The evening world. [volume] (New York, N.Y.) 1887-1931, 1908-11-18
pnny had made negotiations looking
toward the purchase ~ other rcfineries.
Took In Biggest Rival First.

look IN Biggest Rival fITst'
DO YOU recall what interests YOU
4 FIRST purchased queried Mir Milhurn,
Yes II was Clark. Payne * co. This
company was next to- Va In size. The
| firm was very considerable retinor.
| There were in tho firm oliver ii, PAYNE,
James II. Clark and John Hunting
ton"
Mr. Rockefeller said that Clark Payne
e. Co. were absorbed in 1872. The next re-
nners 10 be swallowed by the Standard
on was the concern Of Alexander SEQ
There we're also" said the witness,
other refining concerns OF less import
ance, and after having purchased Alex
and another"
How many concerns did you pnr-
chase in this way p
should say that had negotiations
with six or seven or eight or nine of
these concerns In Cleveland
Did YOU buy all thesc?'
II couldn't say to that, as the nego-
tiations were not conducted by me per-
ALPHABETICALLY all. We absorbed some
of them in ISL and others carly In 1872 -
How did these negotiations arise"
I'VE were all Cleveland menace
together In the same business and ac-
quainted socially.
Then we realized that conditions
made II necessary that there should NOT
Was IL evident about that time-lsi2-
that more and more capital would be
required 10 carry on the oil business -
Saw Need Of Capital.
We were much impressed with that
fact. 1t vas hard TO secure money from
capitalists. because OF the condition Of
the trade,
There was grave dissatisfaction and
apprehension. lecause there was a big
output Of inflated shares in oil COM
these companies usually lost their
men of money
While my brother was In New York
trying to extend our credit and get
loans l was meeting with the same
obstacles at home in Gleyela1d. !
neish i OF mine d and man of fla large
means. He received me very politely
and very kindly, but would loan me
no money Even so, We enjoyed the
q greater extent than perhaps any
other concerns in our line.
we were young men who had Kept
our credit good. As RAPIDLY as possible
rival companies at Cleveland. in order
to put the whole business on safer
basis, clear up the situation. and
extend the scope and influence OF
ourselves"
Crushed Out Competitors.
Having thus come to the point where
the Standard oil began 10 crush ont
competition. Mr.. Rockefeller was very
guage. Milhurn guided him skilfully,
but he didn't seem to need any guiding
He avoided any such ugly words as
combine and monopoly.
AT this time. Mr.. Rockefeller in 1871
and 1872. was it a fact mat in the re.
aning business more and more capital
was needed"
necessary 10 spend more money to eN
tend our business. 1t became advanta-
geous to increase the volume Of bust
ness at less profit"
Germs you bought the properties
Yes. we bought al the properties"
And how did you pay for them?"
of the Standard oil COMPANY OF Ohio;
or we paid part cash and part stock"
You conducted great many of
these negotiations, Mr.. Rockefeller.
Was there any coercion"
None whatever-none whatever
Those negotiations were fair nego-
tiations?'
negotiations I always made. and no
other. Fair always" answered Rookie
teller soemnly.
You had faith in the business, Mr..
rockefeller?
The WITNESSES face cracked in a wide
' Il did: I did," he said.
Oversight Of His Friends"
There were others who had not the
same faith?' asked Mr.. Nilburn.
Yes. there were. Our, friends In the
oil business rather overlooked the i'm
Manufacturing Interests. The early
stages OF the business were so profit able
that il led many 10 rush up rehner!es.
We, who watched the production close
was coming: that there would be an
overproduction, and no sufficient move
ment. which meant, OF course, nard
times.
1T would have been the same in
the glass business or any other bust
ness"
Did you realize that 1t was we'll to
prepare for the period of reaction by
petition and putting the industry on a
more solid substantial basis?"
Yes, ] did"
Was it then considered a business
! OF unusual risks?'
| Always. and is yet. Even now, with
all the modern improvements which We
a business OF unusual hazard and risk
and not to be classed with banking
or railroading or the more staple
|
! MIR. Rockefeller. what proportion OF
the concerns you bought preferred cash
10 specie"
Possibly half wanted cash; perhaps
half wanted specie. But l think gener,
ally the pTeponderance wanted hare
cash TO invest in something else. Why
there was one dear old man-but, stop
cut that out, stenographer," laughed
Mr.. Rockefeller as he caught a warning
signal from his lawyer,
What had you and your associates
10 do with the Salvage Proof Company
OF Ohio"
Branching Out Some.
We took some shares in it. As I re
call. Mr.. Flagler, Brother William anC
myself all invested. We did not agree
with some friends over in Pennsylvania
regarding the advisat ility OF going int
that concern. The Pennsy.vania inter
ests headed hy w G, Waldron, Mr.
logan, Of Pttsburs, and M. Thomal
A. Scott, then president of the Penn
sylvania Railroad, figured in the nego
tiatlons looking 10 the deal with tina
Peter II. Watson also participated /,
the Pennsylvania move or scheme II
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