The Barre daily times. (Barre, Vt.) 1897-1959, 1908-11-21

tloh IN lbuu, MT, iNockeieilti Hshtu tnat
the supply Of crude oil had always been
ample and asserted that II had nuetunt.
cd, but that the supply is larger now
than when he was actively engaged In
business.
lie was asked about the development
Of oil fields In Ohio and Oklahoma, but
said that he knew little about them, as
they had been actively worked since he
retired from the business, He described
the drilling and production OF oil as Of
the character Of mining business He
said that II was the policy Of the com.
pany 10 pay for its oil at the wells ana
that the larger part Of the oil Il refined
was purchased from the producer.
"You have been prosperous since the
beginning asked Mr.. Kellogg.
Eyes"
DO YOU consider a business hazard.
ous that, on an original investment Of
S67 100000 paid dividends amounting to
1901 100000, and had left a surplus Of
$500 600 ,oooi4
II do not consider that the amount
OF money made determines whether the
business ia hazardous or not" said Mr..
trust agreement Of 1882 and whether the
trust esrtsihestes did not show q value
Of sT0,0o0oo0 and chat the stocks held
under the agreement had an actual value
Of s6,7l0,ep0. Mr.. Rockefeller said he
believed those figures 10 be correct.
Mr. Kellogg then asked whether the
stock certificates issued thereafter were
for stock dividends OF for additional
properties acquired, but John G. Milburn,
Of NJ. Rockefellsr's counsel, objected on
the ground that this was not within the
scope OF Mr.. Rockefeller's direct testi-
mony. Mr.. Rockefeller replied;
II suppose So"
After h-. Nilburn had again objected,
Mr.. Rockefeller said that stock diyi.
dend Of SSoooooO was paid in 1886 and
that the steek Of the company was then
sos ,S2s 400.
"Then up to the present time there
has been issued sl5,3l0,000 for cash or
property" asked Mr. Kellogg.
Il cannot tel"
We'll, that would make the total
value Of cash and property turned in,
exclusive Of money earned ana turned
hack into the property"
Hr. Rockefeller said he did not quite
comprehend The increase Of $4,000, 900
and Mr.. Kellogg then asked;
The record shows that up TO 1908, the
net earnings 81 the company were 1851.
922, 904. WHAT vas the dividend in
le0Tf'
Il should say about 40 per cent"
That was about $4,000. 006t"
"That would be million in favor Of
the poor old STANDARD" said Mr.. Rookie.
fellsr.
Profits Do Not Determine Hazards.
He added that the net earnings for
1907 were approximately $50 ,o0o,ooo. Mr.
Kellogg again asked If he considered the
business risky on such showing and
Mr.. Rockefeller again rStortsd that the
profits did not determine the risk. II
vss evidence that the business was pros
porous He asserted TO Mf Kellogg.
fgures showing that the company earned
400. o00. 600 from 1890 to 1906. Adding
he earning. Of 1907 would give total
earnings 81 s5To,0oo,oo0.
Then where does the hazard OF the
business come ini asked hr. Kellogg.
Tn the FIRST place since the first re.
inery was built more thar ~ years
lgo we have been prepared at any mo
ient. day or night, 10 hsar the FIRE
llarm We are dealing with q very ex-
,losiys product Fines are constantly oe-
uTring"
"But your profits were above your fire
osscs which have been charged to profit
md loss seeountr
Yes, sir"
Mr.. Rockefeller said another risk wa.
he peculiar construction Of refining ma.
hinery which could be used for no
ither purposes.
Mr, Kellogg asked Mr.. Rockefeller
bout the STANDARD Oil agreement with
be Pennsylvania railroad in 1877, in
which the Pennsylvania agreed to pay
ack 10 per cent. Of tho freight rates
rhich the Standard paid. The witness
aid this agreement followed the rate
var between the Northern and the
.outhern lines and that theirs was an
greement Whereby he wa. to equaliye
he amount OF freight Distributed be
ween the different railroads
Mr.. Kellogg read the agreement which
bowed that it provided that the Stan
ard Oil company was to ship 100000
arrels Of oil year When the govern
,ent counsel asked if the other railroads
esides the Pennsylvania make like :
for 10 per cent. rebate,
Er. Rockefeller referred him to the men !
no made the negotiations.
Sought What All Shippers Seek. q
Asked whether the Standard Oil COM :
any was the only one to get the rebate,
he witness said that the greater volume /,