
do" he added.
John G. Milburn. Mr.. Rocketeller's coun-
sci, announced that Mr.. Rockefellers d.
rect examination ended at this point and
an adjournment was taken until tomor-
row. when Frank B. Kellogg. the govern
ment's counsel. said the cross eXamina-
ton would begin.