New-York tribune., 1908-11-23
SEE BIG STANDARD DEAL
[. S. L4WYERS LOOKING
INTO B4RNSD4LL PL4N.
BeileUe Merger Of Companys Vest
ern Subsidiaries Is Object of
Gigantic Gas Scheme.

the Standard Oil Company's loan of s. 10000 to
Theodore \. BarnsdaIl by the government coun-
sci here. when their attention called to the
big gas deal by Barnsdan reported IN The Trib-
une yesterday This story told Of plans being
under way for the laying of a 24-inch gas main
from Oklahoma to ST. Louis, distance Of four
hundred miles, at a cost of S7.Jo0OOU with
other SI,JoO,OoO TO be expended in st. Louis be-
fore the natural gas could be piped into the
homes OF the consumers 1t said by the
counsel that the gas wells must include oil wells
The Kansas Gas Company alluded 10 in the
Pittsburg dispatch more likely the Kansas
Natural Gas Company. it was said. collateral of
which put up for the big loan. William G.
Rockefeller treasurer Of the Standard Oil Com
pany. when the stand about year ago said
that the S7,5O0,0OO vas turned over to Barnsdau
on the order Of John D Archbod.
The next move in the far West is expected
to be the consolidation Of all the Standard oil
Company interests west of the Mississippi
River and II said that when this
complished il would be found that every pipe
line out Of the Kansas, Oklahoma and Indian
Territory fields would be Standard property.
Frank B Kellogg. the leading counsel in the
suit against the Standard Oil Company. looked
upon the publicity Of the gas deal at this time
as just so much more ammunition in his prose-
cution. He will undoubtedly try 70 get from Mr..
on the stand. all the information that William
G. Rockefeller said he could not give about the
loan.
In connection with this renewed activity Of
the gas interests in the West all of which Mr.
Barnsdall is said 10 control, there a report
that the counsel for the Standard might not
call Mr.. Archbod, William G. Rockefeller and Mr.
Moffett if Mr. Kellogg should succeed ii getting
any damaging admissions from the Standards
Of rf,%ir he
made TO strengthen; but the Standards counsel
said that they could see no reason for 4 change
of programme.
SIGNIFICANCE OF GAS NEWS.
One of the government counsel pointed out
Just how significant the gas news was IN the
testimony given by William q Rockefeller a.
year ago he said that the securities given by
Mr. Barnsdau for the big loan were never
put on the books as collateral They were sent
to the Ptttsburg Trust Company by the witness
on request of Mr. Archbod. Mr.. Rockefeller
did not wish TO be responsible for them, as. he
said they were not gilt edged The rea son why
the Standard easy with Mr. Barnsdan
was because he was hard up" The only in
terest he ever paid was 81 964 IS. on January g.
1906 He gave notes for the interest right
along, which were charged UP, but later
charged off
is it the custom Of the Standard Oil Company
TO lend money on collateral about which you
know nothing7' was one Of the questions Mr.
Kellogg asked Mr.. Rockefeller at the time.
Mr. Rockefeller said that he acted upon the
instruction Of Mr.. Archbold. Mr., Rockefeller
had frequently asked Mr.. Archbold about the
loan and the collateral, but had never received
definite information.
Although witnesses preceding John . Rookie
feIler had said that Mr. BarnsdaH vas known
principally as an oil and gas speculator. the
government has information that he and the
companies with which he is connected are the
largest producers in the West their oil and gas
lands aggregating 549 900 acres. II has long
puzzled the government counsel how BarnsdalL
dsowned by the Standard Oil Companv as ~
agent. could have and hold such great interests
BARNsDALL A STALKING HORSE
one Of the counsel said yesterday:
We believe that Barnsdau is simply a stalk
ing horse for the STANDARD oil Company. TO
suppose that It would lend TO q man said by one
Of its officials 20 be hard up. accepting for the
loan securities which the same official said were
not gilt edged Is absurd. The S5Oo.000,ooo made
by the STANDARD in the last eight years was not
made BY such methods. Before this Big deal
Just told of in The Tribune. Barnsdal was the
principal figure in the oil and gas production
and sale west Of the Mississippi The Standard
does not lend money TO independents without
getting some rather big return. II. Furthermore,
would not permit Independent to get control
of one Of the most desirable oil and gas fields
in the country without hand in the game The
Standard has acknowledged interests in Okla
homa now.
If BarnsdaH controls the production and the
Standard never buys oil wells, the Standard. you
may be sure, controls the pipe lines the coun-
sci continued That has been its policy right
along. The Perry OIL and Gas Company is a
Standard concern. Controlling the pipe lines.
the Standard can afford to let others own the
wells In this way the so-calIed hazard Of the
business is largely eliminated. # Air Ba-nsdau
is building pipe line to cost SI.5oo.0OO, as the
report from PittsbUrg states, where IS this
hard up getting the money? That IS d
very significant amount But he is also going to
pipe the gas into the homes where the big pipe
has its terninus-St Louis. It is said that the
cost will be an additional s. 100000. Where will
this hard up man get the money when all the
securities he has may similar those offered
TO the Standard oil Company, and who viii be
SO accommodating in view cf his hard up con-
diton?"
In spite of William @. Rockefeller's character
ization Of BarnsdaIl man who was much n
need OF money he said the stand that he
knew BarnsdaIi being largely interested in
oil and gas territory in Oklahoma and the Ind
ian Territory since 1893
Companies in which BarnsdaH is known to
have an interest or 10 control are the Barnsdall
oil Company. BarnsdalI g. Glenn and the Indian
Territory Illuminating oil Company. Up 20 last
week Mr. BarnsdaH was known the 'mys-
rerio,,s" According TO the government counsel.
the report from Pittsburg has largely cleared up
whatever mystery there may have been about
him or his affairs and connections.
7, nag believed that this control or the West