BAILEY-PIERCE NEW YORK "CHOP HOUSE." THE WALDORF ASTORIA, NEW YORK, Where Pierce maintains suite of eight rooms and entertains Bailey while in New York. Woe unto you, scribes and Pharisees, hypocrites! Ye make clean the outside of the cup Was the following written of Buckingham or a forecast of Bailey? *** It grieves many, The gentleman is learned and a most rare speaker, Not well disposed, the mind growing once corrupt, -SHAKESPEARE, in Henry VIII. THE COCKE COMPANY, Publishers SAN ANTONIO, TEXAS A. D. 1908 CHAPTER XXI. BAILEY IN THE ROLE OF A STANDARD OIL BARON. BAILEY AND PIERCE FREEZE OUT THE SOUTHWESTERN OIL COMPANY. The Witness J. D. Johnson (pp. 117-120) continuing: Q. Do you know from Mr. Pierce of any other loans he made Senator Bailey? A. Yes, I know something of the loan for $156,000, that he made him or procured for him. I know the nature and purpose of that transaction; it had to do with the Southwestern Oil Company at Houston. I know something in a general way about it as an independent Oil Company being run here in Texas. I would rather not answer your question with reference to the $156,000, being used to purchase the outstanding obligations of the Southwestern Oil Company; this on Mr. Pierce's account. He was interested in that transaction, and it comes to me professionally. Not that there was anything wrong or discreditable about it to either Mr. Pierce or Mr. Bailey, or anything irregular-nothing in the slightest-but it involves matters of confidence that I have no right to divulge, coming to me professionally. BAILEY REPRESENTS PIERCE. I know that Mr. Bailey represented Mr. Pierce in connection with that matter, and it had something to do with that. No, I do not know what was done with securities that were bought up with that $156,000 loan or obligation. I was very glad to get that off my mind, and I paid no attention to it after the arrangement was made with Mr. Bailey. Yes, I know after Mr. Bailey secured the loan that a suit was instituted at Houston to foreclose on the obligation. Mr. Bailey did not appear as the attorney for Mr. Pierce. I do not think Mr. Pierce was a party to the proceeding at all; did not appear in it. [The whole scheme of eliminating the Southwestern Oil Company as a competitor of the Waters-Pierce Oil Company, was conducted in Bailey's name.] I think I saw a copy of the Decree in the case. I think it was in Mr. Bailey's name. I know from Mr. Pierce that there was a settlement that was entirely satisfactory between him and Mr. Bailey, as a result of that deal. I think the Southwestern Oil Company finally passed into the hands of St. Louis parties-a syndicate connected with the St. Louis Union Trust Company. Senator Bailey had never had anything to do with the Southwestern Oil Company prior to the $156,000 loan, that I know of. TALIAFERRO, A WATERS-PIERCE OIL COMPANY MAN, BECOMES MANAGER OF SOUTHWESTERN OIL COMPANY, UNDER BAILEY. The Witness Continued: I know the Mr. Taliaferro that used to be with the Waters-Pierce Oil Company. I used to have his brother of Taliaferro & Wilson attend to law business at Houston for the Waters-Pierce Oil Company. I understand, after Mr. Bailey secured control, that Mr. Taliaferro, who was at one time in charge of the cotton-seed oil department of the Waters-Pierce Oil Company, at Houston, took control of the Southwestern Oil Company. He resigned from the WatersPierce Oil Company and became the manager, I believe, of the Southwestern Oil Company. So far as I know, no one else put any money into this transaction except the $156,000 referred to. I do not know really how the matter was wound up, except that I understood it had been all closed out and settled, so far as Mr. Bailey and Mr. Pierce were concerned. [After examination of Mr. Johnson at this point, Senator Bailey could not stand the pressure longer and relieved himself by saying, "I am going to object to that, because I have sat by and heard Mr. Johnson detail a transaction that he is wholly mistaken about-is absolutely a mistake from beginning to end-and for that reason I do not believe I want any more of that kind put in the record." The trouble was that J. D. Johnson knew and was telling too much to suit this Standard Oil Senator. The only mistake that J. D. Johnson made in his testimony was this: He confused the $156,000 BaileyPierce Kirby Lumber Company stock jobbing "loan" with the $153,000 Bailey-Pierce S. W. Oil Company stock jobbing "loan." If Johnson had used $153,000 instead of $156,000 in his testimony about the way Pierce and Bailey got rid of the S. W. Oil Co. as a competitor of the W.-P. Oil Co., Bailey could have offered no objection to his testimony.] BAILEY BECOMES AN OIL BARON. The Witness J. W. Bailey (continuing Com. Rept., p. 886)— During my negotiations or during my attorneyship for the Kirby Lumber Company we were approaching one of those semi-annual stumpage payments, and at that time the Kirby Lumber Company was always hard up when it came time to make one of these payments. We were casting about to find money-Mr. Kirby was, of course. He was looking after the financial part of it. And he was telling me of the money that the Houston Oil Company owed them, and he wanted to know if, under the stumpage contract, I could not force the Maryland Trust Company, which was the trustee of these stumpage contracts-stumpage payments were made and then they disbursed them among the certificate holders, and if any residue was left, to the stockholders, and he wanted to know if we could not force the Maryland Trust Company to accept the indebtedness which the Kirby Lumber Company held against the Houston Oil Company. After investi |