The Washington herald., 1907-09-19
TELLS HOW TRUST
DODGED TEXAS SUIT
CoNTNUED LOO 10 ONE.

pany showed that from seventeen subsid-
larry companies, whose total sapitaliza-
ton in 1903 was $92, ,255. 300. the Standard
Oil Company received dividends OF S4I-
Sc $50 out Of profits amounting In that
year TO S63, $50 ,95S. The profits from these
seventeen companies were $57.3f9G52 in
1896. from which dividends 10 the holding
corporation were yielded 70 the extent of
81, ,369, 60
The figures produced from the records
Of the Standard Oh Company of Indiana,
the corporation recently fined by Judge
lands. in Chicago. showed that on cap
italization Of S1.0GOG00 that corporations
profits in 1906 were $40. 6.0S2. and the divi-
dends paid last year TO the Standard Oil
Company of New Jersey, which holds
$3.50 shares Of the Indiana cOmpanyS
stock, were 81 4g5, 800. The dividends OF the
Standard company Of New York in 1893
were only $5.000,000 less than the capitah
zation. which Was Sl50OO 600.
Can't solve This Puzzle.
The assistant comptroller was asked TO
explain why it was that the liabilities Of
the New York subsidiary rose from $47.-
646.25I at the end Of 1903 10 SSl,3g5.Il5 at
the end Of 1904. when the gross assets Of
that company increased from SSS07l, ,561 in
1903 10 S96, ,574, S52 in the following year. The
New York company declared a dividend
in 1904 Of SO, ,99S. l30 which resulted in the
reduction Of the net assets, but the pros
ecutor wanted to know how 1t could have
come about that the liabilities could have
risen to such an extent when the gross
assets increased in the same time. This
could not be answered by Fay.
From Secretary Pratt the prosecutor
drew testimony concerning the disuibu-
ton of the stock IN the nineteen original
subsidiaries. made on a fractional basis.
when the Hquidating trustee gave way to
the Standard oil Company OF New Jer-
sey. This was material that Kellogg had
unsuccessfully tried 10 set from Fay yes
terday, and has never been brought out
in previous attacks of the courts on the
Standard system. Pratt read. from the
minutes Of a meeting of the liquidating
trustees, held at % Broadway on June l9 !
1893, a resolution establishing the rate OF
exchange of stocks in the subsidiaries for /
common stock of the Standard OH Com /
pany of New jersey upon a fractional |
percentage of which the number g72.- /
80 was the denominator Stock in the /
OIL Company was to 1
bring 26-97GJ00 Of the Standard Oil stock. /
Buckeye Pipe Line. ao-s72513. &c
His Memory Fails Here.
Kellogg wanted TO know If It were not 4
so that against al the subsidiary stock /
the Standard Oil trustees had issued s52.
90 OF stock certificates in the New Jersey /
corporation. but Pratt. though secretary
at the time of that transaction, could
lot remember why the denomtnator had
been set at such a figure.
Wesley II. Tilford. treasurer Of the oil
was called 10 the stand a few
minutes before the adjournment OF to-
lays session L appeared 20 be Keuogg's
Intention 70 quiz him on the d0ings OF the
iquidating trustees, of which he was one. /
)ut Mubun, for the Standard company.
nterp0sed an objection 10 all questions
gboUt transactions autedaung July >.
$50, the date when the Sherman act. |
Inder which prosecution against the d
company is now being brought.
vent into force.