The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1908-11-11
KELLOGG TRYS TO
RUN DOWN LOAN
OF S7,5OO,OOO
Trust Buster" on One of Stan
dards Elusive Trails
MYSTICAL Mr.. BARNSDALL
Producers and Oil Land Owners at the
Mercy Of Pipe Lines With
Exorbitant Rates

New York, Nov. 11.--Lawyer Frank
B Kellogg tried hard yesterday to hit
the trail that might lead him to that
S75OO,OOO which the Standard Oil
Company lent, without interest, to IT.
n. Bansdall Of Pittsburg about two
years ago GSt in spite of his efforts the
Trail led always 70 d uiank wall
It was while two of the oil produ
ers from the Oklahoma field were on
the witness stand In the governments
suit against the Standard OF New Jer-
sey, now on in the Custom House that
Mr. Kellogg tried to find something
about that loan The oil producers
knew Mr. Barnsdall well enough they
said. but they always looked upon him
as an independent oil man, affiliated
in no way with the Standard.
One OF the witnesses, Edmund
Barnes who handles as much oil
as the Standard does in Oklahoma,
said he had known Mr. Barnsdall
twenty years. But when Mr. Kellogg
directed his cross-examination at the
oil man he baked and said he didn't
even know where Barnsdall lived.
This S7,50000O loan appears on the
books OF the Standard Oil Company
Of New York The record was dis.
covered there by Mr. Kellogg several
months ago When William G. Rookie
teller, Treasurer of the Standard of
New York. was on the witness stand.
he testified that he knew little or moth
ing OF the loan and that. as all the Sc
curities and papers had been sent to
Pittsburg, he had no way of finding
out anything about H. When Mr.
Barnes disclaimed any knowledge Of
Mr. Barnsdalls personal affairs out.
side the fact that he was looked up
on as an Independent oil man. Mr.
Kellogg lost patience.
j have been chasing Mr.. Barnsdall
through every source available for a
long time. and | shall keep on until
locate that S7.500,000." he said.
Royal S Litchheld. another oil pro
Queer from the Oklahoma field, said
he knew Mr.. Barnsdall more as an oil
Spectator than an actual producer.
He has town named for him. -
said MIR Litchheld. and is interested
Ia a number Of oil companies"
You consider him an independent
don't you?' asked Mr.. kellogg. on
cross-examination
u suppose so. said Mr.. Litchheld
Now. If YOU knew that in 1905 Mr..
Bamsdall had borrowed $1,000 900
] from the Standard. would you say he
was doing business for himself or the
standard OIL Company asked the
Governments lawyer
y couldn't say replied Mr. Itch
field. Il don't know anything about
his private affairs"
A new insight into-the conditions
which now prevail in the oil fields Of
Oklahoma developed while Mr.. Barnes
, was under DISCRIMINATION II
came out that the oil producers there
have been precluded from shipping
their oil TO the sea coast because of a
| prohibitive tariff OF 40 cents a barrel
which is charged by the Gulf Pipe
Line and the Texas Pipe Line, both of
, which enter the Oklahoma field from
The South and run side by side to the
Gulf
The oil producers can ship their oil
TO the Gulf cents cheaper by tank
cars than is charged by these pipe line
companies, which are supposed to be
independent and common carriers.
and file their tariffs OF IS cents a bar.
rel from the Oklahoma field with the
Interstate Commerce Commission.
III has been tragic what we pro
= ducers have endured for the last two
! years. said Mr. Barnes. There are
not enough pipe lines to carry the oil
away We have no competition now
TO relieve the situation The competi.
lion we have is a myth. These two
socalled Independent companies have
+ plundered us. The pipe line tariffs
are prohibitiye.
The Indian oil producers and those
who own the oil lands In Oklahoma
have lost at least 100000 I'm the last
two years because OF the lack OF com.
petition between pipe lines" said MIR.
Barnes "Crue oil to that value has
either evaporated In the sun or has
run down the creks. because OF inabli.
. ty 10 get II TO market or sell Il to
The pipe lines. The Indians have
been greatly wronged."
p. AS a parting snot Mr.. Kellogg
:. asked
And YOU don't know that Mr.
/, Rarnes Is the Oklahoma representa-.
q tive OF the Standard on Company"
No. ] don't" said MIR Barnes testi
IT, A little before that he had taken
oitonse AT Mr. Kellogg's line OF cross
D. examination and said he considered
!. the Governments case nothing hut
/. a piece Of opera bouife."
"A While MIR Litchneld was on the
- stand he said that In addition to beinr
an oil producer. he was a banker al
u. Independence. Kan lie said that IN,
+ Standard. through the Prairie oil ant
/, uas company had deposit will
r. him but II Is what We call
2 'thistlo.hlow' account. che added
THEY will deposit Si0.000 or Si5.00l
.s IN the morning and either draft Il Of
.e check Il out by night"
a. The hearing win be continued to
"A dRV.