Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1908-12-02
OWNERS
FORSTANDARD
SUBSIDIARIES
ARCHB0LD SUBJECTED TO
GRlLLING EXAMINATION
Mysterious Loan of Two Mil
lion Seven Hundred Thous-
and Dollars Puzzles Govern
ment Attorney in Trust Suit
IBy Morning Journal special Leased wireI

IBy Morning journal Special Leased wirel
New York, Dec. l.-Seeking TO un.
rayel the puzzllng ownership OF the
/ Security Oil company Of Texas and
other oil companies which the govern
ment charges are controlled by the
/ Standard oil company. Frank b. Kel-
! logg, federal counsel in the United
states suit to dissolve the so-called
trust, subjected John u, Archbold to
a grilling cross examination today
Mr. Kellogg also sought information
regarding certain mysterious loans of
$1,000 ,000, made TO James Mcdonald
by the AnglO-American company, a
Standard subsidiary but Mr.. Arch
bold, a director of the Anglo Ameri-
can company, was unable to throw any
light on the question.
For over a year the governments
counsel has been trying to obtain in
formation regarding these Mcdonald
loans, but has failed. Tho government
alleged that the loans were made to
enable the Standard to secretly pur-
chase the Manhattan oil company OF
Ohio. Mr. Archbold said that he and
Henry II. Rogers resigned as directors,
of the Anglo company
shortly after the election year ago.
The vice president OF the Standard de-
MED that the designations were
brought about by the present govern
ment proceedings.
Mr. Archbold was closely question
ed about many pipe lines and refin-
cries which had been purchased by
the Standard He denied that the re-
fineries had been bought that they
might be dismantled, thereby remov-
ing competition. They were secured.
Mr.. Archbold said, to succeed to their
volume of business.
Mr.. Archbold read q statement
showing the number of marke citing sta
tions of the Standard constructed since
1880. as Well AS thu total number of
marketing slatUns Inc witness said
that when the Standard OH company
OF New Jersey was organized I'm 1882
1t took over the refueries and real
estate in New Jersey owned by the
Standard Of Ohio The property taken
over was valued at $2,0OO.000. and
there was Sl.000.0 600 in cash furnish
ed by the trust The Standard of
Ohio turned over TO the Standard Of
New York $2,500,00O in property and
$4,000, 900 in cash.
From 1882 to 1892, Mr Archbold
said he was a trustee, and from 1892
until the trust was lquidated in 1899
he was a liquidating trustee. OF the
liquidating period Mr.. Archbold said:
The principal holders of the trust
certificates constituting a majority Of
the shares, turned in their certifi-
Gates and received their shares in the
twenty subsidiary companies A re-
quest was made of the small certifi-
cate holders to turn in their certifi-
Gates. but they did not, and there was
no way in which they could be com
PEELED to do so. Some of the smaller
holders accepted assignments of legal
interest for their certificates The
small holders wanted their certificates
which had "A market value. There
was no market value for the stocks
)f the subsidiary companies at that
lime"
Some of the stocks of the subsidla-
'ies had never been on the market.
Mr.. Archbold said
A statement showing directors and
officers of the twenty subsidiary COM
oanies Of the Standard from 1892 to
S99, was placed on the record
Mr.. Archbold said he was a party
o the final liquidation of the trust in
S99 and to the increase OF the capita !
'tock of the Standard company Of
lew Jersey to $4,000. .OO0. Mr. /
Archbold said the capitalization of |
he New Jersey company was fixed 10 |
AXE over the trust certificates and al |
ow little margin over. The capitali- |
alton was large enough 10 take over /
III the stock Of the subsidiary compa- /
lies held by owners who had liquidat- /
d these trust certificates
In explanation Of the modus oper-
ndi of the liuuidation. Mr. Archhold |
aid he turned in his certificates In the
rust and received assignments Of le-
al title for which ne received stock i'm 1
he fKFgF ertbefffa F-inc ffb.u.. af..Igt Z
T the subsidiarics Mr. Archbold held |
rom 1892 TO 1899. when he turned
hem into the standard of New Jersey.
eceiving stock in the same equivalent
$ his share holdings in the trust
The Prairie OH and Gas company
aid Mr.. Archbold. did not refine OH.
ut was engaged in the production and
of oil. He also said
hat pipe lines were "A necessary part
( the Standards business.
Mr.. Archbold's cross-examinatou
'as then begun hv Mr.. Kellogg. of
he government Mr.. Archbold was {
hen asked as 90 his official councc-
on with the standard and various
ther subsidiarlsg When asked III be-
las a leading official of the standard
ir Archboid said be was "activo. L
Mr.. Archbold said ne had heard Of
he Manhattan On company Of Ohio :
itN AftNA ~ kllfN HAAAf VI II fNUNfN- %
on was made Dos counsel Of The de-
anst a. to this l.ur Of -examina-
on. The witno-s said the company I
as cOmpetitoy of the Standard. \
DO you know nything about thc +
eneral IndustraI Development syn Z
icate. Limited ai London asked I
~. Kellogg In
Il have heard rf II since these /
earrings began M
rs it controli,I directly or indirect {
by the STANDARD % ID
Not 10 my knowledge D
Don't you know that the General 1
ldustrisl Syndicate company pur- {
lased the Manhattan oil company"
NO. do not
Mr.. Archbold was asked if il was
% true that the standard had pur-
lased the tank cars. refinerics ana
be lines OF thc Manhattan from the Z
nndou COMPANY
The witness said that be- understood
Iat the puuchIse was made.
AIR. Archboid said that Anthony y !