Kingsbury County independent. (DeSmet, Kingsbury County, S.D.) 1894-1929, 1907-10-18

oIlb llAtS hlS1t
rates in favor of the Standard. His
mpan was forced out of the
South African territory.
New York, Oct.11-That the Standard
OIL trust, after n resolution directing
that the monopoly be dissolved follow
ing a decision of the Ohio supreme
cour forbidding the trustees from vot-
ing trust certificates, the very next day
was instrumental in the consolidation
of sixty-four subsidiary companies with
the Standard of New Jersey and nine
teen of its other subsidiaries, is the big
thing hat Government Attorney KEEL
logg has laid bare in his suit to dis
solve the Rockefeller octopus. 1t is the
biggest thing revealed yet by the in
restigation. Kellogg says:
The evidence consists largely in
statements from the books OF the trus-
tees of the Standard OIL. This is the
first time these books have ever been
made public. 1t appeared that March
u, 1892, the trustees claimed to liquid
ate the trust by division of all the
stocks pro rata among the d,.-erent
holders. AS a matter of fact, it ap-
pears that April I. before any division
of the stock In the hands of the trus-
tees was made, the trustees turned over
to Standard Oil OF New Jersey, to
Standard Oil of New York and to va
rious other companies controlled by the
trustees the stocks of sixty-six corpora
tons, leaving In their hands the stocks
of twenty corporations only.
A Few Immediate Associates.
THE stocks of these twenty orpora-
tions they divided into parts equal to
the number of trust certificates out-
standing, and Ii appeared by the ex-
hibit that November 30, 1892, a bare
majority OF the outstanding certificates.
towit, $49, 461, 800 par value, were can
celed (out of the total issue of $e7, ESQ.,
000), and a proportional Mount of the
stocks of the twenty subcompanles dis
tribute to the persons who surrendered
their trust certificates.
But 1t appeared hat only the par
ties who received such distribution OF
the trustees were three or four imme-
date associates. The trustees, there
fore. instead of distributing the stock
of all h companies, turned over sixty
four OF them to the companies which
they controlled, and distributed the
stock simply TO themselves. The bal
.ance of the stock belonging to the pub
lie was retained by the trustees, SO
that during the period of liquidation
from 1892 to 1899. the trustees con-
,trolled all their corporations In exactly
the same manner as before.
, w produced a statement showing
the earnings of the trustees from 1889
to 1891. and the dividends annually
but the dividend during the period OF
has not yet been made up."
In the Same Old Way.
In short, out of the maze of figures
developed from the company's books
and from testimony given by Clarence
G. Fay, assistant auditor OF Standard
OH, the governments counsel says he
believes he has proved the federal al
that the Standard Is an IL
legal corporation, and by devious de-
vices has maintained its entity, and
1T is under the same ownership
as when it was formed.
Mr.. Kellogg says he is of the opin-
ion that Notwithstanding the govern
ment was unable to discover the
transfer books n stock ledgers of
the ~liquidating trustees the evidence
shows the oil trust only affected to
under the order OF the Ohio
in 1892, and its direction is still
held by those who had to do with
formation of the oil trust.
The Very Next Day.
Statements submitted showed that at
the inception of the Standard OIL trust
49, - SS VtppVOVyVVO III III
issued for stocks In various
which entered into the COM
binc. In the trust period from 1882 to
1892, a stock dividend Of SIS, 000. 900
was declared. and this. with other
stocks issued for plant purchases,
brought the total capitalization up to
$97, 100000. AS a result OF a decision
the supreme court Of Ohio forbidding
the trustees from voting the trust GER
tl1cates there was a resolution passed
directing that the trust be dissolved.
Mr.. Fay read a statement from the
record showing that the day following
the passage Of hat resolution sixty
four subsidiary companies were consol-
dated with Standard Oil of New Jer-
and nineteen other subsidiaries OF
he rust. Seven months later, there
we're 494.619 trust certificates presented
or cancellation and to the holders were
given their pro rata shares In the twen-
y subsidiary companies which then
up the trust. There were also of
erred for cancellation two months later
10000 certificates. There was "a
apse OF over four years before another
'ertthcate was presented for canceila-
ion.
Direction Perpetuated.
Kellogg sought to show that those
Who held control of the trust, with the
exception of a few friends, were the
oheS WHO iiquiuateu tnelr trust
of the total certificates out-
standing, which they owned. they con-
inued their direction OF the trust by
'oting a majority of the stock i'm the
subsidiary companies.
He also tried to show that those who
iquidated their trust certificates and
ook the stocks of the subsidiary com
,anies were John d. Rockefeller, Will
am Rockefeller, III. nj. Flagler. Benja-
nen Brewster, j. ID. Archbold, II. H..
w FL. Tilford. C. w. Hardness,
he estate OF c. r.. Jennings, Emma
Auchincloss. the estate of Charles Pratt
md o. III. Payne.
For the first time the profits and
dividends OF the Standard Oil trust
rom its inception in 1882 to 1891 were
made public. The profits as stated by
Fay were: