The Montgomery advertiser., 1907-10-09

 IS PROVEN So Thinks Attorney rrank B. Kellogg. FE STANDARD OIL HEARING Governments Counsel Insists That
 0l Combine is Illegal. For the First Time the Proats and Divide.ds of the Standard Oil
 Company Were made
 PubIis
sE STANDARD OIL HEARING

New York Oct. s-From statements cuiled from ledgers and books found in the offices of the Standard Oil Com pany, Frank P. Kellogg, counselor for the United States Government. succeed ed in placing on today's record of company, the processes and stages through which the combine passed in its changes from the old Standard Oil trust to the present Standard Oil Com pany of New Jersey.
 out of the maze of figures developed in voluminous mass from the cornpa- ny's books and from the testimony giv- en by Clarence c. Fay assistant au- ditor of the Standard, called as q wit ness today, the Governments counsel says he believes he has proved the Federal allegation that the Standard is an illegal corporation and that by devious devices has maintained its'en- tirety and that 1t is under the same ownership as when 1t was formed. Mir. Kellogg says he is of the opinion that notwithstanding that the Govern ment was unable to discover the trans- fer books and stock ledgers of the H. auidatinx trustees. the evidence ad- duced today shows that the so-called oil trust only affected to dissolve un- der the order of tho Ohio courts in 1892, and that its directions are still held by those who had 70 do with the formation of the Standard trust.
 Statements were submitted today showing in brief that at the inception of the Standard trust in 1882. there was 70,000,00e in trust certificates Issued for stocks of various companies which entered into the combine. In the trust period. from 1882 to 1892. a stock dividend of $15,00o,ooo was de- clared and this with other stocks is- sued for plant purchases, brought the total capital for investment up to se7,- 900, 900. As result of the decision Of the supreme court of Ohio, forbidding the trustees from voting the trust cer- tiffcates there was a resolution passed directing that the trust be dissolved.
 MT. Fay read a statement in the re- cord today. showing that the day fpl- lowing the passage of that resolution sfxfy-four subsidiary co1npanfea were consolidated with the Standard Oil Company of New Jersey and nineteen other subsidiaries of the trust. Seven months later, on Nov. 30, 1882. the were 494s19 trust certificates pre- serlted for cancellation and to the shares in the twenty subsidiary com panies which made up the trust. There were also offered for cancellation two months later some 10000 trust certin- cates. There was a lapse of over four years before another certificate was presented for cancellation.
 Mr, Kellogg sought to show that those who held control of the trust, with the exception of a few friends. were the only ones who liduidated their trust certihcs.tes, and that. by iiquidating only a majority of the to- tai certincates outstanding, which they owned, they continued their di- rection of the trust by voting ma jority of the stock in the subsidiary He also tried to show that those who liquidated their certificates and took stocks of the subsidiaries were John D. Rockefeller. William Rockefeller, H. M. Flagler. Benjamin Brewster, J. D. Archbold, H. H. Rog- CTS, w. H. Tilford, c. W. Hardness. estate of c. B. Jennings. Emma Auch- incloss, estate of Charles Pratt. and o. H. Payne.
 For the first time, the profits and dividends of the Standard oil Trust from its inception in 1882 to 1891, were made public today. The profits of the Standard oil Trust, as stated by MT. Fav were as follows.