Omaha daily bee., 1912-09-29
SAYS STANDARD OIL
COMPANY VIOLATES
DISSOLUTION DECREE
Charges Are Filed with Department
Of Justice by Attorney for the
Waters-Pierce Company.
BASED ON SWORN TESTIMONY
Subsidiary Companies Still Domi.
mated by Owners of Combine.
NO CHANGE MADE IN METHODS
New Jersey Company Still Owns a
Number Of Corporations.
BASED ON SWORN TESTIMONY
Subsidiary Companies Still Domi.
mated by Owners Of Combine.
NO CHANGE MADE IN METHODS
New Jersey Company Still Owns a
Number Of Corporations,
MYSTERIOUS LOAN ACCOUNTS
Archbold and FoIger, Presidents Of
Alleged Rival Companies, Are
Heavy borrowers from
Standard of New York,

NEW YORK, Sept 2a.-Charges that
both the spirit and letter of the decree
dissolvang the Standard on company OF
New Jersey are being violated, were sent
to the Department of Justice at Washing.
ton today by s. w. Fordyce. jr, counsel
for the Waters-Pi Oil company.
The charges are contained in a memoir
andum submitted by Mr.. Fordyce and are
based on the testimony adduced at hear
ings in New York and elsewhere in the
litigation involving the right of the Stand
ard Oil to name officers and directors Of
the Waters Pierce OIL company. E.l
so far as we have proceeded with our
testimony" declares Mr.. Fordyce, I'VE
have shown that every subsidiary COM
pany Is absolutely dominated and con-
trolled by the majority owners of the
stock Of the Standard Oil company OF
New Jersey, and that the same men who
were put in these subsidiary companies
at the time of dissolution by the leading
men in the New Jersey company were all
reelected at the subsequent annual meet
ing by the proxies held by the principal
stockholders Of the Standard Oil COM
pany of New Jersey. We have also shown
that there has been no real or substantial
difference in the method Of doing busi-
ness Of any Of these companies since the
dissolution"
Stil Holding. Company.
Mr.. Fordyc further asserts that the tes-
timony has proven that the Standard Oil
company of New Jersey is still holding
company and owns and controls many
oil companies engaged in Interstate and
foreign commerce, and that 1t has used
at least two companies--the American
Petroleum and Observation-Disclosures
Petroleum Gessellschaftratoe assist in,l
maintaining the control or the Texas re-
fineries, against which the United States
obtained decree.
The Texas refinerles, Mr.. Fordyce sets
forth, were consolidated under the name
OF the Magnolia Petroleum company, In
which, according TO testimony, john D.
Archbold and II. C. Folger, jr.. are large
stockholders, and whose bonded indebted
ness was until recently held by the
Standard OH company OF New York.
TT is significant" says Mr.. Fordyce,
'that the New York company continued
to hold the bonds OF the Magnolia COM
pany until April, 1872, when the investi-
CATION Of the Department Of Justice had
sready commenced"
"Juggled accounts" are mentioned by
the attorney in connection with loan
transactions involving Messrs Archboid
and Folger in ownership of the Magnolia
company.
''The action of the New York COM
Many Mr.. Fordyaa continues, in lend
ing money to Mr.. Archboid. president on
the New Jersey company. and the fact
that Messrs. Archbold and Foiger, the
presidents OF the two most important ana
most potentially competitive companies
are borrowing money from the New York
company on joint account, indicates a de-
cided degree of harmony in the manage"
anent Of these companies
same Division Of Territory.
.'It has been proven" Mr.. Fordyce FUR
ther charges "thatAthe marketing corn
panies that were formerly subsidiary to
the New Jersey company. and the New
Jersey company itself, maintain with ut
most strictness the territorial division
that they had before the dissolution. It
has been proved that they supply their
marketing stations from the refineries
most advantageousiy located to such sta !
tions, regardless Of the ownership of
these refineries. We have also shown
that the pipe lines are managed for the
common use Of all the subsidiary COM |
panies and no others, and that the Union
Tank line has practically identical con-
tracts with all the supposedly independent !
companies, all executed on or about the
same date"
Other actions which, while taken prior
to the date of the supreme courts decis-
lon, "were intended to and did limit and
To a certain extent nullify the effect of
she decree. is cited in the memorandum