NUMBER 12 (See page 82)
EXTRACTS FROM THE TESTIMONY OF PETER H. WATSON
[From "A History of the Rise and Fall of the South Improvement Company," pages 76-96.]
Washington, D. C., April 5, 1872.By Mr. Townsend.
Q. From such testimony as you have given this morning, am I correct in understanding that this whole arrangement was suspended before its completion and before anything was done under it?
A. Yes, sir.
Q. That no completion of contracts was consummated?
A. No, sir; the conditions of the original understanding about the contracts, on which alone they were to go into effect, had not been complied with.
Q. And a further arrangement was necessary to make it a complete contract?
A. Yes, sir, the South Improvement Company had to enter into a contract, such substantially as I have furnished a draft of here, to give the producers the full benefit of everything connected with the contract before the contract itself could go into effect.
Q. There are three principal interests connected with the oil trade?
A. There are, the producers, refiners and transporters; no injustice could be done to either interest without affecting, injuriously, the others. The object of the railroads in this matter was to promote the interests of the trade in order to promote their own interests.
By the Chairman.
Q. You say there were three interests, producers, refiners and shippers?
A. Yes, sir, connected with the trade.
Q. And that the object of all these arrangements was to protect these three interests?
A. To protect these three interests and incidentally, of course, protecting the general interest in doing that, for this is peculiarly an American traffic.
Q. It was in the direction of increasing to each of these parties, respectively the benefits and profits of the business?
A. Yes, sir, that each might receive a fair profit. The railroad companies had not been receiving cost for transportation, and it was to save them from loss, for they had been transporting at a loss during the whole of the year 1871.
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