New-York tribune., 1906-11-16
SUES STANDARD OIL.
ACTION By GOVERNMENT.
Dissolution Of Corporation asked
Under Sherman antitrust Lac.


St. Louis. Nov 15.-The United States gov
ernment to-day made the initial move to dis
solve the Standard Oil Company's alleged mon
opoly by fling In the United States Circuit Court
a petition in equity against the Standard Oil
Company of New Jersey and its seventy con-
stituent corporations and partnerships and seven
defendants. including John D. Rockefeller and
William Rockefeller, asking that the cOmbina-
ton be declared unlawful and in the future en-
Joined from entering into any contract or COM
bination in restraint of trade
The suit is brought under the Sherman Anti
Trust act. which the Standard Oil Company and
its constituent companies and the seven indi-
vidual defendants charged with violating
In formal statement Attorney General Moody
says that criminal prosecution is reserved for
future consideration.
The governments petition in the suit is signed
by William H. Moody, United States Attorney
General; Milton B. Purdy assistant to the At
torney General Frank B. Kellogg Charles B.
Morrison and c. A. Severance. assistants to the
Attorney General. The petition contains 1911
printed pages, or about 100000 words, and an
additional S4 pages of exhibits. consisting Of
bylaws and minutes of Standard Oil meetings
and organizations and a map showing the retail
prices Of oil in every state and territory OF the
Union.
The investigation into methods pursued by the
Standard OIL Company began early in 1906.
and the results were laid before Congress last
May by President Roosevelt. who accompanied
the report by a special message, denouncing the
apparent methods pursued. The President as
serted that suits would be instituted in the
United States courts to abolish the combination
and the filing of the suit to-day marks the in
itial step.
The defendants are entitled to one month in
anita nj SiIfv day
in which to file answer to the allegations in
the petition. They also have the option Of filing
a demurrer to the bill
Mr.. MoODY's STATEMENT.
Mr. Moody's statement follows:
In June last. by direction of the President
Messrs. Kellogg and Morrison were appointed
by me special Assistant Attorneys General, to
act with Assistant to the Attorney General Pur-
dy. to make investigation of the relations or
the Standard Oil Company Of New Jersey to the
business Of refining, transporting, distributing
and selling oil throughout the United States; TO
ascertain all the facts and report whether or not.
in their opinion, there has been a violation OF
the Sherman Antitrust law by the standard
oil COmuany of New Jersey the persons or
Corpora tons associated with or managing it.
The counsel have completed that duty and the
report OF their investigation has received care
full consideration by the President and his CAP
met.
The information available to the department
tends TO show that the various corporations
and limited partnerships under the control IN
rha manner hereinafter stated, of the standard
Oil Company of New Jersey produce transport
and sell about 80 per cent OF the rehned OH
produced. transported and sold in the United
States for domestic use, and about the same
urOpOrtiOn of refined oil exported from the
United States: that this share Of the business
has been procured by course OF action which,
beginning in 1870, has continued under the dl-
reCtion of the same persons, IN the main down
10 the present time; that these persons now sur
viving are John d. Rockefeller, William Rookie
feller. Henry II. Rogers, Henry NJ Fiagler
John D Archbod. Oliver H. Payne and Charles
NJ Pratt; that the design throughout of the
persons having control Of the enterprise has
been to suppress competition in the production
/ transportation and sale OF refined OIL, and TO
| obtain. as far possible. a monopoly therein;
that between 1870 and 1882 the design eff
feCted through agreements made between many
persons and corporations engaged in this busi-
ness: that in 1882 the result aimed at made
more certain by vesting in nine trustees (in-
Guiding FIVE of the above named persons) suf1-
Client stock IN the thirty-nine corpora tions
cerned TO enable the trustees to control their
operations in such a way that competition be
tween them suppressed, that this plan
acted upon until il was declared unlawful by
the Supreme Court Of Ohio in action against
the Standard Oil Company OF Ohio, one of said
corporations, in 1872: that during the seven
years folo"lns the same lhdl' lauaI defend-
ants, as majority of the lduidating trustees
pretending to liquidate the trust. but as a
matter of fact, were managing all Of the
pOrations in the same way and exercising the
same control them; that the Individual
defendants in 1899 increased the stock of the
Standard Oil COmpanv of New Jersey from $40 -
! 600 900 TO S110O0O,0OO: that said company was
! then producing and selling corporation. and
they added to its corporate powers the power Of
purchasing stock in other companies and prac-
ttcally all of the powers exercised by the trus-
tees urdeU the unlawful trust agreement of 1882:
that the Standard OIL Company of New Jersey.
/ then taking the place OF the trustees acquired
ali Of the stock of the CORPORATIONS Heretofore
! held and controlled by the trustees paying
therefor by the issue Of its own shares in ex-
change; that the president of the board Of trus-
tees became tho president Of the Standard Oil
Company Of New Jersey, and the same persons
i1a.liH lrfrl
the business Of the trust then assumed the
direction Of the business of the Standard oil
Company Of New Jersey, and ever since
tlnued IT: that the purpose ana erect of the use
Of the Standard oil Company Of New Jersey as
I n holding cQInpanV was precisely the same as
the purpose and effect Of the appointment of the
/ trustees hcTrinbafoTe referred to, namely. to
and limited partnerships whose stock was first
held by the trustees aud then by the Standard
OIL Company Of New Jersey: that by the fore
going methods, aided by the establishment Of
railroad rates for transportation. which dis
. Criminated In favor Of the corporations whose
stock hold by the holding company, that
company has been enabled to obtain. in large
eections Of the country monopoly Of the sale
81 refined oil. with the result that inc prices to
the consumer within the territory where the
. monopoly prevails very much higher than
within tn" territory where competition 10 some
extent et exists.
II is believed that these facts. together with
Others contained in the report ct the special
counsel Justify and require action by the United
states in the courts Accordingly a petition IN
eouitv under the provisions Of the Sherman
act has this day been filed against the STANDARD
Continued OF fourth DHEe