The Marion daily mirror. (Marion, Ohio) 1892-1912, 1908-11-21
Dancing lessons by schwinger.
OIL KINGS
Continued from Page One

very beginning?' asked Mr.. Kellogg.
eyes"
do you consider business haz-
ardous that on an original invest
ment of $67,OOO,OOO paid dividends
amounting to $591 900 900 and had left
surplus of $3OO,OO0OO0?
II do not consider the amount OF
money made determines whether the
business is hazardous or not said
Mr.. Rockefeller.
He was then asked about the trust
agreement of 1882 and whether the
trust certificates did not show value
of $7O,OO0,00 and that the stocks
held under the agreement had an
actual value of $55,71069S?
Mr.. Rockefeller said he believed
those figures to be correct.
Mr.. kellogg then asked whether
the stock certificates issued there
after we're for stock dividends or for
additional properties acquired but
John G.. NIillbufn, of Mr.. Rockefell-
er's counsel objected on the ground
that this was not within the scope of
Mr.. Rockefeler's direct testimony.
Mr.. Rockefeller replied, 81 suppose
| So"
After Mr.. Millbum had again OBJ
jected Mr.. Rockefeller said that a
stock dividend of $15,0OO0OO was paid
i'm 1886 and that the stock of the
company was then sos ,92S0OO.
| -, q thprH
has been issued S1S,310,OOO for cash
or property" asked Mr.. Kellogg.
81 cannot tell"
"Well that would make the total
value of cash and property turned in
exclusive OF money earned and turned
back into the property"
Mr.. Rockefeller said he did not
quite comprehend the increase OF
$13. 900 900 and Mr.. Kellogg discon-
tinued this line of inquiry. He next
asked:
"The record shows that up to 1906
the net earnings of the company were
s551 ,922 ,9Oi What was the dividend In
1902"
81 should say about 40 per cent. y
"That was about $50 ,OOO?"
s'That would be a million in favor
of the poor old Standard" said Mr..
Rockefeller. He added that the net
earnings for 1907 were approximately
$50. 100000
Mr.. kellogg again asked If he con-
sidered the business risky on such a
showing, and Mr.. Rockefeller again
retorted that the profits did not de-
termine the risk. II was evidence
that the business was prosperous. He
assented 10 Mr. Kelogg'5 figures
showing that the company earned
$500 900 900 from 1899 20 1906, Adding
the earnings OF 1907 would give a
total earnings of $570,000,00O.
"Then when does the hazard Of the
business come in?" asked Mr.. Kel-
logg.
Gin the first place since the first
refinery was built more than so years
ago, we have been prepared at any
moment day or night to hear the fire
alarm. We. are dealing with a very
explosive product. Fires are con-
stantly occurring"
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 re-
fining machinery, which could be
used for no other purpose, one could
never tell when he would awake and
find the crude oil supply exhausted. /.
MIR. Kellogg then asked Mr.. Rookie
feller about the Standard Oil agree
ment with the Pennsylvania railroad
in 1917, in which the Pennsylvania
agreed to pay back 10 per cent OF the
freight rates which the Standard paid.
The witness said this agreement fol-
lowed the rate war between the
Northern and the Southern lines, and
that there was an agreement whereby
he was to equalize the amount OF
freight distributed between the diff
ferent railroads.
Mr.. Kellogg read the agreement
which provided that the Standard Oil
company was to ship 100000 barrels
year. When the government coun-
sci asked OF the other railroads
besides the Pennsylvania made Ike
agreement for 10 per cent rebate,
Mr.. Rockefeller referred him to the
man who conducted the negotiations.
Replying to NJ. Keliogg's question
whether the Standard Oil company
was the only one to get the rebate,
the witness said that the greater vol
ume of business given by the Stand
ard was in part responsible for the
rebate and that in those days 1t was
the custom for large shippers 10 re-
ceive consideration
"We sought to secure what all
shippers then and now seek" said
MIR. Rockefeller. He did not recall
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