The Washington times., 1907-09-27
KELLOGG CALLS
STANDARD OILS
BUYING AGENT
Peculiar Tricks of Trusts
System Being Brought
Out.

NEW YORK. Sept 27-That Frank b.
kellogg Intends to reach the very heart
of the complicated and mysterious
workings of the Standard OIL Company.
became more apparent today when IL
was learned that he had summoned
Joseph Seep. OF Oil City, Pa. and p. s.
Trainer TO appear here in the suit of
the Government 10 dissolve the parent
corporation.
Seep is in charge of the Seep agency.
which buys all the crude oil purchased
by the Standard OIL Company Of New
Jersey from any source. After seep
has bought II, the oil passes into the
''ownership" whose name appears as
the shipper on all the books of the pipe
line companies.
kellogg is anxious TO know all about
these little peculiarities OF the Stan
dards system and will seek to force
the Witnesses to tell why such measures
are taken. He has become greatly in
terested in the pipe lines since he
learned that the Indiana pipe line made
400 per cent profit in 1903 on It's capital
OF 81, 100000
Before the session began, Mr.. Kel-
logg announced that after tOday'S hear
ing there would be no further hearings
until Thursday Of next week. Mr.. Mil
standard
Company, Is chairman of the Mckln-
icy Memorial Association. and Is going
west 70 take part in the dedication OF
the Mckinley monument.
Kept S5,ooo,ooo Surplus.
George Chcsbro, controller and secre-
tary Of the Standard Ofs Pipe Lines.
states that the Buckeye Pipe Line Com
pany. deposited with" the National
rrra unfF Cfov,tvo,,.r - ...,-..I..-
tanning an average balance Of approxi-
matCly IS OOO 600. The plant cost % 725-
s6I and in 1906 earned S7.0ZS.56S. Tne
deposited" appeared on the balancs
sheets in kellogS's hands as loans, 80
but Chesbro insisted they were deposits
I'VE used the National Transit Com
pany as our bank he explained.
Kellogg discovered in the balance
under operating expenses" what read
as follows:
',lsOO-P. S. Trimmer. $500. S52
'19Ol-P. s. Trainer. $.5l9.9SS'
Don't you know 10 what these re-
fer2' he asked the witness.
II am not familiar with those mat
ters. was the controllers reply
kelloBg then went through the figures
with the witness, and found similar
items entered UP to and including 1906.
Don't you judge from your reports
that the legitimate operating expenses
should be about $4,000 - was asked
After bordering while witness said.
Il think so"
Trainer is the man in whose name all
trust oil is transmitted through the pipe
lines. Witness said he couldn't explain
the item as he carried 70 because his
predecessor in the cont-oIlershio told
him to do So"
Pipe Line nUder New York.
1t developed that the National 80
Line Company has paid the STANDARD
OH Company. OF New York, over S.
00.t00 in rentals for the use Of the new
y discovered pipe line which extends
under the Hudson river across Manhat-
tan island, under Central Park, and
under the East river TO Long Island
City. This Is known as the Cr0ss-town
pipe line, and 10 one outside OF the
standard OF people knew II existed un-
I'll this investigation began.
The books OF the National Tran
sit Company show a loan OF S27O.-
5Sl IN 1901 to r NJ Barnsdale, and an
other 20 the same party In 1902 of S422-
247. Chesbro insisted he knew nothing
OF this loan
Did you ever hear OF the Barnsdale
OIL Company, OF Indian Territory" KEEL
logg asked.
7 have heard there mas such a com
pany," said the witness.