The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-12-04
Fooled BY THE
OIL MAGNATE
Attorney Kellogg Is Unable to
Trace S22, 100000 Loaned
by the Standard.
ARCHBOLD IN IGNORANCE
H. M. TII-FORD WILL BE NEXT
ON WITNESS STAND.

New York, Dec. 3.-EffOrtS on the part
of the federal counsel 10 obtain informa-
ton regarding the loans aggregating ST.
100000 to P F. Trainor by the Southern
Pipe Line company, Standard sub
sidiary, came to nothing today in the
cToss-examinatiOn of John u. Archbold
in the government suit to dissolve the so
called trust. For over a year Frank B.
Kellogg. government inquisitor, has pur-
sued every trail to find out the purpose
of these large loans, but tonight he APP
peared 10 be no nearer the solution of
the mystery
Mr.. Archbold said that he knew of no
reason for the lOans,. which. he said.
might have represented the adjustments
between refining companies which Mr.
Trainor supplied with oil. Mr.. Trainer
who is connected with the Standards pipe
line system, had previously testified that
he did not know of the loans and never
received the money.
With the exception of a few questions
about certain exhibits which will be
placed in evidence later. the cross -exami-
nation of Mr.. Archbold was concluded to-
day. when adjournment was taken until
next Monday.
TiIford TO Follow.
II. NJ. Tilford, president of the Standard
Oil company of California, and j. a. Moi
felt. president of the Standard Oil com
pany of Indiana, will probably follow Mr.
liam Rockefeller will be called.
Much of Mr.. Archbold's cross-examina-
ton today had to do with rebates by rail-
roads in the early days. He took the
position that the rebates at that time
were a matter of bargaining. in which
each shipper strOve to obtain the best
terms.
The government counsel Intercepted
the witness regarding evidence given in
Pennsylvania oil suit in which A. j. Cas-
satt. then vice president of the Pennsyl-
Eania railroad, testified that the Stand
ard received "A larger rebate from the
Pennsylvania than any other shipper. Mr..
Archbold said he had no recollection of
Mr.. Cassatt's testimony.
The vice president of the Standard de-
clared that his company was in no way
favored by oil tariffs of the United States.
Increased by Easy Stages.
When the hearing was resumed today
Mr.. Archbold testified that the Standard
purchased the Pacific Coast Oil company
of California in 1900 for s76i 900. After
that its capitalization was increased in
successive stages to 81. 900 in 1906. when
the name was chansed 10 the Standard
Oil company of California. Regarding the
Barnsdales loan of S7.510,ec0 Mir. AFchbeld
said there was mo- contract of the loan
III the city, whereupon Mr.. RoSeVenthal,
counsel for the Standard, said he would
telegraph the escrow holders in Pitts
burg to mail the contract to the master
of, the hearings for inspection
Mr. Arehbold said that as far as he
knew the Texas Oil company was not
owned or controlled by the Standard. The
Texas company sold some of its output
the witness said. TO the Standard.
Cost of Refineries.
Mr. Archbolds attention was called to
the cost of refineries put into the trust in
1882. which was s17.O00.o00. This was the
inventory value. said Mr.. Archbold, who
was then asked if the exhibits of the de-
Tense. showing the cost of refineries in
1906 TO be $4,000, were not gross costs
instead of cost less depreciation. Mr..
said il might have been an er-
ror of bookkeeping. Whereupon the ac-
for both sides began ar eXami-
nation of the exhibit
MIR. Archbold said the first refineries
at the seaboard were not built by the
Standard. which early realized their value
in the export business and took them
over
Mr. Kellogg desired to know that if il
was not fact that In 1871. before the
Standard was formed, the percentage of
export and refined oil to crude prOduc-
tons was not greater than today. when
it is only IS per cent
i could not say, replied the witness.
Certainly since then there has been an
immense production OF low-grade oil
which Is not available for refining"
MIR. Kellogg ased the witness if the
Eevoe Manufacturing company had not
sold oil in cans abroad before the Stan
dard purchased ii.
Mr.. Archbold said the Devoe company
had.
Oil Purchases in Russia.
Replying to a question Mr.. --Afchbold
said the Standard had purchased oil in
Russia, but not now. The Standard had
Interests in Rovnnania.
The government counsel then took up
the question of tariffs on oil in the vari-
Gus countries and Mr.. Archbold said the
duties in Russia were Just what THAI
chose to make them.
II they viii let our oil in free they can
get their oils in free here. There is no
favOritism among the countries where
crude oil is produced. If France has a
duty against American oils the same du-
ties apply to other countries
Mr.. kellogg asked what were the Stand
ards advantages with regard 10 the tariff
and Mr.. Archbold replied:
An this talk OF faVOritism TO the Stand
ard by the tariff is bosh.'
Mr. Archbold said that in spite of the
Russian policy of protection. we manage
to get little in on them occasionally"
so if Russia keeps you out We keep
them out" said Mr. Kellogg.
What do you mean by .we'-the Repub-
lican parJy?" broke in Mr.. Milburn
Continued on Page 2.