The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-11-20
or propertyq" asked Mr.. kellogg.


Il can not 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
100000 and Mr.. kellogg discon-
tinued this line of inquiry.
Earnings of s551.922. .9O4.
He next asked:
THE record shows that up to 1906,
the next earnings of the company were
1902"
Il should say about 40 per cent
That was about $4,000, COOP
That would be a million in favor of
feller. He added that the next earn
600, 900.
Mr.. Kellogg again asked if he consid-
cred the business risky on such a show
ing and Mr.. Rockefeller again retorted
that the profits did not determine the
risk. It was evidence that the business
was prosperous. He assented to Mr..
pany earned $780, 100000 from 1899 to 1906.
Adding the earnings of 1907 would give
total earnings of $570.0O0.00O
Then where does the hazard of the
business come in p" asked Mr.. Kellogg.
I'm the first place since the first re
finery was built more than so years
ago We have been prepared at any mo-
ment, day or night to hear the fire
alarm. We are dealing with a very
explosive product Fires are constant
ly occurring"
But your profits were above your
fire losses, which have been charged to
profit and loss account"
Yes, SIR
Mr.. Rockefeller said another risk was
the peculiar construction of refining
machinery, which could be used for no
when he would awake and find the
crude oil supply exhausted.
Pennsylvania Rebate
Mr.. Kellogg then asked Mr.. Rookie
feller about the Standard Oil agree
ment with the Pennsylvania railway in
1877, in which the Pennsylvania
agreed to pay back 10 per cent of the
The witness said this agreement fol-
lowed the rate war between the
northern and southern line and that
there was an agreement whereby he
was to equalize the amount of freight
distributed between the different rail-
roads.
Mr. Kellogg read the agreement
which showed that it provided that the
STANDARD Oil company was to ship
100000 barrels of oil year. When
the government counsel asked if the
other railroads besides the Pennsyl-
vania made a, like agreement for a 10
ferred to the men who conducted the
negotiations.
Replying 10 Mr.. 5KelIogg's question
whether the Standard Oil company
was the only one to get the rebate, the
witness said that the greater volume
of business given by the standard was
in part responsible sfor the rebate and
that in those days lit was the custom
for large shippers to receive consid
GRAFTON. I'VE sought to secure what
all shippers then as1d now seek" said
Mr.. Rockefeller. He did not recall
what Daniel O'Day's connection with
this matter was. but said Mr.. o Day
was general manager of the Columbia |
Conduit company, which was pur-
chased by the Standard in 1877.
Mr.. Kellogg then read letters of Mr.. |
O'Day to Mr.. Cassatt of the Pennsyl- /
vania railroad in which it was stated |
that the American Transfer company |
received a rebate of 20 cents a barrel |
from the Lake Shore road and, it was |
requested that the Pennsylvania give |
the same rebate. 1t was shown in the |
letters that the Pennsylvania did SO.
Don't you know that Mr.. O'Day and
Mr.. Cassatt both testified that the |
American Transfer company-the STAN |
ard Oil company-was not only paid a |
rebate of 20 cents a barrel on its own |
but rebate on the ship |
ment of oiI-independent refineries ?'' !
asked Mr.. Kellogg.
MY attention has been called to such |
testimony" said Mr.. Rockefeller.
Mr.. Rockefeller said he was president |
of the Standard and had general direc- |
tion of it at that time.
did you know of the contract where
by the Standard was to obtain 20 cents
a barrel in rebate On outside ship |
ments?''
"I may have known of it generally at
the time. I had nothing to do with the
contract"
The witness said he could not recall
whether Mr.. CasSatt had testified that
these rebates were paid to the Ameri
can Transfer company. His mind, he
said, was engaged in more important
problems.