Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-12-24
SUPREME COURT
FREES MISSOURI
OF OIL OCTOPUS
THREE COMPANIES BRANDED
UNLAWFUL COMBINE
STANDARD, WATERs-PIERcE AND
REPUBLIC AREl oUsTED
Each Fined Fifty Thousand Dollars,
but One Concern Is Given Chance
to Remain if 1t Leaves
the Trust

JEFFERSON CITY, Mo, Dec. 3D.
Declaring that the Standard Oil
~ company of Indiana, the Republic
oil company of Ohio and the Waters
Pierce Oil company of Missouri had
conspired and combined to monopolize
the oil business in this state, the su-
preme court of Missouri issued de-
cree today ousting all three from the
commonwealth and fining them $50OOO
each.
The decree against the Waters
Pierce company is tempered by the
proviso that it may continue in busi-
ness If by January Is, 1909 it can show
to the court that it has taken steps TO
operate as an independent concern ana
has satisfied the judgment against II.
The other companies are given until
March /. 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
lev and Governor Folk hail 1t as the
end of the illegal commercial combina-
tions in Missouri, and the former as
serts that in conjunction with the de-
cision of the supreme court OF the
United States in the tobacco trust
case it will affect similar suits in other
states.
Attorney General Hadley, who has
prosecuted the Missouri case since its
inception in March, 1905, viii become
governor i'm less than a month, and
then will be charged with the enforce
ment of the decree issued today.
The attorney general followed up the
PRONUNCIATION of the decree by the
court with statement in which he as
serted that attempts had been made to
compromise the suit.
Attempt to Compromise
"At least three efforts have been
made by attorneys for the oil COM
panies to get me to compromise the
cases." he said.
Il invariably told them that the ul-
innate decision must be made by the
courts, and refused their offers
1T was intimated to me that the OIL
companies were willing to accept
good large fine and concede a victory 70
the state
THE propositions were never reduced
TO details. but they were entirely le-
gitimate and such as might be mace
in any other form of litigation.
In coming to its decision the court
says IF such a business as those
complained of is permitted to continue
untrammeled it would be only a ques-
ton of time until they would sap the
strength and patriotism from the very
foundations of our government over
turn the republic, destroy our free in
stitutions and substitute in lieu there's
of some other form of government.
The principal indictments against
the companies are:
THAT they have created and become
members Of a pool, trust, agreement,
confederation, combination, arrange
ment and understanding among theln-
selves for the following purposes;
First. to regulate, fix and control
the prices to be paid by retail dealers
and others in the state of Missouri for
the refined products of petroleum sold
and offered for sale in this state.
To Limit Trade
second. to control and limit the
trade in refined products of petroleum
in this state.
"Third, to control limit and prevent
competition in the business of buying
ana selling refined products of petro-
leum in this state between themselves
and others engaged in like business.
"Fourth to mislead the public into
the belief that they We're separate and
distinct corporations and pursuing an
independent business as legitimate
competitors in the purchase and sale
of products OF petroleum
In explaining how these wrongful
acts were consummated the decision
says:
prices for the products of petro-
leum, especially refined oils, illuminate
ing oil and gasoline, are fixed by the
Waters Pierce company. 1t sends out
to the trade card quotations, giving
tank, wagon and barrel prices.
LAS a rule, those prices are followed
bv all other oil companies. including
the Independent companies, doing busi-
ness in this state. As long as the in
dependent companies do not reduce
prices or 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
them regarding prices.
War on Competitors
"But whenever any Independent
company reduces prices below those
fixed by the Waters-Pierce company,
or whenever their aggregate sales ex-
ceed Is per cent of all sales made in
the state, vigorous warfare is waged
against them, chiefly through the Re-
public company, by means of an elab-
crate system of espionage IN their
business and by cutting prices or
giving rebates 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 pre-
scribed by the Waters-Pierce company
and acquiesced in by the Republic and
Indiana companies.
"And as a result of this tho Waters
| Pierce company fixes the price for
which all such oils are sold in the state
by all dealers, including the inde-
pendent companies. and at the same
time and by the same means It con-
trolls and monopolizes for itself and
the Indiana and Republic oil COM
panies from 85 to 95 per cent of the
! oil business of the state.
"The common interest running
through all of these companies is re-
sponsiblc for their formation and busi-
ness schemes and policies and leads un
to and induces them to divide the state
in twain; to furnish oil and Transports
tion for each other; to decline to sell to
or to transport oils for the indepen-
dents and to fight them with the Re-
Continued On Page rwo)