I have a question about 2 semi related quests.

1. If I give Fargoth back his ring once I exit the Cenus Office, I read that he will later store it in the hollowed out stump? Is this true?

2. If I get Fargoth's stash, can I keep it fror myself without giving it to Hrisskar Flat-Foot? If I do keep it, are there any ramifications later?

1. Yes that's true. Do the quest given by Hrisskar to find the ring there.

2. You can keep it. As long as you don't go back and talk to Hrisskar the quest will just remain open, causing no problems.

1. Fargoth will store the ring in the hollowed out stump IF you accept Hrisskar's quest and observe Fargoth doing so.
2. You can keep everything without any problems, the only issue is that the quest will always remain open in your journal until you go to Hrisskar.

I did read somewhere that if you decline the quest from Hrisskar, the Fargoth will have 1000. Is that true and is that in the stump or on his person?

True, he'll have it on him.

Also... I assume you're reading this from the http://www.uesp.net/wiki/Morrowind:Morrowind... Just so you know, %99.9 of everything on there is accurate.
You do not need to ask us if something you read on the wiki is true. You can safely rely that it is.

I know but I perfer responses from here as well