Historical Newspapers of South Carolina

Below is the OCR text representation for this newspapers page. It is also available as plain text as well as XML.

JOHN O.'S OWN STORY. BTANDAHI) Oil, MAGN ATE TELLS 4)1 HIS s| \|{T Head <if final ( . uitu,??- Relate* Mow HU Com (winy I In* \ttalm\l li> l?r< cat fin will?An Interesting \\it HtW Tork, Nov. 18?Relating h! i story with tho air of a country gentle? man of kindly mien ?ntcrtaining a Moat of friends with Incidents of days long past. John 1>. Rockefeller, presi? dent of I ho Standard Oil company, though for nearly 10 years retired from the active cares of company di? rection, for over two hours today re ?iewed the history of the early oil trade snd the development of the Or i ejogepanlee that later grew Into the present so-called oil trust. Mr. Rock efeller wan a witness for the defense In the suit to dissolve the Standard, which Is being prosecuted by the Cnltea Strut* government, and his ap | pearance nt tho hearing before For? mer Judgu Franklin s, the ref? eree, bro\ ght u large crowd to the customs fcui.ding. 1 Vile "frei d of the oil combine was surrounded ly an Imposing circle of counsel. N r. Rockefeller app a;ed it u ejagspletc ease, and when John o. MllbOurn of counsel for th.- Standard propounded his first question, the wit nese spokn out In full i Mr Rockefeller told of his start In tho oil bOjetness and how under adverse, con? ditions that business grew to the i poitione of the Standard Oil Con.pan> ef Ohio, v 1th its capitalization of $1. 000..no.. M! |;,, , < , sP kled In reflection on that tar"ly Mnan etal organisation, and, speaking of Its mltUoti-dollar capitalism: ?n. with almost boyish enthuda?m, he sal I Ml seamed very large to us, who begn i With only $4.000 in is?2." Th?i? ih proceedings lost in a sense aspect because of the en g4] r manner In which Mr. R >ckefel i ter dlsph yed In his answers, which i IW snd then contained llashes of kindly humor. A glow of health showed in Mr. Rockefeller's smooth shaven face. Mr. Rockefeller was drt-ssod In a plain business suit of dark material snd scroM his vest was suspended a heavy gold watch chain. A dark pur' gag) necktie. In which a lergo ptarl pie was set. snuggled close to a high col? lar. The gjOrs'.opmejgg of Mr. Rockefel? ler! test!a ?ny today, which carried him to the . 'ganlxntlon of tho Stan ?l*i J oil Coniyany of Ohio, indicated that one if the IUns of the dcfeni * sou; l im that the Standard company ley not thl result of an aggressive poll air to obti In a mastery of the oil trad as chart?'1 I. but rather the natural . SoUconto of no economical develop? ment, which the exigencies of the oil Industry Jeinanded. During a brief recess Mr. Rockefel? ler talked to tho reporters on the Standard.'-* ?-. . to. saving: "What u wonderful thing 't all has been?th* growth of ihe business. It ?all seems like a dream to mo, and here X am accused of doing the vsrj wicked thing of sellinu u good artb 1 gt g lower price than try one else. "Thla testimony here t diy br,ng^ hack to my mind so clearly e rly da in I U \ itifd, where we * ire a' friend* and neighbors together, il \ well I remember that day in Clove Isnd. when l went into the bank of T. P. FaJy. who after* inls became one Of rny dearest friend**. I w ante I to borrow money, but I did not hive unv collateral nor any one to endorse my note. 1 t hi him ?h.,1 I wanted to d?> With It. and then he asked me how mut h 1 wante i 11 n ? : $2.uoo.' I sal '. and got It. To that 1 ?an I attrl ?Ute whatever success 1 have had In III since." The flat qmst'on pit to Mr. Rocke? feller by c< unsel In ought out his name snd residence. "When was >our lit t conneottog in the oll I u in "About lH?iU or HH'J. not earlier than HtO nor later than Im).'. I waa quite a young man?much young r than I am now." "A copartner hip was formed." said Mr. Rockefeller, "kniwn us Andrews, Clark A Co.. which operated at Ch-v ?? land. Ohio " Mr. Rockefeller said the refinery waa a smsll one und the copartnership continued until \\H:>. v. In n it was dis? solved. "I bought the bu?!m-i4.H and the properly and I organised the firm of Rockofe ! .v i ? '"' >? ! "Did you continue in the refinery business? ' "Yea" ? Old your bu^ne*? Increase: ??Yes." sitid Mr. Rot k. (? llwr. * It In? creased aU.idllv." "Wh?? developments or ggjgngJH lg ? t. ny took pise.- later?" i IMS! there wa? a change, wis William Rockefeller & ?ckefeller was Wllllain. in.. *nd the 'company* was Ro?-k .eiler A Andrews." Mr. Rockefeller said the refinery of thin company whs in Cleveland and that afterwards anot mpany un? der the name of Wllllain Rockefell? r 4b Co. was organised In New York. *T**<- mnr~n fi^T* member that compos cd the Cleveland compuny made up the N? w Tori eotnpunv. "We had a steady ?r?w.a an 1 Incioase from the organization of the Unit firm in 186<> 1 >? i.itil the organization <>f the st tndurd company." "Let me a>>k you about the huusv which you established here." "Yes, that was an advantage, it us an opportunity to le^rn for? eign markets and the export trade. In New York we were enabled to secure il get il of money at lower rates than In the West. \Vc were always ahle t> obtain largi sums of mono) : l i iv thankful to fay we alwayi .a . \ ? ? . e. vV.lt. \V e lllWU> a kept our ?. - ai nti and paid our bills*" Through thi acquaintance, made i>;. Vtfllham Rockefeller with wealthy nn a | Nrw Yo.k couiuetions were formed enab.lng the company to borrow laru su ins for the further extension Of thf ou- ine;-?*. "Hard times came upon the oil trade ea.ly In the ,n'>," he nald. "The business was much overdono because tetinerits had been erected so rapidly At the profit was much lomtnod." When asked if COCTOlVe measures were en ployed In acquiring the stoel of OthOV ? il e. :..panie> In Ohio. Mr. Rockefeller leplied: "None whatev ? ft He continued, "For myself I can say that the nn the II used always v. ? ??(.' at -aiutely fair." "l'id you have negotiations ai'te. the organization of the Standard Oil company of Ohio w Ith OVhff Interest! looking to their purchase? " Mr. Rock? efeller u as a: kc I. "Yes. We consummated negotia? tions for the then firm of Clark. Payne & Co. and the firm Of Alexan? der Schntkdd & Co.. which Were ne\* to us in ehtOi There were othejr re? fining concerns of less importance which we purchased. These oonceefl weie all In Cleveland." "How did then negotiation* ari o?" "In the natural .vay." said Mr. Rockefeller. "Wo were all friends an 1 enjoyed our prosperity together, w recognized thut changing COttdltloni were leneenlng the chances of tajcces>. There were schemes floated on prop irty of little values Owing to the dli satisfaction with s.'.ch concerns it Was hard to obtain money, "l think that three years later, i 18 70, the 'Standard Oil Company 61 I hie >vas organized, with a capital of +1,000,000 and v.e enlisted much capi? tal In the company," Mr. lioekeielh r said that to eop< with chunking con lit ions it was neOCe sary to ohudn cuplt; l und pure has the t leveland companies, which. Up ?vlttivHS said, enabled th? i:l$i>. lard t' borrow large suras of n. moy b/.hav ing associated witfh It many of Its rec? ognised friends. MWe r eaiizeii," mid Mr. Rockefeller ''that tho larger company decreased :he cost of production und increased '.he volume o| huetne The oompe uli -> were pUicoa.-Jed part in cash ?' n part In itOCk of the Standard CO] ? y." "Tom had faith In the business, atl Noenafetl r?" "Oh, yes." ho replied. "It was a? ways con l -r- d a business risk, ttu refining Ci Oll, and ita very lu.zard ous l,u - a< -s li (1; y and md to hi I iseed with bsnkin i nr some rallros ? bu tin ess." The henrlng adjourned with gfr, Roekefellei itlll on the itan :. Thi t I Ing of Mr. 11 ?cht feller's t< tlmony will la oonclud ?d tomorrow, New York. Nov. 10.--With th* teil? !ng of the story of thl AtSt ICOrS Of years, of the Industrial development of the gtandard Oll companj the*test? Imony ot lohn D, Rookefeller, pred' dent of the < 11 con btno, on direct ex a ml nation in the fedt ral suit to die? solve the Stand I i mpany, Was brought to gg u a poe l close this afternoon. The i?< id of thi Standard told to? day of the 11 cei . .. aus? i of the oompany*i growth Hp to the trust agreement of and mier Identify? ing tin parties to that agreement Counsel for the d fense announced that Mr. Rockefeller had conc lude i his dire, t setimony, and requested an adjournment until tomOTTOW, j * iii. win und \'v. Rockefeller on the ,vitn. - -land under the sharp fin* of the proas tun ml nation of Frank it. Kellogg, ?peolal assistant attorney general prosecuting tie> ease for the government. Th? cross-examination t>y the governmen will be generally confined le the period from imij to hsj, saeepl where the testimony has direct bearing on the developments in the Companys affairs in the lattOf period. Counsel for the Standard lei it be known tOCttght that the hh - lory of the eomnany from tin- trust agreement of till would be told on the witness stand h> John D. nroh bold, rice president of the compsnyi who is soavermal with the oomhlne'i development. Mr. Rookefeller1! testimony today had to do pfnetlenlly with tin- acqulsl? tlon of other refining companies, to? gether with thi concern! end pipe line systems, which, he declaredi were n? St oritated by the natural growth of tho Standard business. Upon resuming the stand today, Mr. Rockefeller said that the oil business I was made a hazardous proposition be- j cauo of the apprehension that the ( supply of crude oil would become ex- | hausted. He then recalled the organ- j liatlOn Of a producers' union in the I TO'i, about the Um? of tho Agitation of the South Improvement company. This lodi he siid, tq an aseootatlon of oil refiners, who were deslrotll Of having a supply of eru'le oil which was not controlled by interest! antagonistic to thorn. Ht said that in December, 1872. the Producers' union and the Refiners' .'i.?socialIon entered into an agreement "to sei ure ai high a price for crude oil as posslbloi" Tho agreement did not last long, he said, beOftUM the Producer! violated It by soiling crude oil under the fixed price* Mr. Rockefeller said his attention first was directed to lubricating oil about 18TC. About 1878 the Standard Oil company purchased the American Rubricating Oil company of Cleveland and the Mica Axle Grease company with the Idee of further diversify? ing the busine.-s and secure a lubricat? ing trade. Mr. Rockefeller referred to the Em? pire transportation company, which owned cars, transported oil and other products over the Pennsylvania rail? road and engaged In the refining of oil. It v as understood that this company was controlled by the Pennsylvania, and Othtr roads, fearing that a loss of their oil trade would follow, bftgau outting rates hea\ily. "Our interests Stopped our ship? ments ovor the Pennsylvania and used other linos." he said. "We objecto 1 to the Pennsylvania railroad's engag? ing In the refining business. They were shipping thofr own oil over their own lines and discrimnating against us. Other railroadi agreed to star i by us, but there was muoh bitterness between the railroads. Afterward! wo pu vna ed the Empire Transportation company and its pipe Hues.'' He denied that th< rate! obtained by him during the ] <i the Stan? dard Oil company'! war with the Pennsylvania railroad were to crush an l cripple the Empire Transporta ,i( l company so that the Standard on company might acquire its property* Mr. Rockefetter said that when the Pennsylvania n i stopped refining the railroad war stopped and an agree? ment was entered into between the road- Whereby tiny obtained a per centage of the oil carrying trade. Th< War between th! railroads to obtain the oil tia<'e had be on demoralising t the oil business, Mr. Rockefeller*! attention then W! called to an agreement between Wll '.lain Uockfeller and Thomas Scott preatdent of the p mnsylvanta rail roadi which had been approved by all the oil carrying rli Iroi I . Mi-. RookefelU r laid that the oom Pany guaranteed the Pennsylvania railroad ? certain number of harte' ?f oil a year and in consideration th railroad guaranteed to pay back 10 per oenti "f the rate on oil rate. Mr. Rockefeller vai l that the Stan lard began * acquiring pipe line inter st? in aad Increased its owner hip flora time tC time until 1X77. ?vh.n they were assembled into th< I'ua-. d Pipe line. Tho standard als aad the American Transfer" pipe!. Ho Mid thai all the purchases to wh\ I he referred were made by the Stan, dard Oil company of Ohio and that the money was takon from Its trea! uiy. A truii agreement made In 1SS2 af? footing the stockholders of the Stan? dard OJ1 company of Ohio and Vllas, Keith Ai Chester( as trustees? was put in evidence. Attached to it were con? tracts made with the Erk? and Xew fork Central Railroad companies. Mr. Rookefeller Was shown a pool? ing contract for the dlstibution of oil carrying between different railroads. fixing ratei on refined and orude oil and containing a provtalon for "draw* backs" to refiner! for certain ship? ments to tho seaboard. The witnei laid the contract was drawn to pu" tho different reflnlng polnti on a paral? lel. "The effect of this agreement was that it WOUld cost tin- man in Cleve? land no more to ihlp refined oil to eaboard than a shipment made from any other point, it also asiured re? finers that the same rates for ship? ment would ho alike on all lines," said Mr. Rookefeller. * An Interesting sidelight on Mr. Rockefeller's preeenoe at the hearing today was his chat with the report* n durin? the Intermission about his health. He said: "When i was s young man l used to work day and night, but 1 never forgot that l had n Itomach. You can work long hours it yoil are careful about what you eat. 1 .v .s alwayi careful about what i put Into my stomach, a mi today i have cans.' to be vi ry grateful for it. i never fell in bettor health than today. as \ result of rigidly adhering to a policy of a careful diet when 1 was b hoy. I advise an;, utic who wants to keep his health to do the same, Then when you young men get to be 70 yean old you will he able to keep up your work. "i never felt better in my life than I do now. For the last 20 years 1 have kept out of doors as much as possible, and to that practice, coupled with a careful diet, I attribute my excellent health.'* I New York, Nov. 20.?For over five houri t<?day John D. Rockefeller, wit? ness for the defense in the government suit to dissolve the Standard Oil com? pany, faced an uncovering fire of ques? tions from the federal counsel, Frank B. Kellogg, and when adjournment was taken until Monday he was Still being cross-examined on the charge that the company In early days accept? ed rebates to the disadvantage of Its rivals. The enormous power of the oil com? bination was sharply brought out to? day w hen Mr. il ?ekelt Her. after stat? ing that the Standard had paid divi? dends amounting to $40,000.000 In 1907, said it earned as much more and that I1 'j was added to the company's surplus, which was stated by the gov? ernment's counsel to be $800,000,000. It was further stated by Mr. K? Hogg that the com] any within the last eight years has earned over half a billion dollars, The rapid lire interrogations of the prosecutor were always met with un? shaken Imperturbability and readiness to answer, except w hen. as Mr. Rockf> f? Her explained, "it is quite Impossible for me to remember after 35 years. 1 do not recall." Mr. Rockefeller was questioned closely regarding rebates which the Standard was charged with receiving hut with the cxei ption of the agn t ment with the Pennsylvania railroad, which, Mr. Rockefeller explained, gave the Standard a rebate because i' effected an equalization of oil ship? ments-, Mr. Rockefell? r could not re e ill any Other rebates, though hi thought it was likely that he might have heard of it at the time. "You have been prosperous since the beginning?" asked Mr. Tveiiogg of Mr. Rockefeller when the latter re? sumed his testimony. "Ye.:." He was asked about the trust ag?e< meat of lsv^ and whether tin4 trust oertifloates did riot show a value, o! $70,000.000 and the stocks held undo; the ; areement an actual value of $'>".. 716,698. Mr. Rockefeller said he be? lieved those figures wen? correct. "The record shows that up to 1%% the net earnings of the company wer? *r>:?l.02LY.KI4. What was the divi? de nd In 19071* 1 shouid say about 40 per cent/' "That was about $30.000,000?" "That would be a million in favor o the poor old Standard:," said Mi ROQkt .'eller. He- nddi 1 that the ne s trninga for 1007 were aprpoximatel> $80.000,000. lie assented to Mr. Kellogg'i figures showing that the company earne .?4'jO,0,00,000 from '[^'.<r) to 1900, Add in"- the earnings of 1901 would give total earnings of $570.000,Of 0. "Then where d ies the hasard of th' business come in?*' asked Mr. K^llog^, "in the first place, since the first " :ima-y was built more than 50 year ago, we have bei n prepared at an; 110m at day or night, to hear the fir larm. We are dealing with a vir. axplosive product. Fins are consant ly occurring. "But your profits were above you Are losses, which haVe been ohargt ? to profit and loss account?" " Vi s, 1 ir." M ', Kellogg then asked Mr. Rocke feller about the Standard oil agree* ment with, the Pennsylvania rallr< ? in i s77. In which the Pen I ;. Ivanit igfced to pay back 10 per a :. of tin freight sales which the Stan lard paid The witness said this agreement fol lowed the rate war between the north ? ? ?n and the southern Urn? and thi thll was an agreement whereby h Was to equalise the amount of frelgh distributed between the different rail roa I Replying to a question whether the Standard oil company wa.-- the onl; one to get. the rebate) the witness said (hat tin- greater volume of buslne.v given by the Standard was given li part for the rebate and in those da> it wai the custom for large shipperi to receive consideration, "Did you know of the contract whereby the Standard was to obtain 90 cents a barrel in rebate on outsldi shipments?" "I may have known of it generali) at the time. I had nothing to do wit! the contract." The witness said he could not recall whether Mr. Cassatt had testified that those rebates were paid to the Amor loan Transfer company. Mr, Rockefeller said he ha .i no doubt that the State of Pennsylvanl brought suit in 1879 to oust the Unl ted Pipe Line company from that State 011 the ground that it was n conspiracy with the Pennsylvania rail load to obtain preferential rates and drawbacks. He could not recall that Mr. Caosett testified that the Pennsyi vania railroad paid rebates to tie Standard *>il company, the America! Transfer company and the United Pip< Line company, Mr. Rockefeller's attention wascall ed to iio? agreement with the South Improvement company and the rate* provided therein for rebates on .01. "Is it not a fact that to all other parties, according to thi - agn ement, we?a- to be charged the full gross rate?" "Probably so." "Were you a stockholder of the South Improvement company?" j 1 o Si f IS ' r HOGLESS in i By every test the very best! Why? Because it's refined by our own exclusive Wesson process, ensuring the whole someness of Nature with the purity of science,?the satisfactory combination of Nature and art in manufacture. No ^ther cooking-fat is anywhere near so good, because none other can contain the best of Nature purified by the Wesson process. All other cooking-fats must be inferior. THE -SOVTIIE?N COnON OIL CO. Kodol Stops Indigestion Sour Stomach, Heartburn, Belching, Gas on Stomach. Go to vour druggist, get c dollar bottle of Kodol. And if you can honestly say that you did not receive any benefit from it after Oeing the entire bot? tle, the druggist will refund your money to you without question or delay. We will then pay the druggist the price of the lirst bottle pur? chased by you. If you knew as watt a<* we do how rood a preparation Kodol is it would be unnecessary for us to guarantee a single bottle. Eut to l?t you know how good It Is, as well as we know, we will practically purchase the first bottle for \ou. We know there are thousands of persons who suffer from indiges? tion and dyspepsia who* wen: t grateful to us lor putting thun iu touch with KodoL That U why. Furthermore, we know that after you have used Kodol your faith in the preparation will be equal to ours. This proposition we make is not altogt I her unselfish, but is actuated by I no knowledge, that the use of K ; by you will benetit you aa well as ouiselves. IIot,v could we afford to ma*e such an offer to the public And how could v.e afford to spend thousands of dollars to tell you kl >ut it unless we positively knew and were sure of the nierite oC Kodol. We couldn't? it would bank? rupt U3. Pie ise try it today at our risk. Kod A d Igeata all the food you eat Eat what ycu want and let Kodol digest it. Rodt 1 if made at the laborator Ketof B. C. De Vitt & Co., Chicago The ST.00 bottle contains 25f t'ui?S as much as the 50c bottle. Foil s.u '.v ALfi DRUGGISTS. rv; m The D. A. Rs Are W ?a f? 4. ?i QU m And an unusual air of interest in things historical per? vades the community. Among other things we are remind? ed of how young our country is. It's v'itn is obscured by the remarkable progress and achievement which has been made. But we are yet young and have particularly in the South growing tasks to perform. If you are patriotic you will keep your money deposited in a bank that ii may be continually in the arteries of trade, A We invite vour account. Bank of Su niter. a i usl Ml flg fij fj ru i i ? i p%e>?%m "i never received the eertlfvetei .is far ai I can recall*" "You spoke yesterday of a pool agreement among several rallros Is to dividing up traffic and freight rate. In 1874, So the rales from Cleveland to seaboard were the same as from oil points In Pennsylvanls to the sea? board?" "Tea." ??Am! the roads carrying crude oil t the seaboard were required to pay : drawback Of 22 cents a barrel to the shipper if the rates on the agreed pip age to the shipping points of the rail? road be maintained?" "Yes." Mr. Kellogg then sought to show that all tin- pipe hoe companies to the agreement were subsidiary com? panies of the Standard. "We had an Interest in some, but not In all," said Mr. Rockefeller. "You testified yesterday of the tockholders of the Standard oil com? pany from 1873 t<> t^7'? obtaining in? terests of stocks of oth >r refining com? panies. The company of Charles Pratt and 11. H. Rogers was acquired by you in 1S7 4 ?" "YCi. We bought the entire eon? ern with the funds of the sharehold? ers o fthe standard company or the capital shares of the Standard. Mr. Pratt and Mr. Rogers gave up the Pratt stock and later became partners of the Standard." "Did not Mr. Pratt and Mr. Rogeri receive salaries for their work?" "1 belh 11 tiny Aid*" Adjournment w...s then taken until Monday. ?Tees LaxativeCoughSyrup always brings quick relief to GOUghS, COtdSj hoarseness, whooping COUgh and all bronchial and throat trouble. Mothers sspeelally recommend it for children. Pleasant to take, gently laxative. Sold by Sihert Drug Co. s'ept-?m In some oriental countries vacci? nation has i)t en practiced for o\cr a thousand years. * Winter blasts, causing pneumo da, pleurisy and consumption will s ton be here. Cure your cough now. and strengthen your lungs with F?>ii y'a Honey and Tar. Do net risk starting the Printer with weak lunu--. when Fo ley'e Honey and Tar will eure tho most obstinate coughs and colds, and prevent serious result w. w. sibcrt. There are plenty of dumb waiters, bul svho ever SSW a dumb barber?-? Atlanta Constitution. How i< Your Digestion? ?Mrs. Mary Howling of \o. 22S Ith avenue, Ban Francisco, recommends ? remedy for stomach trouble, she sayai "Gratitude for the wonderful effect of BleCtliC Hitters In a ease of acute Indigestion, prompts this testimonial, I aim fully convinced that for stomach and liver troubles Blectrtc Bitters is the best remedy on the market today.'" This great tonic and alterative medi ? ine invigorates the system, purifies ihe blood and IS especially helpful in all forms of female woafcne??. 60c. St Albert's Drug Store.