The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-11-16

PENDANTS, for the purpose OF more effectu-
ally perfecting their conspiracy to monopo-
lize the trade, entered into a trust agree
ment under which all the stockholders of
thirteen Of these corporations n a part OF
the stockholders of twenty-six other con
Germs placed their stock in the hands of
nine trustees. OF which the individual de-
fendants were the majority; and that
through said toe ownership they con-
trolled the business and property OF these
thirty-nine corporations and others there
after acquired and suppressed all oompe-
tition and thus ~mOnopolized the trade in
petroleum and its products. This trust
agreement is set forth in full in the petition.
IL was to continue during the lives OF the
survivors and survivor OF the trustees and
for twenty lone years thereafter.
Then follow a list OF the parties to the
agreement.
T The agreement was made on IAN. ?, 1882.
All of the individuals aforesaid trans
ferred their stock To the trustees; and the
trustees issued trustees certificates in
exchange. The trustees also organized
a Standard Oil Company OF New York
and one OF New Jersey, to which GER
tain property OF individuals and CO.
partnerships was transferred. In ex-
change for all these stocks and properties
there was issued in January, 1882, 100000 900
of trustees certificates in 500 shares. IL II
alleged tina, from time TO time thereafter
the trustees acquired additional stocks OF
NOTDOE az lpilr dlll l-~lfl dNAAAlAibNlil NCIAllA
Gates, 30 that at the time of the final dis
solution in 1899 there were s97 ,25O,OOO OF
trust certificates outstanding.
In 1892. the Acknowledgement OF Ohio
had brought "A suit to have the trust
agreement declared void, and In March,
1892, Judgment was rendered by the Su-
preme Court of Ohio declaring the trust
agreement void a. being in restraint OF
trade. On March II, 1892, the trust GER
tificate holders met in New York and re-
AIv-a1 - 49, wNA. NhA NWHH.N nnI a
John D.. Rockefeller, Henry NJ. Flagler.
William Rockefeller, John D.. ArChbold
Benjamin Brewster, Henry IA. Rogers,
Wesley IL. TilfUrd and O.. b. Jennings as
liquidating trustees. The manner of liqui-
datIon was not To sell the property and dI-
vide the proceeds, but all Of the stocks were
divided in proportion to the number OF
trust certificate shares outstanding, so that
Rockefeller and his associates, after the
pretended dissolution, continued 10 con-
troll all these corporations in the same
manner a. before. 1t is alleged that,
down to the organization of the holding
company (thc and Oil Company OF
New Jersey, in 1899. the am defendants
continued to control all OF the separate
corporations as they had done before,
STANDARD OIL COMPANY OF NEW JERSEY.
The trust agreement having been dec
clared void by the Supreme Court Of Ohio, IL
became necessary to adopt some other plan
to continue control over all OF these corpor-
atoms. To accomplish this. IN January. 1898,
they increased the stock Of the Standard OIL
Company of New Jersey from fiO, 600 900
to siiO, OO0, 900, and made il the holding
corporation and placed the control through
stock ownership Of oil these corporations
previously held by the trustees into that
company, and exchanged its stock for the
stock so acquired share for share, issuing
therefor fg1 .2J0. 900 par value
From 1890 TO the present time the in
dividual defendants have owned and CON
trolled the majority of the stock OF the
Standard Oil Company OF New Jersey,
and in furtheTance of the conspiracy they
nave purchased in the name Of Said Standard
Oil Company, or in the names.of individuals
or corporations 10 be held for the benefit
of the Standard Oil Company, the stocks
OF various corporations, and have from
time to time organized additional cor
porations under the laws OF various States
20 that at the present time the defendants
control, through the Standard Oil Com
pany OF New Jersey, seventy corporations,
with an aggre gate capital OF more than
500 900, 900.
THE ALLEGATIONS.
It is alleged in the bill that the defend
ants, through the Standard Oil Company
and other corporations, are producing,
purchasing and transporting petroleum in
all the States and Territories Of the United
States and into foreign countries, and SELL
ing and disposing of the same.
That they own and control nearly all
Of the pipe lines, tank cars and steamships
engaged in Transporting oil; and have
eliminated competition and have monopO-
lized the in oil in the United
States.
The petition alleges that. in addition,
the defendants have resorted to other
means and practices.
Underwater CONTRACT.
The bill sets up various contracts with
- IL A--- "a -
has been eliminated, among others n con
tract between the Standard Oil Company
and the Tidewater Pipe Company and
the Tidewater Oil Company, whereby the
Tidewater companies are limited to M
per cent. Of certain business in Pennsyl-
vania and New York, and the Standard Oil
Company TO receive $50 per cent. of the
BUSINESS, the Standard Oil Company guar
anteeing the Tidewater company $500 900
per annum profits, thereby eliminating
all competitor between them.
The bill alleges a cont ract made with
the Pennsy lvania Railroad Company in
1884, which was in existence until 1905,
in which IL was agreed that the rates for
the transportation Of oil should be fixed
by the railroad company with the advice and
concurrence of the alton Transit Com
pany lone of the Standard companiesl,
thereby comforting upon the transit COM
pany the power to maintain high railroad
rates, 30 as TO prevent competitors from
shipping crude oil in competition with the
Standard pipe lines.
II was also agreed that the railroad com
pany should have 20 per cent. of the pc
troleum, both crude and refined, to carry
from western Pennsylvania TO the seaboard.
and, in substance, that the transit company
would pipe the oil instead of the Pennsyl-
vania Railroad carrying it, and pay the
Pennsylvania four-ffths of the rate, or about
% cents a barrel, the transit company doing
the work for about 8 cents a barrel; and
that, through thisa arrangement, the charges
for transporting crude oil from western
Pennsylvania ave been for years main