New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-01-26

izc that such policy rs unwise' III
our case We found that much tnat WsS
beinr said was not true. so we loohed
around for the best man 10 get tne
facts before the public TO assist the
GENERATORS committee and ourselves I'D
presenting the facts. So VIC engaged
Nr Lee. in June. 1914. TO get out non
est. straightforward reports. he as
sumed no esponslbiity.'
The next set OF question: had 70 90
with Nr. Lees compensation ana VINO
psid IT, Mr.. Rockefeller strugg 90
around in embarrassment. seehlng 70
hold that information back. But Nj
Walsh kept at him, and the wines
finally admitted that Lee had been pslu
81 900 q month out OF the elder koche-
fcller's funds.
NV father felt u was his duty to
The nublic." Mr.. Rockefeller said.
The witness intimsted that, though
NINE Of tho other mine operators had
contributed 10 the expense OF hiring
Lee. Mr.. Rockefeller thought they
should. The other operators paid Tor
publication Of the Lee bulletins.
Mr.. Rockefeller said he was TIM. only
one Of the three members OF MS
fathers staff who was not paid.
On all except big financial matters
affecting the Colorado Fuel and Iron
COMPANY Mr.. Rockefeller could give no
information. Several questions OF dli-
ferent phrasng, but similar purpose
brought the same answer: u DO not
know anything about that He SAID
no had last visited the mines ten years
ago. shortly after reorganization, ana
Knew Of no system Of formal reports
about conditions there. II was only
when the Western members of the eX-
ecutive committee came East that the
questions were taken UP. Mr.. Rookie
Teller was unable TO give even the cap,
ital stock of the company. On Sb,OoO'UVo
his father invested in the company the
senior Rockefeller has drawn dividends
aggregating $37l,oOo.
Less than Savings Bank Pays.
$50 you see that. averaging 81 per
cent. nv father drew less in the twelve
wears than if he had put the money IN
a savings bank" the witness added.
In 1918, Mr.. Rockefeller said, the coal
miners had received q wage increase
totalling S35O,00O, and the steel opera
tives 100000
"Was there also an increase 10 the
consumer in the price OF coal and steel
al the same time?" asked Mr.. Walsh.
II do not know about that hr
Rockefeller responded.
Many Of the spectators chuckled al
this.
But may add" the witness said
quickly, that IL there was 1t WASH
enough 10 make any earnings on the
property
"What was the total amount your
father put into the bonds and stock OF
the company
"Up TO date the actual cash amounts
TO S24,109,SlS. That investment at tne
present market price IS worth sl9'ZoV',
l89. In other words. my father would
have been Sl,909,629 better of II nc
had locked his money up IN a savings
bank, so far as the present value OF
these securities is concerned, as re-
lated to the money originally put IN
Mr.. Rockefeller said he had ~ per
cent interest in stocks and bonds III
the company. He said II did not give
him control-legal control, OF course
but that il the officers favored some
thing the fact that ne had 40 per cent
would not interfere with the ADOPTION
of suggestion from him.
Chairman Walsh wanted the details
of what authority in spending the elder
Rockefeller's money the three mem
bers OF his staff enjoyed.
They simply pass on SUCH invest
ments as any one Of Us may bring up,
or answer such questions as my father
may ask, in his desire to get iniorns-
ton :,
"Does or does not your father finally
have the exercising-the final dlsposI-
haf
YOU
Can't Say Yes or No.
"That is a pretty general term, Mr.
Chairman. and | could not say yes oil
no 10 that. in matters OF Investment
nv father usually-as TO whether "a
buy these bonds or those bonds-he
exDects some of us in the ofice-his
representatives- make study oil
the merits of the investment and make
some recommendation. lie is quite
ant 10 act on the recommendation, Lui
he knows what funds he may wish 70
invest al the time as we may not know
and he simply seeks our suggestion
and acts on them so far as the making
of specific investments IS concerned
he acts on them when other conditions
may make il seem wise 10 HIM 10 act
"As TO the question whether or no
funds will be paid out in the matter
OF finally deciding 20 make the invest
ment. the word is uttered that pays ou
the funds by your father. He control;
that? Is that correct"
"He has direction of making his owr
investments, from any advice he ma
get from any source he may desire e
seek. When you say control ! woult
| be understood as meaning managerial
| control, because my father for man,
wears has not been in active business
/ and it is because he does not wish e
/ be tied down by any such matters, snC
| mas long since left those matters q
/ those whom he may appoint 90 repre-
/ sent him. He takes no responsibility
whatever along those lines"
Chairman Walsh then said: There
+ IS no vote taken, believe you said, bi
/ those advisers there is no require
ment for agreement between you
/ father and his advisers with referenc,
/ 90 the investment OF his own money
| Is that the idea?'
THAT is correct when it comes to th'
| final investment" replied Mr.. Rocke
/ Teller.
I After the information IS received
and advice taken. of course your fsthel
/ separates himself from his own funds
. "a, trgv -