It must be understood, of course, that the appearance of the names of English lawyers in these lists neither conveys any reflection of any kind upon them nor identifies them in any way with the operations of the Standard Oil Trust in the United States or elsewhere. Messrs. Budd, Johnson and Jecks are a well known and highly respected firm ; and it must be assumed that they only appear in these transactions between the companies in their professional capacity.
We find, therefore, that out of the original shareholders in the General Industrials, nine appeared in the list of the London Commercial four years afterwards. A tenth, Mr. Horace Maxwell Johnson, the managing director, appeared on October 2, 1903 (Mr. E. G. Flower's share was transferred to him). In both cases almost the entire assets of the Company are represented in the balance-sheet by shares of foreign companies. In the case of the General Industrials, out of its £100,526 assets £94,613 represented such shares, while in the case of the London Commercial this item represents 2718,685 out of total assets of £734,979.
There is only one difference in the history of these companies. While the London Com mercial has increased its original capital of £110,000 to £725,000, the General Industrials has reduced its capital. It consisted at first of 400,000 £1 shares, but in June, 1901, the capital was reduced to £230,000 by the re payment of 8s. 6d. on each share. On December 13, 1905, the capital was further reduced to £120,000 by the repayment of a further 5s. 6d. on each share, and on August 10, 1906, this was further reduced to £100,000 by refunding a further 1s. per share. This world is full of strange coincidences, but it is dis tinctly worth noting that the capital of the Manhattan Oil Company showed a synchronous tendency to fall. From an exhibit put in by Mr. Kellogg in the Missouri case it appeared that the capital of the Manhattan Oil Company was reduced from $2,000,000 (£400,000) to $500,000 (2100,000) on May 23, 1902, and to $150,000 (£30,000) on October 23, 1905.
Mr. Brady testified that when Mr. Herbert Johnson, of London, came to him in New York he said the General Industrials were " in the oil business, but wished to purchase a going company, with wells, and land, and cars, and pipe lines."
Q. And refineries ? A. Refineries.
Q. Now if he wished to purchase a going business, why did they sell their wells and tank cars and refineries Mr. Milburn (Standard Oil counsel) : Does Mr. Brady know that ? Q. Do you know ? A. No, I do not know that they did.
One other remarkable feature about this General Industrials Company may be men tioned. Mr. Brady produced at this trial the following cable that he received :— August 31, 1899, London. To A. N. Brady, 54, Wall Street, N.Y.—Syndicate accepts options. John H. Cuthbert, its agent, will call on you to arrange details and payment: He has full authority.—JororsoN.
This was signed by Mr. Herbert W. Johnson, the London solicitor, who, with the assistance of several other solicitors, a barrister, and an accountant, was going into the oil business on this large scale. But, to use a once-famous American political phrase, Mr. John H. Cuth bert was " the nigger in the wood-pile.". It is his presence that finally " gives away " the carefully hidden origin of the General Indus trials. When Mr. J. D. Archbold was first questioned about Mr. Cuthbert he was as for getful as ever :— Who was Mr. Cuthbert ? Do you know him 2 A. I knew a Mr. Cuthbert.
Q. In 1899 he was in the employ of the Standard Oil Com pany, wasn't he—John H. Cuthbert ? A. I do not recall that he was.
Q. He had been in your employ, hadn't he, in some of your companies 2 A. I do not recall that he had been.
Q. Do you know him ? A. I did know him.
Q. Where was his place of business ? A. My recollection would be that he was employed with the Tide Water Oil Company.
Q. Didn't he use to be employed by one of the Standard Oil companies ? A. He may have been earlier, away back. I do not remem ber distinctly. I am inclined to think that he was—in the earlier years—employed by one of our companies.
After the luncheon adjournment on the same day, however, Mr. Archbold's memory some what improved :— Q. Isn't it a fact that Mr. John H. Cuthbert was the Standard's representative in the Tide Water Company as director 2 A. He went there not specially as our representative, but left our employ and went to them, because I imagine they offered him greater inducement in the way of salary. I know of no other reason.