Albuquerque morning journal., 1907-09-19
OIL BUSINESS
PROFITABLE
VENTURE
ENORMOUS EARNINGS
OF STANDARD OIL co,
The Indiana Concern Recently
Fined by Judge Lands Eara-
ed In One Year Ten Times Its
Authorized Capital

MHulllUllL6u OdplldL
New York, Sept. 1S.-The profits Of
the Standard Oil company of Indiana
in 1906 were $1O,5I6,082 and in 1903
$S,753,410. This is the corporation,
capitalized at $1,000, 900. which was
fined $29.240, 900 by Judge Lands in
Chicago. These figures were brought
out during the hearing in an action
by the federal government against
the Standard Oil company of New
Jersey here today. The statement, as
presented, shows that the profits of
the Standard Oil company of Indiana
we're greater than the profits of any
other company whose figures are given
except the Standard Oil company of
New York.
Clarence Ct. Fay, assistant comp
troller of the Standard Oil company,
was recalled today and questioned
about the income of the G. M. Pratt
Investment company. He said the
income from this source in 1902 was
$137,400 and the money made was
paid over to the Standard Oil COM
pany by G. M. Pratt who yesterday
testified he held stock in the Waters
Pierce Oil company of Texas for the
Standard Oil company and Standard
Oil company held stock of the G. M.
Pratt company in lieu of Waters
Pierce Oil company stock.
Mr.. Fay testified that between 1899
and 1906 the stock of the Waters
Pierce Oil company appears upon the
books Of the Standard OIL company of
New Jersey as an asset. In 1899 the
latter companys balance sheet showed
the ownership of 2,747 shares of
Waters Pierce stock, valued at $3,-
xrfap aCff IN n
about certain Central Trust company
certificates held by the Standard Oil
company between 1899 and 1904 A
statement from the company showed
the stock of the National Storage COM
pany was sold in exchange for Le-
high Valley railroad bonds and de
posted with the Central Trust COM
pany, which issued certificates in ex-
change.
In 1905 these Central Trust certi-
flcates were exchanged for 100000
cash and $4,000 worth of per cent
bonds OF the Lehigh Valley company
Frank B. Kellogg, the government
counsel has already shown that the
Standard Oil company received re-
ports regularly from nineteen subsi-
diary companies and that there was
an exchange of stock certificates to
the number of $1,000 between the
main company and others. 1t Is like
ly that a strenuous fight will be waged
upon the production of the books
which kellogg believes contain the
minutes of the meetings of the liqui-
dation trustees. who issued shares OF
Standard oil stock in exchange for
the certificates Of other companies.
Mr.. Kellogg asked Mr. Fay to pro-
duce statement showing the capital
ization of All the companies in which
the Standard Oil company was inter-
ested. Mr. Fay said he would If pos
sible 1t was agreed that Mr. Fay
and an accountant for the govern
ment should retire and check UP the
income accounts from the various
subsidiary companies
Tho martial list submitted contained
the names Of seventeen subsidiary
comnanies Mr. Fay said that prac-
tically all the stock of the -orignni
nineteen subsidiary companies wa
ohtatnod by the Standard oil COM ny
Of New Jersey between 1899 and "00
Mr.. Kellogg then asked Mr.. r. II
he had searched for the record oi
the liquidating trustees during ,he
neridd between 1892 and 1899. Mr.
Fay said he hunted last night and
found several Standard oil Trust
ledgers- the contents Of which he has
not examined and did not know whai
fhev contained. He said the company
only kept the balance sheets Of re-
cent date and that he had made no
search for the balance sheets previous
to 1899.
Mr. Fay testified that he had seen
no balance sheets Of the Waters
Pierce OIL company.
why is II that your office. which
has Information Of other companies
has no Information Of the Waters
Pierce OIL company?p asked Mr.. Kel-
logF
= don't know" replied Mr.. Fay
Charles M. Pratt, secretary of the
Standard oil company took the wit
ross stand this afternoon He said
during recess that representatives OF
the government were going over the
ledfers OF the liquidating trustees. and
that information concerning the liqul-
dalton Of the trust was being pre-.
n1red for presentation in court. Mr.
Pratt was shown statement show.
Ing the Income OF the Standard OF
company Of New Jersey from G. NJ
Pratt Investment company and asked
N the Income was the total amount of
dividends received from the Waters.
Pierce comnany, He replied that n
was Mr Pratt said that the certlfl.
Gates he held IN the Waters-Pieree on
company We're indorsed In blank by
u. Clay Pierce, Of st. Louis the presi.
dent sff
Prior TO 1900 the Waters Pierce OF
company Of Texas had a capitalization
Of 100000. and the Standard oil
company owned 2.747 shares.
Mr., Pratt said he paid out Of hi.
pocket S475.000 for the stock. and
held Il In the interest OF the STANDARD
OIL company In May 1905. The new
Waters Pierce oil company was form.
ed With the same capitalization. and
Mr. Pratt exchanged the old certlfi.
Gates for the certificates of the new
COMPANY.
why did Won hold this stock for
the standard oil company" asked
Mr. Kellogg.
AS q matter OF convenience" wal
the reply.
"Now a. matter Of fact. did you
not hold this stock 10 cvade the anti.
trust laws OF Texas7"
I do not know" was Mr.. Pratt'i
answer
Mr.. Pratt sald that IN March. 1904
he sold the Waiers-Pleree stock e
NJ n. VanBuren. who, the witness
said. had no connection with IN,
St9nasre Sssr III eefsp.llly n yenlsgrsJ
(Coutlnued on Page 3, Column n
IllEf1III + I.f*t 400 IEff'Ii