The times and democrat. [volume] (Orangeburg, S.C.) 1881-current, 1908-11-24
half A BILLION
EARNED IN NINE YEARS BIZ
STANDARD OIL.
Rockefeller Tells Of Financial Situ-
alton of Giant Combine-Agree-
ments With Transportation Com

alton of Giant Combine-Agree-
ments With Transportation Com
New York, Nov. 20.-For over
five hours today John D. Rookie
Teller, witness for the defense in
ne government suit to dissolve toe
Standard Oil Company, faced an un-
ceasing fire Of questions from the
rederal 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 or
it's RIVALS.
The enormous power of the oil
combination was sharply brought ont
today when Mr.. Rockefeller, after
stating that the Standard had paid
dividends amounting to 10000
600 in 1907, said it had earned as
much more and that this was added
to the company's surplus, which was
stated by the governments counsel
to be s3O0,OO0,000. 1t was further
stated by Mr.. Kellogg that the COM
pany within the last eight years
has earned over half a billion dol
lars.
The rapid fire interrogations OF
the prosecutor were always met vii
unshaken imperturability and read
mess to answer, except when, as Mr.
Rockefeller explained, 'it is quite
impossible for me to remember
after 35 years. I do not recall"
Mr.. Rockefeller was questioned
closely regarding rebates which the
Standard was charged with receiving.
but with the exception Of the agree
ment with the Pennsylvania railroad,
which Mr.. Rockefeller explained,
gave the Standard a rebate because
it effected an equalization Of oil ship
ments. Mr.. Rockefeller could not
recall any other rebates, though he
thought It was likely that he might
have heard of 1t at the time.
"You have been prosperous since
the beginning?" asked Mr.. Kellogg
of Mr.. Rockefeller when the latter
resumed his testimony.
Eyes"
He was asked about the trust
agreement OF 1882, and whether the
trust certificates did not show a
value of $7O,0O0,00O and the stocks
held under the agreement an actual
value. of S55,710,69S. Mr.. Rookie
Teller said he believed those figures
were correct.
"The record Rhows that up to
1906 the net earnings Of the COM
pany were S551,922,904. What was
the dividend in 1902"
II should say about 40 per cent !"
"That was about $4,000, 0,000?"
"That would be a million in favor
of the poor old Standard, said M.
Rockefeller. He added, that the net
earnings for 1907 wer approxi-
mately sS0,0OO,OO0.
He assented to Mr.. Kellogg's fig
ures showing that the company
earned s49O,OOO,OO0 from 1899 to
1906. Adding the earnings Of 1907
would give total earnings of S57U,-
100000.
'Then where does the hazard o.
the business come in?" asked Mr..
Kellogg.
"In the first place, since the first
refinery was built more than SO years
ago, we have been prepared at any
| moment, day or hight. 10 hear IA
fire alarm. We are dealing with Il
very explosive product. Fires "a.
constantly occurring.
"But your profits were above your
fire losses. which have been charged
to profit and loss account?"
"Yes, sir"
Mr.. Kellogg then asked Mr.. Rock
efeller about the Standard Oil agree
ment with the Pennsylvania railroad
in 1877, in which the Pennsylvania
agreed to pay back 10 per cent Of
the freight sales which the Standard
paid. The witness said this agree
ment followed the rate war between
the Northern and the Southern lines
and that this was an agreement
whereby he was to equalize the
amount of freight distributed be-
tween the different railroads..
Replying to a question whether
the Standard Oil Company was the
only one to get the rebate, the wit
ness said that the greater volume Of
business given by the Standard was
given in part for the rebate and In
those days it was the custom for
large shippers to receive consider
alton.
did you know Of the contract
whereby the Stndard was to obtain
90 cents a barrel IN rebate on out-
side shipments?"
II may have known Of it goneral!y
at the time. had nothiag to do