The Globe-republican., 1906-10-11
STANDARD UNDER FIRE
JURY HEARS HOW THE GREAT
TRUST WAS FORMED.
COMPANY HAS Been ENJOlNED
Never Intended to Comply With Or
der Of court--Plan Then Adopted
standard Objects to Former Tes'
tlmony of Rockefeller.

Findlay, Ohio, Oct. 10.--The suit of
the state of Ohio against the Stand
ard OIL Company of Ohio, in which
the company Is charged with con-
splracy against trade, began here to-
day and progressed at rapid pace.
A jury was secured In less than two
hours; County Prosecutor w. L..
David presented his case; Virgil P.
Kline, attorney for the defense made
answer.
"The Standard OIL trust" said Mr..
David, was organized in 1882 by John
d. Rockefeller, William Rockefeller,
Henry M. Flagler, H. H. Rogers,
]. Archbold and a number OF asso-
ciates. The trust was controlled by
nine trustees. This arrangement con-
tinued for ten years, during which
time nineteen companies subsidiary
to tie trust but controlled by it were
organized. In 1892 the total capitall-
cation Of the company was $102,333,-
700. with a surplus of $20,0O0,0O0.
The suit of Attorney General Will
son of Ohio In 1892, charging that the
trust agreement created monopoly,
was next explained by Mr. David.
The Valentine act was not then In ex.
istence and the action was brought
under the common law. The supreme
court of the state found the Standard
Oil trust to be monopolistic and
against public interest, and ordered
the trust dissolved
Mr.. David here asserted that the
state expected in this trial to prove
that the board of trustees of the local
companies he had named never did
and never intended to comply with
that order of the court, although
technically they may have observed
the same to the letter"
At meeting of the board of stock
holders of the trust called to dis
solve the trust in compliance with the
order of the court, he said there was
present for the company "a very
great and learned lawyer by the name
Of Dodge, who introduced a resolu-
tion formally setting out new plan
Of organization"
In explaining this new plan which
was adopted, Mr.. Dodge was quoted
by Mr.. David as saying to the stock.
holders:
"'Your interests will be the same
then as now. Corporations will con-
tinue to do business as heretofore
and your proportion of ter earnings
will not be changed. You will under
stand that A will not get stock in one
corporation and B in another, but
each will get his due proportion in
the stocks Of ALL"
At this meeting, Mr.. David con.
tlnued, arrangements were made for
winding up the affairs of the trust and
liquidation trustees were chosen, be-
ing the same as the old trustees,
which he again named. Seven years
later, in 1899, he said, John d. Rookie
feller and the same trustees were
still controlling the policies and bust
ness Of the Standard Oil trust, and at
that time only about GO. per cent of
the trust certificates had been ex.
changed under the terms of the Dodge
resolution.
The CONTEMPT proceedings institut-
ed against the trust in 1898 by Attor-
ney General Monet of Ohio, but
which the supreme court of the state
dismissed, were here explained to
the jury. 1t was during the tendency
of these proceedings, he said, that
another form was given the organiza-
ton. The Standard Oil company of
New Jersey was organized as hold
ing company, with capital stock of
$110,OOO000, and increased corporate
power, which included the right to
buy, hold and vote the stock of tie
other corporations. John d. Rookie.
Teller, he said, was the largest stock
owner and was president of the cor.
poration between the years 1899 and
1901. Mr. Cavid said the New Jer-
sey organization issued $9S,00O,O00 of
capital stock and purchased nearly
all Of the stock of the subsidiary com.
panies in the trust company.
Replying. Mr.. Kline characterized
as mere matters of ancient history
the relation Of the original formation
of the trust The Standard Oil COM
pany, he said, was corporation con-
trolled entirely by its stockholders;
1t was In no way trust; 1t could not
be said that any of the statements of
Mr.. David relative to the early his
tory of the oganization were true, but
II they were they were not within the
limits Of Hancock county, and conse-
quently without the jurisdiction of
the court.
The documentary evidence which
the prosecution began submitting,
and which. 1t Is stated, constitutes
the bulk of their case. Is contained in
document authenticated by the su.
preme court Of the state, as the his
tory of the Standard OIL litigation Le-
fore that body. 1t was all objected to
by the defense as irrelevant, but a.
lowed to 20 in by Judge Banker, pre-.
siding. The documents read to the |
jury, which occupied the whole of the |
afternoon, were used in the case be- |
fore the supreme court In 1892, which |
resulted in the order to dissolve the |
trust; the pleadings before the same |
court in 1897. resulting In a journal |
entry by the court that the trust had |
been dissolved.
The company, he said, sold some
oil at retail in the county and might
own some real estate here. but the