The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1908-12-04
ARcHeoLD SAYS it WAS hEcEs-
sARY TO FORM Ii.
THE DETAILS
Incorporated il New Jersey in Order
That It Might Be a Holding Com.
pany, to Take over the Securities
Of Concerns It Purchased.

NEW YORK, Dec. 2.-The process
through which the STANDARD Oil trust
was liquidated and its thirty subsid
larry companies brought under control
Of the present Standard Oil Company
of New Jersey, was developed in an
interesting debate today by John ID
Archbold, under cross-examination il
the federal suit to dissolve the Stand.
ard Oil company. Mr. Archbold de.
clared that the trust had been liqui.
dated in the period of years from 1892
to 1899, with all good faith to obey
the mandates Of the Ohio supreme
court ordering the trust dissolved.
There vas no Interior motive in the
fact that only about 81 per cent Of
the trust certificates were liQuidated
into the stocks of the subsidiary com.
panies, said Mr.. Archbold. Small
holders declined to liquidate, prefer
ring to retain their certificates, which
had a market value, rather than to OBJ
tain enthusiastically small parts in the
several minor companies.
Mr.. Archbold made it plain, under .
series Of questions, from Government
Counsel Kellogg, that the Standard
Oil Company Of New Jersey had been
elected as the holding company, be
cause the laws Of New Jersey were
reasonable in their treatment of cor
porations. All the holders Of trust
certificates, after obtaining their pro
rata shares in the subsidiary compa-
MES, turned them into the New Jersey
company and received their proper
tionate amount of stock.
The Standard Oil Company of New
Jersey, the present holding company,
is the combination which the govern.
ment is seeking to dissolve.
During the day Mr.. Kellogg, for the
government succeeded in throwing
light on the loans made to T. M.
of Pittsburg, an independ-
ent oil producer. Mr.. Archbold testi-
fed that loans a%ggregating $7,50O,O00
had been made to Mr.. Barnsdale to
enable him to continue his oil opera
tons in various parts of the country.
A part Of the contract. was that all the
crude oil produced by Mr.. Barnsdale
should be carried in the Standards
pipe lines.
During the day Mr.. Archbold testi-
fled that Former Congressman Joseph
G. Sibley of Pennsylvania was identi-
fed with the Galena Signal Oil com
pany, a subsidiary of the Standard. It
was to Mr. Sibley that Mr.. Archbold
addressed many of his letters which
We're made public during the recent
campaign.
Mr.. Archbold said the trustees had
all the stocks of the subsidiary COM
panies from 1882 to 1892 when the
trust began to dissolve in obedience
a decree of the supreme court of
Ohio.
He did not know where the stock
certificates, books and journals of the
were.
Continuing, the cross-examination,
Mr.. Kellogg desired to know that if,
when the trust began it's dissolution,
merely a bare majority OF certificate
holders presented their certificates
and received holdings in the various
subsidiary companies. An exhibit Of
he defense showed that 499, 619 GER
,ificates out of 971,50O were turned in
or liquidation. Mr.. Kellogg then read
! list of names of those who turned
n their certificates.
did you and your associates as
.rustees turn in your certificates and
obtain stocks of the subsidiary COM
)anies to control them and give the
impression that the trust was dis
;olved?"
I'VE made the transfer in good
aith, in accordance with the decree
# the courts. We had no Interior pur-
ibid you intend to dissolve the
rust?"
II stand on the resolution taken by
he trustees and the record"
Mr. Archbold said that in 1898 he
urned in his various stocks and OBJ
aimed certificates of the Standard Oil
Company Of New Jersey and that all
he holders of trust certificates and
'ther evidences Of legal title obtained
hares in the minor companies, which
turned in and for which the
standard Oil Company OF New Jer-
ey shares were issued.
Why did you make the Standard
oil Company Of New Jersey the hold
ng company?"
we were advised by counsel that
laws of New Jersey offered the
lost reasonable treatment for corpo-
ations."
Mr.. Kellogg asked the witness II
ne Standard had bought out the
'roducers and Ref1ners Association
ipe Line company to prevent 1t from
uilding a competitive pipe line.