Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-01-05
DEFIES THE COURT
Standard Oil Company's Attorney
Refuses to Produce Books.
Case IN OHIO SUPREME COURT
Judge MinshaII Asked Question
Which Developed Their Plan.
OBJ ECT OF THE SUIT

COLUMBUS. Ohio January Sin the ar
morning of the motion of the attorney gem
eral to dismiss the master commissioner
and continue the investigation of the Stand
ard Oil Company in open court, Virgil P.
Kline of Cleveland, attorney for the oil
company, was forced into making some
very positive statements and admissions.
He declared, in the first place, in response
to questions of the court, that the COM
pany will not under the former order of
the court produce any books other than
those already given in evidence. In the
second place, he admitted that there are
still outstanding about $2T 100000 worth of
trust certificates of the Standard Oil Trust
which the court ordered dissolved in 1892,
but which the president of the Standard
company has all along been trying to get
in and is still trying. The court heard the
arguments of both sides but took no ac-
ton in this mornings session.
Question in Issue.
The arguments were principally devoted
to the question as to whether or not the
officers of the Standard have complied with
the recent order of court to produce the
company books showing gross earnings and
distribution of dividends since the trust was
ordered dissolved in 1892. Attorney Cen
eral Monnett argued that the company pro-
duced no books in evidence except stock
books. that dilatory tactics had been re-
sorted to by them, that the master COM
missioner had not forced compliance with
the orders of court, that now the funds
available for the purpose of the investiga-
ton are exhausted, and that the officers of
the company have defied the court.
Mr.. Kline in reply stated that the COM
pany has no books that are pertinent to
the order of the court save minute books
and ledgers. which have been placed in
evidence. He declared that commercial
books of the corporation were formally de-
manded, and when pressed by the court he
admitted that they would not have been
produced if asked for. He protested that
such demand is violation of the rights
OF the stockholders under article | of the
bill of rights, the constitution of the state
and the fourteenth amendment.
Their Refusal Was Flat.
1t was at this juncture that Judge Min
shall asked: DO you refuse to comply with
the order of court?''
To which Mr.. Kline replied: I'VE do
For the purpose of presenting the legal
questions we desire to raise. This will be
when the order is presented to the officials
TO produce them
Subsequently Chief Justice Spear suggest
ed that the supposed object of the COM
pany's attorneys is to have a witness refuse
TO testify regarding the books in the next
hearing. in the expectation that he will he
placed in contempt, and then habeaS corpus
proceedings will be undertaken Mr.. Kline
offered no explanation
Chief Justice Spear asked Has your COM
pany any books showing the workings of
the cOrporation2
Mr.. Kline replied: I'VE have books show
ing gross earnings and all financial details
and we still have them This talk about
burning them is the merest chaff."
He was asked: "Will you produce them?"
and he again said: I'VE will not under the
former order. because it would be a vio-
lation of cur rights. We have always been
willing to produce our minute books and
ledgers showing corporate transactions but
not books showing the holdings of stock
holders and transfers among them. Any
item that could not be readily explained
would be misconstrued and the result
would be no nearer, no clearer.
We submitted all books showing owner
ship of trust stock and how it got back
into stockholders hands. When the order
to dissolve was made in 1892 there Were
S97, 100000 worth Of certificates outstand-
ing. all of which but about S21 600, 900 has
been drawn in. but the president of the
corporation has so far been unable to get
these because they are held as investments
and collateral by persons who prefer them
and trying to retain them