Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-09-23
LIQUIDATION EVASION
Standard Oil Charged With
Deceit
FOR AVOIDING INJUNCTION
Only Half the Reorganization Stock
Distributed.
CRUSHING OF A COMPETITOR
Defense Enters Explanation for Limit
ing Crude Oil Supply to In
dependent Companies.
FOR AVOIDING INJUNCTION
CRUSHING OF A COMPETITOR

Special Dispatch to The Star.
NEW YORK, September 23.-William G..
Rockefeller may not take the stand in the
governments suit to dissolve the Standard
OIL Company of New Jersey According to
Frank B. Kellogg, the governments chief
attorney there will probably be no neces-
sty for calling him. or If he does testify,
it will be only in regard to few questions.
as Wesley II. Tilford will probably be able
to give all the informa ton that Mr.. Rookie
Teller would have. the latter in his capacity
as assistant treasurer of the Standard Oil
Company of New Jersey. being officially the
subordinate of Tiford.
At the beginning of this mornings ses-
sion Of the hearing, in answer to Examiner
Fefriss' inquiry to whether the testi-
mony of c. NJ. Pratt and Clarence G. Fay
was finished. Mr.. kellogg said that he was
through with Pratt. but not with Fay.
Then Wesley H. Tilford resumed the stand.
Mr.. Kellogg questioned the witness con-
corning the purchase by the Union Tank
line of I5i cars in 1S93-lHDl from the Man
haitian Oil Company. but he had not pro-
vided himself with the necessary facts, and
the question was laid aside for the mo-
ment He said also that he knew of no
contract with Commodore Benedicts gas
companies to furnish them for ten years
with supply of oil. He admitted that
there was contract of the kind made
about eight years ago. but failed to see
any connection between it and the sale of
the Manhattan Oil Company. though he was
president of the Standard Oil Company
of Indiana at the time, and the oil was sup
piled to Benedicts Chicago Gas Company.
"Wll you swear that this contract was
not made a consideration In the sale of
the Manhattan Oil Company"
NO: that is | know nothing about It,.
What did you think about it:
Il object" said Mr.. Milburn, but the wit
ness answered that he did not think about
1t.
Certificates Not Distributed.
Returning to the iiquidating trust. Mr..
Kellogg asked if the witness was not aware
that from 1892 to 1897 only bare majority
OF the trust certificates. representing stocks
IN the twenty companies. was distributed
1859 of 81, 800 shares-and that it was all
distributed to a few persons. including John
d. Rockefeller William Rockefeller and
the remainder of the lquidating trustees.
and a few other persons intimately &C
quainted and interested in the affairs of
the Standard Or since its origin. Mr.. kel-
loggs implication was that the hqulda-
ton was only evasion and not bona hde.
Mr. Kellogg said he purpoSed showing
that, in order to avoid the Injunction or
the court preventing the voting of trustees
certificates, these trustees liQuidated sur
ficient amount of trustees certificates for
a ma jorty of the stock in the subsidiary
companies. and, as individual stockholders,
still maintain control of the company.
The witness knowledge of the facts was
hazy.
Il don't know about the distribution" he
said. though he was one of the liquidatng
trustees to whom stock was distributed
do you know John Bensinger?'
Yes
WAS he transfer agent for the liquidat-
ing trusts?'
Eyes. but I don't know how long"
Did you take your stock to be trans
ferred by him."
Il don't remember
The witness said also that he did not
know whether he had made contract for
the supply of oil to the Indianapolis Gas
Company at the same time as he did to the
Chicago OIL Company.
In the middle of 'Filfords examination a
debate occurred between counsel as to
whether the complete list of the Standard
OH Company of New York stockholders
should be put in evidence or not. each try
ing to force the other for the responsible
ity of asking that the list be entered as
evidence. Mr.. Milburn at last took the
initiative, and the exhibit was marked De
PENDANTS Exhibit T.
Five Thousand Stockholders.
Mr.. Milburn then took up the examina-
ton of the witness
Have you any idea of the number Of
thousands of stockholders on the list ?"
cover 5000"
Owning various amounts Of stock?"
Yes sir"
The witness said that he had transferred
his certificates for stock at the liquidating
period and examined them for Standard Oil
stock in 1899. He did not know how many
people failed to follow his example
You were president of the Standard OIL
Company of Indiana when the contract
was made for the supply of oil to the Peo-
pies Gas Company"
Yes"
Were you an active PRESIDENT"
NO. sir
Who was the active head?"
James A. Moffett"
The witness said too. that the Indiana
company's offices and permanent situation,
so far as its first activity went. are in Chi
Cago.
With reference to exporting of oil, under
skillful questioning the witness said there
were several companies that exported oil
besides the Standard OIL Company of New
Jersey He named the Belfast OIL Com
pany; Crewe. Leavitt & Co; Pure OIL Com
pany. Union Petroleum Company of Phila-
delphia: Columbia Oil Compan; Texas OIL
Company and the Gulf Refining Company.
80 that there are number of. oil
companies substantially engaged in the
export Of oil?'
Yes. SIR" said the witness with great
gravity.
Defense for Limiting Supply.
The agreement with the independent re-
fneries of Pennsylvania In which the Stand
ard supplied the companies with crude oil
and received in return its export trade in
1908 was then taken up. and Mr.. Milburn
tried to eliminate the implication that the
agreement was practically compulsory on
the companies by showing that the reason
the Standard cut down the supply of crude
oil was because the supply had been decln-