The Detroit times., 1908-11-20
NEARLY A BILLION
IN PROFITS FOR OIL CO.
,continusd from Page oaeJ

Continued from Page one)
dends. up to and including 1906. 1851. |
922.s0I.50. What were the diyidenos
for the year 1907? Il
Al cannot state.
Q-What was the dividends In 1907?
Al cannot state should say
they were about what they had been
for the past two years.
In voice hardly above a whisper
Mr. Rockefeller added:
Forty per cent"
Q-About s4O000,000?
A-Perhaps. That might be about
a million in favor OF the poor old
Standard Oil Co.
Mr.. Rockefeller smiled grimly al his
own little Joke
Q-What were the net earnings APP
proximately for 1907?
Al could not state. should think
they were around SS0.000.000.
Q-Now, IL appears Standard OIL
trustees and the Standard Oil Co.
have, down to 1897. paid dividends on
the certificates and the stock. amount
ing to 1891 25s 900 In round numbers
and has surplus OF about 100000
600 besides, on an original investment
OF 500 900 900. Now. do you think tina.
! is risky business?
There was another big laugh at this
question. Mr. Milburn and Mr.. Rosen-
thai were quickly on their feet with
objections, but Mr.. Rockefeller was
required TO answer.
| Il think the question OF profits does
not determine the question OF whether
this is a hazardous business.
Q-Now. then. Mr.. Rockefeller, VIII
you tell me what hazard there Is In the
oil business?
Hereupon Mr.. Rockefeller launched
into quite a lengthy speech. becoming
oratorical.
In the first place. Mr.. Kellogg, since
the construction OF our first refinery.
near 80 years ago. we have been pre-
pared any moment. day or night, 10
| hear the fire alarms. We are dealing
with a very explosive product. From
the crude oil itself and In the very
first process OF distillation, nres are
constantly occurring. The destruction
OF the property and the places or dis
tribution from the beginning has been
possible contingency that we have
had always to be prepared for"
Dwell. you've Weakened up great
many days. haven't you. and found the
supply still there?
There was another laugh. Mr..
Rockefeller leaned forward still fur
Their. and In an impressive voice, re-
Piled:
Yes, and I am very grateful for 1t,
assure you"
Q-Mr. Milburn yesterday called
your attention TO an agreement you
had with the Pennsylvania Railroad
Co. dated Oct. II. 1877. wherein the
railroad company agreed TO pay you
for the Standard Oil Co.. 10 per cent
OF the rate which the STANDARD should
pay on its shipments. Do you remem- |
Der that agreement?
Ayes.
Mr. Rockefeller began to get little
nervous at this point and glanced |
nervously at Mr.. Milburn and Mr..
Rosenthal. hesitating before answer
ing each question. The agreement was
handed to the witness.
Q-That agreement followed the
rate war between the Pennsylvania
lines and the Northern lines? Is that
correct?
A--Yes
Q-As | understand you. Mr.. Rookie |
Teller, this agreement was an arrange
ment whereby the Standard OIL Co. |
undertook to equalize the amount OF
freight between the various lines OF
roads carrying oil from the oil field
TO seaboard?
Al think so.
Q-And in that agreement you
agreed that "the quantity of oil which |
we will ourselves ship in any cal |
endar year shall not be less than q
100000 barrels. based on an average |
product OF 10000. 900 barrels per
Year,"
Q-In this agreement there is pro-
vision that the company should pay |
TO your company weekly. on your
shipments or on any shipments con-
trolled by you, this commission fixed |
for the present at 10 per cent upon |
the rate, and that commission should |
not be paid except by mutual agree
ment between your company and the !
railroad company. Is that correct?
Al believe So
Mr.. Kellogg read from the agree |
ment long provision 70 the effect !
that no other shippers than the Stan |
dard OIL should pay less than the
rate fixed for 1t before such commits |
sion was deducted and the railroad
company was not 10 allow any other
shipper Of oil like commission UNI
T less II realized the same amount OF
profit from the business Of such COM
pany as II realized from the business
of the Standard OIL co.
Q-How was this?
A-That would seem to mean that
the larger volume OF our business. rem
dering the company greater amount
OF profit than II derived from other
concerns, deserved some recognition
Q-Were you not the largest ship
pers?
| A-Possibly
Q-Was this not a drawback OF 10
per cent because you were the largest
shippers?
Alt was nothing more than a con
dition which was required In those
days.