The Topeka state journal., 1908-12-01
CROSS-EXAMINED.
John ID. ArchbOld Taken in
Hand by Kellogg
In the Case Against the Stand
ard Oil Co.
MUCH WAS GOING ON
That the Witness Knew Nothin Q
About, 1t Seems.
In Ignorance Of the $2,7OO, 900
Mcdonald Loans.

| l.
John d. Archbold's narrative of the
building of the Standard Oil company
which has related in successive steps
the early and competitive Oil companies
and the story of the trust period car
ried the testimony today through the
| liquidation stage and brought it up to
the holding period of the New Jersey
company. Counsel for Mr. Archbold
| said they hoped to be able to conclude
the direct testimony of the vice presi-
dent of the Standard today. Govern
ment's counsel probably will take sew
eral days in the cross examination of
Mr.. Archbold, who probably will be
followed on the witness stand by Will
liam Rockefeller.
Mr.. Archbold read a statement show
ing the number of marketing stations
of the Standard constructed since 1890,
as we'll as the total number of market
ing stations. The witness said that
when the Standard Oil company of
New Jersey was organized in 1882, it
took over the reffneries and real estate
in New Jersey owned by the Standard of
Ohio. The property taken over was
valued at $2000,000 and there was ST.
| 100000 in cash furnished by the trust
The Standard of Ohio turned over to
the Standard of New York 81, 500 900 in
property and 2,500O00 in cash.
From 1882 to 1892, Mr.. Archbold said
he was trustee and from 1892 until the
trust was lfquidated in 1899 he was a
liquidatine trustee OF the liquidating
period Mr.. Archbold said:
Liquidation of the Trust.
THE principal holders of the trust
certificates, constituting a majority of
the shares, turned in their certificates
and received their shares in the 20 sub
sidiary companies. A request was
made of the small certificate holders to
turn in their certificates but they did
not and there was no way in which
they could be compelled to do so. Some
of the smaller holders accepted assign
ments of legal interest for their GER
tificates. The small holders wanted
their certificates which had a marke+
value. There was no market value for
the stocks of the subsidiary companies
at that time
Some of the stock of the subsidiaries
had never been on the market, said Mr..
Archbold.
statement showing directors and
officers of the 20 subsidiary companies
of the Standard from 1892 to 1899, was
placed on the record.
Mr.. Archbold said he was a party to
the final liquidation of the trust in 1899
and to the increase of the capital stock
of the Standard Oil company of New
Jersey to s11O, 200 0OO Mr. Archbold said
the capitalization of the New Jersey
company was fixed to take over the
trust certificates and allow little mar
gin over. The capitalization was large
enough to take over all the stock of the
subsidiary companies held by owners,
who had iquidated these trust certifi-
Gates.
In explanation of the modus operandi
of the liquidation, Mr.. Archbold said
he turned in his certificates in the trust
and received assignments of legal title
for which he received stock in the 20
subsidiaries. These stocks of the sub
salaries, Mr.. Archbold held from 1892
to 1899 when he turned them into the
Standard of New Jersey receiving stock
in the same equivalent as his share
holdings in the trust. The Prairie OIL
did not refine oil but was engaged in
the production and transportation of
oil.
Mr.. Archbold declared that pipe lines
were a necessary part of the Standard s
business.
Cross Examination.
Mr.. Archbold's cross-examination was
then begun by Mr.. Kellogg for the gov
ernment. The witness was asked as to
his official connections with the Stand
ard Oil and various subsidiary com
When asked if he was a leading Off
ciaI of the Standard, Mr.. Archbold said
he was active"
Mr.. Archbold said he had heard of
the Manhattan Oil company of Ohio
and that he knew little of it.
Objection was made by counsel for
the defense as to this line of cross
examination. The witness said the
company was a competitor of the
"Do you know anything about the
general Industrial department syndi-
cate, limited of London?' asked Mr..
Kellogg.
I have heard of it since these hear
ings began.
rs it controlled directly or indirectly
by the Standard"
''Not to my knowledge"
Don't you know that the general
Industrial syndicate company pur-
chased the Manhattan Oil company ?''
mo, do not"
not true that the Standard had pur
chased the tank cars, refinerieS and
pipe lines of the Manhattan from the
London company.
The witness said he understood that
the purchase was made.
Mr. Archbold said that Anthony N.
Brady had told him that he purposed
selling the Manhattan company and
wanted to obtain contract for oil
supply for the Peoples Gas Light and
Coke company of Chicago. A contract
was entered into Mr.. Archbold said
but he did not know the terms of the
contract.
..Don't you know that Mr.. Brady
testified a year ago. that that contract
was worth s1,300.O00 to the Peoples
Gas Light and Coke company?'
Shy on Information.
"I do not know.
Mr.. ArchboId said it had not been
suggested to him that one of the con-
ditions of the sale of the Manhattan
was the contract given to the Peoples
Gas company. The witness said that
for many years, James Mcdonald was
American company and severed his
connection three four wears ago.