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Information, for the purpose 6 prosecuting that
case, and that these-very things this very thing
hat your honor is now asking about, this very
question and, indeed, for that matter, the
other questions as to the amount of the capital
stock and the earnings and dividends of the
Standard Oil of 'New Jersey are questions and
Issues that are involved In the case upon which
the averments have been made by the govern
ment for the purpose of establishing its case
'And it has been widely published
The Court What has?
Mr. MillerWhat I ai about to state. In
the press within the last week and since this
investigation, has started, that the government
has a purpose in this investigation to Beek and
develop evidence for the purpose of this case
in Missouri,
The Court What do you mean by the gov
ernment? Mr. Miller Well, I use the words that I
have seen published In the newspapers.
The Court What do you mean to convey
by your use of the words "the government?"
Mr. Miller I had not any particular mean
ing. I merely quoted them as talcing place in
the newspapers.
The Court I wish to state to counsel that
the government" has nothing to do with this
inquiry.
Mr. MillersWell, I am merely quoting
there, a2d I am not insinuating I am not sug
gesting that your honor has any purpose of that
kind in this inquiry. I am suggesting what I
have seen in newspapers, and I have an Idea that
.what Is meant by "the government" is the de
partment of justice that is in control of the
prosecution of that case and has been cer
tainly active enough in getting around these
tacts for the purpose of this investigation. But
aside from1- all that, that is a reason ,1 submit
to your honor why whatever inquiry ytftf 'think
is important and proper in order to determine
the amount of a penalty should be limited with
Borne strictness, or at any rate, if not with
strictness, that it should not cover all creation
and invade a case where this same government
is prosecuting these same parties, and in there,
too, these individuals are defendants for the
violation of a criminal law and where It does
not assist the co.urt in. enlightening its discre
tion for the purposes' of the present matter in
hand.
The Court In the view of the court the
court may be right and the court may be wrong,
in the view of the court it is very pertinent for
the court to ascertain the occupation of the
Standard Oil company of New Jersey who holds,
if it does hold the shares of the Standard Oil
company of Indiana, what its business is gen
erally speaking; if it Is in the oil business. Now
an answer to that inquiry
Mr. Miller May I ask what pertinency the
inquiry has upon what Is before the court? Is
it to enlighten the court? Am I right in under
standing that it is for the purpose of enlight
ening the court in the exercise of this discretion
in fixing the amount of a fine?
The Court Entirely.
Mr. Eosenthal And what the court seeks
to ascertain is the wealth of the alleged hold
ing company for that purpose?
The Court Why, certainly. What the occu
pation of the holding company is.
Mr. Rosenthal No. Not only what the
occupation is, but what the wealth of the hold
ing company Is so that your honor may deter
mine the amount of this fine in the light of the
wealth and financial standing of the real de
fendant, as you designate it.
The Court As one circumstance to be con
sidered. Mr. Rosenthal And that is the. purpose, of
this Inquiry?
The Court Unquestionably.
Mr, Rosenthal Certainly.
Mr. Miller Your honor will permit us an
exception to the overruling of our objection?
The Court Certainly.
The court then resumed the examination of
Mr. Rockefeller, as follows:
Q. Have you any recollection, Mr. Rock
efeller, that the Standard Oil company of New
Jersey is interested in the refinement of oil
more than in the one refinery you have re
ferred to? -
A. I do not know what refineries there
are. The refining business has grown up since
my touch with the active Telation to it.
Q. So that you don't know?
A. I could not tell.
Q. That there are any whether there are
any oil refineries in which the Standard Oil
company of -.New Jersey has an interest?
A. I only' know of the operation of refln-
Jirles that are in New Jersey by the StaLdard
,011 company of New Jersey.
Q. Do you know of the Standard Oil com
pany of New Jersey being interested In the
operation of any other refineries through and
in the name of tho corporation whoso stock i&
held by the Standard Oil company of New
Jersey?
A. That I presume is so.
' Q. Is the business of the Standard Oil com
pany of New Jersey, generally speaking, tho
production and refining of oil?
A. The" production, the refining and tho
sale of oil, that Is an Important featuro of. the
business of the Standard Oil company of New
Jersey.
Q. Beyond that what is its occupation?
A. I could not say I do not think' it would
be proper to say that it has. occupation in ad
ministering refineries these refineries that are
there. Those are rather technical points.
Q. Substitute the word business for occu
pation. Beyond the production and refinement
of oil, has the Standard Oil company of Now
Jersey any other business?
A. I should say not, strictly speaking. 1
should say not, strictly speaking.
Q. Do you know what tho dividends of tho
Standard Oil company of New Jersey were dur
ing the years of 1903, 1904 and 1905?
A. It don't know, your honor, exactly, but
approximately about 40 per cent of the out
standing stock. I would not undertake to speak
absolutely definite, but that Is a close approxi
mate. Q. Do you know what the net earriings of
the Standard Oil company were during those
years?
A. I do not, no.
The Court Have you any questions? '
Mr. Miller None. '"
Mrf Sims I would like to ask a few.
Q. Are you familiar, Mr. Rockefeller, with
the circumstances surrounding the organization
of the Standard Oil company of Indiana?
Mr. Miller That is objected '. to for 'tlio
reasons ', ' '
'. The Court I dont cara for that.
Mr. Sims I would .like, if the court please,
to call the court's attention at this particular
time -and tender to the courfc before this wit
ness leaves what is known as the Standard Oil
trust agreement of January 2, 1882, and I. call
the court's attention to the third, fourth and
fifth paragraphs of that trust agreement, pub
lished Jn the report of the commissioner of cor
porations, part 1, under date of May 20, 1907,
the three paragraphs to which I call the court's
attention showing the Standard Oil company's
rights to organize in, any state in the union or
territory subsidiary companies to be known as
the Standard Oil company of that particular
state -or territory. Our information is that the
Standard of Indiana was "organized in pursu
ance of the clauses In that trust agreement.
Mr. Rosenthal Suppose that is so?
The Court Yes. That is all. Any other
questions.
Mr. Miller That is all of Mr. Rockefeller.
That is all for the present.
Mr. Miller Might I ask when Mr. Rocke
feller 6r other witnesses are so excused they
may regard themselves as excused from further
attendance?
TheCourt There is possibly one other
question, the court desires to ask him.
Q. (by the court). What officer of the
Standard Oil company of New Jersey, Mr. Rocke
feller, would be able to tell what the net earn
ings of the Standard Oil company of New Jersey
were during the year 1903, 1904 and 1905?
A. I really do not think I could tell you.
Undoubtedly one of the gentlemen subpoenaed
is here present who could, "'but
The Court I see that Mr. Pratt, secretary;
Mr.Howe, assistant secretary; Mr. White, as
sistant secretary, and Mr. Barstow, assistant
secretary, are here.
Mr. Miller Mr. Archbold, who is vice pres
ident Q. Would either one of those gentlemen
be able to answer that question?
A. What was the question, if your honor
please?
Q. As to what the net earnings of the
Standard Oil company of New Jersey during the
three years mentioned were,
A. I should think so, sir. -
Tho Court Mr. Pratt?
Mr, Rockefeller One of these, gentlemen
or Mr. Archbold. ' " - .. '
-' ' The Court Mr. Pratt. That Is all for ,U "
present, Mr. Rockefeller. !. : i
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Washington Letter
Washington, D. C, July 8. Boforo tho
strike of the Commercial Telegraphers' Union
shall bo fought to a finish, it Is vcrr likely 'to
become an issue of national political impor- -tanco.
It can not of courso equal in Impor
tance tho famous striko of tho anthracito coal '
miners, but it not improbably will involve tho
national administration much as that labor con
test did. Tho othor day tho Central Labor Union .
of Washington, upon motion of W. W. Beatio,
tho first vice president of tho striking tolo
graphors, adopted a resolution asking tho presl-
dent to have stops taken to determine tho physi
cal valuo of tho telegraph systems of tho country.
It further requested that the gpvernmont should ,
attempt to dotermlne whothor thoro oxlsts a '
combination in restraint of trade botweon the, ,
telegraph .companies in violation of tho Shorman ,
anti-trust law
The second request has boon answered to
a moral certainty, though not, of courso, by legal
evidence by tho companies themselves. Whoa ,
the Western Union raised its rates on commor-
clal inessages from forty to, sixty per cent the.
Postal Telegraph followed in twenty-four hours i
with identical increases. For example,, four
months ago tho rate over either system for the
customary ten-word messages from Washington'
to Now York was twenty-five cents, today it Is
forty cents. As a matter of fact the telegraph
systems are owned by and their enormous revo-.
nues accrue to, throe families tho Goulds, the
Sages and tho Mackays. No commercial business
of such enormous proportions is hold in so fowJ
hands. .
Some years ago a senatorial committee was i
making tho perfunctory Investigation In vogue1
at that time Into tho telegraph monopoly. A
witness long connected with the telegraph busi
ness stated in an offhand way that tho telegraph
companies were capitalized for more than eight
times the value of their-physical property. The"
late Senator Hoar, who was examining5 him, cx1
pressed both surprise and unbelief, but before'
leaving the stand the witness, merely with the
aid of tho stock market reports for tho day and
a Wall Street hand book giving tho amount of
the capitalization of the companies, was ablo
to prove thd essential truth of his statement.
Tho significance of the demand that tho
president shall ask congress to provide for a
valuation of the telegraphs, as he has already1
asked for a valuation of the railroads, is ap
parent. If, as is probably true, these- compa
nies are paying dividends on a capitalization
eight times what their property Is worth, it is
perfectly apparent that in order to do so they
must be either robbing their patrons, or grind
ing down their employes. As a matter of fact
thoy are doing both. Their recent increase In
rates was utterly unjustifiable and was made
possible only by the complete community of in
terest that exists between the two companies.
As for their employes, the scale of wages has
been so continually reduced that today $75 a
month for fourteen hours work daily is hlgH
pay, and the companies are gradually proceed
ing toward what they regard as a fair wage for
skilled service, namely a dollar a day. They
are, wherever it is possible, replacing men by
women because the latter will work more cheap
ly. It is to the credit of the telegraphers' union
that it does not protest against the employment
of women, but insists that they be paid the same
rate as men for the same class of work.
President Roosevelt has transmitted the
request of the Central Union for a valuation of
telegraph properties to Herbert Knox Smith, the
chief of the bureau of corporations in the de
partment of commerce and labor. Mr. Smith
says the resolution was sent to him with no in
structions from the president as to what should,
be done about it. It is perhaps an unfortunate
feature of the case that the gentleman to whose
care the resolution has been thus perfunctorily
committed is the nephew of Senator Knox, the
former attorney general, and a gentleman who
has not wholly been free from litigation in be
half of the telegraph companies himself. Never
theless the forces of labor do not intend to
allow the jnatter to die, or even to sleep. TM
action of the Washington union is to be fol
lowed by similar resolutions adopted by central
federated unions id all the great cities of the
United States.
- ' WILLIS X. ABBOTT.
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