Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-09-25
PAYNE AND FOLGER
STANDARD PIGEONS
Held Texas Oil Company for the
Trust.
PURCHASE OF CORSlCANA
Money Was Advanced for 1t on Lib
eral Terms.
PURCHASE OF CORSlCANA
NO NOTES WERE EVER MADE OUT
Verbal Agreement That the Cash Was
to Be Returned Some Time In
side of Ten Years.

NEW YORK, September 25.-H. c. Folger.
tr.. director of the Union Tank Line Com
pany told. as witness today in the govern
ment suit for the dissolution of the Stand
ard Oh Company. how he and c. N. Payne
built the Corsicana Oil Company of Texas
with funds furnished by the National Tran
sit Company. a Standard subsidiary. and
held the stock in their names until 1906,
when they purchased the stock from the
National company because Of antitrust
legislation. Mr.. Folger said that the agree
ment to buy the Corsicana company was
made verbally with John D. Archbold. The
witness testified that the management of
the Corscana company continued UNI
changed after the sale. and that its ac-
counts were forwarded to Mr.. Chesebrough
at No. 20 Broadway. the headquarters Of
the Standard Oil Company.
Wade Hampton. general auditor OF the
Standard OIL Company. was again on the
witness stand for a few moments today
when the heir ring 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
Company of New Jersey. and stating that
the books showing the transfers of certif-
Gates and stock during the liauidating pc
Rod were never kept in his office, he was
excused by Mr.. Kellogg. who said he would
likely call Mr.. Hampton again.
MIR. NIiburn of counsel for the Standard
OIL Company submitted to the govern
mentS counsel statement showing the
capitalization of the various companies in
which the Standard had stock control The
statement was entered on the record with
out being read.
Conference of Managers.
Mr.. Kellogg also placed on the record a
copy of a contract which L. c. Benedict
testified had been entered into between the
haitian Oil Company. Henry C. Folger. jr..
who. with C. NJ. Payne. held stock control
of the Corsicana Oil Company OF Texas
followed Mr.. HAMPTON on the stand. lie
said he was connected with the Standard
Oil Company of New York a director In
the Union Tank Line Company and gem
eral manager of the Long Island refineries
Of the Standard
DO you confer with otheza in regard to
refining oil?" was asked.
Yes. L have conferences with genera
managers Of other companies" said Mr..
Folger. who added that many conferences
were held at 20 Broadway, the main offices
Of the Standard. Mr. Folger said he kent
the records OF results of the refining OF
oil which were sent to him at various
periods from the various subsidiary com
panies Of the Standard The Sc statements
showed the manufacturing cost and yield.
and the facts were tabulated and kept in
MS ONCE The witness said he made sug-
gestons to the officials of subsidiary com
panies to Improve the result of the opera
lions of their reineries
Mr.: Foiger further testified that he and
{. M. Payne own the Corsicana Oil Com
pany of Texas This company's refinery
at Corsicana was built. Mr. Folser said.
with the money of the National Transit
Company. of which Mr.. Payne is the vice
president. the National Transit Company
having In 1899 loaned Folger and Payne
S407l7 for that purpose. No notes or
security were given for the loan.
Arranged With ArchboId.
The books of the Corsicana Oil Company
are kept In the office of the National Tran
sit Company In OIL City. Pa Mr. Folger
said. The actual ownership of the Corsi-
cana refinery was with the National Tran
sit Company until 1906 when 1t was sold
to Foger and Payne for about 1892 600 who
undertook to pay for 1t in ten years. ac-
cording to Mr.. Folgers testimony. who
said they talked the sale over with John D.
Archbold. No cash was paid.
Mr.. Archbo'd said the price represented
the investment Of the National Transit
Company. The company always stood I'm
the name of Folger and PAYNE There was
no agreement TO pay any definite amount of
money yearly on the purchase price on
which per cent interest was paid.
The accounts of the Corsicana company
hoy
by George Chesebrough
Then the operation of the Corsicana is
going on just the same as before the sale
to you?" asked Mr.. Kellogg
practically So" answered the witness
How much have you ever paid on ac-
count of the sae?'
II think 500 900 at the end of 1906" re-
piled Mr.. Folger.
Contract Entirely Verbal.
Mr.. Folger said he did not understand
the account of bills payable to C. NJ. Payne
and H. c. Folger. 1896, OOO, shown on the
books of the National Transit Company
last year. The National Transit Company
did not owe them $4,000.
Then this whole transaction involving
$1.G10.OO0 was verbal agreement made
with Mr.. Archbold?'
Yes. sir answered the witness
Mr.. Kellogg developed from the witness
that the money paid him by the Corsicana
COMPANY was all t1FHeu over 10 the Ma
tional Transit Company, which, the witness
said. went toward the payment of the COM
pany.
Ibid you turn over all the money!
Yes. Sir. all of It, replied Mr.. Folger.
who later stated that he had taken in April
$4,000 from the National Transit Company.
which was credited on the cOmpany's books.
Then all the change in the manage
ment OF the Corsicana company since
you and Mr.. Payne purchased 1t was your
verbal talk with Mr.. Archbold?'
Yes, 1 should say So" said Mr.. Folger.
Mr.. Folger said that the negotiations
for taking over the Corsicana Refining
Company were started by the late Daniel
ODay. vice president of the National
Transit Company.
Bought Manhattan Oil.
When f. G. Benedict. stakeholder OF
the Manhattan Oil Company. was on the
stand he said that he did not know that the