Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1906-11-16


General Moody today acting through
the resident United States district at
torney, Instituted proceedings against
the Standard Oil company of New Jer-
sey under the Sherman antitrust act,
by filing in the United States circuit
court at st. Louis petition In equity
against 1t and its seventy constituent
corporations and partnerships and
seven Individual defendants, asking
that the combination be declared un-
lawful and in the future be enjoined
from entering into any contract or
combination In restraint of trade, etc.
The following statement was prepared
and made public by Attorney General
Moody today:
I'm June last by direction Of the
president, Messrs. kellogg and, Nor
rison were appointed by me as special
assistant Encouragement to act with
Assistant to the Attorney General
Purdy to make an investigation Of the
relations Of the Standard Oil company
of New Jersey. to the business of re-
filming. transporting, distributing and
selling oilr throughout the United
States; to ascertain all the facts. and
report whether or not in their opinion
there has been a violation of the Sher-
man antitrust law by the Standard
OIL company of New Jersey by the
persons or corporations associated with
or managing 1t. The counsel have
completed that duty and the report of
their investigation has received careful
consideration by the president and his
cabinet.
Crush Composition and Get Control.
1.-THE information available to the
department tends to show that the
various corporations, the limited part
| nerships under the control, in the man
ner hereinafter stated. Of the Standard
| OIL company of New Jersey. produce,
| transport and sell about 80 per cent OF
the refined oil produced or sold In the
United States for domestic use and
about the same proportion Of refined
oil exported from the United States;
that this share OF the business has
been procured by course of COM
bination which, beginning in 1870. has
| continued under the direction of the
same persons. in the main, down to
the present time; that these persons
now surviving are John D. Rockefel-
Ter. VIM. Rockefeller, Henry H. Rog-
ers. Henry NJ. Flagler, John D. Arch
bold Oliver H. Payne and Charles M.
4 Pratt; that the design throughout Of
the persons having control of the en-
lterprise has been to suppress compe-
tition in the production, transporta-
ton and sale Of refined oil. and. to
obtain as far as possible. a monopoly
therein; that between 1870 and 1888:
the design was effected through agree
ments made between many persons
and corporations engaged In this
business that in 1882 the result aim
ed at was made more certain by in
Wrestling in nine trustees dncluding five
Of the above named persons) suffi-
cient stock In the 80 corporations con-
cerned to enable the trustees to con-
troll their corporations in such a way
that competition between them was
suppressed, that this plan was acted
upon until 1t was declared unlawful by
the supreme court of Ohio In an
action against the Standard Oil COM
pany OF Ohio, one Of said corporations
in 1892; that during the seven years
following. the same individual de-
n AShNoAtS as q IhoJOiIty Va thc ll4uludS-
ing trustees. were pretending to liqui-
date the trust, but asa matter of fac,
were managing all of the corporations
in that same way and exercising the
same control over them: that the in
dividual defendants in 1899 increased
! the stock OF the Standard Oil COM
pany OF New Jersey from $4,000. OO(
to t11C. 100000; said company was Their
q producing and selling corporation
and they added to It's corporate pow.
ers the power of purchasing stock 1:
other companies and practically all the
powers exercised by the trustees un.
der the unlawful trust agreement ir
1882; that the Standard Oil company
Of New Jersey. then taking the plac,
OF the trustees, acquired all the stool
of the corporations heretofore .ielt
and controlled by the trustees, pay
ing therefor by the issue of its owr
shares in exchange: that the presi
dent Of the board of trustees be
! came president OF the Standard Oh
company of New Jersey and the sam
! persons (the individual defendants
} who had directed both, then assume,
! the business of the Standard Oil com
! pany of New Jersey and ever sine
continued 1t: that the purpose an,
; use OF the Standard Oil company as
holding company was precisely tn
same as the purpose and effect OF tn
appointment Of the trustees hereinbe
fore referred toto suppress com
petition between the corporations an
limited partnerships. whose stock wa
first held by the trustees and the
by the Standard; that by the forego
ing methods. executed by the estab
lishment of railroad rates for the cor
poration which Disseminated in favo
OF the corporations whose stock "a
held by the holding company. tina
company has been enabled to obtai
in large sections of the country