The Washington herald., 1907-09-28
WANTED OWNER
Oil officials Memory Hazy
About Big Pipe Line.
THINKS IT MUST BE TRUST
George ChesbOro, Comptroller of
Standards Pipes, Processes IgnO-
rance of Manhattan Line Since
Hepburn Law Became Effective.
Makes zoo Per Cent Profit.

New York Sept. 2I.-GeOTge CheSbOrO,
comptroller OF the Standard Oil subsidiary
pipeline companies, testified before Ref
cree Ferris to-day that he did not know
who had owned and operated the pipe
line running from Jersey City across the
island OF Manhattan through Central
Park 70 the Standard refneries In Long
Island City since November !. 1905.
AT that date the New York Transit
Company, one OF the Standards subsidi-
AIRY carrying lines, ceased to operate it,
and no further account of the business of
the pipe line had come under his observa-
tiOn since that time
He did not know just when the pipe was
laid or when oil was first pumped through
IL. Prosecutor Kellogg showed him an
item IN the accounts of the New York
Transit Company for the year 1899. "Ex-
penses New York Pipe Line. s., 10000"
That explained the witness, was the
rental for one year paid by the New York
Transit Company 10 the Standard Oil
Company Of New York.
Thinks Standard Owns II.
1Ir. Kellogg asked If that proved that
the New York branch Of the Standard
Oil Company Of New Jersey owned the
Manhattan Pipe Line. Chesboro thought
1t must. The New York Transit Company
continued 20 pay rental 10 the Standard
Oh Company OF New York from 1899 10
1906. when the Hepburn amendment to
the interstate commerce laws went into
operation. All accounts between the
transit company and the New York
Standard branch ceased 10 appear on the
books of Comptroller Chesboro after that
date.
He had no idea whether oil was still
being pumped under Central Park OF not.
Prosecutor Kellogg succeeded in tracing
the missing transfer and stock ledgers
Of the trustees in the liquidation of the
Standard Trust Of Ohio one step farther
He learned from Charles T. White, as
sistant secretary Of the New Jersey Hold
ing Corporation, that when he took Office
on Nay J. 1900. in room 1401, at the
Standard Office building, 26 Broadway.
the books were in a safe In that Office.
About a month after he became secre-
tary, somebody came and took away the
safe books. and all. That was the last
he had ever seen or heard of them.
Makes 200 Per Cent Profit
After learning that the profits Of the
Southern Pipe Line Company for a spe-
ciic year were more than 200 per cent
on its capitalization, Mr.. kellogg ques-
toned George Chesboro, who had been
recalled 10 the stand 70 give further fig
ures upon the work Of the oil carriers
concerning a debit item appearing in
the Southern Pipe Line Companys ac-
counts for 1899.
"P S. Trainor. S2,G07, ,S5299." read the
item. Chesboro said that he could not
remember what that entry meant.
The governments attorney tried 10 bring
out the admission that this sum had been
arbitrarily set against the name OF
Trainor, who was one Of the oil buyers
for the New Jersey Standard, In order
that the net earnings for the year might
appear to have been reduced. Mr.. Ches-
bOrO could not elucidate.
Big Loans" 20 bankers"
He could not tell why the same sheets
Of the Southern Carrying Company
showed q contingent fund" OF S2.231, ,9u
Withdrawn from the yearly earnings, un-
less il We're 10 cover possible loss in the
handling Of oil in transport. Mr. Kellogg
turned 70 the accounts OF the Buckeye
Pipe Line Company and wanted 10 know
why for six years the Buckeye Company
had made annual loans 10 the National
Transit Company, averaging about $5,000,-
600 yearly. This the witness explained
was because the National Transit Com
papy acted as the Buckeyes banker.
In one year the Buckeyes profits were
S7.C2S SOS, of which 4,Gl65l4 were deposited
with the Transit concern.
The inquiry was adjourned until next
Thursday morning.