Los Angeles herald., 1907-10-15
STANDARD
IN GUZSE OF
INDEPENDENT
OCTOPUS REAL OWNER OF
SUPPOSED RIVALS
PROSECUTION FORCES AN ADJ
MISSION
Vice President of One of John D.
Rockefelers Concern Reveals
Manner In Which Buyers
Were Trapped
BY Associated Press.

BY Associated Press.
NEW YORK, Oct 14-Hempton G.
Westcott, vice president of the Stand
ard Oil company of Kentucky, testified
today in the hearing of the federal suit
against the oil combine that in several
of the southern states the Standard had
found it expedient to sell much of Its
product through companies which the
public believed to be independent.
The practice of selling through So
called independent companies, which
were owned by the combine. was discon-
tinued two years ago, according to Mr..
Westcott. !
Mr.. Kellogg, counsel for the govern
ment, drew from the witness that the
Standard Oil company of Kentucky. which
acts as the selling agent of oil in Ken
lucky, Georgia, Mississippi, Louisiana,
Tennessee and Alabama, had purchased
numerous small independent selling COM
panies and through many of them sold
oil to the consumer. Some of the plarts
of these independents were dismantle
and the business taken over by the Stand
ard.
Mr.. Westcott threw side light on a
business department of the Standard
concerning which the federal counsel had
Deen seeking lnlOrindtlOu' SlilCe thc ue-
ginning of the inquiry.
Reports on Competitors
The witness said that each month the
main office of the Standard Oil company
of Kentucky at Coving, :. sent to him
not only thes reports of the business op-
eratiotis of the .StGs11asA. 81 81 tekktsl ~
concerning freight shipments and sales
OF oil by all competitors. These state
ments, according to Mr.. Westcott, gave
the name Of the consignor, the consignee,
the amount of oil shipped and any in
formation that might be available.
Mr.. Westcott said that after examining
these statements he filed them with the
statistical department in the Standard s
office in this city. This department, Mr..
Westcott said, was in Chicago, in charge
of w. E. Bemis, who kept computation
and a record of the business of both the
Standard and its competitors.
Mr.. Kellogg stated tonight that he ex-
pected to call William G. Rockefeller, as
sistant treasurer of the Standard of New
York, to the stand when the hearing Is
resumed tomorrow. 1t is believed that
at the end of this week the hearing will
be adjourned for several weeks to give
Mr.. Kellogg an opportunity to go care
fully over the mass of information he has
obtained since the hearing has begun.
Alfred H. Brainard, comptroller of the
Standard Oil company of New Jersey and
many of it's subsidiary companies, was
questioned today concerning large loans
made to James Mcdonald of the Anglo
American Oil company. Testimony was
given last week that the Southern Pipe
Line company had loaned over s20,000,OOO
to Mr. Mcdonald and that the books
showed that it had never been paid back.
Asked Concerning Loans
Mr.. Brainard said that he was Ameri-
can secretary of the Anglo-American
company and that Mr. Mcdonald was the
managing director in London. He was
asked concerning loans made by the An
glo-American company of $1,250,000 in 1905
and 81 1,427, 800 in 1906 to Mr.. Mcdonald.
Mr.. Brainard said that the loans had
been ordered from London and that was
all, he knew about them. Mr.. Brainard
was asked concerning the loans made by
the Southern Pipe Line company of over
500. 900. 900 to p. s. Trainer. Mr.. Brainard
said that it was likely that Mr.. Trainer
reported his losses to the Standard Oil
company of New York city and the
Southern Pipe Line company reimbursed
the Standards losses and charged the
amounts to the account of Mr. Trainer.
Mr.. Brainard said he thought the losses
were incurred by Mr. Trainer In the pur-
chase and sale of oil.
Mr.. Brainard said he knew nothing
about the loans made by the Standard
oil company of New York aggregating
$32, ,061 go in 1906 TO interests other tnan
Standard Oh"
He said the account came to him from
the treasurer's office. William G. Rookie
Teller might know something of the loans,
the witness said.
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