New-York tribune., 1907-09-20
GOT MORE THIN 4 Quar-
TER OF STANDARD STOCK.
Formation of OIL Combination and
Juggling of Teras Company In
Uestigatcd By Kellogg.

OOSiiAN1E
fore. be dissolved. Mr.. Kellogg started right in
| to dig at the roots of the formation OF the COM
! bination, which cleans up something like SOL
| 100000 year This in spite Of the reir-
Grated objection of the oil companys counsel
that they would regard it mot fair TO inquire
| what had been done by the company or its
| predecessors in getting firm grasp on the oil
| industry prior to July ., 1890 when the Sher-
| man law, aimed at trusts was passed
/ Mr.. Kellogg smngly repeated his assent "a
| the recording of the objection, and began again
| to try to probe out of Wesley II. Tilford. treas
| urer OF the Standard Oil Company OF New Jer-
sey. what that official knew about oil combina-
| tions the old days before July 2. 1890, and
what part Mr. TiIford himself had had in their
making.
| But the governments attorney didn't have 10
| bark back to things that happened seventeen o.
more years ago to disclose to the general public
| some idea OF why it Is justified in regarding
| John D. Rockefeller as really in the running fo-
| the title the richest man in the world II was
| in 1899 that the president Of the Standard OIL
| Company Of New Jersey received 256.S54 shares
| of preferred stock of that company at its tncor-
poration IN return for like number Of certth-
| Gates he held in the original trust. which was
| forced into Iidudation by the state Of Ohio in
| 1892 Altogether there are 97251o shares Of
| Standard oil stock. and as during the lasc
| eight years according TO the figures presented
| on Tuesday, those who held them profted TO
tire tune Of something like SJO0OOOOO0 Mr.
Rockefeller alone must have gathered in az least
| S125 100000. or S15.625,O0O a year.
| MI Kellogg however, did not cOnf1ne his IN
| terrogations of the only witness az yesterdays
| hearing 10 ancient history in the oil industry.
| In fact he wanted 10 know so much about the
| real inside and latter day connection Of the
| standard oil Company OF New Jersey with the
( Corsicana Refining Company Of Corsicana-
| Tex and the Waters-Pierce Oil Company thar
John g. MiIburn. chief counsel for the oil cor
poratfon. ventured to demonstrate with the
| governments chief attorney thar we are not
| trying case for the state OF Texas
| As the purpose Of the Sherman antitrust
| law Is 10 prevenr infractions Of the Interstate
! commerce law and as Texas is in the Union
| 9Ir Kellogg continued in his attempt 70 prove
through Mr. Tflford's testimony that the chief
reason for the occupancy Of Offices az NO n
| Broadway by H c. FoIger and c. y. Payne
| was that they were copartners in the Coz
| sicana Refining Company Through this ar
! rangeu1ent which is designed TO circumvent
the ban placed by the Lone Star State on Stand
ard oil. that corporation Is enabled 70 do
! thriving business in Texas
| SECURITY OH. OF TEXAS
Mr. Kellogg was also eager to prove that be-
sides the Waters-P Pierce Oil Company. reor-
! eanized in 1900 after Texas had ousted it from
! that state. Standard Oil had keen interest N
| the Security Oil Company OF that state Hs
| repeated his inquiries put 10 the preceding wiz
nesses as 10 the connection of s. 6. Bayne, pres
| ident OF the Seaboard National Bank. Of this
| city with the the Standard. Mr. Tilford. hOw-
| ever could not be brought TO the point OF say
| ing that Mr. Bayne held controlling lot OF the
stock of the Security oil Company OF Texas as
a blind for the Standard OIL 10 do business IN
| that state.
! Yesterdays hearing vas a comparatively brief
! one 1t was late in starting owing 10 the tardi
| ness of Moritz Rosenthal Of Chicago, who with
| Mr. MiIburn is conducting the defence OF ths
/ Standard oil Company. and was adjourned
| early at his request. Mr.. ROsenthl was unabls-
| owing to Illness. to be present yesterday after
noon and the hearing went over until this
! morning
| Besides showing that the federal government
| Is aware of the fact that the Standard OIL
/ Company still does business in Texas. though
| IL has been barred from that state yesterdays
| session was important for it's revelations Of
/ John D. Rockefeller's personal interest in ard
| income from the Standard OH Company oc
| New Jersey. Mr. Tilford would not be sure
/ TO the interest Of the Standards president, but
| as the witness treasurer Of the company
| when II was Incorporated. he was asked 20
confirm the record and To give also the amount
| of the shares held oy H n. Rogers, WllNsEn
| Rockefeller Henry NJ. FIagIer. John D. Arch
bold, Charles NJ. Pratt. Charles Pratt. or the
| Charles Pratt estate. and Stephen V. Hardness
CAREFUL ABOUT HIS ANSWERS
| Like the other witnesses. Mr.. THford was
| careful about giving any answers in regard 10
| Standard Oil transactions without first refresh
| ing his memory by consulting the records. Like
| them. Also he seemed dubious about the exist
1
| in connection with this bearing on his own as
| sociation with the Oil business that Mr.. Kellogg
| was able to elicit
Mr.. Tilford started In the oil business in 1883
or 1870 as an employe OF Bostwick 6 TilfOri.
OF Chicago. His brother partner in the
firm Then he took interest IN the Chess.
CarIey Company. of Louisville. in which. IN
1875 Francis D. Carley and the Standard OIL
Company of Ohio owned each half interest.
He became a trustee in the original trust
formed in 1882. and signed the agreement under
which twenty companies combined TO get
troll of the oil business
When Ohio declared that combination Illegal
in 1892 and placed the trust in the hands Of the
Iiquidating trustees. he selected of
them Though he acted as treasurer of the
liquidating trustees and Is treasurer OF the
Standard Oil, Mr.. TilfOrd's information was in
complete as to the methods by which dividends
were paid and the new trust formed in 1873
He was for many years. according TO his testi-
mony yesterday. head of the Standard OIL Com
pany OF Indiana. which made over 1.OOo per cent
profit on it's Investment last year. and is at
present an official in the Standard Oil Com
panies of New Jersey. New York. Indiana. Ken
lucky and the Atlantic Refining Company, Of
Pennsylvania
N riod ard n xpr