Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-09-26
HOW Law Is EVADED
4
Later History of Stan, ~ III Com
pany'' Operations |. SS.f'.
CoRsICANA ONE OF IT'S b = les
a.
Its Sale to Folger and Payne t.
lcation Only.
VERBAL DEAL WITH ARCHIBA..D
Buyers Agreed TO Pay Million Dollars
in Ten Years.
MO M0mCc vrTHur aYxyr-ry
NOTES WERE
GIVEN
New PrOprietors Continued to Pay
EARNINGS over to the National
Transit Company, Another Sub
sidiary of the Standard.

auditor Of the Union Tank Line company.
told as a witness today in the government
suit for the dissolution of the Standard
OIL company how he and c. M. PAYNE built
the corsicana OIL company of Texas, with
funds furnished by the National Transit
eonrany. Standard subsidiary. and held
the stock in their names until 1906 when
they purchased the stock from the Ma
tional Transit company because of anti
trust legislation. Mr.. Folger said that the
agreement TO buy the Corsicsna company
was made verbally with John d. Archbold
The witness testified that the management
OF the Corsicana company continued un-
changed after the sale and that it's ac-
counts were forwarded TO Mr.. Chesbrough
at 8 Broadway the headquarters of the
Standard OIL company.
Wade Hampton, general auditor of the
Standard Oil company. was again on the
witness stand fqor few moments today,
when the hearing In the federal action for
the dissolution of the oil combine was re-
sumed. After testifying that he audited all
the departments OF the Standard Oil COM
pany of New Jersey and stating that the
books showing the transfers of certificates
and stock during the liquidating period
were never kept in his ONCE he was ex-
cused by Mr.. Kellogg. wso said he would
Mr.. Milburp. OF counsel for the Standard
OIL company submitted to the governments
counsel a statement showing the capitaliza-
tion OF the various companies in which the
Standard had stock control. The statement
was entered on the records without being
read.
Mr.. Kellogg also placed on the record
copy OF a contract which e. C. Benedict
testified had been entered into between the
indianapolis Gas company and the Man
haitian OIL company.
Henry G. FoIger. jr., who, with c. M.
Payne. owns the Corsicana OH company of
Texas, followed Mr.. Hampton. He said he
was connected with the Standard OH COM
pany OF New York. a director of the Union
Tank Line company and general manager.
OF the Long Island refinery of the Standard
DO you confer with othcrs..in regard to
peining OLE he was asked.
~ Yes; have conferred with general man.
bgers of other companies" said Mr.. Foiger,
who said that many conferences were held
at 26 Broadway, the main Offices OF the
Standard.
Mr. Folger said he kept the records of the
results of the refining of oil which were
sent to him at various periods from the
various subsidiary companies of the Stand
ard and that he made suggestions to i'm
PitNt Nilc WOIh Oh lnelT reuneTle9,
No Change I'm Operation.
The corsicana company's refineries at
corsicana were built. Mr.. Folger said. with
the money OF the National Transit company,
Of which Mr.. Payne is the vice president.
the transit company having in 1890 loaned
Folger and Payne sS7O, ,47O for that purpose.
Notes were given for the loan The actual
ownership OF the Corsicana refinery was
with the National Transit company until
1906 when II was sold TO Folger and Payne,
for about $ss20oO vino undertook to pay for
II In ten years, according to Mr. FolRer.
who said they talked the sale over with
John Archbold. No cash was paid. Mr.
Nrchpold said the price represented the
investment of the National Transit COM
pany. The company always stood in the
name OF Folger and Payne. There was no
agreement to pay any definite amount
yearly on the purchase pirce
Then the operation OF the Corsicana is
going on just the same as before the sale
10 your asked Mr.. Kellogg.
practically So" he answered.
now much have you ever paid on ac-
count to the saie?"
Il think 100000 at the end OF 1906" re-
piled Mr. Folger
Then this whole transaction involv,ns
Nooc,ooo was a verbal aRreenlen, r,sds .,,,t,
Mr. Archoid" WV"
Yes Sir" the witness answered.
Mr., Kellogg developed from ths w,,re..
that the money paid him by the Corsicapa
company was all turned over to the Ma
'ohai transit company. which the witness
SAID went toward the payment Of the COM
pany. - ''e COM
Did you turn over all the monevP
Yes sir, all OF IT,"
Contract Verbal One
Ihen all the change In the management
OF the Corsicana company since Won ans
Mr Payne purchased II was your ,,arha1
ta'i' with Mr.. ArchboldY"
Yes J should say So" said Mr. Fo,gar
mr. Foiger said that the negotiatIons
Tor taking over the Corsicana Rean,ng
company were started by the late Daniel
Obay, vice president of the National
Transit company
Mr.. ODay had a talk with Mr.. Pavre
and myself IN 1898" said Mr.. FolSsr
about the production OF oil In Texas
ana Mr. ODay suggested that a refinery
pe punt In Corsicana He said he wouId
nave the company placed In our name
HE did not say why"
MT Kellogg placed In evidence the con-
tract entered into between J. s. Cullinan
OF Washington, Pa. who built the Cors,-
cana rennery' and II. C. Folger. Jr.. and
Al Payne for a joint partnership.
Suinhan received an income OF $4,000 a
year as his profit and the net profits
were turned over to Mr. FoIger and Mr
fayne' who in turn deposited the none,
Win the National Transit company. Mr..
Cuiiinan withdrew In 1901 and then he
came manager OF the company for two
years at salary OF $4,000 year. Mr..
culiinan. the witness said. was as pres
eat president Of the Texas on company
and. reverting TO the purchase OF me
corsieana OIL company. MIR. FoIger was
asked why he and Mr.. Payne had pur-
chased the Corsicana company.
Well Ar. o'Day all that spring spoke
to us about the Corsieana company and
felt concerned In having an OH nlan,