El Paso herald. (El Paso, Tex.) 1901-1931, 1912-09-07
STANDARD OIL
FIGHT IS Up
AGAIN
Texas Again Threatened
With Political Fight As
Result of Oil War.
INDICTMENTS AT
DALLAS RETURNED


sources of interest and excitement are
closed to them the people of Texas can
usually fall back upon the standard
Oil company and the WaterS-Pierce OIL
company for entertainment For more
than 10 years these two concerns have
been telling factors in the political
fortunes of leading Texas Democrats.
1t was senator J W Bafleys alleged
financial transaction with H Clay
Pierce, head of the Waters-Pierce Oil
company. that first aroused public SEN
mately led to his determination not to
become a candidate again for public
office There has hardly been can
didate for governor OF attorney gen
eral in Texas during the last II years
that has not had to align himself one
way or the other on the issues that
were developed through the alleged
activities of the Standard Oil company
and the Waters-Pierce Oil company.
Fight Goes On and On
Just when it was generally supposed
that the long protracted fight was at
an end that the two offending COM
for good. the trouble has broken out in
a new spot and the old issue promises
to continue to be a factor in Demo-
cratic politics of this state for some
time to come. The latest phase of the
situation involving these two interests
was the Indictment by the United States
district court of Dallas few days ago
of a number of officers of the Magnolia
Petroleum company, of Texas, the
Standard Oil company of New York,
and the Standard Oil company of New
Jersey on the charge that the defend
ants and their companies had conspired
together in restraint of trade and that
they had attempted to create a monop-
oily in the interstate trade in OIL The
men indicted are Calvin Payne, John D.
Archbold and Henry c. Folger, jr., Of
New York; John Sealy, of Galveston; z.
R Brown, of Corsicana, and W. c.
Teagle, of Plainfied, n. J.
The Magnolia Company.
The Magnolia Petroleum company,
which is alleged to be a subsidiary
ganiZed about three years ago with
headquarters at Galveston for the pur-
pose Of taking over the properties Of
the Security Oil company, of Beau
pany, of Corsicana, the two latter con-
Germs having been ousted from Texas
by decree of the United States SUI
preme court on the ground that they
were subsidiaries Of the Standard Oil
company and were doing business in
Texas in violation of the antitrust
company operated large refinery. at
Beaumont and the Navarro Refining
company refinery at Corsicana-
Immunity Is Given.
Preliminary to the Ostensible ac-
quirement OF these two properties. by
the Magnolia Petroleum company. R V.
Davidson. who was then attorney gen.
eral, made a close investigation of the
affairs of all the parties concerned and
apparently satisfied himself that the
new company was not in any way con-
nected with the Standard Oil company
at any rate the attorney generals de-
partment gave the transaction its ap-
proval.
About the same time the Standard Oil
company subsidiaries we're ousted from
Texas, the Waters-Pierce Oil company
was found guilty of violating the anti
trust laws of the state and was COM
PEELED to pay a penalty of S1,632, 600
treasury n Texas hold
ingS of this company were taken over
by joint stock concern named the
Pierce FOrdyce oil association. which
has its headquarters in Houston b
Clay Pierce, who was at the head of
the WaterS-Pierce Oil company, is also
the principal stockholdeT in the Pierce
FOrdyce Oil association.
LightfOOt INVESTIGATES.
Several months ago charges were
made that the Magnolia Petroleum
company was a Standard Oil subsidiary
and in response to the public demand !
for an investigation, attorney general !
J p. Lightfoot and assistant John ". |
Brady made a trip to St Louis, New /
York and other cities and investigated !
matters relating to the ownership of !
stock of the Magnolia Petroleum com /
pany. While they found that John D. /
Archbold and other officers of the !
Standard Oil company were large stock /
holders of the Magnolia Petroleum 1
Mr.. LightfOOt issued a state (
nent to the effect that this stock own |
cESuAp WdS nOA III N4OAdN1t4 VI the anu
trust laws and that there were no \
grounds for instituting prosecution 1
against it. It has developed that the I
Indictments which were recently re- /
turned by the United States district /
court at Dallas against the officers and }
of the Magnolia Petroleum
were based chiefly upon the /
testimony of officers and agents of /
the Pierce FOrdyce Oil association It i
Is alleged that the latter is being driven
0ut of business in Texas by the Stand
ard Oil company through the Mag
lolia Petroleum company.
Possible Political Phase.
The possible political phase of the
these concerns are involved arises from
The fact that they are charged with /
doing business in Texas under subter-
iuges and that the DEGREES of the United
States supreme court against the
OIL subsidiaries and the Wa
-ers- Pierce Oil company are being
violated II these charges are proved. /
[ lays both the Magnolia Petroleum
and the Pierce FOrdyce Oil
association and certain of their officers
open to prosecution for contempt as
veil as for perjury, they having signed |
iffidavits that are on file in the secre-
AIRY of states office here that the !
new concerns are in no way connected
With the ones that were ousted. The
itate officials who have permitted
-hese alleged violations of the judg-
nent of the court will find themselves
allied upon, it is said, to answer to the
lew political charge which their oppo-
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