The Norfolk weekly news-journal., 1907-09-20
STANDARD OIL PROFITS
INDIANA CORPORATION EARNS
ONE THOUSAND PER CENT.
tan MILLIONS IN ONE YEAR
More Details OF Huge Earnings Of
Rooketeller's Comp Anies eroueh,
Out In Now York Hearing OF Govern.
ments Suit for Dissolution,

New York, =. IT., l9.-More light
was shed upon the remarkable earning
capacity OF the various subsidiary
companies of the STANDARD OH com.
pany when Frank B. Kellogg, who il
conducting the federal suit, succeeded
In placing upon the record the profits
OF seventeen OF tho principal subsid.
larry companies Ia the years 1903 and
1906.
The statement OF earnings OF the
Standard OH comruny OF Indiana,
which was recently fined $29,24O 900
by Judge lands of Chicago for rebat.
Ing disclosed that In 1906 the com.
pany earned $l0,5l6.OS2 on a capital
OF Sl.000,O0O, or over 1000 per cent
q year. The Indiana company in 1906
earned more than any subsidiary com.
pany of the big combine.
Mr.. Kellogg developed during the
day, while Clarence G., Fay. assistant
comptroller of the Standard OH com.
pany, was on the stand, curious
problem OF financial bookkeeping or
handling OF accounts, which Mr.. Fay
failed to explain. From figures sub.
mitted 1t was shown that the Standard
OIL company OF New York In 1904
made profit of $7,751.l60 and paid
in dividends TO the Standard Oil com
pany OF New Jersey the total sum of
t32, 1905, 430. This transaction reduced
the net assets of the New York com.
pany from $40,425. 900 to $l5,l70,7 FOG,
while the liabilities leaped from SAL.
646,235 In 1903 to $sl ,395,745 in 1904,
an increase OF nearly $34 100000. The
gross assets of the New York com.
pany, however, increased from SSS,.
074,561 in 1903 to S96,574,S52 in 1904.
Meanwhile the accounts receivable OF
the Standard Oil company OF New Jer.
Sey grew from $1Y,O45.0l4 in 1903 to
S58.272.924.
Mr.. Fay was closely questioned as
to the nature Of the increased labil.
tiles of the New York company and
increase in the accounts receivable OF
the Standard Oil company of New Jer.
sey, but he said he could not tell until
he had examined the books OF both
companies, "HlIu TIC lOIu MI. htIlOBB
he would do.
Bookkeeping Juggled.
Charles NJ. Pratt, secretary OF the
Standard Oil company. recalled to the
witness stand, told how he had held
for the Standard Oil company the
stock of the Waters.Pierce Oil com.
pany at the time when 1t was not per.
mitted to operate in the state Of Tex.
as. He said that he held the stock as
q matter OF convenience and not to
avoid the antitrust laws of Texas.
Mr.. Pratt threw some interesting side
lights on the WatersPierce Oil com.
pany, the stock of which was held for
a long period by NJ. M. Van Buren,.
who was not connected with the
Standard Oil company. Mr.. Van
Buren, purchased the stock from Mr..
Pratt and early this year the Standard
OH company bought 1t back. The ma.
turs OF the transaction showed that
Mr.. Van Buren, received from the
Standard Oil company exactly what he
paid for the stock and that during
the time he held 1t the dividends were
paid to the Standard company.
Wesley Tilford, treasurer OF the
Standard OIL company, was called to
the stand and Mr.. Kellogg made an
effort 70 have spread on the records q
copy of the trust agreement OF 1882.
but John G.. Milburn. chief counsel
for the defendant company, objected
on the ground that e"oh an agreement
was prior to July 1880. when the
Sherman antitrust law went into ef.
feet.