Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-11-21
JOHN D. UNDER FIRE
Head Of Oil Combine is Cross
Examined for Five Hours.
HE FoRGETs ABOUT REBATES
Remembers But One Instance Where
Company Received Them.
PROFITS IN BUSINESS LARGE
It Earns Half Billion Dollars in Few
Years.
EXAMINATION IS NOT COMPLETED
sIr. KeIIoEE VIII Require All Day
Monday and Greater Part of
Tuesday-Archbold Comes
Next
EXAMINATION IS NOT COMPLETED

hours today John ID. Rockefeller. witness
for the defense in the government suit to
dissovle the Standard on company, faced
an unceasing fire of questions from the
federal counsel, Frank =. Kellogg, and
when adjournment was taken u-til Monday
the head of the oil combine was still being
cross-examined on the charges that the
company in it's early days accepted rebates
10 the disadvantage OF its rivals. Mr. Rock
efellers cross-examination will probably
not be concluded until late Tuesday, as
Mr. Kellogg made It known that he would
question Mr.. Rockefeller every detail OF
the company's business.
The immense earning power Of the oil
combination was sharply brought out In
today's hearing when Mr.. Rockefeller, after
stating that the Standard had paid divi-
dends amounting to $4O,O0o.OOO in 1907, said
II had earned as much more. and that this
was added to the company's surplus, which
was stated by the governments counsel to
be sS00,O00,OO0. 1t was further declared by
Mr.. Kellogg that the company within the
last few years, had earned nearly $SoooOo,-
COO.
The course of Mr.. Rockefellers testimony
in the hands OF government counsel
not 30 smoothly as yesterday wheI he
told his story under the direction of friendly
counsel but the rapid-fire interrogations
of the prosecutor were always met with
unshaken imperturbabIlity and readiness to
answer. except when. he explained
''It is quite impossible for me to remem-
Der after thirty-fve years. 1 do not re-
call"
Mr.. Rockefeller was questioned closely
regarding rebates which the Standard was
charged with receiving, but with the ex"
ception of the agreement with the Penn
sylvania railroad, which Mr.. Rockefeller
explained gave the Standard a rebate be-
cause II effected an equalization of oil
shipments. Mr.. Rockefeller could not re-
cali any other rebate. though he thought
1t was likely that he might have heard OF
II at the time,
The president OF the Standard on COM
pany, when he learned that the govern
ment counsel would not be able to con-
clude the cross examination by tomorrow
night. suggested an adjournment until Mon
dr. which was sgreed to-
Croas-ExaminatiQn Begins.
MIR. Rockefeller was again on the witness
stand when the hearing was resumed today.
his cross-examlnatonf was at once begun
by Frank b. Kellogg. the special district
attorney.
Mr., Kellogg said that the cross-examina-
tion would not be confined to the period
between 1862 and 1882 concerning which Mr..
Rockefeller gave evidence on his direct ex-
animation. but would cover also subsequent
developments which were connected di-
rectly with those Of the period described by
Mr.. Rockefeller.
In response to questions about the haz-
ardous nature OF the oil business owing TO
the possibility Of failure OF supply Mr..
Rockefeller said that the production OF
a crude oil IN the Pennsylvania field had
steadily increased from 1862 to 1900 Mr..
kellogg read figures from an official report
' yhowing that the Pennsylvania field reached
It's highest point OF production in 1900
Mr., Rockefeller denied that the supply OF
crude oil had always been ample and as
serted that Il had fluctuated. but that the
supply is larger now than when he was ae-
lively engaged in business. He was asked
-4aBout the development OF oil fields in Ohio
knd Oklahoma. but said that he knew little
abOut them. as they had been actively
worked since Re retired from business. He
y described the drilling and production OF
oil as Of the character OF a mining business.
He said II was the policy Of his company
20 pay for its oil at the wells and that the
larger part OF the oil 1t refined was puT-
chased from the producer.
Prosperous From start.
'sTou have been prosperous since the be-
Enning7" asked Mr. Kellogg.
Yes"
@Do you consider a business hazardous
that on an original investment OF S67 600
paid dividends amounting to 1891. .OoO,OtO and
had left a surplus OF SS00o0ooOo?'
~ do not consider the amount OF money
made determines whether the business is
hass rdous or not" said Mr. Rockefeller
ID WAS then asked about the trust agree
S3ent Of lSse and whether the trust certifi-
- Gates did not show value Of $7O,oOO,Oo0 and
that the stocks held under the agreement
had an actual value of $6,7l069s
Mr.. Rockefeller said he believed those
figures 70 be correct. Mr.. Kellogg then
asked whether the stock Certificates issued
thereafter were for stock dividends or for
addittnal properties acquired, but John O.
Ntibern OF Mr.. Rockefeler's counsel OBJ
jsetsd on the ground this was not within
the scope OF MIR. Rockefeller's direct testi-
nony. Mr.. Rockefeller replied:
u suppose So"
After Mr.. Mnlbun had again objected
Mr.. Rockefeller said that stock dividend
, Of nbOCO.0O was paid in 1856 and that the
stock OF the company was then Ss& 900
TThsn up to the present time there had
been Issued sis.sio,ocO for cash or propertyr
asked Mr. Keilogs
IL cannot tell"
n swell that would make the total value
~ ~ cash and property turned In exclusive
money earned and turned back into the
propertyH'
Mr. Rockefeller said he did not quite
Comprehend the increase OF tis.eO0.ooo, and
M Kellogg discontinued this line OF i'm.
curry. Tie next asked
where Risk Cosmos In.
/, vrhs record shows that up TO 1905 the net
~ earnings OF the company were toel'sz2,So Soi
a What was the dividend IN 1917
i should say about 20 per cent
fnkat was about SSs.oOo.ooOr'
maj would be a million In favor Of ths