The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-09-18
Pratt Held Stock in
WaterS-Pierce for
Trust.
Witness Tells Little.
Books Brought Into
Court.

PSA q o'AVAs NpAtA oAiSu Ug tue stand
ard Oil Company were the rule and
not the exception under the Rookie
feller administration.
This fact be me known TODAY.
For years the earnings of the
Standard and its subsidiary compa-
nies have been clouded in mystery.
but at the proceedings today
brought by the Federal Government
to dissolve the Standard Oil Com
pany OF -+ew Jersey there was
dragged from a reluctant witness,
Assistant Comptroller Clarence P.
Fay, an array Of figures that stag
gered the experts relative to the
earnings Of seventeen subsidiary
companies Of the Standard. They
were:
Standards Big Earnings.
Atlantic oil Company. capital s5.ooa-
ooo; dividends IN lsea. S -. $50.
Continenta1 on Company, espitaI
$4,000; dividends IN 1896 $4,000.
Indiana Pipe line, capital. SI,00o, ,0o0;
dividends in 1898. IS. .7ss.s60.
Standard oil OF Indiana. capital ST.
10000; dividends IN 1888. ssisl.5g
Standard OIL OF Ohio. capital. $, 500. COO;
dividends IN 1s03, SI74.97o. but the profits
of the Ohio company in that year We're
according TO the books. s9s0fs4.
Standard OIL Of Kentucky. capital. ST.
900 900; dividends in 1906. 81 .se4. 100.
Standard on OF New York. capital
Sl5 5.0006Oo; dividends N 1903. SO. 4sS $50
eng earnings that same year, fls.zsl, 5l6-
The STANDARD Pipe Line. capital. S, ,600,-
900; dividends in 1906. s4.5ss.sSS.
Dividends Over s4o,oOO,oOo.
The totals from the seventeen com
panies as added BY the attorneys ap-
proximated:
Capital. Ss2, $500.
Dividends paid. IN 1906. 81, So, $50.
Profits that anne year. SSs. .635, ,s5s
Dividends paid in 1906. 81. .36s. .625
Profits that same year. So. .349, ,032.
Ihese figures seem at first glance
very large, but before we get through
with them We VIII prove that they are
no larger In relation to the investment
than those OF an average grocery busi-
ness, IS the way MOritz ROsenthal, Of
counsel for Standard OIL put it when
the Standard has nothing in fits books
It desires to hide and its policy in this
case VIII be to Civ the commissioner all
Information he desires.
Nr. Kellogg DECLARED he would also
examine the t,oks brought into court
carefully. Much time was spent ques-
uoning the witness as to manner OF TAX
ing trial balances and how receipts Of
subsidiary companies were reported, but
no light was thrown or the subject
All Mr.. Fay knew OF the earnings,
etc, was from the regular balance
sheets AMI the general balance sheets
were made uD from these.
Mr.. Kellogg made searching inquiries
regarding the various departments OF
the Standard Oh Company, of New Jer-
sey; what part of the business each
handled, and who was in charge. He
Tntimated that he would summon the
heads Of the departments and ask them
for their books Mr.. FAY said he had
no knowledge of the operations OF book
keeping OF the departments. and that he
only received reports from them.
adjournment then was taken.
Exposing Trusteeship.
Mr.. Fay brought to court several
books containing records of the Standard
OF trusteeship.
The trusteeship. which existed rom
1ss2 to 1892, before the organization OF
the present company. is the main object
of attack by Frank B. kellogg. coun-
sci for the Government. in the present
status OF the case. Mr.. Kellogg is max
ing a vigorous fight TO discover Just
how the trusteeship developed into the
Standard Oil Company of New Jersey
and just how the stock in the present
S100 eco 600 concern was apporIioned
among those who pooled their holdings
in various oil companies under the
trusteeship.
Income From Waters-P Pierce.
Fay was the first witness today. He
submitted a statement OF the income
from the &C. II. Pratt investment. :"
showing 1t to have been s1S7 400 in 1902
81 oss 200 in 1901. s1.S5s 100 in 1904. S1s7, $50
in 1905, and to have disappeared in 1885,
Mr.. Kellogg asked Mr.. Fay from what
this income originated. but witness said
that he knew only that it was paid in
BY c. n Pratt.
Morritz Rosenthal, of Chicago, ccun-
sci for The Standard Oil Company, in
terrupted TO say there was no atternpt
to conceal the fact that this investment
YVES holdings Of stock ia the Waters
Pierce Oh Company, Of Missouri, held
by C. n. Pratt for tho Standard
Mr.. Kellogg then showed that, IN lse9
the books OF the Standard Oil Company
scso1+fr,,a,5 -, E-f.l.th r,o-oN