Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1908-11-28
Trust Vice President Watched
Rivals and TrIedtO Beat Them.
100000 BARRELS STORED


He Opposed the Keeping Of Millions
Of Dollars Surplus BY the Standard
OIL Company.
New York. Nov. Is Closing his tes-
timony in the federal suit TO dissolve
the Standard Oil company. John u.
Rockefeller threw some unexpected
light on the popular question Of into
what channels OF investment he turned
his tremendous earnings from the oil
combination. Mr. Rockefeller was
loath to state the names OF the rail.
reads In which his investments were
made. but did so after entering his OBJ
lection. The head of the so.called oil
trust declared that his holdings in
railroads consisted chiefly in bonds.
and that, with the exception OF few
roads In which he held only small
amounts OF stock. he preferred the
bonds as a form Of investment Mr.
Rockefeller appeared greatly delighted
that his long ordeal as witness was
over and hurriedly left the room when
counsel excused him.
Mr. Rockefeller said that he did not
think that he should be made TO tell
the form OF his Investments declaring
that the gentlemen over there in the
stock exchange might not think ii very
wise After some legal contention
by counsel. Mr. Rockefeller said he
held stock in the Delaware. l.aclia-
wanna g. Western. the New York Cen.
trail. the Pennsylvania the Western
Maryland the Missouri Pacific. the
Texas Pacific and the Colorado South
ern. He said he owned no shares In
either the Union or the Southern Pa.
cife. Mr. Rockefeller said he opposed
the keeping OF millions Of dollars OF
surplus by the Standard.
During the cross. examination the
following facts were brought out
Original investment OF Standard Oil
company s67 100000 dividends, 1891.
900. GOO: surplus. $500 900. 600
Stock dividend in 1856 when com
pany had capital of s9S .32S.0O0. was
$4,000. 900.
Up TO 1906, company's net earnings
were 1851 922. 9O4
Dividend in 1907. about s39 000. 900.
Net earnings from 1889 TO 1906.
about $l90. 900 Net earnings for
1907. about $4,000 900.
Nevertheless the business is haz.
ardous. Always present is the fear
of fire. since oil is an explosive pro
duct
The Pennsylvania railroad In 1877
agreed TO give a rebate OF 10 per cent
OF freight rates. but says Mr. Rookie
Teller. we sought to secure what all
shippers then and now seek"
Later the company got from the
Pennsy a rebate of 20 cents a barrel on
its own shipments and a rebate on
shipments by independent refners. too.
John d. Archbold vice president Of
the Standard. proved mine OF detail
ed information. under the direction Of
the cGmpany's counsel. regarding the
early production OF crude oil and the
development OF the pipe line system.
Mr.. Archbold gave his answers In
short, brisk manner and seemed pos
sessed OF infinite details of the Stand
ards business from its inception to the
present time.
Mr. Archbold beamed with satisfac.
ton in telling OF the Standards early
history. His clear blue eyes twinkled
when he told OF the Industrial fights
saying that he kept careful watch on
his competitor and then tried to beat
him"
Mr. Archbold said the Standard
found and was now finding much com
petition abroad This affected the price
paid for crude oil II was the policy
OF the company, he said. To take care
OF all the crude OIL produced Crude
oil was stored in tanks holding on an
average $4,000 barrels Mr. Archbold
said that there was now stored in
tanks s5.OOO,OOO barrels OF oil waiting
for use.
why has that been stored7"
Because the production has been
ahead Of the demand"
And in spite OF that the Standard
has kept on buying?"
yes"
"How long may this oil be heidi"
altogether II Is improbable that
this oil now being taken out OF the
mid-continent field will be- used for ten
years"
Mr. Archbold said that in the early
days II was question OF a bargain
between the shipper and the railroad.
This continued until the passage Of
the interstate commerce law" said
Mr.. ATchbold. land this tremendous
talk about our company being peculiar
In It's relation toward the railroads was
very unjust. indeed. The people who
made the cutlery have done II for ul-
terror reason"
did you ever know what your next
door neighbor did,"
Il did not except what could find
by careful inquiry: then tried to beat
him. When a manufacturer got a rate
from a railroad the manufacturer