The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-09-19

pany in lieu of the Waters-Pierce Oil com
pany stock.
Mr.. Fay testified that between 1899 anG
1906 the stock Of the Waters-Pierce Oil
company did not appear upon the books
of the Standard Oil company of New Jer-
sey as an asset. In 1899 the latter com
2,747 shares of the Waters-Pierce stock.
valued at s3,067,S92
Lehigh Valley Bonds.
Mr. Fay was questioned about certain
Central Trust company certificates held
by the Standard Oil company between 1899
and 1904. statement from the company
showed that stock of the National Stor-
age company was sold in exchange for
Lehigh Valley railroad bonds and depos-
tied with the Central Trust company
which issued certificates in exchange
In 1905, these Central Trust certificates
were exchanged for 100000 in cash and
100000 worth of 4 per cent bonds of the
Lehigh Valley Railroad company
Mr. Kellogg asked Mr. FAY to produce
a statement showing the capitalization of
all the companies in which. the Standard
Oil company was interested Mr. FAY
said he would if possible. 1t was agreed
that Mr.. Fay and an accountant for the
government should retire and check I'D
sidlary companies. The partial list sub
mitted contained the names of seventeen
subsidiary companies. Mr.. Fay said that
practically all the stock of the original
nineteen subsidiary companies was oh
tanned by the Standard Oil company of
New Jersey between 1899 and 1900
Liquidation of the Trust.
MIR. Kellogg then asked Mr.. Fay if he
mad searched for the Eecords of the iiqui-
dating trustees during the period between
1892 and 1883. Mr. Fay said he hunted last
night and found several Standard OIL
had not examined and did not know what
they contained. He said the company only
Kept the balance sheets previous to 1899
Mr.. Fay testified that he had seen no
balance sheets of the Waters-Pierce Oil
company.
Why is it that your office, which has
information Of Other companies, has no
information Of the Waters-Pierce oil
company asked Mr.. Kellogg.
don't know replied Mr. FayS
charles NJ Pratt, secretary of the
standard OIL company, took the witness
stand this afternoon He said during re-
cess that representatives of the govern
ment were going over the ledgers of the
hquidating trustees and that information
concerning the hquloatlon OF the trust was
being prepared for presentation in court
Waters-Pierce Dividends.
Mr. Pratt was shown a statement show
ing the income of the Standard Oil com
pany Of New Jersey from G NJ Pratt
investment company, and asked if the in
come was the total amount of dividends
received from the Waters Pierce com
Hduy- he feplleQ InaL II was. Mr.. Pratt
said that the certificates he held i'm the
Waters-Pierce Oil company were en-
dorsed in blank by II. Clay Pierce of St
Louis, the president Prior TO 1900 the
capitalization of 500 600 and the STAN
dard company owned 2747 shares Mr..
Pratt said he paid out of his pocket s475-
VW FOR the stock. and held it in the in
terest of the Standard Oil company
In May, 1906. the new Waters-Pierce Oil
company was formed and Mr.. Pratt ex-
changed the old certificates for the Ger
tficateS of the new company
Why did you hold this stock for the
logg.
reply.
Direct Answer EVaded
Now, as q matter of fact, did YOU not
mold this stock to evade the antitrust
laws of Texas?'
Il do not know" was Mr. Pratts an
Swer
Mr. Pratt said that in March. 1904 he
sold the Waters-Pierce stock to NJ NJ
Van Buren,, who. the witness said had
no connection with the Standard Oil com
pany- Mr.. Van Buren, paid about S4OO0
VO0 for the stock. giving s15G.O00 in cash
and the rest in notes. The cash and notes
Mr.. Pratt said. were turned over by him
to the Standard Oil company
MI Pratt said he did not know why the
stock was sold to Mr.. Van Buren,
The dividends the first year he held
the stock amounted to s1,S01.00o and YOU
sold the stock for s4,o00,0eo. Did you think
that good price for the stock?''
Yes, ] considered it fair price," was
Mr.. Pratts reply.
Did you consider the sale bona fide?''
Yes, sir
Dividends Returned.
Mr.. Pratt said that Mr.. Van Buren, re-
turned the dividends to the Standard Oil
company and recently sold the Waters
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