The Washington herald., 1906-11-16
MOODY SUES TO
BREAK OIL TRUST
coNrINuEp rRoM FIRgr PAaE.

CONTINUED FROM FIRST PAGE.
various agreements, for the purpose of
fixing the price Of crude oil, limiting the
production, and suppressing competition.
IL is alleged that the defendants were
enabled to monopolize the SAID COM
merce through enormous rebates paid by
the railroads to the Standard Oil Com
pany. Many of these contracts and
agreements are attacked.
Combine HOgged All business.
Here detailed account OF the legal
battle in Pennsylvania to oust these cor
porations from the State is given After
relating the settlement upon the agree
ment Of the Standard oil, and that the
railroad companies should make known
to the other shippers Of petroleum all
the rates of freight. and that they would
not receive any rebate or drawback that
the railway companies were not at lib
erty TO give TO the other shippers of pc
troieum. 1t is alleged that. by reason OF
| these enormous rebates, the individual
defendants and the Standard Oil Com
pany were enabled to monopolize and
control 80 per cent OF the business dur
ing this period
II is alleged that the individual defend
/
peFfeeting their association and conspir-
acy 10 restrain and monopoIize the trade
and TO eliminate and suppress the COM
petition between the various corporations
ana limited partnerships. entered into a
trust agreement, under which all Of the
stockholders Of thirteen OF these corpora
TONS and limited partnerships, and part
OF the stockholders OF twenty-six other
concerns, placed their stock IN the hands
OF nine trustees. Of which the individual
defendants We're the majority; and that
during this entire period, through said
stock ownership they controlled the busi-
ness and property Of these thirty-nine
corporations and limited partnerships, and
others thereafter acquired, and suppressed
all competition between them, and thus
monopolized the trade and commerce in
petroleum and its products.
Holding Company Formed.
The agreement was made on January 2,
1852, and two days later, on January 4, a
/ supplemental agreement was made by
the same parties.
All OF the individuals aforesaid trans
ferred their stock In the various corpora
tions TO the trustees; and the trustees IS
sued trustees certificates in exchange
The trustees, as provided by the agree
ment, also organized a Standard on Com
pany Of New York and one Of New Jersey.
70 which certain property OF individuals
and copartnerships was transferred. In
exchange for all these stocks and prop
critics there was issued IN January. 1882
S70,O00.009 Of trustees certificates in Sl0C
| shares.
Il Is alleged that from time 70 time
thereafter the trustees acquired additional
stocks of corporations engaged ia the
same business, and properties, and issued
additional certificates therefor and also
issued additional certificates for stock
dividends, so that at the time Of the fnal
dissolution Of said trust and the organ
ization of tGe Standard OIL Company (the
holding company IN 1899. there were Ss7,-
250000 of trust certificates Outstanding.
IL appears by the petition that the
thirty-nine corporations Ghe stock OF
which went into the said trust) were con-
solidated into twenty corporations the
stocks Of which were controlled by the
trustees, with an aggregate capital OF
Sl02. .2S3. 200. and with appraised assets. in
1892, OF Si21.6Sl, ,312.63.
Dodged Court Order.
In March. 1892, judgment was rendered
by the Supreme Court OF Chic, declaring
the trust agreement void as being in r.
straint Of trade and commerce. and mo
nopolizatio thereof. ThereupOn. on
March 2. 1892 the trust certificate holders
met in New York and resolved to dissolve
the trust. and appointed John D. Rocke-
feller Henry NJ. Flagler William Rookie
feller. John D. Archbold. Benjamin Brew
ster, Henry II. Rogers, Wesley n. Tilford
and o. 3. Jennings as liquidating trustees
the individual defendants being a ma
jority Of these trustees
The manner Of liquidation was not Ia
sell the property and divide the proceeds
among the certificate holders, nor to re-
turn TO each person individually the prop
erty placed in the trust, but all of the
stocks in each Of the companies We're di-
vided into portions in proportion to the
number OF trust certificate shares out
standing; so that Rockefeller and his as
sociates, after the pretended dissolution
continued 70 control all these corporations
in the same manner as before.
And il Is alleged that down to the or
ganization OF the holding company (the
Standard OIL Company of New Jersey,
in 1893 the same defendants continued &c
control ali of the separate corporations
engaged In the business, in the same man
ner as they had done before. made enor-
nous profits, and paid dividends to the
trust certificate holders. Notwithstanding
the decree Of the Supreme Court of Ohio
Now Comes the Real Trust.
It becomes necessary to adopt soma
other plan in order to continue the uni
form control over all OF these corpora
tions In January. 1899. they increased
the stock Of the Standard oil Company OF
New Jersey from S10,O0o00O to SIlO 600, 600
and made it the holding corporation. and
placed the control through stock owner
ship of all these corporations previously
held by the trustees into the company
and exchanged its stock for the stock SC
acquired share for share. issuing there
for so, 600 par v3lue-the exact amount
Of the trust certificates previously issued
by the trustees.
By this plan the individual defendants
sought to perpetuate. through the hold
ing company, their control of all OF these
corporations engaged in piping manufac-
turing, shipping. and selling petroleum
and its products throughout the United
States, and controlled more than ninety
per cent of all the business.
The stock of this company was increa sed
by small amount, and is now SIS, 33S 300
Controls Seventy Corporations.
From 1929 to the present time the indi-
vidual defendants have owned and con-
trOlled the majority Of the stock of the
Standard Oil Company of New jersey
and in furtherance Of the conspiracy they
have purchased or acquired in the name
of said Standard oil Company. or in the
names of individuals or corporations TO be
held for the benefit of the Standard Oi
Company. the stocks of various corpora
tiOns and limited partnerships organized
under the laws of various States and en-.