Los Angeles herald., 1907-09-19
STANDARD is
UNDER FIRE
TRUSTS PROFITS FOUND TO BE
1000 PER CENT
GOVERNMENT PROBES DEEP INTO
FINANCIAL SECRETS
John D. aockefelIer's Concern Has
Some Peculiar Practices, as
Investigator Kellogg
Learns
(continued from Page one.)

tai s2.455,200, dividends s2,54S,l6o, pronts
s5.s40,O42; in 1906. dividends s5,O9O,SSO prohts
s, 02s. 767. ~
,tai tx 7oo. fo0. dividends s3,949.2S9, profits
sS,0s5, $50; in 1906, dividends S2,O9s'soS pronts
$2,s4S.2 S2. ,oo,
Northern Pine Line company, in 1904
canital 81 100000. dividends $79,992, profits
sso.522; In 1905, dividends $20OO,0oo, profits
$1,591.6 GA
Solar Refining company, in 1903, capital
$4,000, dividends 81, 4SS,1SS, profits Sl,lzs'
$50: in 1906, dividends s44s,46O' prohts
s1.253.519 ,oo,
southern Pipe Line company. in 1903,
canital 900, dividends $685. profits
81 ,ls9O1s; In 1906, dividends S4,5s9,9SS, pronts
s4,649, S0S o-
Standard OIL company of Iowa, in 1905.
capital s1,ooO,oOO. dividends 100000 profits
81 oss. as; in 1906, dividends 50, ,o96, profits
s67s.s77. =
standard OIL company of Indiana, in
1eoa canItal 100000, dividends sS,491.5O0,
profits S. 753, no. in 1906, dividends s4,4soOoo'
profits $1o,5l6.0S2.
Standard OIL company of Kentucky. IN
1909. capital $1,000,000 dividends $syl,YOO.
profits si,772178; in 1906, dividends sl,ssi,"
400; profits s1,S07,75o.
Standard OIL company of New YORK IN
1908, capital s15OOO,OO0; dividends $40, 49S, 6oo
prOf1tS Sl4,5Jl,O4o, III 40oo, hFiuS'iNS ~-'--N'
090 profits $9556,03
standard OIL company of Ohio, 1908,
capital sS,5O0.00O. dividends s17497O, profits
sD60,1S4; in 1906, dividends $ll4.s60, pronts
$1,009,526.
Vacuum OIL company, in 1903. capital
50. 5oO,0 900, dividends not given, profits SSl4,-
461; 1906, dividends not given, profits
sl.449,527.
Fay Questioned
Mr.. Kellogg asked Mr.. Fay to pro-
duce a statement showing the capltal-
ization of all the companies in which the
Standard Oil company was interested.
Mr. Fay said he would if possible. 1t
was agreed that, Mr.. Fay and an ac-
countant for the government should re-
tire and check UP the income accounts
from the various subsidiary companies.
The partial list submitted contained the
name of seventeen subsidiary companies.
Mr.. Fay said that practically all the
stock of the original nineteen subsidiary
companies was obtained by the Standard
Oil company of New Jersey between
1899 and 1900 Mr.. Kellogg then asked Mr..
Fay If he had searched for the records
of the trustees during the period of 1892
and 1899 Mr. Fay said he hunted last
night and found several Standard OIL
trust ledgers the contents OF which ne
had not examined and did not know
what they contained. He said the COM
pany only kept the balance sheets OF
recent date and that he had made no
search for the balance sheets previous
to 1899. Mr.. Fay testified that he had
seen no balance sheets of the Waters
Pierce Oil company.
why is it that your office, which has
information of other companies, has no
information of the Waters-Pierce Oil
company asked Mr.. Kellogg.
Il don't know" replied Mr.. Fay.
Pratt on Stand
Charles NJ Pratt, secretary of the
Standard Oil company, took the witness
stand this afternoon. He said during
recess that representatives Of the gov
eminent were going over the ledgers OF
the liouidating trustees and that in
formation concerning the liquidation of
the trust was being prepared for presen-
tation in court. Mr.. Pratt was shown a
statement showing the income of the
Standard Oil company of News Jersey
from c. M. Pratt Investment company
and asked If the income was the total
amount of dividends received from the
Waters-Pierce company.
He replied that it was Mr.. Pratt said
that the certificates he held in the
Waters-Pierce Oil company were in
dorsed in blank by H Clay Pierce of
St Louis. Prior to 1900 the Waters
Pierce Oil company of Texas had
capitalization of $500, 900 and the Standard
company owned 2747 shares. Mr.. Pratt
said he paid out of his pocket $4,000 for
the stock and held it in the interest of the
Standard Oil company. In May, 1905, the
new Waters-Pierce Oil company was
formed with the same capitalization, and
Mr.. Pratt exchanged the old certificates
for the certificates of the new company.
''Why did you hold this stock for the
Standard Oil company" asked Mr..
Kellog.
"As matter of convenience" was the
reply.
Now, as a matter of fact, did you not
hold this stock to evade the antitrust
laws of Texas"
ST do not know" was Mr.. Pratt's
answer.
Mr. Pratt slaid that in March, 1904, he
sold the waters-Pierce stock to NJ. M.
Van Buren,, who, the witness said had
no connection with the Standard OH
company Mr.. Van Buren, paid about
s4,O0O,OOO for the stock, giving $4,000 in
cash and the rest in notes. The cash and
notes Mr.. Pratt said were turned over
by him to the Standard Oil company.
Mr. Pratt said he did not know why the
stock was sold to Mr.. Van Buren,.
Asks About Dividends
1.-THE dividends the first year you held
the stock amounted to s1,sOO,o0O and you
sold the stock for s4.0Oo,oOO did you think
that good price for the stock?"
Eyes, considered it a fair price" was
Mr. Prattt's reply.
ibid you consider the sale bonafide?
Eyes, sir"
Mr.. Pratt said that Mr.. Van Buren, re-
turned the dividends to the Standard Oil
company and recently sold the Waters
Pierce stock back to the Standard Oil
company of New Jersey and the cash and
notes with which he had paid for the
stoc.- were returned to him.
Mr.. Pratt read resolution adopted at
a meeting of the board of directors Of
the Standard OIL company on June 10
1883, which provided basis of exchange
of the stocks of the subsidiary companies
Cor the shares of the Standard Oil com.
pany of New Jersey. There were present
at this meeting H. M Flagler, VIM
Rockefeller, John d. Archbold, H. H
Rogers, H. Tilford and Paul Babcock
There were 9725OO shares of the new com
pany issued to take up the outstanding
trustees certificates issued against thu
..s5 to- e.,.fa