Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-11-21
ROCKEFELLER IS
HOTLY GRILLED
FOR 5 HOURS
STANDARD OIL MAGNATE Sc
VERELY TRIED
FEDERAL COUNSEL KELLOGG
ASKS MANY QUESTIONS
Enormous Earnings of OCTOPUS" Are
Clearly Shown-DiVdends in 1907
Were $4,000, ooo-surpIus
$3ooooo,ooo
Continued from Page One)


for stock dividends or for additional
properties acquired, but John G, Mil
burn of Mr.. Rockefellers counsel OBJ
jected on the ground that this was
not within the, scope of Mr.. Rockefel-
ler's direct testimony.
Mr.. Rockefeller replied:
! Il suppose So"
After Mr.. Milbuhn had again OBJ
jected Mr.. Rockefeller said that stock
dividend of $15,7OO,00O was paid in 1885
and that stock of the company was
then $9S, 329,000
"Then up to the present time there
had been issued $13,31OO00 for cash or
property?" asked Mr.. Kellogg.
Il cannot tell you"
"Weu that would make the stock
| value of cash and property turned in
exclusive of money earned and turned
back into this property
Discontnues Inquiry
Mr.. Rockefeller said he did not quite
comprehend the increase of $13,O0O,0OO
and MIR. Kellogg discontinued the limo
of inquiry. He next asked
1.-THE record shows that up to 1906 the
net earnings of the company were
$551, 922, 904 What was the dividend in
1902"
q should say about 40 per cent"
"That was about $39,000,000?"
"That would be q million in favor of
the poor old Standard" said Mr.. Rock
efeler.
He added that the net earnings for
1907 We're approximately $SO,00O,OOO
Mr. Kellogg again asked if he con-
sidered the business risky on such
showing, and Mr.. Rockefeller again re-
torted that the profits did not determine
the risk. 1t was evident that the bust
ness was prosperous. He assented to
Mr. Kellogg's figures showing that the
company earned 100000 from 1899
to 1906. Adding the earnings of 1907
would give the total earnings OF $5IO,-
| 600 900.
''Then where does the hazard of the
business come in?" asked Mr.. Kellogg.
In the first place, since the first re-
finery was built, more than fifty years
ago, we have been prepared at any
moment, day or night, to hear the fire
alarm. We are dealing with very
explosive production. Fires are con-
stantly occurring"
Admits Excess of Profit
But your profits were above your
fire losses, which have been charged to
profit and loss account"
Eyes, sir"
Mr.. Rockefeller said another risk was
the peculiar construction of refining
machinery, which could be used for no
other purpose. One could never tell
when he would wake up and lind the
crude oil supply exhausted.
Mr. Kellogg then asked Mr.. Rookie
Teller about the agreement with the
PENNSYLVANIA railroad in 1877 in which
the pennsylvania agreed to pay back
10 per cent of the freight rates which
the Standard paid.
The witness said this agreement tol-
lowed the rate war between the north
ern and southern lines, and that there
was an agreement whereby he was 10
eoualize the amount of freight dis
tributed between the different rail-
roads.
Mr., Kellogg read the agreement,
which showed that 1t provided that the
Standard Oil company was to ship
100000 barrels of oil year.
When the government counsel asked
if other railroads made like agree
ment for a 10 per cent rebate Mr.. ROCK
efeller referred him to the men VINO
conducted the negotiations.
Regarding the Rebates
Replying to Mr.. Kellogg's question
whether the standard Oil company was
the only one to get the rebate, the wit
ness said the greater volume of bust
ness given by the Standard was re-
| snonsible for the rebate, and that in
those days it was the custom for large
shippers to receive consideration.
1--WE sought to secure what all snip
pers then and now SEEK said MI
Rockefeller. He did not recall what
was O'Day's connection with this mat
ter, but said Mr.. O'Day was general
manager of the Columbia Conduit com
pany, which was purchased by the
Standard in 1877.
Mr.. Kellogg then read letters OF MT
O'Day to Mr.. Cassatt of the Pennsyi-
vania railroad in which 1t was stated
that the American Transfer company
received a rebate of 20 cents barrel
from the Lake Shore road, and it was
requested that the Pennsylvania give
the same rebate. 1t was shown IN the
letter that the Pennsylvania dld SO;
Don't you know that Mr. ODay
and Mr.. Cassatt both testified that
the American Transfer company-the
Standard Oil company-was not only
paid a rebate of 20 cents barrel on
it's shipments, but a rebate on the
shipment of oil by independent re-
fineries?" asked Mr. Kellogg.
'fMy attention has been called 10
such testimony" said Mr.. Rockefeller.
Mr. Rockefeller said that he was
president of the Standard Oil company
and had general direction over it at
that time,
Ibid you know of the contract where
by the Standard was to OBTAIN ~ Genus
a barrel in rebate on outside ship
May Have Known
~ may have known of it generally
at the time. 1 had nothing TO do with
the contract"
The witness said he could not recall
whether Mr.. Cassatt had testified that
the rebates were paid to the American
transfer company. His mind, he said,
was engaged in more important prob
lens.
/ Recess was then taken for luncheon
During the noon day intermission Mr..
Rockefeller took to task the news
paper reporters for printing his maXims
on the care of the stomach
"Don't you boys think you violated
nv confdence?" he asked with quiz
zical smile
Il meant what said for your special
benefit, but l suppose the advice is
good for everybody, so I don't care
very much"
Mir. Rockefeller asked one of the ar
lists who had been sketching him to
LET him see the picture.
II wish / had your TALENT said the
richest man in the world gazing earn
estly at the portrait of himself.
Il wish | had yours" quickly re-
sponded the artist.
Mr.. Rockefeller laughed heartily ana
extended his hand, which the artist