Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-09-27
HUGE: LOANS MADE
| BY THE STANDARD
Millions Credited to the National
Transit Company.
MYSTERIOUS TRAINOR ITEMS
Over $5000,OoO Credited to Him
Without Explanation.
VERY PRODUCTIVE PIE LINES
Buckeye Plant Earned Nearly It's En-
tire Cost in One Year Of
Operation.
MYSTERIOUS TRAINOR ITEMS
VERY PRODUCTIVE PIFE LINES

NEW YORK. September 27.-George
| Chesebro. controller Of the subsidiary
pipe lines of the Standard oil Company.
was on the witness stand today in the gov
ernments suit against the Standard OIL
Company OF New Jersey, to give testimony
regarding the operating cost ana profits of
the pipe liz companies Mr. Kellogg ques-
toned the witness regarding the Buckeye
Pipe Line Company.
II notice the following loans made by the
Buckeye Pipe Line Company to the Nation
al Transit Company, as shown by the bal.
ance sheets OF the Buckeye Company In
1899, So, Sit Ill; in 1900, 81 251 2sT; in 1902,
IS. .63s, 61s; in 1903 ss115153; in 1904, se,515.-
ass; in 1865, So $50 $685. and in 1896 s4,8Ie.5 e.514.
What were these loans?" asked Mr.. Kel-
logg.
They Represented funds deposit with
the National Transit Company" replied Mr..
Chesebro.
You carried these loans as an assetr'
Yes, sir"
why DID you deposit these funds with
the National Transit Company"
as bank, and we could call for the funds
whenever We wanted them" replied Mr..
Chesebro
Good Old Buckeye.
Il notice that in 1906 the cost OF the
| Buckeye plant is carried at s9g95 967 and
| the net earnings were s7,02S,oUS for that
| year. Is that correct?'
| Yes, sir
Il notice that g. 231, ,9O1 is carried on the
| books as an oil purchase contingent fund.-
Why is such a fund as that carriedr'
ITO cover the loss by shrlnkage in the
carrying OF oil, said Mr.. Chesebro.
Mr.. Chesebro said that such "a contingent
sum carried because the shippers
might call for the shrinkage funds at any
time.
Mr.. Chesebro said that the gross earnings
of the Southern Pipe Line Company In
1899 were Si,31661S the operating expenses
S3lG.522 and the net plant Investment f2,S
l25 COS He said he did not know what the
item of So6 charged to j. p. Trainor
represented nor what an item Of s., sos. .sSs
to Mr.. Trainor in 1900 was for. He was
asked to find out from his books.
An Explanation Wanted.
Mr.. Kellogg said the Southern Pipe Limo
Company showed q loss of $685., 512 in 1900.
presumably because Of the Trainor item.
Mr.. Chesebro said his predecessor In the
company had never explained the Trainor
items.
The witness said that the Standard OIL
Company owns the pipe line which runs
under New York city, and, previous to 1900.
leased II to the New York Transit Com
pany.
Mr.. Chesebro testified that the New York
Transit Company sold the pipe lines from
Unionvllle and Center Bridge to Bayonne
to the STANDARD Oil Company in 1903. He
could not recall the purchase price.
Mr.. kellogg asked the W tness about
loans shown by the balance sheet of the
National Transit Company to have been
made to Messrs. Folgerna Payne, but he
had only heard of them He unable
to identity c ". Barnsdale, to whom the
company was shown to have leaned S270,-
CS1 and did MT know whether he was con-
nected with the Barnsdale Oh Company OF
Indian Territory.