The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-09-19
STANDARD PAYS
1000 PEI. .CE:NTUM'| |: !
Indiana Branch Earnings
are Ten Millions on
Million Capital
SOME JUGGLING
OF FINANCES
Secretary Pratt Tells How Van
Beuren Purchased Stock Of
Waters-Pierce Co. and Sold
at Same Figure With
out Collecting
Dividends.

NEW YORK, September 1s.-More
light was she'd on the remarkable
earning capacity OF the various SUBJ
sidiary companies of the Standard OIL
Company to-day, when Frank B. Kel-
logg. who is conducting the Federal
suit, succeeded in placing upon the
record the profits OF seventeen OF the
subsidiary companies in the years
1905 and 1906. The statement of the
earnings of the Standard Oil Company
OF Indiana, which was recently fined
500, 100000 by Judge Lands, OF Chi
cago, for rebating, disclosed that In
1905 the company earned no less than
310.516,0s2 on capitalization of ST.
900. 600, or over 1000 per cent. a year.
The Indiana company In 1906 earned
more than any subsidiary company Of
the big combine.
Mr.. Kellogg developed during the
day, while Clarence G. Fay, assistant
comptroller of the Standard OIL Com
pany. was on the stand. curious
problem OF financial bookkeeping. or
handling of accounts, which Mr.. Fuy
failed to explain.
Problem in bookkeeping.
From figures submitted I. was shown
that the Standard OIL Company of New
York. in 1904. made a profit of s7751.-,
100. and paid in dividends to the Stand
ard Oil Company of New Jersey the
total sum of s32.99S,430. This transac-
ton reduced the net assets of the New
York Company rom s4o.425.900 to s15.-
|179.IOs. while the Liabilities leaped
from s47,646.235 in 1903 to $S1,395.145
In 1904. an increase of nearly s34,000,-s
900. The gross assets of the New York.
Company. however. increased from ssS,--
07i.561 in 1903 to i96,574.s42 in 1904-
Meanwhile the accounts receivable of
the Standard Oil Company of New Jer-
sey grew from $l9,045,01t in 1903 to
$5s,272.924.
Mr.. Fay was closely questioned as to
the nature of the increased liabilities
of the New York Company and the in
/ crease In the accounts receivable of
| the Standard Oil Company of New Jer-
sey, but he said he could not tell until
/ he had examined the books of both
| companies. which he told Mr.. Kellogg
| he would do.
Some Financial Juggling.
Charles NJ. Pratt, secretary of the
| Standard Oil Company, recalled to the
witness stand, told how he had held
! for the Standard Oil Company the stock
| OF the Waters-Pierce OH Company al
| the time when 1t was not permitted
to operate In the State of Texas. He
says that he held the stock as matter
4 OF convenience, ana not TO dVolo we
| antitrust laws of Texas. Mr.. Pratt
threw some Interesting side lights on
the Waters-Pierce Oil Company. the
stock Of which was held for long
period by NJ NJ. Van Beuren, who was
not connected with the Standard OF
! Company. Mr.. Van Beuren purchased
the stock from Mr.. Pratt, and early
this year the Standard Oil Company
bought it back.
The nature of the transactions show
ed that Mr.. Van Beuren received from
the Standard Oil Company exactly what
he paid for the stock and that during
4 the time he held it the dividends were
paid to the Standard Oil Company.
Wesley Tilford, treasurer Of the
STANDARD OIL Company, was called tc
the stand late to-day, and Mr.. Kellogg
made an effort to have spread on the
record copy of the trust agreement
Of 1889. but John G.. Nillburn, ch!e1
counsel for the defendant companies
objected on the ground that such ar
lagreement was prior to July 2. 1890
Mtlen the Sherman anti-trust law Went
4 into effect.