The daily morning journal and courier., 1907-10-09
ILLEGALITY OF
 STANDARD OIL Governments Counsel Be- lieves He Has Already Proved the Federal
 Allegation.
TRUST ASSORTED TO
 DEVIOUS DEVICES
Profits From 1882 to 1891 Made Public For First Time-Fay's Conclu-
 sive Testimony.

New York, Oct S,-From statements culled from ledgers and books found in the offices of the Standard oil Co., Frank B. Kellogg, counsel for the United States government, succeeded in placing on to-day's record of the fed eral proceedings against the oil com pine, the processes and stages through which the combine passed In its changes from the old Standard oil Trust to the present Standard oil Co. of New Jersey. Out of the maze of figures developed in a voluminous mass from the connpany's books and from testimony given by Clarence c. Fay, assistant auditor of the Standard, call ed as witness to-day, the govern ment's counsel says he believes he has proved the federal allegation that the Standard is an illegal corporation and that by devious devices has maintain ed it's entity and that it is under tns same ownership as when it was form ed. Mir Kellogg says that he is of the opinion that, notwithstanding that the government was unable 10 discover the transfer books and stock ledgers of the lquidating trustees, the evidence ad- duced to-day shows that the so-called oil trust only affected to dissolve un~ der the order of the Ohio courts in 1892. and that it's direction Is still held by those who had to do with the for nation of the Standard Oil Trust.
 +o 1o. et, srad in brief that at the inception of the 2 Standard Oil Trust in 1882 there was $T0,0000 900 in trust certificates issued for stocks of various companies, which en- tered into the combine. In the trust period from 1882 to 1892 stock divi- dend of $15, 5,000,000 was declared and til $ with other stocks issued for plant puT- chases brought the total capitalization of the Standard up to $97 ,25O,OGo As a result of a decision Or the supreme court of Ohio, forbiddlng the trustees from voting the trust certificates there was a resolution passed by the trus- tees directing that the trust be dis- solved. MT Fay read statement in the record to-day showing that the day following the passage of that res9lu- ton sixty-four subsidiary companies were consolidated with the Standard oil Co. of New Jersey and nineteen other subsidiaries of the trust Seven- months later, on Nov. 30, 1892 the wit ness read from statements, there were 494,619 trust certificates presented for cancellation and to the holders were given their pro rata shares in the twenty subsidiary companies which then made up the trust.
 There were also offered for cancelia- tion two months later some 10000 trust certificates. There was a lapse of over four years before another certificate was presented for cancellation. MT Kellogg sought to show that those who held control Of the trust, with the ex- ception of few friends, were the only ones who liquidated their trust certifi- cates and that, by liquidating only a majority of the total certificates out standing which they owned, they con- tinued their direction of the trust by W ting majority of the stock in the subsidiary companies MT. Kellogg en- deavored to show that those who liq- uidated their trust certificates and took the stocks of the subsidiaries were John D. Rockefeller, William Rockefeller, H. M. Flagler Benjamin Brewster, J. D. Archbold, H. H. Rog- CTS, w. H. Tilford, c. w. Hardness, estate of c. B. Jennings, Emma Auch- incloss, estate of Charles Pratt and O. H. Payne.
 For the first time the profits and dividends of the Standard Oil Trust from it's inception in 1882 to 1891, were made public to-day. The profits of the Standard Oil Trust, as stated by Mir Fay, were as follows: 1882 $12,SSS,5O 1883, s11, ,231, 79O; 1884, $777S,2O5; 1885 sS,SS2 935; 1886, $15,85O,7S7; 1887, $14O26, 59O; 1888, s12,751727; 1889, $14,S45,201 1890, S19,131,4 ,470; 1891, $16,S31,SS6.
 The dividends declared by the Stand. ard Oil Trust, from 1882 to 1891, were spread on the records as follows:
 1882, SS,695, ,253; 1883, $4,2eS, ,0S6; 1884 s4.2s8, ,S42; 1885, S7,479,2 ,229; 1886, $7,226,452 1887, SS,463, ,827; 1888, s1O2S6,277; 1889 $1O,62O,6 ,6SO; 1890, $1l2Oo,oOo; 1891, $11, ' 64S,S26
 MT. Kellogg, after the adjournmen to-day made the following statemen concerning the developments in thu \ hearing:
 \ "The evidence to-day consisted large l. ly on statements from the books of thu trustees of the Standard oil Trust This is the first time these books have ever been made public. It appeared that on March 21, 1892, the trustees claimed to liquidate the trust by di vision of all the stocks pro rata amont the certificate holders.
 As matter of fact it appears tha on April l, 1892, before any division of the stock in the hands of the trus tees was made, the trustees turned over to the Standard oil Co. of Nev Jersey, to the Standard oil Go. of New \ York, and to various other compan (Tou+i-Y1ad on cepnnd Pnpe