Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-11-21

New York, Nov. 2C.-For over five
hours today John D. Rockefeller, wit
ness for the defence in the govern
ments suit to dissolve the Standard
Oil Co., faced an unceasing fire of
questions from the federal counsel,
Frank B. Kellogg and when adjourn
ment was taken until Monday. the
head of the oil combine was still be-
ing cross-examined on charges that in
it's early days the company accepted
rebates to the disadvantage of it's
rivals. Mr.. Rockefeller's cross exami-
nation will probably not be concluded
until late Tuesday, for Mr. Kellogg
made it known that he would inquire
about every detail of the company's
business from Mr.. Rockefeller.
The enormous earning power of the
company was sharply brought out in
today's hearing when, after testifying
that the Standard paid dividends
amounting to $40,OO000O in 1907 Mr..
Rockefeller said it earned as much
more and that this was added to the
conn any's surplus which was stated
by the governments counsel to be
$500 ,0O0,0 900. 1t was further said by Mr..
Kellogg that within the last eight years
the company has earned nearly half a
billion dollars.
The course Of Mr. RockefellerS teSti-
nnnv under conduct Of the govern
mcnt's counsel ran not so smoothly as
that Of yesterday when he testified I'M
der direction of friendly counsel but
the rapid interrogations of the prose-
cuto, were met with imperturbility and
oc.c.
explained:
1T is quite impossible for me to re-
member after So years. 1 do no re-
call"
Mr.. Rockefeller was questioned clase
ly regarding rebates which the Stan
dard was charged with receiving, but
aside from the agreement with the
Pennsylvania Railroad, which Mr..
Rockefeller explained gave the STAN
dard a rebate because it effected an
equalization of oil shipments. Mr.
Rockefeller could not recall any other
rebates, though he thought it likely
that he might have heard of them at
tine time.
When he learned that the government
counsel would not be able to con-
cfude the examination by tomorrow
night, Mr.. Rockefeller suggested an adj
jo,lrnment until Monday, which was
agreed to by counsel.
Mr.. Rockefeller was again on the
witness stand when the hearing was
resumed today. His cross-eXamination
was at once begun by Frank B. KEEL
logg, special assistant district attor-
ney.
Mr.. Kellogg said the cross-examina-
ton would not be confined to the Pc
Rod between 1862 and 1852 concerning
which Mr. Rockefeller gave evidence
on his direct examination, but would
cover also subsequent developments
which We're connected directly with
those of the period described by Mr..
Rockefeller.
In response to questions about the
hazardous nature of the oil business
owing to the possibility of failure of
supply, Mr.. Rockefeller said that the
production of crude oil in the Penn
sylvania field had steadily increased
from 1852 to 1900. Mr.. Kellogg read fig
ures from an official report showing
that the Pennsylvania field reached its
highest point Of production in 1900. Mr.
Rockefeller denied that the supply oi
crude oil had always been ample and
asserted that it had fiuctuated but
that the supply is larger now thar
when he was actively engaged in bust
ness. He was asked about the develop
ment of oil fields in Ohio and Oklaho-
ma but said that he knew little about
them as they had been actively worked
since he retired from business. He de-
scribed the drilling and production OF
oil as Of the character of a mining bus
mess. He said it was the policy of his
company to pay for it's oil at the wells
and that the larger part of the oil it
refined was purchased from the pro-
Queer.
"You have been prosperous since the
beginning:" asked Mr.. Kellogg. Eyes >
do YOU consider a business hazard
Gus that on an original INVESTING It OF
s67, 900, 900 paid dividends amounting tC
S591 ,OOO, 900 and had left surplus OF
$500, 900, 0G0?"
Il do not consider the amount OF
money made determines whether the
business is hazardous or not" said Mr.
Rockefeller.
He was asked about the trust agree
ment of 1S2 and whether the trust GER
titicates did not show value of s70,-
0G0, 900 and that the stocks held under
the agreement had an actual value OF
S55.710,S90 Mr.. Rockefeller said he be-
lieved those figures to be correct. Mr.
Kellogg then asked whether the stock
certificates issued thereafter were a
stock dividend or for additional prop
critics acquired but John G. Milburn
of Mr.. Rockefeller's counsel, objected
on the ground that this was not within
the scope of Mr.. Rockefeller's direct