New-York tribune., 1908-12-14
MOVING ON BARNSDALL
O6L4HOM4 ACT MENACE
Success of Oil Suits Night Reduce
Yo1ue of s.. 500 900 Loan Securities

- -. securities given by Theodore n
,,-s.,1 of loittsburg 10 the standard oil
,-,,,,sr,- for the S7.-e0.0on loan which ne
:, the government to dissolve the uuSt aie
moi, 20 lose much Of their value ohiaiiuli''
,,ss moved against the Indian lerrllo'E ~
,nina+inx oil and Gas Company ana MI D''I1
dali 10 prevent the piping Of gas OUTSIDE '-'7
state. "a ,,,,, q re-
-, ,,,.,1[et for the illuminant, checking
- .ho - Iouis pipe line scheme fathered oy
-,z.r7 and a decrease in the value OF fhuoi
% -ts land figuring as security IN the loaii No'
80, The Indian Territory company mas 'eeii
charged with violating the laws OF oAIa"o''." -
fo7,r vavs the third OF when Is d piea-"
,ba antitrust laws of the state in corloiii"6
,-i.,, A. F2a-nsian 10 control the gas output
The Rarnsdal securities. 1t was learned -
,erdsv. are among the great mass OF coma
,,.i5 bz the Pittsburg Trust Company Tor 'he
Standard Oil Company. In an examination -
,ra contract for the loan it was fouho 'l'1
many Of The deeds for lands turned III pS ~
Pa-nsdau were for property in the creek anu
Cherokee nations That Is the biggest gas pa"
5,,c,rr section in the Western states an" -
mentioned in the suit that has just oeeh ms
,ute-s BarnsdaH and many others nave oeei
- h. the oklahoma Executive Attorney
- ,-Ixy the Pfttsburger is identified puohclS
80, the Standard Oil Company or its inter-
ests. -,
It was said yesterday that it was not a' an
unlikely that Oklahoma would later get aA''.
the oil interests in earnest for sendlnG 'he ol'
ont Of the state. That would mean a Dlo" u
- x3a-nsda1 securities, and through them TO
she Standard Oil Company. From the same lalloS
,u,rere the gas was TO be piped out Of the state
,.,r,as mart Of the oil that is used by the
'rsa-nsdall Oil Company. now controlled by the
s+srsar5 because Of the big loan The bug
co-7nany now gets much of Its crude oil from
the oklahoma district through pipe lines ana
sbould this supply be checked it would have 10
draw on its crude stored IN tanks
The copying Of the Barnsdah contract Was
oononIeted on Saturday by the government ste
rs,,rars L consists Of tventy-nine closely
,,-oeysTitten paCes In addition to 999I9 shares
of The Barnsdau oil Company turned over ny
BarusdaII, with the management Of the com
many and the many thousands Of acres OF Oh
and pas lands in Oklahoma the Pittsburg man
transferred more than 100 parcels Of coal IanoS
in West Virginia in area from 5S acres To 44e-9
acres; stocks in eight oil and gas companies
bonds Of four companies and one realty mort
gage for $4,000.
The actual loan, as IL appeared on the stand
ards books. was for S7.639.04 IL In the con
tract il figures as for S7.5o00o0 The loans
began on November ., 1905. and the last on the
books was made on October -. 1906 The only
interest paid was 81 .964 -. The other charges
were crossed of. because a William G. Rocke-
feller said on the witness stand: y understood
Mr.. Bernsdau was rather short Of money. and
the whole thing would have to he adjusted when
he was in position TO 90 So
While on the witness stand Nr Rockefeller
said that he sent the collateral for the loan to
the Pittsburg Trust Company. because he did
not know anything OF its value and wanted to
be relieved OF the responsibility When Mr..
Archbold vas asked about the loan he was
careful TO say that the Standard had nothing
u 90 with the Barnsdau Oil Company in the
way Of loans" He began the negotiations for
the loans TO enable Mr.. Barnsdau to 20 on with
his general operations in oil and gas The can
collation. of the interest 0as q feature Of the
later negotiations that he had nothing n do
with. he said.
II was said yesterday that the government
counsel might attempt to subpoena Mr. Barns
"a" 70 appear when the hearing Is resumed in
o0-u4ry- Ihe hearing today. II was said. would
n I'll proba ability be brief. an Adjournment g+
Ao'E until January being expected