The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-01-05
DEFIES THE LAW.
The Giant Standard Oil C0rpOr-
alton Refuses
To Comply With the Order
the Court.
WILL HIDE ITS BOOKS
Its Attorney Says That 1t
Didn't Burn Books
To Conceal Crooked Work But
WILL HIDE ITS BOOKS
To Conceal Crooked Work But
That the Company
Always Burns Old Books in
Storage Every Ten Years.

Columbus, O., Jan. SIN the argu-
ments before the supreme court today
on the motion Of the attorney general
to dismiss the master commissioner and
continue the investigation of the Stand
ard Oil company in open court, Hon.
Virgil P. Kline of Cleveland, attorney
for the oil company, was forced to make
some very positive statements and ad-
missions. He declared, in the first
place, in response to interrogatorieS of
the court, that the company will not
under the former order of the court,
produce any books other than those al
ready given in evidence. In the second
place, he admitted that there are still
outstanding about $27, 900 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 action.
Attorney General Monett and Attor-
ney E. B. Kinkead appeared for the
attorney generals department, and
Virgil P. Kline of Cleveland, Lawrence
T. Neal of Columbus, and S. B. Elliott
of New York city, for the Standard Oil
company. Only the attorney general
and Mr.. Kline addressed the court
Special Master Commissioner Brins-
made of Cleveland, whose removal had
been demanded in the petition of the
attorney general, was not present and
but very little was said about him,
the arguments were principally devoted
to the question as to whether or not the
officers of the Standard Oil company
have complied with the recent order of
the court to produce the company books
showing gross earnings and distribution
of dividends since the trust was or
dered dissolved in 1892. Attorney Cen
eraI Monet argued that the company
produced no books in evidence except
stock books, that dilatory tactics had
been resorted to by them, that the
master commissioner had not forced
compliance with the orders of the court,
that now the funds available for the
purposes of the investigation are ex-
hausted and that the officers of the
company have defied the court.
Mr.. Kline, in reply stated that the
company has books that are perth
nent to the order of the court save
minute books and ledgers which have
been placed in evidence. He declared
that commercial books of the corpora
tion were formally demanded, and when
pressed by the court, he admitted that
they would not have been produced if
asked for.
He protested that such a demand is a
violation of the rights of the stock
holders under article one of the bill of
rights, the constitution of the state and
the fourteenth amendment.
1t was at this juncture that Judge
Minshall~ asked: DO you refuse to
comply with the order of the 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 sug-
gested that he supposed the object of
the company's attorneys is to have
witness refuse to testify regarding the
books in the next hearing, in the ex-
pectation that he will be placed in con-
tempt, and then habeas corpus proceed
ingS will be undertaken.
Mr.. Kline offered no explanation
Chief Justice Spear asked: HAS your
company any books showing the work
ings of the corporation?"
Mr.. Kline replied: I'VE have books
showing gross earnings and all financial
details and we still have them. This
talk about burning them is the merest
chaff''
He was next asked: "Will you pro-
duce them?"
And he again said: "we will not un-
der the former order, because 1t would
be 6 violation of our rights. We have
always been willing to produce our min
ute books and ledgers showing corpor-
ate transactions, but not books showing
the holdings OF stockholders and trans
ferS among them. Any item that could
not be readily explained, would be mis-
construed and the result would be no
nearer, no clearer We submitted all
books showing ownership of trust stock
and how it got back into stockholders
hands. When the order to dissolve was
made in 1892, there were s97,00O0O0
worth of certificates outstanding all of
which but about $27, 900, 900 have been
drawn in, but the president of the cor
poration has so far been unable to get
these because they are held as invest
ments and collateral by persons who
prefer them and are trying to retain
them. 1t takes time to convert all this
amount of money into corporate stock.
The holders of them do not get a dol
lar of dividend from the Standard Oil
company of Ohio. AS to the books, we
burn old books in storage every ten
years but there have been none de-
stroyed pertinent to this investigation"
At the conclusion of the arguments
| the court gave the attorney of the oil
| and constituent companies two weeks In
| Nhich to file their answers in the peti-
| tions against the constituent compa-
MES.