The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1908-11-23
LITTLE
ABOUT REBATES
John D. Rockefeller Under
Cross=Examination.
OTHERS MADE CONTRACTS.

Declares He Had Nothing to Do With
Arrangements Made With Various
Railroads by Which the Standard Is
Alleged to Have Had the Best OF
the Bargain-Asserts Oil Business
Is Hazardous Despite Big Profits.
New York, Nov. 2 when John D.
Rockefeller resumed the stand in the
government suit to dissolve the
Standard Oil company his cross-exam-
nation was begun by Frank B. Kel.
logg, special assistant to the attorney
general.
In response to questions about the
hazardous nature of the oil business,
owing to the possibility Of failure of
supply, Mr.. Rockefeller said that the
production of crude oil in the Penn.
sylvania field had steadily increased
from 1852 to 1900.
''You have been prosperous since
the beginning?" asked Mr.. Kellogg.
EYES," =.
''Do you consider a business haz'
ardous that, on an original invest
ment of $67,0000oO, paid dividends
amounting to $591 100000 and had
left a surplus of $3O0,0OO,000?"
IT 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 $70,000,000 and that
the stocks held under the agreement
had an actual value of $55,710,69S.
Mr.. Rockefeller said he believed
those figures to be correct.
t"The record shows that up to 1906
the net earnings of the company were
1851, 922,9O4 What was the dividend
in 1902" asked Mr.. Kellogg.
II should say about 40 per cent"
"That was about $4,000, 000?"
"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
$80,O00,00O.
Mr.. Kellogg again asked If he con-
sidered the business risky on such a
showing and Mr.. Rockefeller again re-
torted that the profits did not detor
mine the risk.
Mr.. Kellogg then asked Mr.. Rookie
Teller about the Pennsylvania roads
agreement to pay back 10 per cent of
the freight rates which the Standard
paid. The witness said this agree
ment followed the rate war between
the Northern and Southern lines and
that there was an agreement whereby
he was to eQualize the shipments.
Others Made the Contracts.
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
vania made a like agreement for 10
per cent rebate Mr.. Rockefeller re-
ferred him to the men who conducted
the negotiations.
Replying to Mr.. Kellogg's question
whether the Standard Oil company
was the only one to get the rebate
the witness said that the great volume
of business given by the Standard was
In part responsible for the rebate and
that in those days it was the custom
for large shippers to receive eonsid-
GRAFTON.
Don't you know that Mr.. O'Day of
the Standard Oil company and Mr..
Cassatt of the Pennsylvania road both
testified that the American Transfer
company-the Standard Oil company
was not only paid a rebate of 20
cents a barrel on it's own shipments,
but a rebate on the shipment on oil
by Independent refneries?" asked Mr.
Kellogg.
my attention has been called to
such testimony" said MIR. Rockefel-
ler
Mr.. Rockefeller said that he was
president of the Standard and had
general direction of it at that time.
did you know of the contract
whereby the Standard was to obtain
20 cents barrel in rebate on outside
shipments?"
Il may have known of it generally
at the time: I had nothing to do with
the contract"
Mr.. Kellogg then called the witness
attention to a terminal agreement by
which he said the Standard Oil COM
pany obtained the use of the terminals
of the Erie and New York Central rail-
roads and which, he said, provided
that all the oil transported by any
persons over the New York Central
railroad could be delivered to the ter
minals provided by the Standard at
Hunters ONT.
Mr.. Kellogg asked If warehouse
charges were made against the indie
pendent oil refners at these ter:
minals. y
Mr.. Rockefeller said they were
made. He did not recall whether the