The sun., 1909-02-26
ANSWER BY ROCKEFELLER
me ~ iRGE TN tT THESTANDiRD
ROBBED THE WIDOW BiCKI'S.
raid Her Wore Than the Property Was
worth and 0nered All or Part OF Il
iiack NJ same Price on Dividends
iiiGh because There's No water.

iiack NJ same Price on Dividends
iiish because There's No Water.
Ia his article appearing in the March
number of the Worlds Work. the sixth
~ series running in that magazine,
John ID. Rockefeller breaks the silence
o' thlrty-one years to defend himself
against tale which IF il were true
would represent shocking instance OF
cruelty in crushing defenceless woman. +"
vi Rockefeller refers to the Backus
purchase made by the company OF which
h" was the head in 1878 and often cited
a. an example OF the relentless cruelty
Of the Standard company,
The story as told s one which makes
the strongest appeal to the sympathy
writes Mr.. Rockefeller. 1T is probable
TIA, its wide circulation and its accept
aucr AZ true by those who know nothing
O. the facts has awakened more hostility
against the Standard Oil Company and
against me personally than any charge
Nhicn has been made. This is my reason
lot entering so much into detail in this
part cular case. which | am exceedingly
reluctant TO do and for many years have
rrirained from dong"
Nr. Rockefeller then proceeds TO tell
how the widow of f. NJ Rackus. who had
been engaged in the hbricating oil bus-
ness before his death. had personally
"iuested MIR. Rockefeller to conduct
negotiations with her in reference 10 the
purchase by the Standard Oil Company
&C the properly left her ly her husband.
This Mr.. Rockefeller says he declined TO
do because OF his ignorance Of the details
Of the !ubricating oil business at that
time. lie advised her to- weigh matters
carefully before she sought to cell her
refinery. but when she persisted in a de-
sire to dispose Of her property nepotia-
tons for the sale We're tax en- up Nv one
Of the Standards officers.
The only thing | had to do with it,
writes Mr. Rockefeller. was that when
our experts reported that in their judg-
ment the works, good will and success
soiship which we had decided to buy
we're worth certain sum | asked them
~ add $4,000 in order to make doubly
sure that she received full value. The
sale was consummated. as we supposed 10
the, entire satisfaction Of Mrs. Backus
and the purchase price which had been
agreed upon was paid
Mr.. Rockefeller continues TO say that
he was greatly surprised soon aferwarl
TO receive very unjust letter from Mrs.
Eackus. which complained that she had
heen unfairly treated. The reply that
he made TO it he Incorporates in the ar
ticle. In part his letter says
Wishing to take a liberal view of it
''he purchased | urged the proposal of
paying S60,c which was thought much
TOO high by some of our parties. In view
OF what seems to be your present feeling
] now offer TO restore to you the purchase
made by us, you simply returning the
amount Of money which we have invested
and leaving US "a though no purchase
had been made.
Should you not desire "a accept this
roposal | offer to you 100, ?OO or 200
shares Of the stock At the same price
hat we paid for the 81 me. with this addi-
lion, that il We keep the property we are
inder engagement to nay into the treas .
Iry Of the Rackus Oil Company any /
. mount which, added to ,he amount !
already paid, would make the total Of
100000 and thereby make the shares !
100 each
Mr. Rockefeller supports his state
nents by quoting excerpts from the ,
fhdavit made by Charles II. Mari, who
onducted the negotiations for the sale
# the property as the representative Of
nent that Mrs Rackus was fully cog
liant Of all the details of said negotia-
ons and the items and values attached
hereto In said proposition. consulted with
I every step thereof none of which
vas taken without her advice.
Mr.. Rock eiellcr ESQ includes in his
thjcment Of the true nature of the trans
otion between Mrs Backus and the
lombard company a Letter which was
ritten to him bv II NJ Backus. brother
/ Mrs Backuss husband. without so
iCitation Tho letter s1Ns that Mrs.
'ackus thinks you have literally robbed
'r Of millions, and feeds her children on
hat diet three times day more or less.
more, until IL has become
0aria with her, and no argument that
ny ore else can suggest will have any
Nnct upon her
The letter saws that it's writer ia con-
i1O ed of the fairness of the bargain made
e;ween the Standard Oil Company and 7
lrs Backus.
\ great part Of Mr., Rockefel lers article 5
: Aen up with answers to the common
rgimAnts brought 10 bear against the . !.
tandard company The question of /.
ivi1euds Of the company, which APP |,
cared IN some Of the hearings conducted :
sfore referee by Special Prosecutor :
.e,logC in this city year ago, Is one Of
nose explained by the writer;
Now these dividends run up To ~ per
ont on the capital stock Of 500 900, ,OOOs
" that does not mean that the profit n
20 per cent on the capital invested. Az
matter Of fact il represents the result. o
T the savings and the surplus gained v
trough all the thirty-five or forty years =
I the workings Of the companies The .
tpital stock could be raised several hun a
red per cent. without a penny Of over q
tptalzation or water the actual value \
an haan do II