The Montgomery advertiser., 1908-12-03
H7I itfH sssr3 BOUGHT ALL OF ITS RIVALS Archbold Tells of Stan
 dard Methods. KELLOGG STILL PROBES Secured Control of the Independent
 Companies. on MaEnste says This Policy was AaOsted Ts Make Success of
 rAs Great
 ,Business.

New York, Dec. 1.-The processes by which the Standard OH Trust was H. quidated and it's thirty subsidiary conn panies brought under control Of the present Standard Oil Company of New Jersey, were developed in interesting detail today by John D. Archbold un- der cross examination In the Federal suit to dissolve the Standard OH Com pany.
 MT. Archbold declared that the trust had been liquidated in the period of years from 1882 to 1899 with all gcod faith to obey the mandates of the Ohio. Supreme court ordering the trust dis- solved. There was no ulterior motive in the fact that only about hfty-one per cent of the trust certificates were liouidated into the stocks of the sub- sidiary companies, said Mr. Archbold.
 Small holders declined to liquidate, preferring to retain their certificates which had a market value rather than to obtain infnitesimally small 9arts ih the several minor companies.3
 MT. Archboid made it plain under series of questions from goyernmane counsel that the Standard Oil Conn pany, of New Jersey, had been seiecteo as the holding company because tne laws of New Jersey we're reasonaple Ah their treatment of corporations. All the holders of trust certificates, aIteF obtaining their pro rata shares m tne subsidiary companies turned them in- to inc New. Jersey Company and re- ceived their proportionate amount or
 The standard on Company. of New .Iersev in the present holding com nanv ts the combination which the government is seeking to dtssolve
 During the day Mr. Kellogg for the government succeeded in throwning | light on the loans made to T. n Barnsdale of PittsburH an independ-
 Mr ArchhoId testiaed that loans az 1 gregdtink sIs600,000 had been made | 10 ffr. arn daie to enable him to con- tinue his oil opetattons in various parts oe the country x A part ef tha l r6atracf for the loan was that all tne er,ide oii produced by Mr, Harnsdale should be carried in tliA ssandaFd's psSf Er AsTehboid also tsstiaed that For mer conxressrran Joseph C. sihley, .of I Pennsylvania, wss identified with the Calena Signal OH Company. a suhsi- | diary of the Standard. It was to Mir. ,. | sibIeS that MT. Archbold addressed | many, of his, leters which were made public. during: the~recent Presidential campaign. s E
 Renumes EEiy TestineAy. N | : When the crosssst,g examination | of John D. Archbold was re-
 stunned in, the Standard oil suit today: | M.s ArchboId was asked about the per | centage of business done by the Stand ard, interest in sIs7ss but said he could only state that 1t was. large MT. Kellogg scailed the attention of | the witness to evidence given several years ago by H. H. Rogers that in 1879 the standard and It's affiliated interests produced 60 to. s5 per cent of the re- fined oil manufactured.i
 "Yf~you had that amount. of produc- ton do you still say sas stated by you yssterday. that you acquired the plants | on the seaboard to increase your vol" tune of business?"
 .HI. can't say what per centage of bus mess we were doing? s~. r MT. Kellogg was seeking to show | that In reality the Standard did not purchase certain seaboard refnerfes 10 | increase the standard's business, bus to destroy competition: The govern Hnent prosecutor piled the witness with many questions to develop this conten- tion.
 Mr. Kellogg read a statement pur- porting to give the percentages of do" rnastic business of the Standard be- tween 1884 and 1888 which averaged about 30 per cent. e.,4 4-s
 Assuming that the Standard did S2 per cent in 1895 why did you acquire additional refneriesT asked the exam- iner.
 The method of the acquisition of sev- eraf minor subsidiary companies which had been taken over at the time of the formation of the trust and the disposi- tion of them; were the subject Of aueS~ tions. -- < -,'..
 that the Standard Instead of develop inu It's business by It's own efforts, took over competitors and in that way Tn" creased its own business ..-.,--
 MT Kellogg brought to the attention of the witness. several independent copnpanies in which the Standard ob- tained a majority of the stock put which continued to be operated by their original owners.
 eanized the Signal oil Company of Franklin Pa, and General Charles Mil Ter developed the Galena OilsCo. Later inc Standard bought in both companies and combined them as the Galena Sig nal oil, Company. which continued un- der inc direction of Mir. Sibley and General Mttler, pOtu ol WhOHa hStN AAA- nority. interests In the company.
 Mr' Archbold said that in 1881 he had acquired control of the Empire Refin- ing Company and held the stock for me beneft of the Standard stoclShold- CTS.
 Mir. Archbold said when court re- sumed, he did not know the names of the individuals who held the stocks of the various smaller companies before the agreement of 1873. He said he did not know whether the owners of the minor companies had been taken into the Standard as owners or not.
 Mir. Kellogg examined Mir. Archbold closely on the operations of the Villas, Keith and Chester agreement. MT. Archbold said he turned in his stocks in the smaller companies to Villas, Keith And Chester and obtained trus- tees certificates
 Counsel Argue.
 There was much argument of counsel on the form of questions put to Mir Arch bold, who. MF. Keliogg said. was quite competent to take care of him