Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-09-25

company was under the same ownership as
the Manhattan.
Where did you get your crude oil?"
From our own wells
Before the Manhattan Company was
formed, where did you buy it?"i
From the Standard Oil Company
Then it was to protect yourselves against
tie Standard OIL Company that the Man
haitian OIL Company was formed?'
Yes, | suppose So"
Mr.. Kellogg got from Mr.. Brady a copy
of the transfer Of the 2OOOO shares of stock
10 the General Industrial Development Syn
dictate Company. Limited. and got it in evil
dence in spite OF the objection Of Mr.. Rosen-
thai
Mr. Kellogg read the agreement. showing
that Mr.. Brady had agreed to sell to the
General Industrial Development Syndicate,
Limited. of London. for consideration OF
81 and Other valuable considerations all
of the capital stock OF the Manhattan OIL
Company. consisting of 10000 shares OF
stock. OF the par value of 800 a share. In
August. 1899. The General Industrial De
velopment Syndicate was to ASSUME the In
dcbtedness of the Manhattan Dil Company.
amounting to SSOO0 with accrued Inter
est thereon. and otherwise relieve Mr..
Brady of all responsibility in the ownership
OF the oil company. The agreement APP
pears to have been signed by II. Maxwell
Johnson as director and J. NJ. Francis. as
secretary of the London concern.
Mr.. Brady said that the options for the
sale of the stock had been accepted by
cable from a Mr. Herbert Johnson of Budd.
Johnson & Jecks a firm of London solicit
which represented the syndicate com
panY. The cable accepted the offer OF the
options and said John II. Cuthbert would
call and arrange details. He has full power
to act.
Standard Kept Quiet.
Through whom were the negotiations
carried on?"
Mr. Johnson
Did Brown Brothers carry on any nego-
tiations for you?''
No"
What did Mr.. Johnson say about the
contract?'
He agreed that he would get such
contract
Whom did ne say he would get it from?"
He said that 1t would be a satisfactory
contract
Did you insist that the contract should
be with the Standard?"
Il insisted that It should be entirely sat
isfactory to the gas company
Have you that contract with you nowF'
Yes. sir
Mr.. Brady handed Mr.. Kellogg the docu-
ment and 1t offered In evidence.
This contract purports to have been
signed by w II. Tilford. Do you know Mr..
TilfOrd?'
No. sir
Did you ever have any negotiations
with him."
NO. sir
Did you receive the contract at the
time you sold your stock?"
About the same time"
Did you have any negotiations with the
Standard Oil Company"
NO. sir
II notice" said Mr.. Kellogg. that a
cable from Mr.. Johnson announced that
Mr.. Cuthbert would call on you to talk
over the sale. Did you see Mr.. Cuthbert?"
Yes. did.
Did he tell you his business?"
Il thought he was an accountant"
Did you inquire whether the Standard
was the purchaser of your Stock?"
Yes. did Mr.. Cuthbert denied that the
Standard was the purchaser"
Did Mr.. Cuthbert say he was in the en-
ploy of the Standard Oil Company" con-
tinued Mr.. Kellogg.
NO. he did not
Was any other company suggested be-
sides the Standard?'
Now, az a fact didn't you know that
the Standard was the real purchaser of the
Manhattan"
Il did not
Have YOU learned so since?''
"No-Only what 1 have seen in the news
papers,.
Mr. Brady was asked If he had previous
~ known of the London company or Of Mr..
Johnson. He said he had not.
"ijaw did you happen to ask Mr.. Cuth-
bert if he were connected with the Stand
ard >"
Wanted Protective Contract.
Mr. Benedict suggested that he might
be"
you objected to selling to the Standard
without a contract. didn't your
We objected to sell to any one else I'M
less we had a contract from the Standard"
Did you not know Cuthbert was the
Standards representative on the board of
directors of the Tidewater Company"
No
Did you not know that he was an ac-
countant in the Standards offices?'
Not at that time 1 thought so later"
Mr.. Cuthbert arranged all the "DETAILS of
the sale. he said. went to visit the oil wells
and arranged the details of payment The
contract between the Peoples Gas. Light
and Coke Company was the only paper in
the case of which Mr.. Brady knew. and he
was excused from the stand.
Josiah Lombard. now an employe of the
Tidewater OIL Company. said he imported
Oil to Newtown Creek in 1866 and refined
and sold It,. He told about the firms that
were in the local Oil business at that time
1856. Mr.. Morrison asked what had become
of his six rivals.
All but one Of them had gone into the
Standard. That one had failed and the
Standard had taken over it's plant he said.
In the early '70s the Standard got the same
freight rates as Its competitors, the wilt
ness said The contract with the South
Improvement Company had been signed In
loiZ. BY TINS on the pennsylvania and
New York Central lines the Standard got
special rates. and Immediately after the
contract went into effect the general rates
went up. Mr.. Lombard said.
Did you know that 1t gave the Standard
rebate of 80 per cent for all Oil shipped
by 1t over the roads in this agreement
No"
Mr.. Lombard said that he objected to the
new rates to William H. Vanderbilt and re-
fused to pay them The Standard had
gained control Of the terminals of the rail-
roads. Mr.. Lombard said. and could dictate
their own yard charges.
AT this point a recess was taken.