New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-21
WARNED STANDARD OIL
Senator Bailey Tells Investigating
Committee Of Written Opinion.

Austin, Tex. Feb Ex-senator Joseph W
Bailey. before the Investigating committee, con-
tinued the story Of his financial deals with John
4. Kirby. Texas lumberman, s. {. Bane, pres
ident Of the Seaboard National Bank Of New
York: Henry Clay Pierce, president of the
board Of directors Of the Waters-Pierce Oil
Company; r. F. Yoakum, head Of the Frisco
system, and with various other hnanciers.
one OF the most important statements was
that he had been asked by the Standard oil
Compan-- officers in New York Immediately
after the Beaumont oil field boom 10 give them
an opinion as 70 what the opportunities were
for the STANDARD Oh interests 10 re-enter the
state again and do business.
y gave them a written opinion. in which
stated that II hey attempted TO do business in
the state they would be put in the penitentiary
and their property absorbed in fines and penal
ties" said Senator Bailey
Senator Bailey told Of his adventures in the
financial world. and firmly maintained that all
Of his acts and deeds had been honorable and
above reproach. He told Of his efforts 10 assist
his client J. II. Kirby, in regaining his stock
from Patrick Calhoun. Of Wall street, and said
that the $4,000 ne boraowed because the
Kirby Lumber Company could not legally as
sumo these obligations. ZEe asserted that Henry
Clay Pierce gaTa h'a3 written guarantee for
the payn.srt 81 tbs gum Of money.
The explanation OF mis- former oil interests in
Texas was exhaustive IN detail The Senator
denied that he had conducted an oil business in
Texas IN conjunction with tho Waters Pierce
OIL Company or the Standard oil Company
The concern which he took over for debt was
known as the Southwestern Oil Company. a sub
sidiary concern Of the Houston OIL Company,
the latter company having timber contract
with the Kirby Lumber Company.
T. T. YOakuTD. ne explained had purChs sed
shares Of the Kirby Lumber Company stock
upon mis- solicitation. These shares We're trans
ferred to the ST Louis & San Francisco Rail
way.
Senator Bailey went into detail regarding his
attOrneyship Of the Tennessee Construction
Company. There WAS serious apPrehensIons. 4"
he said that the Tennessee Central Railroad
would be thrown into the hands OF receiver
again. I made inspection Of the railroad. I
went back 10 Mr. Pierce and others interested
ana told them that II would not be advisable to
foreclose on the railroad and take charge Of IT,
] thought the construction company should sell
its stock to the Southern Railway and the iii
nOIs Central. [ thought that Nashville should
have more than one railroad. I was urged to
sell the railroad bonds, and 7 did it | think the
bonds were sold in July, 1905 giving Nashville
needed railroads. The city Of Nashville had
subscribed Sle10G0O for the building of this
railroad ] consulted 2 number of men who
were interested in the City's welfare. and they
favored my plan. The coeries still belong To
the Tennessee Construction Company"
Did You ever change your clothes and dis
mittee
No was the reply. During my trip over the
tennessee Central system | stopped at MANY
places along the line and my visits were report
ed IN St Louis and Nashville papers. There was
not dollars worth Of securities turned over 10
me. Ny duty was 20 try TO do something with
the property. if I could.
Senator Bailey denied that he had ever rep
resented Adolphus Busch in any transaction. Il
have not concluded my attOrneyship with the
tennessee Construction Company yet" said
Senator Bailey.
Senator Bailey said there was not a shadow
OF truth in the charge that he had accepted
money for political services rendered the Wat
ers-Pierce Oil Company.
Regarding his debt with 3. F Yoakum SEN
ator Bailey said that he urged that Mr. Yoa-
Kun buy Kirby Lumber Company stock and
showed him the tonnage advantages to him and
his railroad. 4 was acting for the Kirby Lum-
be- Company in that transaction
Sena tor Bailey denied emphatcaIly that his
efforts In behalf Of his clients had any effect on
his public duties. He said that his attendance
upon sessions of Congress was as regular as
that of any other member.
Frequently during the afternoon Senator
Bailey denounced the charges as Ties" and his
enemies as liars"