New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-11-21

ed him to-that the oil production was steadily
increasing 1t was like all mining, the witness
said, mighty uncertain. Oil used in the Stand
ard refneries was bought at the wells. Then
pipe lines aided transportation facilities and
saved freight
CONTINUES HAZARD ATTACK
From this the prosperity of the business was
taken up in another attack on the hazard
claim.
o-Ne~, your business has been extremely 9TG p.ly
profitable every year has it mot? Ave nave
Q--Do you consider business hazardous tnat
has since 1882 on an original investment OF aoI I
sides having surplus of $500 900 600? Al don't
that has been made determines the question of
whether the business hazardous or not:
the trust the prote of the standard OH Trust
and the Standard on Company have nave, gIaouaty
] could not say that they had graduahy iicieaeo
oven rapidly increased. A-They are more
to-day than they were forty years ago.
Mr. kellogg asked whether in 1882 the capital
was not s7o.00o.600 when the thirty-nine cor
porations figuring in the trust were taken IN
Odd you not that time take those st9eos
h gRGS az actual Do s you Of eT
OIL refer to the actual value Of the PfGpe 55f
acquired pSdn as a., SpFg g,5ont Al sh0"'
about ,55,7lOses "a? Ayes sir.
At this point objection raised to oues-
ton as departing from the direct examination
Objections followed one another rapidly ana
Mr. Kellogg insisted on the answering Of each
The government counsel came back to the prop
erty valuation.
O-That would make s55 10. 900 Of property orig
Q.Esince then you have added sls,S1 ,9 for
Al am al right Mr., kellogg, with your fg~Ts
other figifaton Of yours With your brighter mind
You get clearly and q hi e. 90 6 mSt 1f ha1
5 Saf' sny Sis S .nf Il my y ;Ra
stock de66a WeuS make e pesen stock
the Standard oil Company T oo0 an t.? sIosg
Q.-Yes. J am A-There were issues OF stock
0-Nor You say you issued SIS. 100000 OF stock
DIVIDENDS? AIYou say that L say o 50. rh.r.
wee iss g s t et the SO from time to
That is al right.
ADMISSION OF PROSPEROUsNEss
But Mr. Rockefeller persisted in not under
standing about the S13OO0OO0. Referring TO
the dividends in 1907 when reference to the
poor old Standard" made, 1t was admitted
that the earnings were about SSo,00O.eOo. and
then Mr.. kellogg asked again whether under
the circumstances the OIL business was haz-
ardous.
OF business has paying large diyi-
nrosnePeYs eyerT Year IT is an evidence
that is not very hazardous isn't II? Alt is an
Q.-Now. will you tell me what element OF haz-
ard there is in that business? An the first
place. since the construction of our first refinery,
near fifty years ago We have been prepared at any
We are dealing with a very explosive product,
from the crude oil itself and the very first product
resulting in the destruction Of the property \
process Of destruction has been going on since the
Q.-Then the peculiar constrrction. of refineries
QENoTv take the earlier years after the lorna
Cd 5ss s s9q ron ss$ sgc EIo
cover risk and hazard did You not? A.-The ques-
if an .. WITH e G df 9eetne the
would nave to be determined by the question of |
the oil WIS all gone.
RATE AGREEMENT
Taking up the rate agreement with the Penn
sylvania Railroad on October L. 1877, allowing
a rebate Of 10 per cent Mr.. Rockefeller was
asked whether he remembered it. He said pre-
suna bly,
,o.-And in that agreement you agreed, We fur
Their agree that The quantity Of oil which we Will
calendar year be less than 100000 barrels based
barrels a day. YOU remember that? Al think
that vas Was about the thing, .,,-..,:.,,..-.
read TO you was follows: That you shall allow
own shipments and The shipments Which we may
conNol as may be agreed 70 BY your company
commission. it understood. for present
been fixed at 10 per cent upon the rate. and shall
not be fixed at less percentage except by a
agreement Of your company and ours
You remember that? Al think |
Q.-Now, that 10 per cent to be paid to you
on al OF your shipments as II says here, any
of the trunk lines. That is correct is it? A-Was
not that contract Of the Pennsylvania road, Mr. |
Kellogg?
Q.-Yes. but it provides that you were TO have |
the 10 per cent upon the shipments made by that
company and the other trunk lines from time TO |
time -.t--s-f- |
DIDN'T NEGOTIATE AGREEMENT
1t was denied that the rebate referred to the
Other trunk lines. Nothing that Mr.. Kellogg |
said could induce the witness or his counsel to |
rln. |