Waterbury evening Democrat., 1907-09-28
BIG SUMS CONCEALED.

BIG SUMS CONCEALED. , Millions Hidden in Standard Oi Trusts Books as "Loans." New York, Sept 2S.-George Chese bro, comptroller of the oil trusts pipe
 line companies and assistant comp
 troller for seventeen years prior te 1 his promotion last year. was question
 ed again in the government suit
 against the Standard Oil Company o1
 New Jersey about two of the Stand
 ards most closely guarded mysteries
 P.S. Trainor and the Central park pipe
 line. ,- F.
 MT. Trainors name figures on the
 pipe line books for millions, and he is
 the nominal shipper of all the trusts
 crude oil, but the comptroller couldn't
 explain the meaning of the items. He
 displayed, too, ignorance about the
 pipe line which runs from the refin-
 cries at Bayonne, N. J., to the refin-
 cries at Long Island City and Will
 liamsburg and is connected with the trunk line across the continent.
 All the government lawyers were
 able to find out about it is that the
 line is part of the Standards system
 and that it has been bringing oil di-
 rect from the Pennsylvania, Ohio, Hi
 nois, Indiana and Indian Territory
 fields into the old Charles Pratt refn- cries for many years.
 The National Transit company con- trolled this pipe line across the North river, Manhattan island and the East river between 1900 and 1905. Owner. ship was vested in the Standard Oil Company of New York, and the rental paid in 1902 was $1,13S,142. In July, 1906, the crosstown pipe was "sold'' by the Standard of New York to the Standard of New Jersey for a nominal sum, and at the same time two and five-eighth inch pipe line across Stat en Island was transferred.
 The purchase by the Standard of New Jersey was of line from the middle of the North river to the east ern shore of the East River" and 1t Is assumed that the feeders to and from this line which connect direct with the refneries at Bayonne and Williamsburg are considered by the oi.l trust to be as private as a couple of speaking tubes. The pipe is six inches in diameter and is laid near the curb at one side of the street car tracks in Eighty-sixth street, crossing Central park.
 ME Chesebro questioned on the bal ance sheets of the Buckeye Pipe Line company, said the value of the plant in 1906 was $4,25O, 900 and it's net earn ings in that year $7,02s,55S. In the seven years from 1899 to 1905 1t car ried on its books loans to the National Transit company to the amount of $40,000,000. Mir. Chesebro said the parent company acted as it's banker.
 This $40.0OO,0O0 actually represented that amount of undivided profits which were deposited where they could not be touched except by the masters of finance of 26 Broadway. This carrying of undivided profits on the books of various subsidiary com- panies as '1oans" to other companies l has been brought out before in the 
 The witness admitted that the books | of the Southern Pipe Line company | showed net profit of 200 per cent in 1899. In the following year the books showed loss of s862,512. An item of | S4, ,599,000 was charged to P. S. Tral- nor. Mir. Chesebro couldn't explain this. Mir. Kellogg got his promise to look it up"
 The books of other pipe line compa- lies showed many other vast sums which Mir. Chesebro said he couldn't explain. He said he believed the Ohio Dil company purchased the Manhattan )il company in 1899. He couldn't tell what caused the reorganization of the Ohio this year. He promised to in- luire into the details of the purchase If the Manhattan company, which was organized by E. c. Benedict and An hony \. Brady. Mir. Kellogg told him O produce the minutes of the directors meetings of the National Trust com 'any from 1899 to the present time md also the original contract with the ridewater company. Charles T. White. assistant secretary if the Standard OH company of New Jersey, and several other companies f which Charles M Pratt is secretary, aid he had the stock transfer books n his office. but he never saw the missing books used by the liquidating rustees between 1S92 and 1899. He aid he had inquired about them from , fir. Tilford. the treasurer. who said |, e didn't know what had become of hem He never inquired of John D. Lrehbold. Henry II. F1agler or W.T. am Rockefeller. Did you ever ask John D. RockefeI- IT where those books areY- inquired IT, Kellogg T certainly did not replied the wit esS. sitting up with a startled air. The hearing adjourned early and . III be continued next Thursday 1.