Waterbury evening Democrat., 1907-09-19
1000 PER CENT PROFIT
Standard Oil Company of Indiana
 Made $1O,516,O82 Last Year.
c. M. PRATT UNVEILS SECRETS
Testifies That He Held For RockefeI- Ter Corporation Stock of Waters Pierce Company When Latter Was Not Allowed to Operate In Texas.

Ter Corporation Stock, of Waters
 Pierce Company When Latter Wcs Not Allowed to Operate In Texas.
 New York, Sept. 19.-More light was shed on the remarkable earning ca pacity of the various subsidiary con- panies of the Standard Gil company when Frank B. Kellogg, who is con- ducting the federal suit, succeeded in placing upon the record the profits of seventeen of the principal subsidiary companies ill the years 1903 and 1906
 The statement of earnings of the Standard Oil Company of Indiana which was recently fined $29, 900 by Judge Landis of Chicago for re- batting, disclosed that in 1906 the com pany earned no less than $10,516,OS2 on capitalization of $1,000,000, or over 1000 per cent a year. The h. diana company in 1906 earned more than any subsidiary company of the big combine. . @ Enormous Dividends.
 Mr. Kellogg developed while Clar- ence G. Fay, assistant comptroller of the Standard Oil company, was again on the stand curious problem of financial bookkeeping or handling of accounts which Mir. Fay failed to ex- plain. From figures submitted it was shown that the Standard Oil Company of New York in 1904 made a profit of $7,751, ,160 and paid in dividends to the Standard oil Company of New Jersey the total sum of $32,99S, ,43O.
 This transaction reduced the net as- sets of the New York company from $40, ,425, 900 to $15, roc, while the liabilities leaped from $47,64G,235 in 1903 to $S1, 1895, 145 in 1904, an increase of> nearly $34.OOO,OOO. The gross as sets of the New York company, how ever, increased from $SS,074, ,561 in 1903 to S96,574,S52 in 1904. Meanwhile the accounts receivable of the Standard Oil Company of New Jersey grew from | S19,O45,O14 in 1903 to $5S,272,9.4 in 1904.
 Waters-Pierce Oil Company.
 MT. Fay was closely questioned as to the nature of the increased liabili- ties of the New York company and increase in the accounts receivable of the Standard oil Company of New Jersey, but he said he could not tell until he had examined the books of both companies, which he told Mr. Kellogg he would do.
 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 con- pany at the time when it was not per mitted to operate in the state of Tex as. He said that he held the stock as a matter of convenience and not to avoid the antitrust laws of Texas.
 Mir. Pratt threw some interesting side lights on the Waters-Pierce Oil company, the stock of which was held for a long period by NJ. NJ. Van Beur. en, who was not connected with the Standard oil company.
 How Standard Got Stock.
 Mir. Pratt sold the shares in 1904 to M. M. Van Beuren, who is son-in, law of John D. Archbold, for some. thing more than $4.O00,OOO. Van Beu. ren gave him $150,O00 and note When the dividends came in Mir. Pratt credited Van Beuren on the note, and after two years Van Beuren turned the stock over to the Standard, and it appears on their books in 1906.
 Tt was a bone tide sale" declared Mir. Pratt in describing the transfer Of the stock which the Standard owned from himself to Mir. Archbold's son-in. law.
 Do you know" inquired Mir. Kel. logg, of any other instance in the his tory of the Standard oil company connected with the corporation stock paying such dividends and for any such sum?
 MT. Pratt said he didn't.
 That stock was continuously held for the Standard Oil company" inter rupted Mir. Milburn. There's no dis pute about that"
 "The witness didn't say SO" retorted Mir. Kellogg. He denies it. He says the stock was actually sold"
 Juggling In Finance.
 Another item in the Standards ledg- CT which Mir. Fay couldn't explain on Tuesday was partly cleared up yester. day. From 1s99 to 1904 an item of nearly S5.OOO.OO0 in a contingent &C., count was carried as an asset under the title Central Trust company cer- tificate.- Mir. Fay explained yesterday that stock and bonds of the National Transit company were sold in ex- change for Lehigh Valley railroad bonds. and all were deposited tempo rariIy with the Central Trust compa. ny and their certificates received by the Standard. Then the Central Trust company certificates were exchanged for S1.0OO.OOo in cash and Sj.OOO,O0O Lehish Valley bonds.
 Mr. Kellogg renewed his demand fof the balance sheets of all the subsid- iary companies. and the promise was given that they would be produced to- day. Abstracts of these balance sheets have been put in evidence. and through these and AIr. Fay Mr. Kellogg ob- tained the story of a queer juggling of millions in 1gD4.
 In that year the net profits of the Standard oil company of New York were sT.7j1. .1GO5S. and it paid divi- dends to the Standard OH Company of