New-York tribune., 1908-12-10
Mr. KELLOGG GETS
BARNSDALL PAPERS
GAZE TRUST CONTROL or
HIS COWP4NY.
Government Belieres Pittsburger
1cquired Securities Only 4fter
Loan Had Been Made.


pany. has succeeded in getting the contracts re-
lating to the loan by the company OF s7.5000o0
to Theodore y BarnsdalI Of Pittsburg. long
, known. because OF the difficulty IN learning
something definite about him and the loan.
I the mysterious" Mr BsrnsdaIL The CONTRACTS
make plain his connection with the great cor
poration
The papers. given to Mr. Kellogg by MOrft1
RossnthaI. of counsel for the STANDARD. yezter-
day. show that the securities for the great sum
represented nearly all Of the stock OF the Barns
dali oil Company. a so-calIed independent con-
/ cern. stocks bonds and mortgages controlling
immensely valuable coal lands. and the right
operate oil wells in and To develop area ~
100000 acres in Oklahoma.
The hearing was we'll under way yesterday
when Mr. RosenthaI entered the room sni
handing Mr. Kellogg a bundle Of papers. said
There are the copies Of the RarnsdaIl con-
tracts that you have demanded 80 many times
and claimed you could not get I have just re-
ceived them from Pittsburg~
When he first asked FOR the papers Mr.. Kellogg
said that when he received them he probably
would have John ID. ArChbOid recalled TO the
witness stand to explain their provisions Mr.
Archbold. it said yesterday. was ready -
testify again any time The active head 81
the Standard denied when examined that 10
knew anything about the details of the agreement
demand the papers
DIVIDENDS TO PAY DEBT.
The voIuminous contracts were not offered a.
evidence yesterday. but proba bly, will be to-day II
is understood that the interests Of Mr. Barnsdal
arc practically under the complete control OF the
Prairie oil and Gas Company. whose stock -
owned by the Standard OiI Company Of New
Jersey The first contract covers the loan Of
s. 500 600 and appears as Of February. 1907
President Young of the Prairie is named as the
creditor Mr.. BarnsdaH agreed to repay the
principal and interest - Mr. Young IN Febru-
ary. 1914
To obtain the big advance Mr.. Barnsdall as
signed all but tweuty-oue shares of the stock
of the BarnsdaH oil Company TO M Young.
and agreed To- turn over the remainder upon de-
maud of the president OF the Prairie oil and
Gas Company. to vhonsoever he might desfg
nate. and guaranteed that t,1e dividends from
the stecb should De- paid "a AFR. Fouug. ana that
by February f9O4 these wcusi amount to
enough to liquidate the debt and the accrued in
terpst
The second contract. il IS understood. reCitss
that Mr. BsrnsdsU turned over TO the PtttsburE
Trust Company a large amount in stocks bonds
aud mortgages. covering coal lands Of great
value. as 4 suaraute" Of the payment of the
s. .5D0ONo and interest rs the dividends of tbs
BarnsdaH oil Company.
In addition. il is understood. the contract con
veyed TO the BarnsdaU OiI company the oil
rights in 360Uo0 acres Of land in Oklahoma. the
right TO operate the oil wells there at the TIM
the agreement was signed. the power to drill
wells and to develop the land to the fullest
extent IT is understood that this is the rich
est oil field in oklahoma
To make the security more complete Mr..
Young received the right to manage the Barns
dali Oil Company to appoint any one he
chose TO the management
There was only one reservation in the con-
tract, it was said yesterday That the right
TO the gas in the $4,000 acres. and it is under
stood that the supply Of gas from this tract -
to be piped by MI BarnsdaII 70 st. Louis Th=
contract for the pipe line It reported sew
eraI weeks ago had been iet FOR s7.5o0,00o-
DEPENDENT INDEPENDENT
The Barnsdan Oil Company has figured IN
the hearings as an independent concern II
was said yesterday that it might be so cIassed.
but that it was rather a dependent independent
The Prairie company is the great Standard midi
continental concern. controlling all its interests
i'm that field including wells, pipe lines. rcfn-
cries and marketing stations
Mr.. Kellogg and his associates discovered this
loan on the books Of the Standard oil Company
a little more than d year ago They tried u
get William q. RockefeIler. treasurer cf tHs
fessed ignorance. He said that he had sent
cIirities covering the loan to PIttsburg. vbers
they were being held IN escrow by the Pittsburz
Trust Company He did not have a high op5n-
ION Of the collateral but said that N1r Arch6"Ii
had passed on it SIR ArcaboId was as 70
served about the loan as Mr Rockefeller. Eac1
denied that Mr.. BarnsdaH Was in any sense
standard OIL Company agent
The loan had been made w of progressive
adyanceInerts beginning about 1904. The inter-
est had been charged Off aS the notes were not
met but there had been payment of Sfs6+ 81
on the interest account on January 5. 1905 II
Is supposed that the loan transferred 70 the
Prairie Gas and OIL Company 20 place IL in tae
field where Mr- BarusGau was Ivgarded IS one
of the largest operators and where his interests
were centred
Ir was understood yesterday hat the govern
uept would try TO show that the Pitt~burg OIL
and gas man acquired the great holdings hgUr-
ing as security IN the contract only after he had
received The loans Which ultimately amounted
TO s. 100000
GASOLINE TRADE Development
The first witness yesterday. l. , Drake. Cor
MANY wears connected with the marketing de-
partment or the Standard OH Company of In
diana told OF the COMPANY IS activities i'm devel-
opinq the gaSol, NJ trade. selling stoves and en-
ginrs in which th, use Of gasOl-ne was demon
stratrd by employees of the standard Later G.
NJ predger head ~ the statistical department.
oT the company. was called 10 testify TO the cor
rectnesS Of the figures shown in the numerous
exhibits ~ the defence. and Professor Joseph
French Johusondean Of the school Of Commercs