New-York tribune., 1906-10-22
BAD FOR ALL TRUSTS.
STANDARD OIL VERDICT.
Significance of Judgment Just
Rendered in Ohio Court.
rrrcu, rbe 1r1buu. sur.,u,

washington, Oct. 21.-The verdict NJ guilty
brought against the Standard Oil COMPANY OF
Ohio is regarded by the federal officials charged
with the prosecution Of the Standard as a
great moral victory. directly for the state Of
Ohio. indirectly for the federal government
The prosecution of the Standard for which the
Department OF Justice is preparing, will he
based on the lines as the successful
prosecution in Ohio. The Valentine law under
which the Standard has Just been found guilty
Of conspiracy In restraint of trade. is closely
analogous to the Sherman antitrust law, and
while the verdict Just brought IN serves only
70 record the view Of one court. and one Jury
that the Standard is guilty and the law ef-
fective, such a record in itself constitutes d
great victory. Only a few months ago the
attorneys for the Standard were ridiculing the
idea that the trust could be convicted under
either the valentine the Sherman law.
They maintained that the principle embodied
IN these laws was al least impractica ble and
that neither court nor jury could be found which
would sanction or bring in verdict OF guilty
under them.
When the Commissioner Of Corporations
James R Garfield. first undertook the investi-
CATION Of the Standard and its methods he
found that its law department had displayed
great ingenuity in fits schemes to defeat
the purpose OF the antitrust laws without spe-
cifcally violating the letter Of the statutes In
the preliminary report which Mr. Garfield made
70 the President he submitted a proposition
which he declared TO be a legal theorem, pos
sibly somewhat new, evidently unknown TO or
disregarded by the corporation lawyers, but
rot the less deInonstrable. This theorem was
in substance as follows:
Violation OF the purpose Of a statute, even
when accompanied by avoidance Of infrao-
ZION Of the specific prohibitions OF such statute.
constitutes guilt and merits all the penalties
provided for its violation, and the more ingen-
ious the methods employed TO defeat the pur-
pose Of the statute the greater the guilt
To the unerring common sense of the President
the Garfield theorem appealed with cornpell-
ing ring Of truth. The President submitted the
proposition 10 the Attorney General, and after
careful consideration. A1r. Moody declared II
sound reasoning. Aside from the prosecution
10 be based on violations of the anti-rebats
law, the case Of the government against the
Standard OH Company will rest on this propo-
s!ton.
the proposition came in the trial of the Standard
just closed in Ohio. The lower court by it's
rulings. has sustained the Garfield proposition
as urged by the state attorney. and, despite the
fact that the Standard Oil Company OF Ohio
had been transferred to the possession of the
standard OIL Company OF New Jersey, and so
claimed 10 have passed without the Jurisdiction
OF rhe Ohio courts, the court held that such
transfer 10 q holding company was merely q
device TO avoid the consequences OF its acts and
70 render possible the violation Of the Valentine
fOhio) antitrust act. and that therefore the
acts OF the company came within the jurisdic-
ton Of the state courts. and the Standard Com
pany Of Ohio could be held responsible because
OF its participation in a device for violation of
the law. The jury found the Standard guilty,
and the court viii impose e penalty consisting
OF q fine of from so 10 5000, which may be
repeated for each day Of the offence.
OF course, immediate appeal from the verdict
Of the lower court will be taken by the Standard.
The case may be reviewed by the Court Of Com
mon Pleas. by the Circuit Court and by the Su-
prerne Court, all Of which would take not less
Standard will deem il the part OF wisdom 70
continue its violation Of the law and thus incur
the liability Of an accrued penalty Of possibly
soPcO day for period perhaps aggregating
NO years-in addition TO the constant menace
o. being adJUdged guilty Of contempt of court
remains 70 be seen. but il ts regarded as doubt
heve that the attorneys for the Standard will
now he called upon 10 devise some method
OF defeating the purpose Of the law.
There is strong belief in administration cir
cles, shared in by the President and most of his
legal advisers. that the ultimate end of the trust
prosecutions must be a demonstration OF the
soundness OF the Presidents recomrnendatto
that corporations which have attained &. given
magnitude be required 70 procure a federal Ii
oense before engaging in interstate commerce,
such license 10 issue only after the applicant
has complied with certain prescribed conditions.
which shall include proof satisfactory 10 the
government that IL is not a combination in re-
believes that the difficulties attending the en-
foCcel1ent OF the antitrust law, as shown by
his efforts 70 bring TO bar those who are viola
ting Il in spirit If not In letter, and the in
genuty of the trusts in their efforts to evade the
purpose Of that law, will amply demonstrate TO
al intelligent and right minded citizens that
wisdom demands the application Of preventive
rather than corrective measures.
But while the President looks 10 the outcome
Indicated, he viii in way relax his efforts 10
punish violators Of the spirit as well as Of the
letter OS the law.