Omaha daily bee., 1908-12-24
OIL COMBINE OUSTED'
State of Missouri W. Against
Rockefeller Cor :.
DECREE OF COURT IS r. NOUS
Standard Of Indiana, Wa - rec
and Republic Companies
GREAT VICTORY FOR HADLEY
Attorney General Who Prosecuted
Cases Will Enforce Order.
MONOPOLY ALMOST COMPLETE
MONOPOLY ALMOST COMPLETE
Three Companies DO EiEhty-Five Per
Cent OF OIL Business in state
and Fix Prices for the
independents.

independents.
JEFFERSON CITY Mo-, Dec. 23.-De-
claring that the Standard Oil company Of
Indiana the Republic OIL company of Ohio
and the waters-Plerce oil company Of
Missouri had conspired and combined TO
monopolize the oil business In this state,
the supreme court Of Missouri today issued
a decree ousting all three from the COM
monwealth and filming them $4,000 each
The decree against the waters-Pierce
company is tempered by the proviso that
81 may continue In business II by January
15. 1909, II can show to the court that II
has taken steps to operate as an inde-
pendent concern and has satisfied tho judg-
ment against II. The other companies are
given until March 1, 1909. to wind up their
affairs in the state.
The decision. which was unanimous on
the part OF the seven judges, is so sweep
ing that Attorney General Hadley and
Governor Folk hail 1t as the end of the
illegal commercial combinations in Missouri
and the former asserts that, In contunc-
tion with the decision of the supreme court
of the United States in the Tobacco trust
case. 1t win affect similar suits in other
states.
Attorney General Hadley, who has prose-
cuted the Missouri case since its inception
in March. 1906. will become governor in less
than month and then will be charged
with the enforcement of the decree issued
today.
The attorney general followed up the
PRONUNCIATION by the court with a state
fnent in which he asserted that attempts
had been made TO compromise the suit.
AT least three efforts have been made by
attorneys for the oil companies to get me
to compromise the cases." he said 'T in
variably told them that the ultimate decis-
ion must be made by the courts and refused
their offers. 1t was intimsted to me that
tho oil companies were willing to accept
q good. large fine and concede a victory to
the state. The propositions were not ever
reduced to details, but they were entirely
legitimate and such as might be made in
any other form Of litigation"
FindipE OF the Court.
In coming TO its decision the court says:
IF such abuses as those complained OF
are permitted 70 continue untrammelled, II
would be only question of time until they
would sap the strength and patriotism from
the very foundations of our government.
overturn the republic, destroy our free in
stitutions and substitute, In lieu thereof,
some other form of government"
The principal indictments against the
companies are:
THAT they have created and become
members of a pool, trust. agreement. con-
federation, combination, arrangement and
understanding among themselves for the
following purposes:
First to regulate. fix and control the
ri
others In the state of Missouri for the re-
fined products OF petroleum sold and Of
fered for sale In this state.
Second, to control and limit the trade in
refined products OF petroleum in this state
Third, to control limit and prevent COM
petition in -hf business of buying and sell
Ing refined products OF petroleum in this
state between themselves and others en-.
gagged IN like business, and,
Fourth. to rpislead the public into IN,
belief that they were separate and distinc
corporations and pursuing an independen
business as legitimate competitors in tn,
purchase and sale OF the products Of pc
troleum."
Monopoly Almost Complete.
In explaining how these were consum
mated the decision says:
especially refined oils. Illuminating an
gasoline are fixed by the waters-Pierc
company. II sends out to the trade car
quotations giving tank. wagon and barre
prices. As rule, those prices are followe
by all other oil companies. including tn
Independent companies doing business 4
this state. AS long as THE independen
companies do not reduce prices or increas
the aggregate amount OF their sales abov
10 to Is per cent OF the entire amount @
the sales made in the state, there is n
war made upon them regarding prices Bu
whenever any Independent company reduce
prices below those fixed by waters-Pierc
or whenever their aggregate sales exceed
10 per cent OF all sales made in the stat,
a vigorous warfare is waged against then
chiefly through the Republic company b
means of an elaborate system Of espionas
OF their business and cutting prices or ri,
ing rebates until the independents al
glad to throw up their hands and sa
enough" and be eontented TO sell oil Z
the prices and quantities prescribed by h
waters-Pieree company and acquiesced
by the Indiana and Republic company.
And as a result of this method tn
Waters-Pieroe company fixes the prices fC
which all such oils are sold in the stat
by all dealers including the independeI
companies, and at the same time and /
the same means it controls and monop'
Lies for itself and the Indiana and Repul
lie on companies from S to s. per cent
= the entire oil business OF the state.
Division OF Territory.
The common interest running throus
an Of these companies is responsible I,
their formation and business as sehem,
and policies and lead up to and induce Il
Standard interest, including the respon,
ents to divide the state In twain; 90 furnls
oil ana transportation for each other;
decline TO sell TO or to transport oils I,
the independents and to fight the
through the Republic company by a sy
tenn OF espionage and rebates
The direct effect OF those facts whi,
are not seriously disputed, was to crea
~ HdireotiOn. pool. trust and combin
ton I'm restraint OF trade, ane 10 fix Al
scontinued on Third Page)