Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1908-12-08
STANDARD OIL
HEARING IS
RESUMED
WITNESS TELLS OF BIG
PERCENTAGE OF EARNINGS
Continental Earned 115 Per
Cent on Capitalization is les
tilted in Government Suit to
Dissolve Trust


IBy Morning journal Special Leased witel
New York. Dec. Figures show
ing some of the profits of the stand
ard OIL company became part Of the
court record of the federal suit to dis
solve the standard today when John
d. Archbold resumed the stand for a
brief examination. and Henry Tilford,
president of the standard Oil company
of California, testified at some length
as a witness for the defense, The
government inquisitor on figures sub
mitted showed that the Continental
Oil company, Standard subsidiary in
the middle west, made profits OF 1l5
per cent on its capitalization of $500
GOO. and that the Standard Oil com
pany of Indiana, on d capitalization Of
81 600, 600, earned apout $4,000, 900
between 1899 and 1906 Counsel for
the company declared the actual as
sets Of the company were greater than
the capitalization, rs the companies
had turned back large sums from
earnings
Counsel for the government sought
to prove by Mr., Tilford that in Cali
forna and other western states the
Standard had made contracts with its
competitors whereby it obtained all
the crude oil supply. Referring to
oil trade rate cutting in Colorado and
elsewhere. Mr.. Tilford said the stand
ard never cut prices to undersell it's
competitors, but lowered rates to meet
the reductions of its rivals
Mr. Tilford's examination likely Will
be continued tomorrow, and either
William Rockefeller or Frank s. Mof-
fett will be called
John d. Archbold was again today
a witness on redirect examination.
Mr. Archbolds testimony had to do
with details of certain properties con-
veyed to the standard oil company on
its organization. The Standard en-
tered the lubricating business extern
sively in 1873, said the witness. Prac-
tically all the acquisitions Of the
Standard from 1876 to 1852 were
made by cash coming from the treas
ury of the standard and its subsidiary
companies.
Mr.. Archbold said that the cstab-
lishment of marketing stations to
compete with the rivals of the stand
ard naturally forced the small dealers
and iobbcrs gradually from the field.
Some correspondence between oil pro-
ducers and the Pennsylvania Eeoog-
ical survey showing tho apparent limi-
tations of crude oil produced in the
early records, was spread on the rec
ord with the evident design of show
ing the amount of business testified
~ I...I ~ lrtn-
fcller. The witness said that wax was
an important by-product of petroleum
and this branch OF the Standards IN
dustry had increased from 24,000,O0O
pounds in 1892 to 240,992.478 pounds
in 1907 A brief Cross-eXamination OF
Mr. Archbold by Mr.. Kellogg, govern
mcnt counsel followed.
Mr. Rockefeller said the standard
oil company Of Indiana was original
" capitalized for $1,000. 600 and had
borrowed large sums of money from
other companies. which it had paid
from its earnings Mr.. Kellogg asked
if the standard of Indiana had made
net arnings of ovr $65. 900, 900 in ten
years on a million dollars capital.
Mr.. Archbold said there had been
many millions of dollars invested in
the company, which was only nomi-
nally capitalized.
Mr. Archbold was then excused ana
recess taken until the afternoon.
Henry NJ. Tilford, president Of the
Standard oil company of California
was the next witness called by the de-
fense. Mr. Tilford appeared last fall
as a witness in these hearings. under
subpoena. Much of his
testimony this afternoon carried him
over the same line of evidence previ-
ously given. He said that in the far
western territor-. eighty seven market
stations We're established by the stand
ard company Of california. and that In
the Rocky mountain region the Cont
mental OIL company, a Standard sub
sidiary, had established 1SS marketing
stations.
The effect Of the establishment Of
these marketing stations was to re-
duce prices to the consumers. MT
Tnford said that the Standard paid
about s76I. 600 for the Pacific Coast
oil company. which was succeeded by
the standard.
The Pacific Coast oil company had
a capacity Of eco barrels Of oil day