The Washington times., 1907-09-25
STANDARD OIL
SOLD CONCERN
TO OFFICIALS
Texas Company Built
Plants With National
Transit Money.

NEW YORK. Sept. 25.-Henry c. Fol-
ger, jr-. supervisor of the Standard Oil
reaneries. and who. with c. N Payne.
owns FOR the Standard the Corsicana
Oh Company of Texas, were put on the
gridiron today by Frank B. Kellogg.
counsel for, the Government in the. Fed
eral suit TO dissolve the great Rookie
ferier combine.
Folger has appeared in many OF the
Standard OILS districts with subsidiary
companies. and Kellogg has been
anxious to get at him.
In reply 10 a shower of questions.
Folger was forced to admit that h.
met with" the managers of the various
rehneries Of the subsidiary companies
now and then. Later he admitted that
he saw some of them once a month. and
at length Kellogg forced him into cor
ner and asked:
Don't you receive reports regularly
of=sfle operation of all the refineries at
your Office at &c Broadway
RefRezies Report to Him.
After some lengthy explanations he
finally answered Yes"
Then Kellogg went into the Corsicana
Refining Company, which operated N
Texas for Standard oil after the Waters
Pierce Oil Company had been ousted
Foiger said he and c. n. Payne, who
has been with Standard OIL longer than
ne, owned the Corsicana Company. He
admitted when pressed that the plant
was built with the money Of the Ma
tional Transit Company, a Standard Oil
concern. He said the first plant cost
S953,S34 and the second cost Sl,3S9, 554-
Kellogg produced balance sheet or
the National Transit Company show
iEg the turning over Of funds TO Fol6er
and Payne for investment"
Bought From National Transit.
Folger said the National Transit Com
pany owned the Corsicana Oil. June Is.
1906 when he and Payne bought" it.
GLOW much did you pay for It?
Al paid S992.644.
Odd you pay cash?
A.-NO, sir.
Q.-You paid nothing?
Ave undertook 10 pay for il in ten
years.
Q-lVhom did you deal with?
A.-John d. Archbold-
Management Didn't Change.
He and Payne paid $4,000 OF the pur-
chase price AT the end Of 1906. Folger
admitted when he and Payne bought
the Corsicana there was absolutely no
change made in it's management in any
way.
There was no occasion for change"
he explained.
Then the whole thing was merely
a verbal understanding between you and
Archbold?" he was asked. Yes"
Q.-1ou nave no record of this pur-
chase involving over million dollars
An one
Wjsiess declared the National Transit
Comp nv sold the COrsicana because il
wanted to get out of Texas on account
Of legal conditions. Folger, however. de-
mel ne am Payne took the company
over 20 avoid legal complications. in
sisu7g they bought because IT was a
good buy"
Most Of the Corslcena's refined Oil IS
sol1 TO the Waters-E1erce Company
but FOlger insisted the company had a
hundred other customers and was in
yited to submit list naming them.
Under REORGANIZATION by Moritz
ROsenLhal, of Standard Oil counsel. Fol-
ger said he confidently hoped to pay
Ter the concern out of the profits in
less than ten years. Then Kellogg ask
cd:
"Can you tell me any reason why the
Standard would sell q plant that cost
, for construction some $4,000. for 500. -
90, when 1t would pay $4,000 and G
per cent interest within ten years?'
New Texas Crop.
Only that they were anxious to get
out Of Texas said F0lger
John G. Milburn, chief counsel for
STANDARD OIL, was asked to explain why
they wanted to get out OF Texas so
badly in 1906. and replied:
Ihey had a particularly fine crop of
H. in Texas that year"
IL was about that time that the
,Maters-Pierce got into it's troubles with
Texas. -'''