The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-07-06

poration and make the redistribution.
but also to divest themselves of their
majority control. The execution Of such
decree. involving the distribution pro
rata OF The stocks of seventy corpora
lions among thousands of stockholders
would present a problem in high finance
worthy of the most distinguished talents
OF the Standard luminaries. and calcu-
lated 10 inspire a degree Of frenzy which
even the descriptive powers OF Tom"
Lawson could but family suggest.
Northern Securities Case.
In the case of the distribution Of
assets OF the Northern Securities Com.
pany only two subsidiary companies
were involved and even then the con-
iiicting interests were such that the
Hartman group held up the distribu
ton for a long time with a proceeding
TO test the method adopted by the man
agement Of the corporation. In that
case II was finally held that the Harri-
man interest. which had put into the
Northern Securities q big amount of
Northern Pacific. must furnish shares
OF both Northern Pacific and Great
Northern IN The proportion IN which
these were held by the Northern Sc
curities. This was a great victory m
Hill. because IL ended Harriman's /.st
chance TO get control OF the Nor<trn
Pacific
A IKE nletnO0 OF distribution OF stand
ard OIL holdings would mean that every
holder OF a share In the present New
Jersey corporation would have 70 be
provided. somehow, with his proper
seventy subsidiary corporations, ana
such minute scheme OF subdivision
would be practical impossibility.
Testimony in St. Louis.
II is stated that testimony in The
@
missioners for the circuit court at ST.
Louis. Washington, Chicago. and New
York, and probably at some other
places. When the testimony is all
taken In this fashion Il will be laid be-
fore the circuit court OF the eighth cir
cult for consideration and the argu-
ments Of the lawyers. II is expected
that considerably inside a year the case
can be submitted.
The seventy Subsidiary corporations
controlled by the Standard have several
hundred directors in many States and
some in England To determine eX-
actly the methods OF Standard control
( a great number OF these will be ex-
amined. along with the men of first
| cal1ser In the concern.
Situation in Texas.
4 One Of the most interesting facts
which will be followed out, concerns the
Standards method Of continuing bust
ness IN Texas after being judicially ex-
/ cluded from that State The Standard.
| IL appears. obeyed the courts decree.
/ The Security oil Company OF Texas
appeared In the field. Investigation de-
| veloped that the stock OF the Security
| Of Texas was owned by the London
/ Trading and Investment Company
/ every dollar Of the S3.Oo0.000 issue. The
I a lob
/ q time IL was great mystery, and the
/ investigators got a notion that maybe
I II was a general foreign holding com
/ pany for the whole Standard OIL Com
pany. But this was at length dispTOved,
and IL turned out that the stock of the
! London company was In turn owned BY
the Seaboard National Bank Of New
! York-a Standard on bank,
Waters-Pierce Case.
Another device employed 10 circum-
vent the Texas authorities was the
formation OF the copartnership OF II. G,
Folger and Henry n. Payne. both
] Standard OIL men OF the first rank. who
owned the Corsicana Refining Company
OF Texas, which conducted a big busi-
ness IN that state Finally, there was
| the Waters-Pierce Company OF Texas
which long anc strenuously denied It's
| connection with Standard and insisted
| that IL was an Independent. but which
has laterly admitted its control BY
! Standard Through these three con
Germs the antitrust laws and the court
decisions OF the I4cne Star State were
made TO look like about 80 cents q gal
Ion for kerosene.
| Whatever may be the outcome Of thC
prosecution OF the Standard. the indie
pendent oil people are submitting
| abundant testimonials TO the Standard
| improved morals and methods. Great
numbers OF letters have come 10 the
! case. telling o. the change IN Standard
as a result OF the great rebate prosecu-
lions anG also Of the beginning OF the
St Louis case.
Many Independent Refneries.
There are between sixty and sevent
independent rehneries in tho country
most of them very small. They almos
uniformly testify that since the Govern
ment gave a real scare TO Standard anS
TO the railroads, so that old methods be
came dangerous, they have been able q
do business in territory never befor,
open TO them. rate adjustments hav'
been more equitable. and tile old-um'
characteristic competitive methods b.
which the Standard drove opposition
from the field have been largely dropped
| There is great rejoicing among the indie
| pendents, and the testimony which the
are able TO give as 10 the changed cOndi
lions in the business since the prosecu
| lions began is expected TO BE- OF grea
Importance to the Government