Bluefield evening leader. [volume] (Bluefield, W. Va.) 1906-1911, 1908-12-03
STANDARD
OIL LOANS
ARCHBoLD EXPLAINS HOW szo,-
100000 WAS PAID TO BARNS
DALE,

Mr.. Kellogg. for the govcrnmen:
succeeded In throwing light on the
loans of T. NJ Barnsdale. o. Pitts
burg. an indeponden: oil producer
Mr.. Archbold testified that loans ag-
gregating $75,O0O,O00 had been
oaned TO Mr.. Barnsdale to enable
him to continue his oil operat ons
n various parts of the country. A
part of the contract for the loan
was that AL the crude oil produced
by Mr.. Barnsdale should be carried
in the Standards pipe lines.
M. Archbold ties flied that for
mer Congressman Joseph c. Sibley,
OF Pennsylvania. was iient fed with
the Ga.ena-Signal oil Company. a
subsidiary OF the Stan lard IL WIS
to Mr.. s bley that Mr.. Archbold ad-
dressed many OF his letter which
we're made public during the rectnt
presiden ial campa gn.
Mr. Kellogg read statement,
purDorting to gve the percentages
OF domestic business 81 the Stand
ard between 1894 and 1898. which
averaged about so per cont.
Assuming that mo Standard did
50 per cent in 1895, way d d you
acquire additional refinerles?" ask
ed the examiner.
THAT was done to succeed to
their business" "
Mr.. Kellogg endeavored to show
that the Standard instead OF devel-
oping its own business by its own
efforts. took over competitors and
in that way increased It's own bust
ness. Mr.. Archbold said that j. G..
Sitley organized the Signal Oil Coru-
ps1y OF Franklin, Pa, and General
Charles Miller developed the Gale
ma oil Company. Later the Sand
ard bought both companies and
combined tee1n as tho Galena- Signal
oil Company. which continued un-
der the rection OF Mr.. Sibley and
General Miller, both OF whom held
minority interests in the company.
Mr.. Archbold said that in 1881 he
had acquired control OF the Empire
Refining Company ard held that
stock for the benefit OF the Stand
ards stockholders.
Mr.. Kellogg tried to develop the
fact that the book value OF the va
rious pants had been set dowa as
100000 at the time Of the or
ganization OF the trust and that a
year later $14,0OO,000 was W.T. tten
off the value OF the National Transit
Company. Mr.. Archbold said he
understood that book value to be
s55, 100000 and the actual va,de
$70.OOO,OOO.
Mr.. Archbold said the trustees
held all the stocks OF the subsidi-
airy compaH es from 1882 20 1892;
when the trust began to dissolve in
obedience to decree Of the SUI.
preme court OF Ohio.
He did not know where the stock
certificates. books and journals of
the trustees were.
''Will you look for Them"
81 know OF no reason why you
should not have them" said Mr..
Archbold.
Mr. Kellogg des red to know that
II, when the trust began its disso-
luton, only bare majority Of GER
tihcates holders presented Their GER
'ifcat15 and received holdings in
the various subsidiary companies.
An exh bit Of the defense showed
that 494,G19 certificates out OF 972,-
500 were turned in for liquidat on.
Mr. Kellogg then read a list OF
those certificate holders who turned
in their certificates.
Did you and your associates as
trustees turn in your certificates
and obtain stocks Of the subs diary
comDan5 IS % control them and give
the impression that the trust was
d.ssolved7"
We made the transfer in good
faith in accordance with the decree
Of the Ohio courts. We had no uI-
;erior purpos,."
Did you intend 70 dissolve the
trust?"
Il stand on the resDlut' on taken
by the trustees and the record"
Mr.. Arch6old said that in 1898.
he turned in his various stocks and
obtained certificates OF the Standard
OF New Jersey and that all Of the
holders OF trust certificates and
holders OF evidences Of legal tite
obtained shares in the minor com
panies VIII ch were turned in and for
which Standard oil Company OF New
Jersey shares were issued.
Why did you make the stand
ard OIL Company Of New Jersey he
holding oompany?"
We were advised b. counsel that