The Montgomery advertiser., 1907-10-15
PROBING THE OIL COMBINE Standard Sold Through Independent Concerns s FOOLED SOUTHERN PEOPLE Governments Counsel Brings 0ut
 Important Evidence. The Mcdonald Loan of Twenty Miaifon Is Gone into Again But No
 Definite Jnformation is
 Gained.
SOUTHERN PEOPLE

New York, Oct. 14--TIampton Q. westcott. vice president of the Standard oil Company. ofss Kentucky. testified today in the hearing of the Federal suit against the oil combine, that in several of the Southern States. the Standard had found 1t expedient to sell much of its product through companies winch the public believed to be independent.
 Tho practice of selling through so- called independent companies. which were owned by the combine. was dis continued two years ago. according to Mir. Westcott. Mir Kellogg. counsel for the government. drew from the wit ness, that Standard oil Company of Kentucky, which acts as selling agenf4 of oil in Kentucky, Georgia. MississippL Louisiana, Tennessee and Alabama, had purchased numerous small indepen- dent selling companies and through many of them sold oil to the consumer.
 Some of the plants of these indepenz dent companies were dismantled and the business taken over by tho Standard. MT. Westcott threw aid0 light on q business, department of the Standard concerning which, the Federal counsel has been seeking information since the beginning of the inquiry. MT. Westcott testified that each month the main office of the Standard Oil Coms pany, of Kentucky. at Coyiugton, sent him not only the reports Of the buaiw' meas operations of the Standard. but statements concerning freight ship ments and sale of oil by all compe&iv tors. These statements, according Co Mir. westcott, gave the name of the consignor. the conslgnee. the amount of oil shipped and any information thR& might be available.
 MT. westcott said that after examine ing these statements. he filed thexms with the statistical department tn tho. Standard office in the city, Ihie. MSs Westcott said. was in charge of ". v Bemis. who kept computation and records of the husinehs of both the Standard and It's competitors.
 The Menommla NAMm.
 Alfred It. BfAinards eonpfrol5er of the Standard Oil Company. of New Jersey, and many of its subsidiary com panies. was questioned today, when called as witness In the government'e suit against the oil combfna, concern~ ing large loans made to James Mc- Donald by the Anglo American oil Company Testimony was given last week that the Southern Pipe Line com- pany had loaned over s20,000.0o0 to MT. McDonaId. and that the booiks of the company showed that It had never been paid back. Mir. Brainard said that he was the. American .secretary of the Anglo American Company and that Mr. Mcdonald was the managing director in London. fes2g
 : He was asked concerning loans made by the Anglo American Company oE $2,l75, ,O06 in 1905 and si.<27s07 in 1906 to Mir. McDonald. Mir. Brainard said that the loan has been ordered from London and that was all he knew about them.
 'Ts 1t not a fact that this money was furnished to Mir. Mcdonald thaN he might hold either the Manhattan oil Company of ohio. or the Security oil Company of Texas?"
 T do not know" replied Mir. Brains ard.
 Mir. Brainard was asked concerning the loans made by the Southern Pip6 Line Company of over s20,00o.oo0 to P. S. Trainer.
 Mfr. Brainard said that it was likely that Mir. Trainer reported his loesef to the Standard oil Company Of Naw York, that the Southern Pipe Line Company reimbursed the Standard fof the losses and charged the amounta to the account of P. s. Trainer. MT. Brainard said he thought these losses were incurred by Mir. Trainer in the purchase and sale of oil.
 Mir. Brainard said he knew nothing about the loans made bv the Stu adRrd oil Company of New York. aggregating S32, ,061. .62O in 1906, to interests other than Standard Oil" He said that ac- counts came to him from the treas urer's office. Wm. c. Rockefeller might know something of the loans. the witness said. Mir. Brainard said he did not know where the transfer books of the Iiquidating trustees which Mir. Kellogg has been deslrous of ob> taining could be found.
 Mir Brainard was excused and Hamp- ton G. Westcott. First Vice. e-Presiden& of the Standard oil Company of Sen~ lucky. took the stand.