New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-12-02


cent transactions was not clear. Mr.. Kellogg
kept up a rapid FIRE of questions ali the after
noon He was plainly exasperated several times
when Mr. ArchbcId said: "I will Go it if advised
ny counsel" or. ct will discuss the matter with
my counsel" More ground was covered yester-
day afternoon than in any similar period during
the hearing
Mr.. Archbold vas still Mr. Rosenthals wit
ness when the hearing opened The Stan
dard's counsel took the witness through the
growth of the Standard Oil Company of New
Jersey TO establish the denial that the company
succeeded the Ohio company holding trust
with all the features of the latter. MI Arch
bold was one of the liquidating trustees or the
Ohio company and continued right down TO the
New Jersey corporations sudden expansion III
1929 from which the government dates it as
trust
Mr.. Archbold said that in the iquIdatlng proc
ess the certificate holders Of the original trust
with the exception Of those holding the great
interests, received only assignments of legal IN
terest for their trust certificates and thereafter
carried these assignments instead of converting
them into stocks of the twenty companies in the
agreement of liquidation. The stock OF the
Standard Of New Jersey was increased from
100000 to s1OO.OoO,OOO. he said, as a con-
venient figure Of capitalization
CERTIFICATES FOR STOCK.
To Ak the method of final settlement between
the holders Of outstanding interests and the
New Jersey trust, Mr.. Rosenthal asked:
Q-As a matter of fact do you happen TO know
whether there any exchange of trustees Ger
true fsa IN 1s ,0t oeeaes which we're
then outstanding first exchanged for stock
cah me f o o Of New Stock for
stock in those twenty companies that was co me
ton is that that mode of operation was gone
stocks really representing what had been the own
ershiP of the trust 49,. .o-+,aoo+es
witch VOW e sH co n With the number Of shares
stock of the Standard OIL Company OF New
Of the capital stock of the New Jersey company
Glow did it compare with the assignment OF
legal interest which you obtained at the te Se
assignment Of legal interest? Any recoIlectoiH
Is that took the individual stocks ogt N s orse
assignment Of legal interest 1t was OF couISe ;
the same Ii would be the equivalent IN amount
Then exchanged those assignments of legal in
for the stocks in the twenty c9npa ai ~ che
1Wentv conpanies for stock of the STANDARD OF
~ ttr1.tees certifEates held in 1892 when the
dissolution of the Ohio company was pes III
was the process gone through with all ceruncateS
Mr.. RosenthaI handed in a schedule OF the
physical properties OF the New Jersey corpora
ton held at the present time. as distinguished
from stock ownership He then took UP the
sary adjunct of the business. Then came the
cross examination.
MI Kellogg took UP the history of the Anglo
American company as soon as ne had asked
few preliminary questions regarding Mr.. Arch
holds connection with the trust From that he
went to the Manhattan OIL Company Of Ohio
and brought out the gas transaction in Chicago
The purchase of the Manhattan by the English
syndicate was brought out, and the sale Of the
Manhattan by the former followed The con-
tract with Mr.. Brady was recalled, and the
witness said that he had met him only once, and
then the terms Of the contract were only talked
over The completion OF the agreement, he said,
by others.
USE OF MCDONALD LOAN.
When MI Kellogg tried to get the witness to
tell the price of oil to the Consolidated OF TINS
CITY he did not meet with success. Mr. Arch
bold denied that the transfer Of the Slp3ooVVo
of assets was a necessary feature of the con-
tract 1t was at this period that the first effor-
TO learn about Mr. Mcdonald was made This
met with the immunity objection in all its de-
tails.
Mr. kellogg informed Mr.. Archbold that the
government had tried to find out about the loan
from the auditor and the controller OF the
Standard, without success That did not induce
MI ArchboId to say that he knew anything
It The witness uDdlIy 6dlu mat Ni10 A-e4N
person 10 ask about the loan was the managing
director. il London MI kellogg continued
about the loan:
o. notice this loan began about the time OF
the purchase by the London company OF the stock
that stock that this loan made? A-Not 10
DO you know it wasn't for that puF p Sc
Al say it wasn't to my knowledge that Is the
O95t = n"tice bv the list of officers furnished by
the Standard Oil Company that you were ,+
T,5Ts when did YOU resign7 At must have
been Immediately after that. | should have SAID
Q-Did YOU resign because Of this nyes5ig9etion
no the 2o%gnts o+ Of f.c the tA AnsT did
O2Do you recall that you did not? Al
shouldn't say that did
The Chicago gas contract was taken UP IN
another endeavor TO connect 1t with the Anglo
American loan, and some OF the testimony OF
Mr.. Brady was read. Mr.. Archbold said that
he had heard OF it. But Mr.. Archbold knew
nothing Of the syndicate's part in the transac-
tion although Mr. Brady gave it a prominent
place
Rehneries and pipe lines acquired by the
Standard were recalled to the witnesses memory.
bringing out the answer in each instance that
the properties acquired for their business
value An effort TO get Mr.. Archbold to admit
that his company controlled the syndicate, by a
sudden switch to that subject. met with a ready
Genial.
This brought the cross-examination to the
alleged secret companies" beginning with the
Security OIL Company of TexaE- The witness
would not admit that his company was inter
ested In that or others Nor would he agree
that the Corsicana or the 'Waters-Pierce were
run secret companies.
SECURITY OIL COMPANY.
With an unexpected suddenness, Mr. Kellogg