The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1908-11-21
Head of Oil Trust Forced by
Government Attorney to
Make Admission.
MAGNATE'S MEMORY IS
BAD IN SOME RESPECTS
Does Not Regard Enormous Di-
Yidends as Eliminating Ele-
ment Of Risk.

witness for the defense in the govern.
ment suit to dissolve the Standard Oil
company. faced an unceasing fire Of
questions from the federal counsel,
Frank B. Kellogg, and when adjourn.
ment was taken until Monday the head
of the oil combine was still being
cross.examined on the charge that the
company in its early days accepted re-
bates TO the disadvantage of its rivals.
Mr. Rockefeller S cross-exsminatiop
will probably not be concluded until
late Tuesday, as Mr.. Kellogg made it
known that he would question Mr.
Rockefeller on every detail Of the
company's business.
The enormous earning power of the
oil combination was sharply brought
out in today's hearing. when Mr.. Rookie.
feller, after stating that the STANDARD
had paid dividends amounting 90 S40,-
100000 in 1907, sand it had earned as
much moro and that this WAS added 10
the company $ surplus, which was
stated by the governments counsel to
be $500, 100000. 1t was further de-
clared by Mr., Kellogg that the com,
pauy within the last eight years had
earned nearly half billion dollars,
Not Smooth Sailing.
The course Of Mr.. Rockefeller 3
testimony in the hands Of government
counsel ran not so smoothly as Yestcr
day. when he told his story under the
direc ton of friendly counsel, but the
rapid-firc interrogations of the prose
cutor were always met with unshaken
imperturbabilit and readiness to
answer except when, as he explained:
"It is quite impossible for me to
remember after thirty-fivc years. l
do not recall. -
Mr.. Rockefeller was questioned close
ly regarding rebates, which the Stan
dard was accused .of accepting, but
with the exception Of an agreement
with the Pennsylvania railroad, which.
Mr.. Rockefeller explained, gave the
company a rebate in order TO equalize
oil rates, Mr.. Rockefeller could not re-
call any other rebate.
The president OF the standard oil
company, when he learned that the
government counsel would not be able
10 conclude the croSS~eXaminatiou by
tomorrow night, suggested an adjourn
ment until Monday, which was agreed
TO.
Under Cross Examination.
Mr.. Rockefeller was again on the
witness stand when the hearing was
resumed today. His cross examination
was at once begun by Frank Z. kellogg,
lut SDtCIslJ uSSlSLdul uISGI!CJ dLlUEueI.
Mr., Kellogg said the cross eNamina-
tion would not be confined TO the period
between 1862 and 1887, concerning
which Mr., Rockefeller gave evidence
In his direct examination, but would
cover also subsequent events which
were connected directly with those of
the period covered by Mr.. Rockefeller.
In response TO questions about the
hazardous nature of the oil business
owing to the possibility of failure OF
supply, Mr.. Rockefeller said that the
production of crude oil in the Pennsyl-
vanias has steadily increased from
1862 to 1900,
Mr.. Kellogg read figures f,om an
official report showing, that the Penn
of production in 1900. Mr.. Rockefeller
denied that the supply of crude oil
had always been ample and asserted
that il had ductuated, but that u" sup
ply is larger now than waen he was
actively engaged in business. He was
asked about the development of oil
fields in Ohio and Oklahoma, but said
that he knew little about them, as they
had been actively worked since he re-
tired from business. He described the
drilling and production of oil as Of
the character of mining business. He
said ii was the policy of his company
TO pay for its oil at the wells and
that the larger part of the oil IT re-
fined was purchased from the producer.
Always Prosperous,
"You have been prosperous since the
beginning2" asked Mr.. Kellogg.
eyes -
''Do YOU consider a business hazard.
Gus that on an original Investment of
$67 .OOO,O paid dividends amounting
to SOL 100000 and had left = surplus
of $500, 0,000H'
''I don't consider the amount Of
money made determines whether the
business was hazardous or not said
Mr.. Rockefeller,
He was then ns5ed about the trust
agreement of 1882 and whether the
trust certificates did not show value
OF S70,000,000 and that the stocks held
under the agreement had an actual
value of sos, ,7l0.69S.
Mr.. Rockefeller said be believed
those figures TO be correct Mr. Kel
logg then asked whether the stock Ger.
tifcates issued thereafter were for
stock dividends or for additional prop
critics acquired, but j. G, Mllburn of
Mr.. Rockefeller 5 counsel objected on
the ground that this was not within
the scope of Mr.. Rockefeller 5 direct
testimony. Mr.. Rockefeller replied:
After Mr.. Milburn bad again ob,
iected Mr.. Rockefeller said that n stock
dividend OF SI5.700,0Q0 was paid in
1856 aud that stock Of the company
was then $9S.S2S,000
Hazy rs to Details.
.'Then mp to the present time there
has been issued $15,Sl0.000 for cash
or pr0pe5S%ttt gpsTS%1t tcjI 1SxS@ xo@. NF' A0''0es'
"Wen, that would make the stock
value of cash and property turned in