New-York tribune., 1908-12-03
ARCHBOLD ADMITS
BARNSDALL LOAN
FOR OIL md GAS DEALS
IN THE WEST.
Er-CongreSsman Sibley Sho7cn to
Be Manager and Stakeholder OF
Standard Subsidiary.

Theodore y Barnsdan. who received loan
o4 S7.5n0o00 from the Standard Oil Company
bss been definitely placed. John D. Archbod,
during his cross-examination yesterday In me
government suit to dissolve the Standard Oh
1rust admitted that the loan was made TO en-
.rle NJ FarnsdaU 10 go ahead with his oil and
gas operations IN the West
Nj Archbold said he knew nothing about the
charging of Of the interest on the big loan Inc
counsel for the company in Pittsburg aftehdeu
n 7hat. The securities for the loan had been
trusted. he said. and were in the Plttsours
Trust Conpany's vaults with the contract
F-rank B kellogg. the government counsel
,ra,+e5 the Barnsdau contract. Moritz Rosen-
1ha1 for the Standard. asserted that MI hel-
logr had known that the contract was IN esero"
in Pittsburg for more than year. If you
really wanted Il you could have got II easily
Nr. Rosznthal said. With warmth
i an not going out to Pittsburg for H. II
might then be here Mr. Kellogg responded
with equal warmth.
Now. what's the use of bluffing around about
something YOU don't really want bad enough to
90 after" rejcined the Standard counsel ana
Mr.. kellogg turned TO Mir. Archbold with;
is il not fact that this money was lent
pnder an agreement that all the oil from the
Barnsdau companies should be turned over to
the Standard and is it noJ also fact that all OF
TIA. oil has been turned over TO the Prairie Oh
and Gas Company
DENIES PACT WITH BARNSDALL-
u really could not say what has been done
with the oil out there, but the loan VAS not
negotiated with any such understanding was
the answer
Nr Arcbhold promised to look for d copy Of
-be contract. hut he shook his head with doubt
about finding It. The Prairie concern Is d
Standard subsidiary. In The Tribune Of No
-ennber - it was reported that Mr- Barns
dan had cornered all the gas territory west
Of the Mississippi River. and that plans were
under way for the laying OF 24-inch main from
Oklahoma tc St. Louis: also for piping the
natural gas into the homes of that city. This
work. il was said. would cost about S15,e3,eto
Friends" were said TO he in the deal with Mr.
Ba-nsdan
Adjournment for the day taken just as
Nr. Kellogg was getting warm in his quest for
fun Information regarding the Standard Barns
dan relationship. The inquiry into the loan VIII
be continued this morning
Throughout the day Mr. Kellogg tried TO get
Ct the heart Of the great combination He at
tackled Il the beginning the basis Of the defence.
that the New Jersey company was only a con-
veniert means OF placing many holdings where
rnev could be best protected. and that the vari-
c75s 6erartrents Of the business were being con-
ducted as legitimate enterprises, and that the
subsidiary companies were being run in the
same way. open to competition were other
businesses.
The government counsel went from one to an
other Of the thirty-nine companies in the trust
agreement Of 1SS-. and brought out the fact that
those acquired by the Standard interests had
been competitors Mr.. Kellogg believes that the
schedules Of interests put in by the Standard $
counsel are not complete and he made q re
quest for more information.
NEAR TEMPER BREAKING POINT
M Kellogg and Mr.. Archbold occasionally
were near the breaking point in temper, espe-
cially when the balance sheet prepared when the
trust agreement was signed was under discus
sion The government counsel tried TO get the
witness TO say that the S70.OO0OG0 Of trust GER
tifcatee issued were backed by q property value
Of only So, 100000, but Mr.. Archbold said that
that represented book value only, not actual
value. and that the certificates were issued at
par value Mr.. Kellogg. with more than usual
emphasis. asked:
IF the balance sheet Of 1882 is in your office
will you produce it," This the witness an
svered urbanely as was Mr.. Rockefeers in
variable rule:
Anything that I have that you have not as
far as an concerned. I know Of no reason in
the world why you should not have it If I
have 81"
As demanded Of Nr. Rockefeller, so Mr.. KeI-
loFg demanded Of Mr.. Archbold, that he furnish
the certificate and stock books Of that period.
The witness said he would DO Reading q list
showing the percentages Of domestic business in
the hands Of the Standard companies and their
subsidiaries. Mr. Kellogg asked why. when hav-
ing more than 50 Per cent Of the trade, the
Standard was still reaching for more. Mr.
Ar-hbold's answer was on-committaL When a
record bearing on the trust agreement transac-
ton was shown 10 him he said he didn't know
anything about il.
It is made from the books Of the trustees
Mr. Kellogg said
But my recollection is as I state. and ! would
2 great deal rather have that than this" was the
sharp retort.
DISSOLUTION OF OHIO TRUST
Mr. Kellogg attempted TO get more light on the
dissolution Of the Ohio trust The government
contends that in the period Of liquidation from
1892 TO 1899 certain persons controlled all the
cornpanies concerned because the small holders
cid not turn in their trust certificates preferring
70 wait until the new holding company was in
shape 10 Issue stock for them Holders Of 494-
6Ie certificates out OF the total Of 1880 turned
them in as soon as the adverse decision OF the
court was MADE known They were John D.