The Rice belt journal., 1913-07-25
STATE GETS S5OO,OOO
HALF MILLION DOLLAR PENALTY
PAID THE STATE BY THE
STANDARD OIL.
MAGNOLIA COMPANY NOT GUILTY
Archbold and FoIger Stock in Mag
noglia Company Placed in Hands
of Trustee to Assure Independ.
ence From Standard.

the entire half million as a penalty
for violation Of the Texas antitrust
laws. The settlement was a Compro-
mise with the State. 1t wiped the
records clean of the big $102,161, 900
penalty and custer suit, which the
State filed recently against four oil
companies, five New York banks and
2S individuals, including several of the
country's leading oil men.
The penalty is based on violations
under the Texas laws prior to 1909.
The suit covered alleged violations
from 1900 to 1913. The verdict speci-
fically says the Magnolia Petroleum
Company, the chief Texas interest in
the suit, has not been guilty of viola.
tions.
Before District Judge William Pier
son Monday the suit brought on March
S by Attorney General Looney of
Texas against the Magnolia Petro-
leum Company and others for custer
and penalties aggregating $103, ,493, 900
was settled by agreement. The prin.
cipal features of the agreement are:
1. The Standard Oil Company of
New Jersey is fined $500, 200 for viola
tions of the antitrust law prior to Oc-
tober rs, 1909, and is found not guilty
as to charges of subsequent violations.
2. The Magnolia Petroleum Com.
pany, it's predecessor, John Sealy &
Co.; John Sealy of Galveston, the Cor
sicana Petroleum Company and other
defendants are found not guilty as tc
all the counts against them.
8. The 21,596 shares Of stock in
Magnolia Petroleum Company held in
equal division by John D. Archbold
and Henry C. Fogler, Jr, constituting
about 80 per cent of the total num-
Der of shares, Is by agreement placed
in trust, Hon. F. A. Williams of Gal
weston, former associate justice of the
supreme court of Texas, being ap-
pointed trustee. This stock is dis
franchised and can not be voted, ex-
cept that the trustee may, in his dis
cretion, vote 1t If requested in writ
ing by the owners to do so. They are
not barred from receiving the divi-
| dends. It Is made the duty OF the trus-
tee to keep track of the operations of
the company and to see that 1t obeys
the law. 1t is agreed that he shall per-
form similar functions as to the Cor
sicana Petroleum Company. The trus-
tee is to receive salary of $4,000
per annum, four-fifths to be paid by
the Magnolia Petroleum Company and
one-fifth by the Corsicana Petroleum
Company. This feature of the judg
ment is similar to the dissolution judg.
ment in the Union Pacific-Southern
Pacific case. The idea in that case
originated in Texas.
4. The receiver of the Magnolia
Petroleum Company and Corsicana
Petroleum Company is discharged.
At Austin Governor Colquitt sent
the legislature message recommend
ing that the $5Oo,OO0 be treated as a
special fund and used to buy from the
permanent school fund that amount of
the per cent state refunding bonds
substituted during the Campbell ad-
ministration, thus giving the school
fund an opportunity to invest the
amount in per cent bonds. Repre-.
sentative Workman at once asked per.
mission to introduce bill so proVid
ing, but Representative Lewelling OBJ.
jected.
Judgment was not entered at Green
Vile until Attorney General Looney
had been advised by the Austin Ma
tional bank that the 100000 had been
deposited to the credit of the state
The fees amount to $1S,75O. They
would have been twice that much II
the $5OO,000 had been recovered upon
trial of the case, the statute pro
viding for half fees in the event o1
agreed judgments.
This $13,75O will be split among
Richard G. Maury,A criminal district
attorney of Harris County; Thomas
| w. Thompson, county attorney ol
Hunt County; L, L. Bowman of Green
vile, district attorney of the Eighth
district, and Messrs. Crosby, Hamilton
and Harrell of Greenville, private
counsel for the state.
The Penalties Sought.
Following is the distribution of pen
alties in the original suit: Standard
Oil Company of New York, $S,150,00o
Standard Oil Company of New Jer
sey, $S,150,oO0; Corsicana Petroleum
Company, Corsicana, sS,15O,0OO; Mag
nolia Petroleum Company, Corsicana
$1,00O,000; John D. Archbold, New
York, $8,150,0OO; John D. Rockefeller
New York, SS.150,O00; L. G. Ledyard
New York, sS.15O,O00; Charles M
Pratt, New York, sS,150,000; Charles
w. Harkness, New York, $S,150,00O
C. N. Payne, Titusville. Pa, $3.50,
600; H. c. Folger, Jr., New York, $S,
10000; w. c. Proctor, Corsicana
$1,775,OOO; S. G. Bayne, New York
$1,775,000; Howard Bayne, New York
81 775. 900. r. WayerIy Smith. Calves