Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1907-09-19
AMPLY ABLE
TO PAY fine
The Earnings of Standard
Oil of Indiana
An Examination DisclOses
Some Complex Problems
i'm Trust Bookkeeping.

New York. Sept. 1s.-More light was
shed upon ;he remarkable earning
capacity of the various subsidiary
companies of the Standard Oil COM
pany today. when Frank b. Kellogg.
who is conducting the federal suit
succeeded in placing upon the record
the profits of seventeen of the princi-
pal subsidiary companies in the year
1903. The statement of the earnings
of the Standard Oil company Of lndi-
ana. which was recently fined S29,-
100000 by Judge Landis for rebating.
disclosed that in 1906 the company
earned s1O.516.0S2, on a capitalization
of a million dollars or over 1000 per
cent a year The Indiana company in
1906 earned more than any subsidiary
company in the combine.
Kellogg developed during the day
while Clarence G.. Fay. assistant
comptroller of the Standard oil COM
pany was on the stand. curious prob
.em in financial bookkeeping. or the
handling of accounts which Fay fall
cd to explain. From the figures sub
mitted il was shown that the Stand
ard Oil of New York in 1904 made a
BibAiA VI Stst fs.a''. II pdtb Wv
to the Standard Oil of New Jersey in
the tota ! sum of s32,99S.i3O. This
transaction reduced She net assets of
The New York company from SAC, 900
to $15.179.706, while the liabilities
leaped from s47.6i6.235 in 1903 to $751;
395.145 in 1904 an increase of nearly
s34 100000 The gross assets Of the
New York company however. increas-
ed from sSS.074.561 in 1903 to s96.574.-
$50 in 1904. Meantime the accounts
receivable of the Standard oil of
New Jersey. grew from s19.045.041. in
1903. to $5S.272.924. FAY was very
closely questioned as to the nature of
the increased liabilities of the New
York company and the increased ac-
counts receivable of the Standard oil
company of New Jersey. but he said
he could not tell until he had examin-
ed the books of both companies. which
he told Kellogg that he would do.
Chas. NJ. Pratt, secretary of the
Standard. was recalled to the witness
stand and told how he held for thu
Standard Oil company, stock of the
aters- Pierce Oil company at the time
when it was permitted to operate in
the state of Texas. He said he held the
stock as a matter of convenience. not
to avoid the antitrust laws of Tex
as.
Pratt threw some interesting side
lights on the Waters-Pierce company
stock. which was held a long time by
NJ. NJ. Van Buren. who is not connect
ed with the Standard Oil company.
Van Buren purchased the stock Of the
Pratt and early this year the Stand
ard Oil bought it back. The nature OF
the transaction showed that Van Bu-
ren received from the Standard OIL
company exactly what he paid for the
stock. and that during the time he
held the stock the dividends were paid
to the Standard Oil company.
II. s Tilford. treasurer of the
Standard oil company, was called To
the stand today and Kellogg made an
effort to have spread on the records
copy OF the TRUST agreement of 1882.
but John G. Milburn, chief counsel
for the Standard Oil. objected on the
ground that such agreement was prior
20 July 2. 1890. when the Sherman
antitrust law went into effect.