Los Angeles herald., 1907-09-28
Carried as Asset

"You carried these loans as an asset?'
"Yes, SIR
"Why did you deposit these funds with
the National Transit company"
1--WE used the National Transit company
as bank and we could call for the funds
whenever we wanted them," replied the
witness
"I notice that in 1906 the cost of the
Buckeye plant is carried at $9.999,967 and
the net earnings were $7,028,50S for that
year. Is that correct?"
Eyes, SIR
ct notice that 50, ,231, ,901 is carried on the
books as an oil purchase contingent fund.
Why is such fund as that carried?"
ITO cover the loss by shrinkage in the
carrying of OIL" said Mr. Chesebro.
Mr.. Chesebro said that such a contin-
gent sum was carried because the ship
ping might call for the shrinkage funds
at any time. The witness said that the
Standard Oil company owns the pipe line
which was run under New York. and
previous to 1905 leased 1t to the New York
Transit company.
Mr.. Chesebro testified that the New
York Transit company sold the pipe
lines from Unionville and Center Bridge
| to Bayonne to the Standard Oil com
pany in 1905. He could not recall the
purchase price. Mr.. Kellogg asked thu
witness about loans shown by the balance
sheets Of the National Transit compan.
| to have been made to Messrs. Folger ant
Payne, but he had only heard of them.
Can't Identity Him
He was unable to identify G. M. Barns
dale, to whom the company was showr
to have loaned s270,54l, and did not know
whether he was connected with the
Barnsdale Oil company of Indiana.
Charles s. White assistant secretary
of the Standard Oil company of New
Jersey, was called.
He said he held positions with various
subsidiary companies of the Standard Oil
company. Mr.. Kellogg asked the witness
to produce list from the records of the
Standard Oil company of New York of
all stockholders voting at all meetings
from 1892 to 1900 and list Of those hold
ing trust certificates not voting, also for
the same information concerning all the
companies with which the witness was
connected.
Mr.. White said the books of the Stan
dard trustees and liquidation trustees
were not in the office of the secretary
Of the Standard Oil company of New
Jersey. He searched for the books but
was not able to find them.
Adjournment was taken until next
Thursday.
Henry M. Flagler vice president of the
Standard Oil company Is seriously Ill in
the Mt. Washington hotel, Breton
Woods, N. Y. His condition is understood
to be serious. His personal physician
DIR. Dinan, and nurses are in constant
attendance.
Symptoms of general nervous break
down appeared and about a month ago
he was taken to the White mountains.
Every possibleveffor is being made to
keep his mind from his business affairs,
and 1t is not considered probable that
he can testify in the government suit
here.
Prosecuted in Ohio
FINDLAY, Ohio, Sept 27.-Arguments
were begun before Judge Duncan in
tain portions of the, allegation filed by
George S. Phelps against the Standard
Oil company seven of it's subsidiary
concerns, John D. Rockefeller and other
of the Standard Oil company.
The complainant prays that the char
ters of the corporation named, except
those of the Ohio Oil company and the
Oil company, be adjudged to be
Illegal, fraudulent and void and that
each of the defendants be perpetually
from doing any act in said cor
poration, name or form and that a re-
ceiver be appointed with power to wind
up the alleged Illegal corporations.
l.. B. Williamson, recently arrested on
the charge of attempting to bribe
Juror in a Standard Oil case, has been
placed under $4,000 bail.