Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-10-17
Average Dividends Of Latter Company
Three Hundred Per Cent
ASH FIRST PAID TO PIERCE
He Then Sent Two Thirds Of il to New
York Office Of Standard.
WITNESS COMMITTED FOR CONTEMPT
Charles VI. Adams, Secretary Of
Waters-Pierce Company Refuses
10 Tell who owns the
stock.

ST. LOUIS oct. 16.-Inquirles into the
affairs of the Standard. Republic aud
Waters-Piercc oil companies were resumed
here today. Among the principal witnesses
summoned were c. A. Pierce president of
the Waters-Pierce company; c. p. Ackert.
c. l.. Ackert and A. NJ. Findlay, officers of
the company. and President Heyer OF the
Republic Oil company.
The hearing is being conducted by Attor-
ney General Hadey on the ground OF al
legged violation Of the antitrust statutes
and will probably continue for several days.
Evidence that two-thirds of the profits
Of the Waters-Pierce oil company are paid
to the Standard oil company annually was
brought out in the investigation today. Il.
Clay Pierce, until recently president OF
the company. 1t was stated. received
monthly dividends amounting to from 25
to so per cent on 1895 shares, or all but
four shares of the stock of the Waters
Pierce company and his secretary sends
two-thirds of this amount to the Standard
oil company.
Charles b. Collins. formerly financial sec
retary to Mr.. Pierce, testified regarding the
injunction proceedings brought at Kansas
! City by Attorney General Hadley to re-
strain the Republic Waters-Pierce. Stand
ard and Williamson OIL companies from
| entering into an alleged combination.
Three Hundred Per Cent PrOat.
He said:
That from 1901 TO September, 1904, when
he severed his connection with the cor
| poration. the Waters-Pierce company paid
dividends to H. Clay Pierce on 1896 shares
of stock. all of the stock OF the company
with the exception of four shares, and
! that these dividends amounted TO Is per
| cent, sometimes so per cent, month. and
the average aggregate annual dividends
of the company on capital of 100000
| never fell below 800 per cent; that sum
! euualling two-thirds of Mr.. Pierce's dlvi-
| dends was sent by Mr. Pierce through
| Collins, who secured a cashiers check for
the amount. to Mr. Tiilford at 2e
Broadway New York." the ONCE Of the
Standard OIL company; that in two In
stances he (Collinsl visited the Standard
on Office hanhself, .e6fftfng the dividend to
MIR. Tflford In person; that he (ColiinsD
| kept two sets of books. one showing Pres
ident Pierces income, the other the large
dividend sent TO the Standard Oil company
In Mr.. Pierces Income account there was
no debit column. and in the book con-
| tanning record of the Standard OIL con-
! tributions there was no credit column.
william >. meyer iiNhh0bNA VI NhS oNs
Louis branch Of the Republic on COM
pany. who followed Collins on the stand.
proved an unwilling witness.
After considerable questioning. Attorney
General Hadley drew from the witness the
admission that the Cleveland Refining COM
many disposed of it's stock to a corporation
known as the Republic oil company, of
which the chief Officers were associated
with Standard oil interests.
Commissioner Anthony. before whom the
inquiry is being conducted, will tomorrow
rule on the question as to whether the Wa
ters-Pierce Oh company shall be required
to produce its books in court.
witness Under Arrest.
Immediately after the conclusion OF the
hearing. Charles NJ. Adams. secretary OF the
Waters-Pierce Oil company, who had been
on the witness stand during the afternoon,
was constructively placed under arrest on
a contempt charge.
Notary Public Charles e. ToIles. who
issued the order. stated that Mr.. Adams
would not be placed in jail tonight. but that
| a commitment would be issued tomorrow
morning Judge H. l., Priest OF counsel
for the company. said that he would apply
for a writ of habeas corpus as soon as the
commitment had been issued.
After readily answering questions relative
to his official position with the Waters
Pierce company. Attorney General HanleS
asked Mr.. Adams to name the stockholder'
in the company. He declined TO reply.
In defending the witness course, Judge
Priest stated that the witness might bS
his answer subject himself and others &c
legal proceedings and that he had the con
stitutional right not TO answer.
Then 1 ask that he be committed e
custody" said the attorney general "anC
you can apply for writ Of habeas corpus
which will give opportunity for a tes
/ of this question In court"