The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1908-12-03
John D, ArchboId Gives Details
Of The Consolidation
OIL TRUST LIQUIOATED
New Jersey Standard Oil Company
Was Selected as the Holding Com
pany, Due to the Laws OF
That Liberal State.

New York December 1.-The processes
nv which the Standard Oil trust vas Aqni-
dated and its 90 subsidiary companies
brought under control OF the present
standard oil company of New Jersey
were developed in interesting detail by
John D. Archbold under cross-examna-
ton in the federal suit to dissolve the
Standard oil company Mr.. Archbold de-
clared that tie trust had been iquidated
in the period of years from 1892 to ls9s
with all good faith to obey the mandates
OF the Ohio supreme court ordering the
trust dissolved There was no Interior
motive in the fact that only about 81 per
cent of the trust certificates were llqul-
dated into the stocks Of the subsidiary
companies. said Mr. Archbold. Small mold
ers declined to liquidate, preferring to re-
tain their certificates which had a mar
ket value rather than to obtain min
itesimallv small parts in the several
minor companies
Reasonable Treatment.
Mr.. Arclbold made it plain under
series of questions from government
counsel that the STANDARD Oil company of
New Jersey had been selected as the
holding company because the laws OF New
Jersey. were reasonable i'm their treatment
of CORPORATIONS. All the holders of trust
certificates. after obtaining their pro rata
shares in the subsidiary companies.
turned them into the New Jersey COM
pany ana received their proportionate
amount of stock The Standard Oil COM
pany of New Jersey in the present hold
ing company is the combination which
the government is seeking TO dissolve.
During the day Mr.. Kellogg, for the
government. succeeded in throwing light
on the loans made. 10 Z. NJ. Barnesdale
of Pittsburg. an independent oil producer.
Mr.. Archbold testified that loans agsfe-
eating s7.50c.00e had been made to Mr..
Barnesdale to enable him to continue his
oil operations in various parts of the
country. a part of the contract for the
loan was that all crude oil produced by
Mr.. Barnesdaie should be carried in the
Standards pipe lines.
Mr.. Archbold also testified that former
Congressman Joseph S Sibley of Penn
savanna was identified with the Galena
Signal OIL company, subsidiary OF the
Standard It was to Mr.. Sibley that Mr.
ArchbolG addressed many of his letters
which were made public during the recent
presidential campaign.
Percentage of Business.
When cross-examination of John d.
Archbold was resumed today Mr.. Arch
bold was asked about the percentage Of
nd int
in 1879, but said he could only state that
it was large. Mr.. Kellogg called the
attention of the witness to statement
made by II. Fl. Rogers. that in 1879
the Standard and It's affiliated interests
produced 90 to % per cent of the refined
oil manufactured.
"If you had that amount Of production
40 you still say, as stated by you yester-
day, that you acquired the plants on the
seaboard to increase your volume of BUSH
ness?'
Il can't say what percentage of BUSH
ness We were doing"
Mr. Kellogg was seeking to show that
in reality the Standard did not purchase
certain seaboard refineries> to increase the
Standards business, but to destroy COM
DetllOn- he SON NiHllSHA piDSt1tb'A9
Piled the witness with many questions to
develop this contention.
Domestic Business.
Mr.. Kellogg read statement puiport-
ing to give the percentages of domestic
business OF the Standard between 1894
and 1895. which averaged about 50 per
cent
Assuming that the Standard did 81 per
cent in 1870 why did you acquire addi-
tional refineries?'' asked the examiner
THAT was done to succeed TO their
business
The method of the acquisition of sew
eral subsidiary companies which had been
taken over at the time of the formation
OF the trust and the disposition Of them
were the subject of questions. Mr.. Kel-
logg endeavored to show chat the Stan
dard, instead of developing its own BUSH
ness by its own efforts, took over COM
petitors and in that way increased its
own business. Mr.. Kellogg brought to
the attention of the witness several in
dependent companies, in which the Stan
dard obtained a majority of the stock
but which continued to be operated by