The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1908-12-02
KELLOGG GRILLS
JOHN D. ARCHBOLD
Attorney Tries to Find Out the
Ownership of Oil Concerns
NO NEW LIGHT RECEIVED
Archbold Is Closely Questioned About
Many Pipe Lines and Refineries,
But Fails To Answer To
Courts Satisfaction.


unrayel the puzzling ownership of the Sc
eurity Oil company of Texas and other oil
companies which the government charges
are controlled by the Standard Oil COM
pany, Frank B. Kellogg, federal counsel
in the United States suit to dissolve the
so-called oil trust. subjected John D.
Arehbold to a grilling cross-examination
today. Mr.. Kellogg also sought infor-
nation regarding certain mysterious
loans made to James Mcdonald by the
APPROXIMATION company, a Standard
subsidiary but Mr.. Archbold, director
OF the Anglo-Amercan company, was I'M
able to throw any light the ques-
ton. For over a year the governments
counsel has been trying to obtain infor-
nation regarding these Mcdonald loans
but has failed. The government alleged
that the loans were made to enable the
STANDARD to secretly purchase the Man
haitian Oil company of Ohio. Mr.. Arch
bold said that he and Henry II. Rogers
resigned as directors of the Anglo-Amer-
lean company shortly after their election,
year ago The vice president Of the
Standard denied that the designations
were brought about by the present gov
eminent proceedings.
Mr.. Archbold was closely questioned
about many pipe lines and refineries
which had been purchased by the Stan
dard. He denied that the refineries had
been bought that they might be disman-
tied, thereby removing competition.
They We're secured Mr.. Archbold said,
to succeed to their volume of business.
Why They Resigned.
Mr.. Archbold said that Mr. Rogers and
himself resigned from the Anglo-Ameri-
can company so that men more directly
connected with the company could take
their places. The witness said he was
not sure that Mr.. Teagle resigned.
The attention of Mr.. Archbold was
called TO the testimony of Mr. Brady who
testified that assets worth S13OO,OO0 were
paid for the contract and that the Gen
eral Industrial company negotiated the
contract for the Standard Mr.. Archbold
said he had no recollection that the Gen
eral Industrial company had anything to
do with the contract. The witness said
he could not explain the loan to Mr.. Nc
Donald and had not investigated it.
why didn't you investigate it,"
Il didn't feel called upon to do So"
viii you try to find out about the
loan?e
If my counsel so advises"
Mr.. Arehbold lnterrogated about the In
diana Pipe Line ana Refining company,
said he was under the impression that the
Standard purchased it.
who was behind the company"
"The Cudahys of Chicago, 1 believe"
Company Out of Business.
Mr.. Archbold said he did not know that
the Indiana company had been turned
over to the Manhattan company he be-
lieved the Indiana company was now out
| of business.
isn't it fact that Standard Oil inter
! ests own, directly or indirectly, the Gen
eral Industrial company"
Il have no knowledge of it,
Does the Standard own or control the
London Commercial Trading and Invest
ment company"
Not to my knowledge"
Mr.. Kellogg desired to know if the
Standard had financed the Security COM
pany through the Anglo company, but Mr.
/ Archbold said he had no knowledge of it,
The witness said he had no knowledge
that the Standard owned or controlled the
Security.
Mr. Archbold said he understood the
Corsicana Refining company had been
built with the Standards money. He was
not aware that the money furnished for
the Corsicana company only appeared on
the Standards books as loan to Fol
ger g. Payne.
How is it held now%
"Folger & Payne are paying for it.
The vexatious conditions in Texas made
us want to get rid of it,"
"Will you produce the English books
of the Anglo American company
81 don't think I have the right. l will
advise with counsel
Waters-Pierce Holdings.
Mr. Archbold said that under advice of
counsel the legal ownership OF the Wat
ers-Pierce Oil company was held by c,
NJ Pratt and NJ. M. Vanburen Mr.. Arch
| holds son-in-law. Mr.. Kellogg called the
after ton of the witness to testimony that
the Waters Pierce company was an indie
| pendent company
Mr.. Archbold said the property of Scho-
field, Schurmer & Teagle in Cleveland
was purchased, but whether it was turned
over to the Republic Oil company he
did not know He had no recollection of
! discussing with any Standard official re-
garding the purchase of the Manhattan
and Security companies or the two Eng
| lish companies.
Mr. Archbold told of the Standard s
business relations with the Tidewater
Pipe Line company. When the Standard
| obtained possession of 81 per cent of the
| Tidewater stock 1t took over several small
| independents at the seaboard.
"Our purpose in securing these indie
| pendents was to succeed to their volume
| of business" added Mr. Archbold who
told of the construction of the Crescent
! Pipe line and the United States Pipe line.
| The witness said stock was bought in
the United States Pipe line for an invest
ment and to know what was going on.
Stock In Trust.
Mr.. Kellogg asked the witness If, after
the Standard had purchased 80 per cent
of the stock OF the United States Pipe
line the other stockholders of the United
States Pipe line had placed their stock
in trust.
Mr. Archbold said he understood that
was done.
You testified before the industrial COM
mission that the United States Pipe Line
! company was trust?"
YES, 1t is pure, unadulterated, re-
strictive trust" replied the witness.
Restrictive of the Standard" said Mr.
Kellogg.
Mr. Archbold was questioned about the
purchase of the Globe Refining company
and Western Pipe Line company. Other
pipe lines which were taken over by the
STANDARD were subjects of Interrogation
by the federal counsel
Mr.. Arbhcold said there were several