The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1907-09-24

Kellogg IN government G'SSo'NN'o"
suit Finds That Dividends Amount
ing to $3o8, ,4os Have Been Paid
Out by Monopoly Since 1899.
New York, Sept. 24.-In eight years
from 1890 to 1906, the Standard Oil
Company of New Jersey cleaned up in
profits on the products of its various
subsidiary corporations the enormous
sum of 490,315, 1884, or more than $61,-
100000 year. In the same periot the
oil trust distributed among the share
holders S30S, 359, 403 BY similar fnan-
cial processes the assets of the trust
increased in the eight years from $780,
791 ,523 to 1911 ,664,531. The capital
stock of the Standard Oil Company OF
New Jersey, the holding company of
the trust, is sos, 1886, 49,
These amazing figures, which show
how the Rockefellers, the Rogerses and
the rest have squeezed millions out OF
the consumers of oil and its byproducts
were obtained from the corporations
books on the examination of Clarence
G. Fay, assistant comptroller of the
trust, by Frank G. Kellogg chief coun-
sci for the government in the proceed
ing to dissolve the company, which
reached an active stage before Special
Examiner Ferriss in the postottice
building.
The government prober also dug up
from the transcripts of the books which
are before the court the fact that the
Standard Oil Company of New Jersey
owned 1890 of the 10000 shares of the
Standard Oil Company of Indiana, the
company sentenced by Judge Lands
last month to pay fine of $29, 100000
for rebating.
Prosecutor Shows Joy.
That interesting information, which
has been sought for years. came so
easily to the government prosecutor
that he was almost taken off his feet,
and he showed his citation when he
had the figures read into the court rec
ord 1t was also brought out by KEEL
Iogg that the Standard Oil Company of
New Jersey controlled the stock of
more than seventy companies engaged
In the refining of oil and its Transport
tation by pipe lines. Fay the assist
ant comptroller, was the most salts
factory witness the government law
yers had had on the rack They said
after the hearing they were glad they
had come to New York in search of in
formation to aid in breaking up the un.
lawful combination.
Z. c. Benedict, millionaire banker,
and Charles NJ. Pratt, son of the found,
er of the Pratt Oil Works company in
Brooklyn, now one of the subsidiary
corporations of the trust were other
important witnesses. They gave val
liable information, but Kellogg was
unable to learn from their testimony
anything about the records of the COM
mittee that had charge of the liquida-
ton of the Standard Oil Company of
New Jersey Pratt, who is secretary
OF the trust, admitted he had been a
liquidatipg trustee, but he did not
know, he said, where the records of
that committee were kept. In fact, he
had only vague recollection of the
process of liquidation. Fay, the assist
ant comptroller could not recall any
of the facts in connection with the
liquidation of the company.
Digs Up Facts Despite Bars.
Kellogg was amazed by the attitude
Of the witnesses and said that 1t was
queer the executive officers of the oil
trust could not remember where the
records of the liquidating trustees
were kept or whether they were now
in existence. He succeeded, however,
in discovering the names of the nine
teen subsidiary corporations taken over
in 1889 by the liquidating trustees. and
the special counsel expects by dint of
digging to turn up the whole illegal
transaction.
The hearing in the New York pro
ceedings to dissolve the oil trust was
ordered to begin two weeks ago. but
the trust lawyers obtained an adjourn
ment. Granting the adjournment.
Franklin Ferriss, the special examiner
sent on from st. Louis to hear the case
for the government, said no further
adjournment would be granted. John
G. N[illburn, for the company. an
nounced when the hearing began that
he and his associates were ready to
proceed.
He passed up to the special examiner
a bundle of papers that were the
promised transcripts of the books and
records of the oil trust They were ac-
cepted by Frank B. Kellogg as counsel
for the government conditionally, he
reserving the right to have the books |
brought into court If it should be found |
the transcripts We're not true copies.
A list of securities held by the !
Standard Oil company on Sept. IA last. |
as shown by officers of the company in
their statement before the court was
shown to G. NJ. Pratt. and he was
asked if he was familiar with the Sc.
curities. He said he was not familiar
with them lin DETAIL" as they had
been compiled by Mr.. Brainard, comp |
trOller of the company, and his assist |
ant, Mr.. Fay. Thereupon summons
was issued for Fay at once, and he
was brought into court.
Enormous Dividends.
The statement of earnings of the
Standard Oil Company of Indiana,
which was recently fined $29,240,0 900
by Judge Lands Of Chicago for re-
batting, disclosed that in 1906 the COM
pany earned no less than $10,516,o82
on a capitalization of $1,000,000, or