Hi Kel,
yes that what they used, Soap.
But Soap used on screws can cause rust and eventual failure of the screw.
Also on some wood like: Oak, Cedar and some other like Cherry the moister will react with the wood and the Iron.It is the acid in the wood. The wood will turn black or even blue or gray around the hole. The acid will corode the screw to a point that it has no holding power.
So use Wax, Candle wax, Past wax or so. No stain on the wood.
Take an old oak chair, which was held together width an iron wood screw, apart you will have a two part screw.
Hilmar
PS: If the wood splits by drilling ,you go to fast, the drill can not clear itself or you push to hard.Go back to peg drilling.