The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1908-12-01
ARCHBOLD TELLS
WHY TRUST WAS
ORGANIZED
viCe-President Resumes TeSti-
mOny in Big Suit
MUCH OIL GOES ABROAD
But 81 Per Cent Of the Stand lrd's
Product is Sold in the United
States

New York, Dec. l-Resuming his
testimony yesterday in the govern
ment's suit to dissolve the Standard
Oil company, John D. Archbold vice
president of the company was ques
toned about the Villas, Keith and Ches
ter agreement of 1879 Mr. Archbold
told of the siners Of the agreement
and of the property held by certain
individuals for the benefit OF the
stockholders of the Standard All
properties obtained were held by the
trustees after the agreement had been
made. Mr. Archbold said the agree
ment was made as a simple method OF
holding property in the interest of
common ownership. Mr. Archbold
told OF the trust agreement of 1852
and said that all the shareholders Of
the Standard and the benefciaries of
the Villas, Keith and Chester agree
ment signed the agreement Mr.
Archbold said that twenty trust cer.
tifcates were issued for each single
share of Standard oil stock
The capital stock of the STANDARD
was $3,5OO,0OO" said Mr.. Archbold
but the plants and property were
valued at S7O.0O0.O0O" he said The
Standard Oil trust was formed be
cause it was a simple and effective
way of holding the property We
were advised by counsel he Went on
! that neither the Standard OH COM
pany of Ohio nor any other corpora
ton could efectually or safely perhaps
hold the property which was wide
spread in many states .Where there
was restriction Of the rights of cor
pOratiOns. The trust was suggested
as a simple measure Of bringing to-
gether the property and form a token
OF ownership which would have "a
market value and enable the owners
to have a more effective adminisra.
ton"
Mr. Archbold said that The trustees
OF the Standard oil trust. after the
organization. formed the Standard OH
companies OF New York and New Ier
sey to hold properties which had
previously been held by Standard
companies OF New York and New Jer
sey We're still The same companies
as those formed I'm 1882 The capital
stock Of the Standard Oil company OF
| New Jersey was $4,000 GOO iu 1852 bur
was increased in 1892 to- $4,000 O0C
and in 1899 10 s2000O.Oo0 of which
| 100000 was preferred
The vice president of the Standard
said that the trustees of the Standard
! OIL trustorganized and developed many
companies with money obtained from
| The trust Some of the companies
mentioned by Mr. Archbold were the
Solar Refining company. the Standard
Oil companies OF Kansas and Indiana
and the Union Tank Line.
Through the National Transit com
pany the Standard interests con
structed the Buckeye Pipe Line com
pany. the Cumberland Pipe Line com
pany and other pipe line companies
Statements showing The companies
owned or controlled by the Standar,
in 1899 were submitted in evidence.
II Mr.. Archbold said the STANDARD
met with competition In the oil mar
kets IN the world, and submitted il
evidence a statement showing th
names Of the competitors of the stan
dard outside of the United States
There We're 400 companies competing
with the Standard for the world
market said Mr. Archbold The tota
! capitalization OF fourteen capitalize
foreign companies was $27L9l5,1S5.
! or the total amount Of illumination
oil refined In 1906 by the Standar
Mr. Archbold said that 63 per cen
was sold abroad and 81 per cent sol
al home, Mr. Archhold told of IN
difficulties In the introduction of n
fined oils abroad There was niue
competition from oil interests of IN
Dutch Indies. said Mr. Archbold. an
the task OF maintaining the bushes
In the Orient was very difficult. "Ot
state department has helped u
much said Mr.. Archbold I'm foc
We have been better treated with ne
Crence 10 our foreign business tina
with our business at home" Thoi
Is harry a port In the world said NJ
Archbold that the Standard does nj
reach with It's products. He sal
that the Standard was putting IN ever
| effort to reach the consumer direct
the Orient There are 1913 indcpc
dent competitive rennerios Of oil
the country. said the vice presidcl
OF the Standard An adjournment wi
| taken until tomorrow.