The daily morning journal and courier., 1907-09-19
FRANCE SYSTEM
 OF BOOKKEEPING |w York Standard Oil |ompany Pays Dividends
 Far Above the Profits. FAY FAILS TO EXPLAIN |diana Branch of Combine,
 Fined by Judge Landis,
 Earned $1O, ,516,
 a Year.

zew York, Sept. 1S.-More light was d on the remarkable earning capaci-
 of the various subsidiary compan- of the Standard Oil Co. to-day when 2 Ink B. Kellogg, who is conducting
 federal suit, brought to dissolve the zlpany as an illegal corporation, suc- 8ded in placing upon the record the #fits of seventeen of the principal sidiary companies in the years 1903 # 1906. The statement of earnings of q Standard oil company of Indiana, oh was recently fined $29,240,Q00 by lge Landis, of Chicago, for relating, elosed that in 1906 the company he'd no less than SlO,516,OS2 on cap sization of $1,OOO,OOO, or over 1000 per @t a year. The Indiana company in
 earned more than any subsidiary lpany of the big combine.
 Fir. Kellogg developed during the while Clarence e. Fay, assistant hptroller of the Standard oil Co.,, s on the stand, curious problem of Slncial bookkeeping, or handling of zounts which Mir. Fay failed to ex- zIn. From figures submitted 1t was IS shown that the Standard oil Go. New York, in 1904 made profit of &51, ,1e0 and paid in dividends to the &ndard oil Go. of New Jersey the 'hl sum of $3299S,4S0 This transac- n reduced the net assets of the New k company from $40,425,9OO to $15,- &706, while the liabilities leaped from z646,2S5 in 1903 to $S1, S95,145 in 1904, E Increase of nearly $S4,OOO,000. The Esss assets of the New York company, Egeves, increased from $S,074,561 in
 to $96,674, ,S52 in 1904. Meanwhile d accounts receivable of the Stand 4 oil Go. of New Jersey grew from &945 ,014 in 1903 to $5S, ,272,924.
 T r. Fay was closely questioned as to # nature of the increased liabilities of
 New York company and increase in
 accounts receivable of the Standard
 Go. of New Jersey, but he said he
 Id not tell until he had examined ! books of both companies which he . MT. Kellogg he would do.
 harles M. Pratt, secretary of the 2 ndard oil Co.,, recalled to the wit s stand, told how he had held fol
 Standard oil Co., the stock of the
 ters-Pierce oil Go. at the time wher vas not permitted to operate in Slt Etc of Texas. He said that he held
 stock as a matter of convenience
 not to avoid the antitrust laws ot tas MT Pratt threw some interest < sidelights on the Waters Pierce Oil
 the stock of which was held for g B period by M. M. Van Beuren, who
 not connected with the Standard
 Go, MT. Van Beuren purchased the Elk from MT. Pratt and early this
 the Standard company bought il K. The nature of. the transaction
 wed that MT. Van Beuren received In the Standard oil Go. exactly what
 paid for the stock and that during
 time he held 1t the dividends were Id to the Standard company.
 gesley Tilford, treasurer of the Stan
 q oil Co.,, was called to the stand
 to-day and Mir. Kellogg made ar 2 lrt to have spread on the record 8
 y of the trust agreement of 1882, but
 n G. Milburn, chief counsel for tht endant companies, objected on the
 und that such an agreement wal pr to July ?, 1890, when the Sherman
 i-trust law went into effect.