Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-12-04
HOLDS HIS
OWN With KELLOGG.
The $22,000,o00 Loan to Trainer Un-
explained and His Railroad Rebate
Answers Cause Broad Smiles,

New York, Dec. 3-Efforts by fedora
counsel to obtain information regard
ing loans of sums aggregating $22.
100000 to 2. 5. Trainer by the Southern
Pipe Line Co, a Standard subsidiary
came to nothing today in the cross
examination of John D. Archbold, in
the government suit to dissolve the so
cslled Oil Trust. For over year
Frank 3. Kellogg, government inquisi-
tor, has pursued every trail to find out
the purpose of these large loans. but
tonight he appeared no nearer the so
luton OF the mystery than when he
| first propounded the question of these
borrowings. Mr.. Archbold said that he
knew of no reason for the loans which
| he said might have represented the ad-
| jpstments between refining companies
| which Mr. Trainer supplied with Oil.
| Mr. Trainer, who is connected with the
Standards pipe line system, has testi-
| fed that he did not know of the loans
| and never received the money. Except
| for a few questions which will be asked
about certain exhibits. which will be
placed in evidence later. the cross-eX-
animation Of MI Archbold was con-
the case wa, taken until next Monday.
II. NJ. Tilford president of the Stand
ard Oil Co of California, and J. A.
Moffett, president of the Standard Oil
Co. Of Indiana, will likely follow Mr..
Archbold On the stand. after whom Mr..
William Rockefeller will be called.
Much of Mr.. Archbold's cross-eN2m-
nation today had to do with rebates
paid by the railroads in the early days.
Mr. Archbold took the position that
rebates at that time were q matter OF
barga ming, in which each shipper
stroVt TO obtain the tlst terms. Some
amusement was caused when Mr..
Archboli declared that when one OBJ
tanned rate from Il railroad he was
nat always sure but that on his way
Eum. the railroad man would give
some. other shipper lower rate.
The government counsel interrogat
cd the witness regarding testimony
given in a suit in which A. ]. Cas%atj.
then vice president Of the Pannsyiva-
MIA, testified that the Standard received
larger rebates from the Pennsylvania
Railroad than any other shipper Mr..
ArchDold said he had no recollection
of Mr. Cassatt's testimony. The vice
president of the Standard declared that
his company was in no way favored |
by oil tariffs of the United States.
New York, Dec. 3.-When the hear |
ing in the governments suit to dis |
solve the Standard Oil Co. was resum- |
cd today, John d. Archbold, vice pres |
ident of the company. testified that
the STANDARD purchased the Pacific |
Coast Oil Co. Of California in 1900 for |
s161 900. After that its capitalization
was increased by successive stages to |
ST 600 in 1906 when the name was
changed to the Standard Oil Co. Of CAL |
Hernia Regarding the loan of $780, |
600 to T. N. Barnsdale of Pittsburg Mr. |
Archbold said there was no contract of |
the loan in the city whereupon Mr..
Kosentha counsel for the Standard, |
said he would telegraph the EscreW |
holders in Pittsburg to mail the con- |
tract to the master of the hearings for |
inspection.
Mr.. Archbolds attention was called |
to the cost of refineries put into the |
trust in 1882 which was ST. 000,0 900. This |
was the inventory value, said Mr.
Archbold, who was then asked II the |
exhibits of the defense showing the
cost Of refineries in 1906 to be S57,0o0,00e |
were not gross costs instead OF costs |
less depreciation. Mr. Archbold SAID |
it might have been an error in book
keeping whereupon the accountants |
for beth sides began an examination |
of the exhibit Mr.. Kellogg requested |
Mr.. Archbold to make an examination
Of the exhibit sometime today and
have the question of the cost of the re-
Greries cleared up. Mr.. Archbo'd III re-
ply to Mr. Kellogg said the first re-
fineries at the seaboard We're not built |
bv the Standard which early realized
their value in the export business and |
took them over.
rs it not a fact that 10 per cent of
the crude production was IN 1871 eX-
ported as refined oil while now only
Is per cent. Of the production is en-
ported as refined oil?'
II could not say. Certainly since then
there has been an immense production
Of low grade oil which is not available
for refinery
Mr.. KeIlogg's indicated purpose was
to show that there was large export |
oil trade before the Standard entered |
the field.
Mr.. Archbold said the Standard ha9
purchased oil i'll Russia but not now |
He said the Standard had interests il
Roumania.
The federal inquisitor then took zip |
the question of tariffs Oh oil in the va
ricus countries and Mr.. Archbold sal
the duties in Russia were just wha
that country chose to make them.
IF they will let our oil in free, the, |
can get their oils in free here. There
is no favoritsm among the countries |
wherd crude oil is produced. If Franco |
has duty against American oils, thu |
same duties apply to other countries.
Mr. Kellogg wanted to know ahou' |
the Standards advantages with regarf' |
to the tariff and Mr.. Arch0olf re |
piled
"All this talk of favoritism to the |
Inv tariff iC