Los Angeles herald., 1907-10-10
PROVE TRUST
STILL EXISTS
STANDARD OILS LIQUIDATION
SCHEME EXPLAINED
G. ROCKEFELLER TO
BE CALLED
Attorney for the Federal Governs
ment Says He VIII Learn se-
crets from John DIS
Brother
py AssocIated Press.


BY Associated Press.
NEW YORK, Oct. 9.--The method
through which the trustees of the
Standard Oil trust liquidated the COM
pany in order to comply with the order
of the Ohio court was further unfolded
today when Wesley H. Tilford, treas
urer of the Standard Oil company OF
New Jersey, was called to the witness
stand.
Statements compiled from the So
called subsidiary companies during the
trust liquidation period were placed on
the record, and from these Transcripts
| and from Mr.. Tilford the governments
counsel, Mr.. Kellogg, says the govern.
ment's. charge that only pseudo liqui-
dation was effected and that the trust
continued its operations as an entiety
and under the same control as at the
time of its inception in 1882 has been
proved.
Mr.. Kellogg was able to develop that
the liquidating trustees and their asso-
ciates liquidated only enough trust
certificates to give them majority of
the stock of the twenty subsidiary
companies, and that they voted these
stocks as individuals and maintained
constant control over the integral
companies.
The dividends declared on the stocks
of these companies were paid directly
to these holders who had liquidated the
trust certificates and to the trustees
who held the stocks against the un-
liquidated certificates of the trust.
Mr.. Kellogg showed that the trus-
tees and one or two associates were the
only certificate holders who liquidated
their shares in the old Standard Oil
trust.
Mr.. Tilford testified today that the
cross town pipe line under Central
park, whose ownership caused consid-
erable perplexity to the federal counsel
when it did not appear on the books
of the Standard of New York after
1906 was still owned by the New York
company.
Mr.. Kellogg again tried to find out
the reasons the large loans amounting
to several millions given to p. S. Train
or by the Southern Pipe Line company,
over period of several years, were
made Efforts to ascertain the nature
of these loans by the federal counsel at
a previous hearing developed nothing
of moment. That the Standard Oil
company of New York was lender of
millions of its surplus funds was testi-
fed to by Mr.. Tilford.
From a statement of the company 1t
was developed that over s32000,0 600 was
loaned last year to interests other than
the Standards. What these interests
were and the nature of the loans Mr.
Tilford was unable to say.
William G. Rockefeller to Testify
Mr. Kellogg said he would call will
liam G.. Rockefeller, the treasurer of
the company, to throw light on these
loans.
transcripts of ledgers and journals
of the old Standard Oil trust and sew
Org Of ctrIc mi
placed in evidence today for the pur-
pose of proving the governments con-
tention in the bill of complaint that the
Standard is an Illegal monopoly.
Clarence G. Fay assistant auditor OF
the Standard Oil company of NewsJer-
sey, was again on the witness stand to-
day. Frank B. Kellogg, the govern
ments counsel called attention to the
balance sheets of the Standard Oil COM
pany of Kansas for 1899 on which the
stocks of the Southern Oil Tank line.
Mutual Oil company, the White Golden
Lubricating company, G. p. Wagner and
company H Carlisck and company and
Protection Oil company appeared as
assets.
Mr.. Fay said he could not explain
why the balance sheets in the follow
ing years did not show what had be-
come of all these assets and why they
were written off.
A balance sheet of the Standard OIL
company of New York for 1906 showed
it carried its pipe lines as an asset
which it valued at $S4,S3s.
The balance sheets of the National
Transit company showed that the Ma
tional Transit company paid to the
Standard the rentals for the cross town
pipe line from 1899 to 1905 inclusive.
The yearly amounts varied from
s1,191,140 in 1901 to $23s.191 in 1906.
Figures from the balance sheets OF
the Galena Oil company showed total
asset of s11,1S1,333, of which the plant
investment was $350,66S and the good
will s7.554,O17 Mr. Fay said.
Shipping Industry Concerned
The chamber of commerce today says
that the shipping trade here is greatly in
terested and somewhat concerned at the
turn taken by the federal inquiry into
the operations of the Standard OIL COM
pany which may lead to an investigation
by the bureau of corporations of the rela-
tions of the steamship lines with corpo-
rations engaged In heavy export busi-
ness. This is expected to follow the evil
dence by Philip Harrison, manager OF
the New York Lubricating OIL company.
Mr.. Harrison charged that five steamship
lines had made Determinations in rates
in favor of the Standard Oil company
until his firm was forced to pay twice
as much as the trust for the transporta-
tion of OIL BY reason of this his com
pany was practically forced from the
South African territory.
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