Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1907-09-19
OCTOPUS UNDER GOVERNMENTS
FIRE
Officials of Trust Forced to Reveal
Secrets of Various Companies
Which Are Accused of Rob-
bing the Public
By Associated Press.

of seventeen of the principal subsidiary
companies in the years 1903 and 1904.
The statement of earnings of the
Standard Oil company Of Indiana,
which was recently fined $29,240.000 by
Judge Landis of Chicago for rebating,
disclosed that in 1906 the company
earned $10,516,0S2 on a capitalization
of s1,000,000 or over 1000 per cent
year. The Indiana company In 1905
earned more than any subsidiary COM
pany of the combine.
Mr.. Kellogg developed during the
day, while Clarence G. Fay. assistant
comptroller of the Standard OIL COM
pany, was on the stand. a curious prob
lem of financial bookkeeping or hand
ling of accounts which Mr.. Fay failed
to explain.
From figures submitted 1t was shown
that the Standard Oil company of New
York in 1904 made profit of $7,775,760
and paid dividends to the Standard OIL
company of New Jersey the total sum
of s31,998,430. This transaction re-
duced the net assets of the New York
company from s40,425.9o0 to $15.179,706,
while the liabilities leaped from $47,-
646,235 in 1908 to ss1,395,145 in 1904,
increase of nearly $34,000,000.
Some Frenzied Finance
The gross assets of the New York
company, however, increased from $751;
Meanwhile the accounts receivable OF
the Standard Oil company of New Jer-
sey grew from $19,045,041 in 1903 to
| S5S,272924. Mr. Fay was closely ques-
| toned as to the nature of the Increased
| liabilities of the New York company
| and the increase in the accounts recefv-
| able of the Standard Oil company OF
! New Jersey but he said he could not
I tell until he had examined the books of
| both companies which he told Mr.. Kel-
| logg he would do.
| Charles M. Pratt, secretary of the
| Standard company was recalled to the
witness stand, told how he had held for
| the Standard Oil company the stock OF
waters-Pierce OIL company at the time
when it was permitted to operate. in
| the state of Texas. He said that he
i held the stock as a matter of conven-
ience and not to avoid the antitrust
| laws of Texas.
Question Of Ownership
Mr. Platt threw some interesting
| side lights on the Waters-Pierce Oil
company the stock of which was held
| long time by M. NJ Van Burne, who
was not connected with the Standard
Oil company. Mr.. Van Burne pur-
chased the stock from Mr.. Pratt and
early this year the Standard Oil COM
pany bought it back.
The nature of the transaction showed
that Mr.. Van Burne received from the
Standard Oil company exactly what he
paid for the stock and that during the
time he held it the dividends were paid
to the Standard Oil company.
/, H. S. Tilford. treasurer of the Stand
ard Oil company was called to the
stand late today and Mr. Kellogg made
an effort to have spread on the records
| a copy of the trust agreement of 1882,
but John G. Milburn, chief counsel for
II AA1 - &Hrx
ground that such an agreement was
prior to July Q, 1890. when the Sherman
antitrust law went into effect
Try to Get Records
| Further efforts to obtain the records
| of the liquidation trustees of the Stand
ard Oil trust which effected the disso-
luton Of the trust and formed the present
Standard Oil company of New Jersey.
were made by Frank B. Kellogg, who is
conducting the suit for the government.
| Clarence Fay, assistant comptroller
of the Standard, was recalled today and
questioned about the G. M. Pratt Invest
ment company. He said that income
from this source in 1902 was s137, 400, and
the money was paid over to the Standard
Oil company by c. M. Pratt, who yester-
day testified that he held stock of the
Waters-Pierce Oil company Of Texas for
the Standard company and that the
C. NJ Pratt Investment company in lieu
of Waters-Pierce Oil company stock.
Mr. Fay testified that between 1899 and
1906 the stock of the Waters-Pierce Oil
company did not appear upon the books
of the Standard Oil company of New
Jersey as an asset. In 1899 the latter
company's balance sheet showed owner
ship of 2747 shares of the Waters-P Pierce
stock valued at S3067,S92. Mr.. Fay was
questioned about certain Central Trust
company certificates held by the Stand
ard OIL company between 1899 and 1904.
A statement from the company showed
that stock of the National Storage COM
pany was sold in exchange for Lehigh
Valley railroad bonds and deposited with
the Central Trust company, which issued
certificates in exchange. In 1895 these
Central Trust certificates were exchanged
for 100000 in cash and $50000O worth of
per cent bonds of the Lehigh Valley
Railroad company.
Some Amazing Figures
The statement of dividends and profits
of seventeen of the subsidiary corpora
tions of the Standard Oil company of
New Jersey as presented in the federal
proceedings now in progress in this city
follows:
Atlantic Refining company, in 1908, cap
ital IS 000, 900, dividends $S 400 $50. profits
s9794, 100; in 1906, dividends S2,249955, profits
$5.5O6.2s7.
Buckeye Pipe Line company, in 1908.
capital $10,000.0OO dividends $1,49S,95s,
profits $40 2,147; in 1906, dividends IS, 799-
79S, profits $7,023,362.
Continental OIL company, in 1908. capt.
tai $500, 900, dividends S4sS, ,0O0 profits $685.
800; in 1906, dividends $405,00O; profits
$575 043.
Eureka Pipe Line company in 1908, cap
ital $3 O0O, 900. dividends s2,949,44O. profits
So, lis, ,S95; in 1906 dividends $685. GA. profits
81. 4sS, ,104
Galena Signal. in 1908, capital 81, 100000,
dividends sl.125.56O. profits $1,6S2,21; in
1906 dividends S1377. ZOO profits $2.S0s.g56.
Indiana Pine Line company, In 1908, cap
ital 81, 100000 dividends Ss.793,000 profits
$41O6,se4; in 1906. dividends s2,17s.s46, profits
s., ,Sl4,5S3.
National Transit company, in 1905. capi-
tcontinued On Face 1--WE,