The Montgomery advertiser., 1908-11-21
LONG DRAWN OUT HEARING Kellogg Cross-examines Roekefelle
  ANSWERS MANY QUESTIONS Still Insists Y Oil Business is
 ardous. Rockefeller a,enies That supply of Crude oil Had Always Reen Ample But Asserts That
 It FIuetuates.
 

 suit to dissolve the Standard Oil Com- pany, faced an unceasing fire of ques- tions from the Federal counsel, Frank B. Kellogg. and when adjournment was taken until Monday, the head of the oil combine was still being cross-exam- ined on the charges that the company, in It's early days, accepted rebates to the disadvantage Of its rivals.
 Mir Rock efeIler's cross examination will probably not be concluded until late Tuesday. as Mir. Kellogg made 1t known that he would inquire into every detail of the company's business, from MT Rockefeller.
 The enormous earning power of the oil combination was sharply brought out in todsy's hearing when Mir. Rocks- feller, after stating that the Standard had paid dividends amounting to t4O,- O00, 900 in 1907 said It had earned as much more. This was added to the capital surplus. which was stated by the gov. ernment's counsel to be So0,oC0,00 00o.
 It was further stated by MT. Kellogg that the company. within-the last eighf years, had earned nearly hah a billion dollars
 The course of Mir. RockeGeiier's testi- mony in the hands of government coun- sel ran not so smoothly as on .yesters day, when he told his story under the direction of friendly counsel. but the rapid fire interrogations of the prosecu- tor wefe always met with unshaken tnl- perturbability and readiness to answer except when, as he explained. "1t ts quite impossible for me to remember after thirty-nVe years. do not rec call alb
 Questioned About Rebatess
 MT. Rockefeller was questioned closely regarding rebates which the Standard was charged with receiving bnt with the exception of the agree ment with the sPennsy 4vania Railroad, which Mir. Rockefeller explained. gave the Standard a .Eahate because ttgenectr ed an equaiizat ton of oil shipments.
 Mir. Rockefeller could not recall any other rebates though he thoughtltt 1t was likely that he might have heard of II at the time. <
 Mir. Rockefeller was again on the witness stand when the Standard Oil examination was at once begun by Frank B. Kellogg. special assistant district attorney
 MT. Kellogg said that the cross ex- animation would not be confined to the period between 1862 and 1882, concern ing which Mir. Rockefeller gave evid- ence on his direct examination, but would cover also subsequent develop nlents. Ia response to questions about the hazardous nature of the oil business. owing to the possibility of failure of supply Mir Rockefeller said that the production of crude oil in the Penn syIvania field had steadily increased from 1862 to 1900. MT. Kellogg read figures from an. official report that the Pennsylvania field reached its highest point of production in 1900 Mir. R0cke- feller denied that the supply of crude oil had always been ample and assert ed that 1t had huctuated but that the supply is larger now than when he was actively engaged in business. He was asked about the development of oil aelds in Ohio and Oklahoma but sala that he knew little about them as they had been actively worked since he re- tired from business. He said 1t was the policy of his company to pay For lis oil at the wells and that the larger mart of the oil 1t refined. was purchased from the producer.
 you have been prosperous since the beginning?' asked Mir. Kellogg.
 "Yes."
 "Do you consider a business hazard ous that on an original investment of S67 900 900, paid dividends amounting to $5gI 900 900 and had left surplus of $500 900 ,00o?"
 "T do not consider the amount of money made determines whether the business Is hazardous or not;
 MT, Rockefeller said that he did not .,uIte comprehend the increase of $13.- 00O. 900 and Mir. Kellogg discontinued tbis line of inquiry. He next asked:
 .'The record shows that up to 190G. the net earnings of the company were k551 .s22,9O4 What was the dividend in Is07?"
 ..I should say about forty per cent"
 "That was about $3s.000 ,O00?'
 hA m me poor old Standard" said Mir. Rocks. fellcr
 lie added that the net earnings for 1907 were approximately SsO.OOOOOe. MT. Kellogg again asked if he consid- cred the business risky on such a show Ing and Mir Rock efesler again retorted Sbst the profits did not determine the risk It was evidenced that the bus mess was prosperous. He assented to Mir. Kellogg's figures showing that the company earned $490.00O,O00 from 1899 to 1906. Adding the earnings of 1sO' would give the total earnings s67o- GOO, 900.
 Then where does the hazard of the business come in?" asked Mir. Kellogg.
 "In the first place, since the first re- hnery was built. more than fifty years ago, we have been prepared at any mo- rnent. day or night to hear the fire alarm We are dealing with very ex- plosive product. Fires are constantly occurring"
 "But your profits were above your fire losses, which have been charged to profit and loss account?"
 "Yes, sir"
 MT rockefeller said another risk u,se the peculiar construction of rein ing machinery which could be used foT no other purpose. One could never tell when he would awake and ind the crude oil supply exhausted.
 MT. Kellogg then asked Mir Rocke- fsller about the Standard Oil agree nent with the Pennsylvania Railroad in 1887 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 between Northern and Southern lines and that there was an agreement whereby he was to equal iEe the amount of freight distributed