The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1908-11-25


hours today John d. Rockefeller. wit
ness for the defense in the government
suit to dissolve the Standard Oil CON-
panyi faced an uncovering fire Of oues-
tions from the federal counsel, Frank
b. kellogg. and when adjournment
was taken until Monday he was still
being cross-eXamined on the charge
that the company i'm early days accept
ed rebates to the disadvantage of its
rivals.
The enormous power of the oil com
bination was sharply brought out to-
day when Mr.. Rockefeller, after stat
ing that the Standard had paid divi-
dends amounting to $40,00O,OOO in
1907, said it earned as much more and
that t'...5 was added to the company's
surplus, which was stated by the GOV
ernments counsel to be 100000. 900.
1t was further stated by Mr.. Kellogg
that the company within the last eight
years has earned over half a billion
dollars.
The rapid fire interrogations Of the
prosecutor were always met with un-
shaken imperturbability and readiness
TO answer, except when. as Mr.. Rookie
feller explained, 'it is quite impossible
for me to remember after 35 years.
do not recall"
Mr.. Rockefeller was questioned
closely regarding rebates which the
standard was charged with receiving
but with the exception of the agree
ment With the Pennsylvania railroad,
which, Mr.. Rockefeller explained.
| gave the Standard a rebate because IL
| effected an equalization of oil ship
| ments, Mr.. Rockefeller could not re-
| call any other rebates, though he
thought it was likely that he might
| have heard of it at the time.
you have been prosperous since
| the beginning?" asked Mr.. Kellogg Of
Mr.. Rockefeller when the latter re-
| sumed his testimony
Yes"
He was asked about the trust agree
ment Of 1882 and whether the truss
| certificates did not show a value oc
$7O,OOG,OOO and the stocks held under
the gareement an actual value OF $55,-
710,69S. Mr.. Rockefeller said he be-
lieved those figures were correct.
"The record shows. that up to 1906
the net earnings of the company were
s551,922, ,904. what was the divi.
dend in 1902"
| should say about 40 per cent"
THAT was about $39,OOO,OOO?"
THAT would be a million in favor
the poor old Standard" said MI
| Rockefeller. He added that the ne.
earnings for 1907 were Approximately
$SOOOO,OOO.
lie assented to Mr.. Kellogg's figures
'howing that the company earnec
$3.50, 100000 from 1899 to 1905. Add
inc the earnings of 1901 would give
total earnings Of $57O.OOO,OCO.
Then where does the hazard Of the
business come in?" asked Mr.. Kellogg
"in the first place, since the first re
| Anery was built more than so year
ago, We have been prepared at an.
moment day or night, to hear the fir
'iarn. We age dealing with a yer.
explosive product Fires are consant.
ly Occurring
"But your profits were above YOU
fire losses, which have been charge
to profit and loss account?"
Yes, sir"
Mr. Kellogg then asked Mr.. Rookie
feller about the Standard Oil agree
ment with the Pennsylvania railroad
III 1917 in which the Pennsylvania
agreed to pay back 10 per cent. Of tn,
freight sales which the standard paid
| The witness said this agreement fol
| lowed the rate war between the north
| ern and the southern lines and tina,
| lhis W%S an agreement whereby n
was to equalize the amount OF freight
| distributed between the different rail
roads
Replying to question whether the
| Standard oil company was the onl5
| one to set the rebate, the witness sale
that the greater volume Of business
given by the Standard was given H.
| part for the rebate and in those day.
it was the custom for large shipper.
to receive consideration.
Did you know of the contrac;
whereby the Standard was to obtain
20 cents a barrel in rebate on outsid,
shipments?"