New-York tribune., 1906-11-14
STANDARD PROSECUTION
MOODY TO act At ONCE.
Petition Being Prepared on Ground
That 1t Is an Unlaloful Trust.
IFrorn The Tribune Bureau ]

washington, Nov. 13.-The Attorney Gehe4a IL
has determined to proceed against the Standard
Oil Company under Section Of the sherman
Anti-Trust act. and petition is being prepared
praying the court to issue restraining order
prohibiting the Standard from further engaging
in interstate commerce. on the ground that II
is trust unlawful monopoly.
The decision OF the Attorney General will not
be announced officially until later in the week
At the Department of Justice to-day it was said
that the announcement would probably be made
on Thursday, but that is because ii is the desire
of the Attorney General to make his decision
public at the same time that he files the Pc
tition
1t has further been decided that c-irlinal ac-
ton will not he brought against the Standard
despite the fact that such criminal action Is
authorized under Sections . and Of the same
act. This decision has been reached because II
is believed that the end which the government
has in view. the dissolution of the Standard OIL
Company. can be more certainly accomplished II
the entire energies of the prosecution are de-
voted to establishing the fact that the Standard
Is combination in restraint of trade" This
does not of course refer to the criminal pros
ecution of the Standard already instituted under
the Anti Rebate act
PROVISIONS OF ACT.
Section
act 10 protect trade and commerce against un-
lawful restraints and monopolies. reads as foi-
lows:
The several circuit courts Of the United
States are hereby invested with jurisdiction 10
prevent and restrain violations Of this act ana
it shall be the duty of the several district attor-
neys Of the United States in their respective
districts under the direction Of the Attorney
General 10 institute proceedings in equity 10
prevent and restrain such violations. Such pro-
ceedings may be by way OF petition setting
forth the case and praying that such violation
shall be enjoined otherwise prohibited Nheh
the parties complained of shall have been ouly
notified of such petition, the court shall pro-
ceed. as soon as may he, 70 the nearing ana
determination of the case; and pending such
petition and before final decree the court may
at any time make such temporary restraining
order or prohibition as shall be deemed just in
the premises"
In Section l Of this act is found the prohibit
ton against trusts, monopoles. etc. IN the 1ol-
lowing language:
Every contract combination in the form OF
trust or otherwise. or conspiracy in restraint OF
trade or commerce among the several states or
with foreign nations. is hereby declared 70 be
illegal"
Although no official at the Department OF Jus
tice would ADMIT to-day that the decision
reached by the Attorney General was ahsoluteiT
final II was admitted that it was as much so as
was possible in advance Of the official announce
nent.
EVIDENCE CAREFULLY SIFTED-
The mass OF evidence which has been secured
against the Standard has all been carefully
sfted and assorted, and il is the belief OF those
who have the prosecution in charge that COM
haa n
the effort 10 satisfy the court that the Standard
is combination in restraint OF trade II is ap-
nreciated Of course that even a decree of the
court r,7av prove 70 be only the initial battle in
o1a Of the longest and bitterest legal campaigns
which this government has ever waged. but the
proceedings will be closely analogous 20 those
followed in the Northern Securities case, and the
success which attended the efforts Of the govern
r7ent in that prosecution is regarded as insuring
ultimate success in this instance.
It is admitted that the owners Of the Northern
Securities Company have probably combined
their interests and in a measure accomplished
the same restraint of trade which they purposed
10 effect by the holding company, but il is as
serted that far greater difficulty attends the
process than would be the case had not the
holding company been dissolved by order of the
court. Without such holding company il is
in7possible TO prevent transfers OF stock, both
bv sale and by bequest, and in time such
transfers are likely to restore the railway COM
panies involved TO their normal status of COM
petitors. While any sort of written agreement
or contract would render the parties thereto
BILE to the penal provisions of the Sherman act.
MAY MAKE VERBAL AGREEMENT
Il is entirely possible that il the Stan
dard oil Company. as a holding company con-
trolling the stock and property Of the numerous
smaller companies which it now possesses. is
dissolved the owners of such stock and property
NAV effect some sort of verbal agreement
whereby their interests will be pooled. but the
onAration will be attended with far greater diff
cu1ty than at present. the community OF in
,Arest will be subject 70 the constant danger of
dtsruption and competition may ultimately be
restored
It seems probable, however. that the prosecu-
tion of the Standard, was the case with
the Northern Securities Company To a con-
siderabIv greater extent, will prove an argu-
nent for far greater control by the federal
government Of corpora tions doing an interstate
business and may make for the enactment of
legislation whereby corporations of a given mag
nitude desiring 70 enter into interstate COM
roerce will be required first 20 procure federal
license the issue cf which will he hedged about
with provisions calculated to prevent monopoly,
such licenses 10 be made forfetable Immediately
on evidence that such provisions have been
violated
nyy