The San Francisco call., 1908-12-24
.OUSTS THE OIL
| COMBINE FROM
| COMMONWEALTH
Missouri Supreme Court De-
cides Against Standard, Re-
public and Waters-Pierce
Decree Includes Fine of S5O,OOO
for Each Concern in Ille-
gal Combine Z
Hadley, Who Conducted Case,
Will Become the Governor
and Enforce Findings

JEFFERSON CITY, Mo, Dec. %
Declaring that the Standard oil COM
pany of Indiana, the Republic oil COM
pany of Ohio and the Waters-Pierce oil
company of Missouri had conspred and
ness in this state, the supreme court
of Missouri today issued a decree GUST
ing all three from the commonwealth
and fning them $4,000 each.
The decree against the Waters
Pierce company is tempered by the
ness if by January Is, 1909, it can
show to the court that it has taken
steps to operate as an independent
concern and has satisfied the judg-
ment against it. The other companies
are given until March l, 1909. to wind
up their affairs in the state.
The decision, which was unanimous
on the part of the seven judges. is SO
sweeping that Attorney General Had
lye and Governor Folk hail it as the
end of illegal commercial combina-
tions in Missouri, and the former as
serts that. in conjunction with the
decision of the supreme court of the
United States in the tobacco case. it
will affect similar suits in ctner states.
Attorney General Hadley, who has
prosecuted the Missouri case since its
inception in March, 1905, will become
governor in less than a month, and
then will be charged with the enforce
ment of the decree ISSUED today.
COMPROMISE REFUSED
The attorney general followed up
the PRONUNCIATION of the decree of the
court with a statement in which he
asserted that attempts had been made
to compromise the suit. He said:
At least three efforts have been made by
attorneys for the oil companies to get me TO
compromise the cases / invariably told
them that the ultimate decision must be
made by the courts. and refused their offers.
1t was intimated TO me that the oil COM
pauies we're willing TO accept good large
hne and concede a victory to the state. The
propositions were never reduced TO details,
but they were entirely Legitimate and such
as might be made in any other form of
litigation.
In coming to its decision the court
says:
of are permitted to continue untrammeied
ii would be only question of time until
they would sap the strength and patriotism
from the very foundations of govern
ment. overturn the republic, destroy our
free institutions and substitute in lieu there
of some other form of government.
TACTICS OF THE COMBINE
In explaining how these wrongful
acts were consummated the decision
says:
prc for fla Of
pecally refined oils. Illuminating oil and
gasoline, are fixed by the Waters Pierce
company. 1t sends out 10 the trade card
quotations. giving tank, wagon and barrel
prices. AS rule those prices are followed
dependent companies. doing business in this
state As long the independent COM
panieS do not reduce prices increase the
aggregate amount of their sales above 10 or
Is per cent of the entire sales made In the
state, there is no war made upon thep re-
dent company reduces prices below those
fixed By the Waters Pierce company, or
whenever their aggregate sales exceed Is per
cent of all sales made in the state, vigorous
warfare is waged against them, chiefly
through the Republic company, by means of
an elaborate system of espionage on their
business and by cutting prices giving
bates until the independents are glad to
throw up their hands and say enough and
be content TO sell oil at the prices and in
the quantities prescribed by the Waters
Pierce company and acquicsced in by the
Indiana and Republic companies.
MONOPOLIZES OIL TRADE
And as a result of this method the Wat
ers-Pierce company fixes the prices for which
all such oils sold In the state by all
dealers, including the independent companies.
and at the same time and by the means
IL controls and monopolizes for itself and
the Indiana and Republic oil companies from
IS to 95 per cent of the entire oil business
OF the state.
The common interest running through all OF
these companies is responsible for their for
nation and business schemes and policies
and leads up to and induces the Standard
in this including the respondents, to divide
tbe state in tw ain; to furnish oil and trans
portation for each other; to decline to sell
10 or to transport oils for the independents.
and TO fight them with the Republic company
by a system of espionage and rebates.
The direct effect of those rates, which
arc not seriously disputed, was to create by
indirection pool. trust and combination
tafn prjces at which respondents sold the
products of petroleum in this state.
RoCKEFELLER EvADED SERVICE
The states custer suit against the
Standard. Republic and Waters Pierce