Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-11-20
MILLIONS EARNED
N SEVEN YEARS
Attorney Kellogg Brings Out
Startling Facts in Suit
Against Standard
BUSHES DECLARED HAZARDOUS
Rockefeller Insists Oil Trade is Risky
Regardless of Earning Power of
Standard stocks-Profits Between
1899 and 1907 Amounted to $780,
100000.

VVVyVVVs
New York, Nov. 20.-John d. Rock
efeller was again on the witness stand
when the hearing in the governments
suit to dissolve the so-called Standard
Oil trust was resumed today. Attor-
ney Frank B. Kellogg Immediately be-
gan his cross examination.
kellogg said the cross examination
would not be confined to the period
between 1852 and 1882, concerning
which, Rockefeller gave evidence on his
direct examination, but would cover also
subsequent developments which were
connected directly with those of the
period described by Rockefeller. In
hazardous nature Of the oil business,
response to questions covering the
owing. to the possibility of the failure
of supply, Rockefeller said the produc-
tion of crude oil in the Pennsylvania
field had steadily increased from 1862
to 1900. He denied that the supply
of crude oil had always been ample.
and asserted it had fuctuated, but the
supply is larger now than when he
was actively engaged in the business.
He said it was the policy of his COM
pany to pay for It's oil at the wells,
and that the larger part of the oil it
refined was purchased from the pro-
ducer.
Business Hazards and Earnings.
DO you consider a business hazard
Gus that, on the original investment of
$67. 100000, paid dividends amounting
to 1891. 900, 900, and had left a surplus
,Jf $500. 900, ,000?" asked Kellogg.
II do not consider that the amount
of money made determines whether a
business Is hazardous or not" said
Rockefeller.
He was then asked about the trust
agreement OF 1882, whether the trust
certificates did not show a value Of
$4,000. 900 and that the stocks held un-
der the agreement had an actual value
of $55, ,71O,698. Rockefeller said he be-
lieved those figures to be correst. Kel-
logg then asked whether stock certifl-
Gates issued thereafter were for stock
dividends or for additional properties
acquired. Rockefeller replied:
II suppose So"
Earnings Arc Enormous.
Rockefeller said stock dividend Of
$15,000,00O was paid in 1886, and that
the stock of the company was then
$9s,32S,00o. Kellogg next asked:
"The record shows that up to 1906
the net earnings of the company were
$551,923, 900. What was the dividend in
1902"
'T should say about 40 per cent"
'That was about $39.000,000."
''That would be million in favor Of
the poor old Standard" said Rockefel-
ler. He added that the neat earnings
for 1907 were approximately $4,000, 900.
Kellogg again asked if he considefed
a business risky on such q showing,
and Rockefeller again retorted that the
profits did not determine the risk. 1t
was evidence the business was pros
porous. He assented to Kellogg's fig
ures showing the company earned
s490, 100000 from 1899 to 1906. Adding
the earnings Of 1907 would give total
earnings Of $570,000.000.
"Then where does the hazard Of the
business come in?" asked Kellogg.
''In the first place, since the first re-
finery was built, more than fifty years
ago, we have been prepared at any mo-
ment. day or night, to hear fire alarms.
We are dealings with a very explosive
product. Fires are constantly occur
ring
But your profits were above your
fre losses, which have been charged
to the profit and loss account"
"Yes, SIR
Rebates Were Customary.
Rockefeller said another risk was
the peculiar construction Of refining
which could be used for no
other purpose. One could never tell
when he would awake to find the crude
oil supply exhausted.
Kellogg then asked Rockefeller about
the Standard OIL agreements with the
Pennsylvania railroad in 1871 in which
the Pennsylvania agreed to pay back
10 per cent Of the freight rates which
the Standard paid. Kellogg read the
agreement, which showed it provided
the Standard was to ship 100000 bar
rels Of oil per year. When he asked if
other railroads besides the Pennsyl-
vania made a like agreement Rookie
feller referred him to the men who
conducted the negotiations.
Replying to Kellogg's question as to
the Standard was the only one
to get rebates, witness said the great
er volume of business given by the
Standard was in part responsible for
the rebate, and that in those days it
was the custom for large shippers to
receive consideration.
I'VE sought to secure what all ship
pers than and now seek"
Rockefeller said he as president Of
the Standard, had general direction Of
1t, at that time.
did you know Of a contract where
by the Standard was to obtain 90 cents |
a barrel in rebates on outside ship
ments ?"
= may have kaowa Of It ssner.ll, |