The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-11-20
John y. IS SILENT
ON TRUST HISTORY
Continued from First Page)

4.
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600. but your figuring Of S69,0Oo.OO0 don't
8dufte grasp You may see II with your
abFighter mind. Where DO you get the
3Sl3 COO 900? DO / understand you TO say
Athat new money put in exclusive OF
EARNINGS was Sl5,O00U0O?
OIL think YOU understand me. You
tE3y you put in $4,000. COZ
s3-AIr Rockefeller again leaned torWatu
and said. You say / say SO.
~ This created laugh IN which the
SStandard oil lawyers Joined
Balance at Par Value.
=. $50 that the balance of stock or
certificates were issued for property or
Smoney at the full par value, were they
Anot?
AT the amount of S56OOO,OO0 was in
kcreased during this period By Just $l3,-
F00o, 900, of course, that would make just
-abOut S69. 100000. what the increase
was I have not in my head.
Q.-You have then. according 10 the
record in evidence, paid out IN dividends
up 10 and including 1906, 5ll,JZZ. SO4, 10.
What were the dividends for the year
1902
Al cannot state.
Q.-What was the dividend in 1907?
Al cannot stale 1 should say they
were about what they had been for the
In a Voios hardly above a whisper.
Mr. Rockefeller added
Forty per cent.
Q.-About $4,000 OJO2
A.-Perhaps. That might be about 4
million in favor Of the poor old stand
Air Rockefelbsr smiled grimly at his
O%n little IOlEe-
p.-What were the net earnings APP
pkoximateIy for 1907! ,,-
A.-I could not state. should till4h
hey are around So0V94,O1o -, -.
D-\ov. il appeA rs Standard OH TruS-
aFaHHr q
have down to 1907, paid DIVIDENDS on
tie certihcAECs and the stock amount
6 to 1891, SIS 900 in round numbers, ana
has a surplus of about N8JJ.WllVJ De
sizes. on an original Investment of S5g.-
GE 900. Now. do yOa' think that Is
RISKY business
There was another big laugh at this
question. Mr.. MiIburu and Mr.. Rosea-
tIfaI were quickly on their feet with
objections. but AIr Rockefeller was re-
uAiTeG to answer.
not determine the question of whether
TIPS Is hazardous business
Question of Arithmetic.
81 will take the years from 1883 TO
1906. 1t appears that the company paid
oat about $3.50 100000 in those nine years
Adding to that the met profits Of 1901,
would make about $5l0oJ1,000. would it
not?
Air. Rockefeller. in the character OF
f'If you add SS0UlO.uE 10 Si90V1OO0 Or
$50. 100000 is The correct amounD you
Win have a result OF S5tOUJJUUJ-
Q.-NOW, then Alr. Etocheteller' VIII
you tell me what hazard theIe Is IN
ThaU business
Hereupon, MT Rockefeller launched
into quite a lengthy speech becoming
In the first place. Mr.. Kellogg, since
the construction of our nrst rehneFys
nearly fifty years ago, We nave Deeh
prepared any moment. day or hBHt'
10 hear the nre alarms We are DEAL
ing with a very explosive product From
the crude oil Itself in the very nFst
process OF dIsJIiIaLi0u, nTes are con
stantly occurrlas. Inc desLI4GSloh OF
the property and the places OF dIstriou-
ton from the beginning has neen a
possible contingency that We have had
always TO be prepared for.
Profits Exceed All Losses.
O.-Now the profits AIr Rockefeller
are over and above all such losses, are
they not2
Avery likely they are,
Q.-And such fires have occurred in
the past, haven't they2
A.-Presumably SO.
sQ.-Aud the losses have been charged
A.-yes, if these profits are what you
state.
Q.-Wen. then. the peculiar coustruc-
ton OF the properties and the renneries,
was another element OF risk?
A--Aes.
sQ-Take the earlier years from 1898
TO 1896 You charged off every year a
large depreciation TO cover this same
risk and hazard did You uoty
Ave were conservative IN the Keep
ing OF our accounts with q view OF
meeting the contingencies as to whether
we would wakeu up the next day and
1ihd the oil ali gone.
Q.-Well. you've waHened Up a great
MANY days. haven't you, and found the
supply stn there?
He Is Very Grateful.
There vas another laugh Mr.. Rock
ofcIIer leaned forward stiu further and
ia an impressive voice replied:
Eyes, and 1 am very grateful for IT, l
assure you
sO-Mr. Muburn yesterday called your
a4tentiOn TO an agreement you had
with the Pennsylvania Railroad Com
uany. dated October u, l6IG wherein
tie railroad company agreed 10 pay you
FOR the standard OH Company. 10 3eT
cent of the rate which the Stanoa I'd
should pay on it's shipments. Do You
remember that agreement?
A-Ees.
Mr.. Rockefeller began to get a ] tile
nervous at this point and glanced .rv-
Ohsly AT Mr.. MllhuTn and Mr. Rose n
thal. hesitating before answering each
question.
The agreement was handed to the wit
ness.
Q.-That agreement followed the rate