Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-09-19
OIL BUSINESS
PROFITABLE
VENTURE
ENORMOUS EARNINGS
OF STANDARD OIL CO.,
The Indiana Concern Recently
Fined by Judge Lands Earn
ed In One Year Ten Times Its
Authorized Capital.

HutllOIlLGu Odpltdli
New York. Sept 1S.-The profits OF
the standard Oil company of Indiana
i'm 1906 were $f0,516,0S2 and In 1903
SS753.410. This is the corporation,
capitalized at S1,00O,000. which was
fined $29, 9,240,000 by Judge Lands in
Chicago. These figures were brought
out during the hearing in an action
by the federal government against
the Standard Oil company of New
Jersey here today. The statement, as
presented. shows that the profits of
the Standard Oil company of Indiana
were greater than the profits of any
other company whose figures are given
except the Standard Oil company of
New York.
Clarence G. Fay, assistant comp
troler of the Standard oil company,
was recalled today and questioned
about the income Of the c. NJ. Pratt
Investment company. He said the
income from this source in 1902 was
$137.400 and the money made was
paid over to the Standard oil COM
pany by G. M. Pratt, who yesterday
testified he held stock i'm the Waters
Pierce oil company of Texas for the
Standard oil company and Standard
Gil company held stock of the G. NJ
Pratt company i'm lieu of Waters
~
Mr.. Fay testified that between 1899
and 1906 the stock of the Waters
Pierce Oil company appears upon the
books of the Standard oil company OF
New Jersey as an asset. In 1899 the
latter company's balar ct showed
the ownership of 2. shares Of
Waters-P Pierce stock, .,,.ded at So
067,S92. Mr.. Fay was questioned
about certain Central Trust company
certificates held by the Standard Oil
company between 1899 and 1904. A
statement from the company showed
the stock OF the National Storage COM
pany was sold in exchange for Le-
high Valley railroad bonds and de
posted with the Central Trust COM
pany, which issued certificates in ex-
change.
In 1905 these Central Trust certi-
fcates were exchanged for 500, 900
cash and 100000 worth of per cent
bonds OF tine Lenigh Valley company.
Frank b. Kellogg the government
counsel has already shown that the
standard oil company received re-
ports regularly from nineteen subs-
diary companies and that there was
an exchange Of stock certificates to
the number OF $4,000 between the
main company and others 1t is like
" that a strenuous fight will be waged
upon the production Of the books
which Kellogg believes contain the
minutes of the meetings of the liqu-
dalton trustees, who issued shares of
Standard Oil stock in exchange for
the certificates of other companies.
Mr.. Kellogg asked Mr.. Fay to pro-
duce a statement showing the capital
izauon Of all the companies in which
the Standard oil company was inter-
ested Mr. Fay said he would if pos
sible II was agreed that Mr.. Fay
and an accountant for the govern
ment should retire and check up the
income accounts from the various
subsidiary companies
The partial list submitted contained
the names of seventeen subsidiary
comnanies. Mr.. Fay said that prac-
tlcally all the stock Of the originai
nineteen subsidiary companies was
obtained by the Standard oil com. nv
of New Jersey between 1899 and 90
Mr.. Kellogg then asked Mr.. + if
ho had searched for the record Of
the liquldatlng trustees during .be
Fay said he hunted last night and |
found several Standard oil Trust !
l"dgers. the contents Of which he has 4
not examined and did not know what |
ih"v contairod. Ho said the company
only kept the balance sheets OF re- I
cent date and that nc had made no I
s"ar"h for the balance sheets previous I
to 1899
Mr.. Fay testified that ne had seen /
no balance sheets Of the Waters
Pierce oil company.
Why Is Il that your office. which /
has Information Of other comnanics.
has no information Of the Waters
Pierce oil company" asked Mr.. Kel-
Iogg.
Il don't know" replied Mr.. Fay
Charles NJ. Pratt secretary of tho
: 4 III VsN san4NH
'oss stand this afternoon He said
Turing recess that representatives Of
he government were going over the
edRers Of the liquidating trustees. and
hat Information concerning the liaui-
iation of the trust was being pre-
''red for presentation in court. Mr.
Pratt was shown a statement show
ng the income Of the Standard oil
'ompany Of New Jersey from g. NJ
Pratt Investment company and asked
Z the income was the total amount Of
dividends received from the Waters
Pierce cOmnauv. He replied that e
vas. Mr. Pratt said that the certifi-
'ates he held in the Waters-Pierce oil
'omnanv were indorsed in blank by
4. Clay Pierce. of St Louis. the presi-
lent
Prior 10 1900 the waters-Pierce oil !
ON many ~ Texas had a capitalization
II S4o9. 600. and the standard Qu
onl Danv owned 2.747 shares.
Mr.. Pratt said he paid ont 81 his /
locket x475.0Hn for the stock and ,
l"ld n in the interest Of the Standard d
lil company. In MAY. 1905. the new +
y N1fers- Pierce OIL company was form 7
q with the same capitalization. and .
ir. Pratt exchanged the old certifi- 1
-tes TOR the certificates Of The new
ompanv
Why did YOU hold this stock Tor !
he Standard oil company asked
Or Kellogg
''As a matter Of convenience" was
boz -enly. 4
Vow as a matter Of fact. did you
.ot hold this stock 20 cvade the anti a
rust laws Of Texas"
z do not know" was Ar Fraits !
rsWer
ar. Pratt said that in March. i90f. /,
e sold the Waters Pierce stock 10 I
q. NJ NanBuren. who. the witness
aid. had no connection with the ?
u ndard OH company Nr. NanBuren .
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