Abbeville progress. (Abbeville, Vermilion Parish, La.) 1913-1944, 1913-07-26
STATE GETS $500,000
MALT MILLION DOLLAR PENALTY
PAID THE STATE BY THE
STANDARD OIL.
MAGNOLIA COMPANY NOT GUILTY
Archbold and FoIger Stock in Mag
nosIia Company Placed in Hands
of Trustee to Assure lndepend-
ence From Standard.

$500, 900 into Texas by wire, paying |
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, ISL 900
penalty and custer suit which the
State filed recently against four oil
companies, five New York banks and
% 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
tons.
Before District Judge William Pier
son Monday the suit brought on March
by Attorney General Looney Of
Texas against the Magnolia Petro-
leum Company and others for custer
and penalties aggregating $103. $4,000
was settled by agreement. The prin-
cipal features of the agreement are:
1. The Standard Oil Company of
New Jersey is fined 100000 for viola
lions Of the antitrust law prior to Oc-
tober 26, 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 to
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
erection, vote it if requested in writ
ing by the owners to do so. They are
not barred from receiving the divi
dends. 1t is made the duty OF the trus
tee to keep track of the operations oil
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 a salary OF $4,000
per annum, four-fifths to be paid by
CnmnanV am
: one-fifth by the Corsicana Petroleum
Company. This feature of the Judg
ment is similar to the dissolution judg
! ment in the Union Pacific-Southerl
! Pacific case. The idea in that cas-
!. originated in Texas.
4. The receiver of the Magnoli
a Petroleum Company and Corsican
Petroleum Company is discharged.
o At Austin Governor Colquitt sen
q the legislature a message recommend
h ing that the 100000 be treated as
r special fund and used to buy from tn
I, permanent school fund that amount G
q the 8 per cent state refunding bond
substituted during the Campbell az
q ministration, thus giving the schot
.. fund an opportunity to invest tn
amount in 5 per cent bonds. Repr
sentative Workman at once asked pc
- mission to introduce a bill so 'provi'
:. ing. but Representative Lewelling o.
w jected.
- Judgment was not entered at Gree
E. Vile until Attorney General Loone
=. had been advised by the Austin N
~ tional bank that the 100000 had bee
10 deposited to the credit OF the stat
The fees amount to $13,750. Tht
would have been twice that much
the $50O,OOO had been recovered upt
trial of the case, the statute pr
rs viding for half fees in the event
ra agreed Judgments.
Al This $13,75O will be split amol
A. Richard G. Maury, criminal distrl
N. attorney of Harris County; Thorn
+. w. Thompson, county attorney
IT, Hunt County; L. L. Bowman OF Gree
nj Vile. district attorney Of the Eigh
a. district, and Messrs. Crosby, Hamiit
he and Harrell of Greenville, privs
81 counsel for the state.
IL The Penalties Sought.
r. Following is the distribution OF p'
To- alties in the original suit: Standa
en- Oil Company of New York. $S,150,o(
standard Oil Company Of New ]
sey. $8,150,OO0; Corsicana Petrole'
Company, Corsicana, $S.150,00O; M
Fiji nolia Petroleum Company, Corsica
lar $1,000 900; John d. -Archbold, N
en- York. $3.50, 900; John D. Rockefell
yer New York, $S,150,000; L. c. Ledya
ex- New York, $s,150,00o; Charles
GAL Pratt, New York, $S,150,000; Char
200 w. Hardness. New York. sS,15O,O
ley C. N. Payne, Titusville. Pa, $751;
Fe 900: H. C. Folger, Jr., New York,
10000; w. c. Proctor, Corsica
Sits 900; s. G. Bayne, New "
s1,775, 900; Howard Bayne, New "
lph s1,775, 900; R. Waverly Smith, Gal
MIA ton, Site. 900; George c. Greer, b
day mont, $1,775,O0o; Courtenay Marsh
ion Beaumont, s1.775.O0O; o. c. Edwa
RAJ Norwalk, Conn, e. R. Brown, CO
si' cana, and John Sealy. Galveston,
775.O0O each, plus 100000 collect
": columbian Knickerbocker T
Company. $1.soo.OOO; Central T
DAY Company, $271,500; United ST
4