The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1907-10-19
LOANS TO THE STREET
William G. Rockefeller Explains
Some Oil Trust Deals.
IGNORANT ON MANY POINTS
Knows Nothing Of the Big Loans to
p. s. Trainor and Charged to Ex.
Pense ACKNOWLEDGEMENTS by Prose-
cutor Kellogg to Look Matter Up.


New York, Oct. 19.-William G.
Rockefeller, assistant treasurer OF the
Standard Oh company Of New Jersey.
was witness in the federal SUIT for
the dissolution Of the oil combine and
gave testimony regarding the large
loans which appeared on the COM
pany's books as having been made to
interests other than Standard" Mr..
Rockefeller testified that these loans
had been made to financial interests
in this city,
After being sworn as a witness Mr..
Rockefeller said he had been treas
urer Of the Standard Oil company OF
New York for seven years and was
assistant treasurer of the Standard Oil
company of New Jersey. Mr.. Rookie
Teller said he knew nothing about the
account Of James Mcdonald, who, &C.
cording to the Standards books, had
been loaned large sums of money
from 1900 to 1904
DO you know anything about the
Manhattan Oil company of Ohio?" was
asked.
"Only what I have read in the news
papers" replied Mr.. Rockefeller.
Mr.. Rockefeller said the Anglo
American company had sent money to
the Standard Oil company Of New
York, which had been paid to Mr..
Mcdonald. That was all he knew
concerning the payments.
The balance sheets Of the Southern
Pipe Line company from 1899 to 1905
show that loans amounting to many
millions were made to P. S. Trainor
and charged to expense account. "Do
you know anything about these
loans?"
Il really do not" answered Mr.
Rockefeller.
Mr.. Rockefeller was directed by the
governments counsel, Mr.. Kellogg, to
look up these loans and find out what
they were made for
Mr.. Kellogg then took up the loan
account of the Standard Oil company
of New York in 1906, which reached
$32,761,620
Immense Loans on the Street.
"Mr. Rockefeller, find here among
the items a loan to T. M. Barnsdale
of $7,63O,O44 What was that loan
for?"
The money was paid out from time
| to. time to Mr.. Barnsdale at the di.
rectiOn of John D. ArchbOld. The
collateral was stocks and bonds Of oil
| and gas companies in West Virginia
and Pennsylvania. Mr.. Barnsdale
| lives in Pittsburg. 1 have heard he
was interested in the production of
oil. We received 6 per cent on Mr..
Barnsdale's loans"
"Of the whole loan of $32,000,00O
made last year what amount was
loaned to Wall street brokers and
what to individuals?"
well, about s19,5O0,o0o was loaned
to Wall street brokers and the rest
to Mr.. Barnsdale and to individuals"
replied Mr.. Rockefeller.
Mr.. Rockefeller said that in the
summer of 1906 the amount of money
loaned in Wall street amounted to
nearly $25,000,000. He said the Stand
ard Oil company of New York Was in
close touch with financial interests in
this city because of it's large foreign
exchange. Mr.. Rockefeller said:
1.-THE Standard sometimes has large
sums in the street and again it has
little out at interest. The collateral
Is safe stock exchange securities. We
require margin of 20 per cent at all
times"
Mr.. Rockefeller said that the Stand
ard Oil company of New Jersey did
not loan money in Wall street.
Mr.. Rockefeller testified that he did
not know why the subsidiary pipe
lines kept on deposit such vast sums
of money, excepting perhaps it might
be used in construction work.
But, Mr.. Rockefeller, these sums
aggregate Millions" said Mr.. Kellogg.
Mr.. Rockefeller disclaimed familiar
ity with the accounts of the pipe line
company. He said he is stakeholder
in the Standard Oil company of New
Jersey, but that his stock stands in
his fathers name. That concluded
his examination.