The Oskaloosa herald., 1907-10-10
OIL TRUSTS WAY
OF L|QU|DAT|NG
PROCESSES OF ALLEGED DIsso.
LUTON ARE REVEALED.
PRETENsE SAYS KELLOGG
Facts and Figures Obtained from the
Standards Hooks-Profits and
Dividends Of Ten
Years.
PRETENsE SAYS KELLOGG


ments culyed from ledgers and books
found In the Offices of the Standard
OIL company Frank b. Kellogg, coun-
sci for the United States government,
succeeded in placing on Tuesdays rec
ord OF the federal proceedings against
the oil combine the processes and
stages through which the combine
passed In its changes from the old
Standard Oil trust to the present
Standard Gil company of New Jersey.
Out of the maze OF figures developed
In voluminous mass from the COM
pany's books, and from testimony
given by Clarence G. Fay, assistant
auditor of the Standard, the govern
ment's counsel says he believes he has
proved the federal allegation that the
Standard is an illegal corporation and
by devious devices has maintained its
entity, and that 1t is under the same
ownership as when it was formed.
Calls Dissolution Pretense.
Mr., Kellogg says he is OF the opin-
lon that, Notwithstanding the govern
ment was unable to discover the trans
fer books and stock ledgers Of the
liquidating trustees, the evidence ad-
duced Tuesday shows that the So
called oil trust only affected to dis
solve under the order of the Ohio
courts In 1892, and that It's direction
is still held by those who had to do
with the formation of the Standard
Oil trust.
Statements submitted Tuesday
showed in brief that at the inception
Of the Standard Oil trust in 1882 there
was $70,000,000 in trust certificates is.
sued for stocks OF various companies
which entered into the combine. In
the trust period from 1882 to 1892
stock dividend of $15.000,O00 was de-
clared, and this, with other stocks
issued for plant purchases, brought
the total capitalization of the Standard
up to $97,250,G00. AS result Of de.
cision of the supreme court of Ohio
forbidding the trustees from voting
the trust certificates there was res
olution passed directing that the trust
be dissolved.
How They "LIquidated."
Mr.. Fay read statement in the
record showing that the day following
the passage Of that resolution GA sub
sidiary companies were consolidated
with the Standard Oil company Of New
Jersey, and 40 other subsidiaries of
the trust. Seven months later, on No
yember 80, 1892, the witness read
from statements, there were 494,619
trust certificates presented for cancel
lation and to the holders were given
their pro rata shares in the 20 subsid.
iary companies which then made up
the trust. There were also offered for
cancellation two months later some
10000 trust certificates. There was a
lapse of over four years before an
other certificate was presented for can
collation..
Mr.. Kellogg sought to show that
those who held control of the trust,
with the exception Of few friends.
were the only ones who liquidated
their trust certificates, and that, by
liquidating only majority of the total
certificates outstanding which they
owned, they continued their direction
Of the trust by voting majority of
the stock In the subsidiary com
panies.
He also tried to show that those
who liquidated their trust certificates
and took the stocks of the subsidiaries
were John D. Rockefeller, William
Rockefeller, H. NJ FIagler, Benjamin
Brewster, ]. D. Archbold, H. H. Rog-
ers, w. H. Tilford, C. w. Harkness,
estate of c. B. Jennings, Emma Auch-
incloss, estate of Charles Pratt and o.
H. Payne.
Profits and Dividends.
For the first time the profits and div
idends Of the Standard Oil trust, from
its inception In 1882 to 1891, were
made public Tuesday. The profits, as
stated by Mr.. Fay, were as follows:
1882, s12,3sS,5O7; 1883, s11,231, ,790;
1884. sI77S,2O5; 1885, $s.sS2, ,ss5: 1886,
S15.350,7s 1887, S14,026.590; 1888.
s12,757,T27: 1889, s14.S45.201; 1890.
1891 40; 1891, $16,SS1, ,SS6.
The dividends declared by the Stand
ard Oil trast from 1882 to 1891 were
spread on the records as follows;
1882, 81, 1895, ,253; 1883, $4.26S,0S6; 1884,
s4,2SS,S42: 1885, $7,479,223; 1886, ST..
226. .452; 1887, ss.46S,S27; 1888, s10-
2Se,277; 1889, $10.620,63O; 1890. s11.-
200, 900; 1891, $11,64s.S26.
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