New-York tribune., 1908-12-11
CLASH AT OIL HEARING
COUNSEL MAKE CHARGES.
THAT Is Not True, Says Kellogg;
False" Retorts ROsenthGL.

?, A.. continuation Yesterday Of the government
.uit to dissolve the Standard Oil Company the
81 10000 Barnsdall contracts were not ln'r
as evidence because the originals hao not peei
.onied The hearing was taken up with further
analysis of the tables Of the defence 70 sno" l,dt
the prices Of oil had not advanced as much ds tLo
rrices of other commodities between 1898 and l$"
and further explanation Of the pipe line systems
7, was learned that the contracts for the loan
were made out between ". J. Young no" presldeLl'
Of the Barnsdall OIL Company, and Iheodore r
Barnsdall, and that Mr.. Young when tle papelI ppI
were drawn was the vice president ani general
manager of the Prairie Oil and Gas Company ad-
mtted by the defence to he a Standard COMPANY
and that John r Archbold. a relative OF Johh u
Archbod. is president Of the PralFle conc m EN- L.
If the copies ready to-day, MI helohs VIII -
them In evidence.
The hearing brought out an admission from FTo
fessor Joseph F. johnson, dean OF the ochOol u
Commerce of New York University that MS laoe ~
of COMPARISONS was a complete ana satisl ms
i of the relative rise OF prices but ne Sad
that If taken connection with his other taoies'
charge Of unfairness could not be sustained
It the discussion Of this point that r RAM am
b kellogg. counsel for the government, ana doIi'%
Rosenthal Of counsel for the Standard, maze couh-
tercharges of untruth1ulness- This was the Irs'
serious difference between counsel in the Two years
the hearing has been in progress. ana II was qul0A
" patched VI and the sharp remarks eXpunged
from the records.
BY the testimony Of Forrest NJ. Towl. consulting
engineer for the pipe lines the defence trleu 20
these
common carriers because il was lmposSlO-e 10 snip
cornparatyely small quantities. anything less than
10000 barrels being subject TO mixing ana oI'el1
loss of identity larger pipes and oVn oarfe4S
in the smaller.
Mr. ToUl said that if the independent companies
should ship TO the Eastern terminals at ImonVlIe'
Centre Bridge and Swan Grove there we're rallroaus
two Of the points to carry the OIL 10 the sea
board, and at another canal which Woulo answer
the same purpose. The government had asserIeu
hat he O
from the seaboard cut out the independents Inc
witness said his company was ready at any ulne 10
ship the oil Of independents under the usual codI
and risks, but that far no independent hdu
offered his product for shipment.
Soon after the hearing opened yesterday Nh kel-
logg asked Professor Johnson whether he thought
general rise in the price OF commodities Justeu
profit of 100 per cent on any one article. he toIi
the witness that in 1895 the Standard manufacture ed
barrels of refined oil, with net earning OF
S2 07sn0 per cent. and that in 1906 IT manufact-
ured 100000 barrels with net profit of $6SotpVO
The witness would say that the profit was be-
yond reason. Mr. Rosenthaal said that the last
profit had been shown to have come exclusively
from oil. When the government counsel complained
that the Standard in picking out the year 1888 as
It's comparing basis had selected a year Of the
highest prices for oil make its deductions. Mr..
Rosenthal said
I'VE have chosen that year because the govern
rnents tables showing the increases in oil prices
invariably from that year
They do That is true" Mr.. Kellogg re-
torted with warmth.
Il repeat that that year" Mr Rosenthal said,
growing emphatic he proceeded. is the
year upon which of the tables of the govern
rnent are based evidenced by two hundred
exhibits that the government has filed in the case.
And. Mr.. kelIogg, the Standards counsel added,
striking hands sharply together and raising his
voice. when YOU make the objection that it is not
true you get reply that that which you say
IS false
The word false" came out with startling empha-
sis for moment there tense stiffness.
Then Mr. Kellogg resumed his cross-exa rnination
if nothing had happened
Mr.. Kellogg. in making parallels between periods
Of years, 1s95-'9S with 1902-'o4, got Professor
johnson admit that the prices Of oil showed an
increase over the former period OF IS per cent.
while in general commodities the increase only
% per cent. But Professor Johnson said that he
did not think that II fair to take isolated
II was explained by the government counsel after
the hearing that the two period extremes in the
IA bic OF the Standard show prices did
rise TO the same extent that prices Of other
modities did. 1895 and 1906, years when
peculiar conditions prevailed, 1885 being year
when prices the highest IN near~ thirty years,
and 1906 being the lowest for many years, the first
because Of the great scarcity of crude oil and the
fear that the fields might dry, and latter
marking the opening Of the great mid-continentaI
fields.