Omaha daily bee., 1908-12-02
DETAILS OF TRUST
John D. Archbold Of Standard Oil
Tr-st is Gulled.
CRoss-EXAMINED BY oGG
Federal Counsel Seeks n
Regarding Mysterious
QUESTIONS ABOUT PIPE
Denies that Refneries Were Be 2.
and Dismantled.
SOME STOCKS NOT ON MARKET
witness says stock was bought
N the UnIted states Pipe
Liac for specuIn-
tiOn.
SOME STOCKS NOT ON MARKET

the r1lzzlIng ownership Of the Security OH
con- many OF Texas and other oil companies
which the government charges are con-
tr1Ied BY the Standard OIL company.
Frank p. Kellogg. federal counsel IN the
Tinted States suit 20 dissllve the so-called
Oh trust, subjected John %. Archbold To
"a ariIIIDg crlss-exau nation today. Mr.
I<euogg also sought information regarding
certain mystrious loans Of S,7fc.0o made
.o James Mcdonald hy the Anglc-Amerl-
Gan epayary. a standard subsidiary, but
,-- Archbold. q director OF the Angl)-
A-grr-an company. was unable TO throS
7-y light on the question. For over a year
t.. -overrment's counsel has been trying
.p htain information regarding these Nc
Donald Loans. but has failed. The govern
N u; alleged that the loans We're made to
.narl- the Standard 20 secretly purchas
toe Manhattan oil company of Ohio. Mr..
A-chbola said that he and nry H Rogers
Iszilncd .t directors Of the Angio-Ameri-
rau com ...#y shortly after the election a
scar ovo Tho vice president of the stand
ara denied -aat the resignst lions were
brought sb. %. bv the present government
7.roe e9 urs NJ Archb1ld was closely
,1,s-i1rsG aJcut many pipe lines and re-
'n-ries vllca had been purchased by the
IS andard be denied that the refineriss
Iaa b,la bought; that they must be dis
u.n.Ied thereby removing competition.
Yeey were sol. ured, NJ ArcHb-ld said. TO
succeed &c tu.lr volume of business.
Method OF ABSORPTION.
TIE Ns..,-s s-lu ,ua, wu,n tle standard
Ul. COMPANY u sew Jersey was organized
ia Ia Il took over the reflnerics and real
,sgat- In New jersey owned oy the stand
,... Of OHIO. The propestl Eken over was
aa.ued al 32.CJo.co1 and there was 100000
ia casa furnished by the trust. The stand
exc " Ohi5 turned Owe to the Standard of
S,ev York S-..t.o oss IN property and ;1.JolcoJ
g.. cash.
From 49, TO 1897 Mr.. Archbo!d said he
q, as e trustee and tom ls9l until the trust
vas Hauidated in 1883 he was q liquidatns
trustee. VI the Hquidaung period M
--rchbo.d said:
-1Ea in pa, ,cfdcrs o- the trust GER
t.fcatcs. constituting q majority Of the
sanrcs. ;gIned IN tEei- certificates and re-
4. .eiaed .1,!r shares In tire twenty subsidiary
pNlmpan e. \ request vas made OF the
small certic,c1te holders 90 turn IN their
e. rtir,ates. Eut they did not. and there
vas no way b. which they could be COM
PEELED 20 do 81. Some OF the smaller hold
crv accepted assignments Cf lega' Interest
clr tEsir certificates. The small holders
wanted their rtlfiCstes. which had e mar
r-t value. Fhcrr was no market value FOR
t,e stcCSs OF the subsidiary comp MES at
tHat -ime'
some stocks Not Market.
some " the stocks o, the subsidiaries
Lad yer been IN tie market, said Mr..
\ cHJo.d.
A abatement shaving directors and Off
GERS q the twenty subsidiary companies Of
tie staul ard from 1872 20 1899 was placed
ou the record.
NJ Archbold said he was a party to the
fra. 90 -i-aGon OF the trust in 1893 and 10
tie iuJra.se q the capital stock OF the
slsutart Du Company OF New Jersey to
s. stcvec NJ ArchboId said the capita
z-r.ou NrV Jersey company was
iNc 80 tI-, over the trust certificates
sa4 lus g. tu- margin over. The capi.
t.I-atCu US large enough 70 take ov=l
al % KS OF IN sui std ary compani-:
cid IS ,wIa~s WHO had IIquidatei thes.
tr-g. ,e tfgates.
Il eNp.-1ltion Il the modus opsrandi o.
zee Iqa.la H.a Ut Archbold SAID that b.
"a ned in D is csrtif Gates in the trust an,
received as igr merits Of legal title Tor vfici
Ie a., eis ed ok IN tie twenty suosidi n,
,cm1-n.ea- These stocks Of the subsidi
scs Mr. ArcEbold held fem 1872 20 lss9
v he .Jgrnei them into the Standard O
New Jefs=y. r-ce wing stock in TIE SAM
eqlivGleIt as his share holdings n IN
tzls,.
Foreign Corporations.
The Anglo-American company. said Mr
Archboid did business IN the United King
dom and purchased its supplies IN thu
country A list OF the physical properties
Of the Standard Oh company Of New Jerse!
was offered In evidence. The Prairie OF
and Gas company. said Mr. Archbold, di,
not refine oil. but was engaged IN IN,
production and transportation % oil
Mr Archbold declared that pipe line
were necessary part Of the Standard
business He said;
The business has outgrown the ra,lrOa,
transportation and pipe lines are neces
saTy 10 insure constant supply of oil Tn
railroads could not do the business OF sup
plylns The renneries constantly with crud
oil even n they had the tank cars, white
are not In existence"
Mr. Archbold did not know that n
General Industrial Syndicate company o
London purchased the Manhattan OH com
pauS nor that it was controlled by IN
s,a-dsri
Mr. ATchoold was asked II Il vas no
true that the Standard had purchased IN
tank cars. rsfineries and pipe lines OF n
Manhattan from the London company. Tn
witness said he understood that the pur
chase was made Mr. ArchbOld said tha
Anthony n. Brady had told him that n
Purp0ssd selling the Manhattan Oh com
pany AMI wanted TO obtain contract 70
on supply for the Peoples Gas, Light an
Coke com-ary 81 Chicago A contract va
entered iGt1. NT. ArehboId said. but b
"a not ka1R tEa terms OF the contract.
ID v- Ircw that Mr Brady test.
fled year ago thar that contract "a
worth a.aoool % the Peoples Gas. LIgh
ana Coke company
q 30 not knoN.7
Mr.. McDonald's Position.
NJ. Arch5old said IL had not been sug
: ses.sd to him that one cf the condition