The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1908-11-20
Hazardous Story of Oil Mag
nate Does Not Coincide
With Facts
ENORMOUS DIVIDENDS SHOW
that The BUSINESS WAS SAFE
Falls Back on Danger From Fire, but
Is Net With the Fact that Fire
Losses Are Deducted Before Diyi.
dends Are Declared.

New York, Nov. 20-Rockefeller was
again on the witness stand when the
hearing was resumed today. His
cross examination was at once begun
by Frank B. Kellogg, special assist
ant of the district attorney.
In response to questions about the
hazardous nature OF the oil business
owing to the possibility of the fail
ure of the supply, Rockefeller said
that the production of crude oil in
the Pennsylvania field had steadily in
creased from 1862 to 1900.
Attorney Kellogg read figures from
the official report showing that the
Pennsylvania field reached it's highest
point of production in 1900. Rookie
feller denied that the supply of crude
oil had always been ample and assert
ed that it had f1uctuated but that the
supply is larger now than when he
was actively engaged in business.
"You have been prosperous since
the beginning" asked Mr.. Kellogg.
"Yes."
DO you consider the business haz-
ardous that on original investment Of
$67,000,000 paid dividends amounting
to $591 100000 and had lent a Sur
plus of $3OO,OO0,0O0?"
II do not consider the amount Of
money made determines whether
business is hazardous or not" said
Rockefeller.
He was then asked about the trust
agreement OF 1882 and whether the
trust certificates did not show a val
ue of $7O,OOO,OOO and that the stocks
held under the agreement had an ac-
0f -,
said he believed those figures to be
correct. - -
Mr.. kellogg then asked:
"The record shows that up to 1906
the net earnings of the company were
1851 ,922,9O4. What was the dividend
in 1902"
Il should say about forty per cent"
That would be about $39,000,000?"
THAT would be a million in favor
of the poor old standard" said Rock
efeller.
He added that the net earnings for
1907 were approximately ssO.0OO,OOO.
Attorney Kellogg again asked if he
considered the business risky on sucn
a showing and Rockefeller again re-
torted that the profits did not deter
mine the risk.
1t was evident that business was
prosperous. He assented to Kellogg's
figures showing that the company
earned $490,000OOO from 1899 to 1906
Adding the earnings of 1907 would
give total earnings of $4,000, 900.
Then where does the hazard of the
business come in?" asked Kellogg.
"In the first place. since the first
refinery was built more than fifty
years ago, we have been prepared at
any moment, day or night to hear the
fire alarm. We are dealing with a
very explosive product. Fires are
constantly occurring"
But your profits were above your
fire losses, which have been charged
to profit and loss"
Eyes sir"
Mr.. Rockefeller was shown a pooI-
ing contract for the distribution of oil
carrying between different railroads
fixing rates on refined and crude oil
and containing provision for draw
backs" to refiners for certain ship
ments to seaboard. The witness said
the contract was drawn to put the
different refining points on parallel.
THE effect of this agreement was
that it would cost the man in Cleve-
land no more to ship refined oil to
seaboard than shipment made from
any other point. 1t also assured re-
f1ners that the same rates for ship
ment would be alike on all lines"
said Mr.. Rockefeller. He added that
the contract further showed that ship
pers of crude oil to seaboard received