The sun. [volume] (New York [N.Y.]) 1833-1916, 1912-09-26
ASK WRIT FOR BAYNE
IN OIL TRUST SUIT
Waters-Piercc Counsel Seek to
Force Banker to Show
His Books.

Counsel for the Waters Pierce Oh
Company filed yesterday with Judge
Pendeton in tho Supreme Court an ap.
plication for the issuance of n subp,rna
duces tec,im directed to Samuel q. Bayne
president of the Seaboard National Bank
Mr.. Bayne refused on September II
while testifying at the hearing in con.
nection with the Standard Oil Company &
suit against the Waters Pierce Company
TO produce the books of his bank as evi.
dencc His refusal was directed no,
only to counsel for the Waters Pierce
interests hut TO Commissioner A. l.
Jacobs. who was appointed by tho Mis-
souri, courts TO tako the testimony.
Mr.. Bayne's statements were heated
and he was supported by his personal
counsel Herman Aaron. who told Com
missioner Jacobs what he thought Of the
standing Of the court. The two mon
were "ordcrcd TO retire" They OK
pressed the opinion that they had been
"summarily elected"
If Mr. Bayne refuses to recognize n
subpoena duccs tecum. in case it is granted
| by Judge Pendleton. he will I've liable to
! contempt proceedings in tho Suprme
| Court.
The application states that courGel
asked Mr.. Bayne 10 produce certain -rec-
ords and data from the books of the
Seaboard National Bank showing the
various transactions which had passed.
through his bank hot vccn the Security
Oil Company. himself and the London
! Commercial Investment and Trading
COMPANY, Limited. and showing certain
, transactions IN which his son and nephew
figured and about which he said his
memory had Entirely failed him"
Mr. Ravn" was formerly president Of
the Security company.
Your petitioners expect to prove nv
the books" tho application saws. that
the said Samuel G. Ravne. president of
the Seaboard National bank. together
with Courtney Marshall. his nephew.
nave been at all times the secret agents
Of the said London Commercial Invest
ment and Trading Company. Limited. in
the transmission of funds. both from the
said London company to the Security
Oil Company and its various successors
and from the Security Oil Company and
it's successors TO the London company"
The London Commercial Investment
and Trading Company. the application
alleges. is the holding company created
to hold the stocks for the American
Petroleum Company. a subsidiary of the
This same company, according to the
petition was alleged in the Government e
bill charging violation OF the antitrust
law TO be "A holding company created
tor the purpose of Disgusting and con-
Cealing the real ownership by the Stand
ard OH Company Of New Jersey"
The Security oil Company. the petition
states, was annihilated in 1909 by judg-
, ments in a suit brought against il by the
state OF Texas and in the Government
suit against the Standard Oil Company of
New Jersey. It's properties were then
consolidated with those of the Corsicana
Refining Company, also mentioned in the
Government suit. to form the Magnolia
Petroleum Company in violation Of said
decree of dissolution of the United States
court" the application alleges.
The Magnolia Petroleum Company,
the petitioners aver they show. lis con-
trolled and dominated by the Standard
Oil Company of New Jersey through the
agencies OF its president, John c. Arch
b Id, and the secret ownership Of its bonds
and stock by the said London company
and the interests OF the Magnolia company
standing in the name of John d. Archbold
are in truth and in fact held by him or the
said London company, which Is n holding
company created for the American Pc.
troleum Company. a subsidiary of the
Standard Oil Company OF New Jersey"
II has been testified in the hearing,
at ~ Wall street that II. c. Folger, Jr.
and John Archbold. respectively presi
dent of the Standard Oil of New Yorl
and president of the Standard Oil of New
Jersey. own the majority Of stock in tn,
Magnolia company.
The history of the Security and Mag
nolia companies is given in the test imony
OF Oliver G.: Edwards, formerly vice
president of the Security company
in the Standard Oil suit against the Waters
Pierce Company held recently in STAN
ford. Conn, The testimony set dowl
in the petition is rs follows:
succeeded +. W. Weller as vice-pres
dent. of the Security Oil Company ant
continued as such officer from abou
1905 until the close of the company
existence; that some time prior to thu
sale of said properties of the Security
instructed by the attorney for the Secur
ity Oil Company that he should becom,
q partner with said John Scaley la bGnSe
Of Galveston, Tex and Howard Bayn,
In the purchase of the properties Of tn,
Security Oil Company soon to be sole
by the receiver; that he had never me
MIR. Sealey prior TO thGt time;
and that when Sealcy bought said prop
critics at public sale he bought them al
tho agent OF this copaTnerShip of OK
officers and directors Of tie two com
panies"
Edwards further testified. accordin,
to the petition. that John ID. Archbold
II, c. Folger and Howard Bayne. nov
vice-president of the Columbia Knicker
booker Trust Company. who becam
secretary of the Magnolia company L
the consolidation. became the larges
stockholders in the Magnolia company.
He said he didn't know what had be
come of the bonds of the Security Oi
Company the copartnership bought; tina
Howard Bayne AZ tho Seaboard Nationn
Bank had attended To that matter. Sam
uel Bayne admitted that he himself tool
them to London in 1903 and delivere,
them to the Investment and Tradin;
Company,
Tho petitioners complain that the,
have not been able to serve Howard
Bayne with q subpoena "after diligen
effort" and state they believe he Is "evad
ing the service of the subpoena"
Tho application concludes by askin
that Samuel Bayne be required to pro
duce the books of his bank before Com
missioner Jacobs at 81 Wall street Of
October 10.