Omaha daily bee., 1908-09-20
FORAKER TO BUY UP PAPER
Money from Standard Oil Company to
Assist in Enterprise,
DEAL FAILS, DRAFT RETURNED
ohio senator says He Acted as Ad-
visory Counsel for the Company
Makes a Detailed
statement.

y CINCINNATI. o. Sept. 1g.-As part Of
the purchase money In an unsuccessful deal
! for the ownership Of the Ohio State Journal
at Columbus, the draft for $4,000 mentioned
in the John u. Archbold letter made public
last night In st. Louis by William r..
Hearst, to buy that paper was returned
and the incident forgotten, according to a
statement given to the Associated Press
by the senator here today.
Senate Foraker declares in his state
ment that no one at any time overpaid him
a cent or even suggested any such pay
ment in Confederation Of anything he might
do as a public man.
The statement is as follows:
THE production by Mr.. Hearst Of the
letter OF Mr.. Arehbold to me dated January
20, 1902, referring to a certificate of deposit
enclosed for $4,000 and expressing the hope
that the transaction may be safely con-
Guided. Illustrates how unreliable is the
memory or how easily appearances mag
deceive.
when l first had this office I could not
recall that had ever received any such
letter or any such certificate. l at once
called up my house in Washington, where
my letters Of that date are on file and had
a search made, with the result that a pro-
posed transaction was recalled that had
gone entirely out Of my mind.
Plan to Buy Newspaper.
"a friend of mine-a newspaper man
Informed me that he held an option on the
Ohio State Journal, to purchase it, accord
ing to my present recollection for Sl35, 900.
He was able himself to advance but a
small amount OF this purchase price. He
applied to me to help him. l. did not have
enough money to be of very material as
sistarce, but for the sake of having the
paper in friendly hands, l was willing to
advance a part Of it, + applied to a num-
Der of friends to see If they would not
make up the balance Of the amount. Among
others, / applied to the Standard Oil conf
pany. They first agreed to loan to the
newspaper company when purchased and
reorganized $35, 900, according to my present
recollection, the same to be secured by
stock Of the newspaper company.
Somebody who was expected to go into
the enterprise dropped out and that made
IL necessary for all the others to increase
the amount they were proposing to ad-
vance. At the request Of my friend /
asked the different parties to increase their
advances. and thereupon the Standard oil
company did accordingly increase its
amount IIOln SO9tNDb W eJJ'JuO, dlLu sent ne
the letter with certificate enclosed as
stated.
1T was thought at that time hat the
transaction would be Immediately closed,
but there was a delay OF a few days, and
at the end of that delay the whole transac-
ton fell to the ground because other peo-
pie had stepped in and purchased the prop
erty.
'"Thereupon / returned the draft to the
Standard Oil company. | had no employ
ment in the matter and never derived a
cent of profit from II and never made any
charge on account OF 1t to anybody. I am
at the disadvantage of not being able to
produce this correspondence, because it is
on my files in Washington and / cannot
get at It for the present, but 1 am conf
dent that when I am able to produce 1t
It will be found to be in exact accord with
my statement.
Acted as Advisory Counsel.
II do not remember of having received
the letter relating to the bill introduced by
Senator Jones of Arkansas, but whether l
received such a letter or not it had no
reference to any employment of any kind
from the andard OIL company or anybody
else; nor did the letters about Smith BEN
nett and Judge Burkett read by Mr.. Hearst
at SbAblllbhS oNN any " dA1
employment. l favored the nomination of
Mr.. Bennett notwithstanding Mr.. Arch
holds objection to him and would have ia
vored Judge Burkett's nomination II l
had not heard from Mr.. Archbold. Judge
Burkett was a personal as well as political
friend OF many years standing and I IA
vored him the first time he was nomi-
mated, which was long before l knew Mr..
Archbold.
IT can only repeat that the only en-
ployment | ever had by the Standard Oil
company was as set forth in my statement
published yesterday, as advisory counsel
with respect to its affairs in Ohio"
at will be remembered that the Standard
OIL ompany has first sued and a decree
Of dissolution was entered in the supreme
court which made 1t necessary for the
company to reorganize. Difficulties arose
in carrying out that decree. which delayed
their reorganization and proceedings were
instituted against them by Attorney Gen
eral Monnett in the supreme court to en-
force the former DEGREES for other relief.
1t was then that I was employed, not to
participate in the litigation, which was in
the hands of competent counsel, but to in
vestigate the whole situation. the records
in the case, the statutes in Ohio applicable
to the company and the case against it,
the decree of the court and all the records
In the case with a view to advising the
company how, in my opinion, it could most
safely proceed to comply with the order OF
the court and to conform to our statute
and so reorganize as not to violate any Law
or judgments. This work involved frequent
consultation with the attorneys of the com.
pany, the examination Of the voluminous
records, the judgments and DEGREES Of the
court and a general study Of what was best
to he done, not to eyade law and the decree,
Of the courts, but TO comply with the same
NO Conflict with Duties.
Nothing connected with this work had
relation TO anything whatever pending in
congress or TO any matter in which the
national government was interested In thu
slightest degree, nor did anything con
nected with the employment relate to OF
conflict with any duty Of mine as senator
THE company finally concluded. as a re-
suit OF all the Investigations and consulta,
ions and advice. to reorganiEe by incorpor'
.ttra ,,nInr thu Ia ms of The staIA Of kau