Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1909-11-20
NEW JERSEY COMPANY.

Of the majority OF the stocks OF tn,
corporations
NEW JERSEY COMPANY.
In the year 1899. the seven indiyid.
ual defendants and their associate.
caused the ma iority OF the stock OF the
10 corporations to be transferred 10 the
Standard OIL company Of New Jerse.
In exchange FOR its stock, 50 that the
later company thereby acquired the
legal title To majority u the stock
OF each OF the 10 compa MES the con
troll OF these companies and OF an tel
companies which they controlled and
the power to fix the rates OF trans
portation, the purchase and sclling
price OF petroleum and its products
which all these corporations should
pay and receive in the conduct OF their
business ia commerce among the states
and with foreign nations.
"Since that exchange OF stock the
seven individual defendants have been
aud are stockholders and officers OF the
| Standard company OF New Jersey
| which has exercised and Is still using
| that power. and by its use II has pre-
vented and is still preventing. compe-
tition in commerce among the states
and with foreign nations among the
corporations
HELD:
"The transaction constituted a COM
bination and conspiracy in restraint of,
/ and TO monopolize, commerce among
! the states and with foreign nations in
/ violation OF sections and Of the anti
| trust act Of July .. 1880, aud the gov
| eminent is entitled TO an injunction
against the further continuance and
| operation thereof"
THE DECREE.
! The decree enjoins the seven indivd-
ual defendants the STANDARD OH com
! pany and its subsidiary corporations.
| from continuing or carrying into effect
the illegal combination they have
formed and from entering into any Ike
| combination or conspiracy the effect
1 of whicsh will be 20 restrain Interstate
commerce in petroleum, or It's products,
or TO prolong the unla wful monopoly
of such commerce obtained by the de-
PENDANTS as stated in the decree, and
they are forbidden from engaging or
continuing in Interstate commerce un-
iii they discontinue their illegal combi-
nation
The decree takes effect 80 days from
the date OF It's iiling unless suspended
by an appeal TO the supreme court
JUDGE sANBoRN's OPINION.
Judge Sanborn i'm his opinion says:
MS - ~ sun niOQkil DA Auf 1lAlAfl
states to enjoan the Standard Oil COM
pany Of New Jersey. a corporation,
about 20 subsidiary corporations ana
seven individual defendants. from con-
tfnuing an Illegal combination in re-
straint Of commerce among the sew
eral states. IN the District Of Columbia,
in the territories and with foreign ma
tons in violation OF the Sherman anti
trust act Of July 1890. Is stat 2O9.
THE provisions Of that act pertinent
TO the issues in this case are
Section Every contract cOmbina-
ton In the form OF trust or Otherwise,
or conspiracy. I'm restraint Of trade or
commerce among the several states, or
with foreign nations is hereby declared
10 b. illegal.
section Every person who shall
monopolize or attempt to monopollze,
or combine or conspire With any other
person or persons 10 monopohzo any
part OF trade or commerce among the
several states, or With foreign nations,
shan be deemed guilty Of a INSIDE
meanor.
section 3-'The word person or per
sons. wherever used in this act shah be
deemed 10 include corporations and as
sociations'
WHAT DECISIONS ESTABLISH
Repeated decisions OF the purpose
and the meaning Of this act have
established by controlling authority
beyond doubt in this tribunal these
pertinent rules for its Interpretation
and application to the facts OF the
case. The test OF Legality Of contract
or combination under this act is its
direct and necessary effect upon
competition i'm Interstate or interna-
tional commerce. II the necessary ef-
feet of contract. com bination or
conspiracy is 10 stfhe. or directly and
Cu4ef "a "a ufrfa Or
ton In commerce among the states
or with foreign nations, IL Is q con-
tract. combination or conspiracy I'm
restraint OF that trade and Il violates
this law. The parties to Il are pre-
sumed 10 intend the inevitable result
Of their acts and neither their actual
intent nor the reasOnableness OF the
restraint imposed may withdraw IL
from the denunciatlOn OF the statute.
The exchange OF the stock or shares
In the ownership OF competitive organi-
cations engaged In interstate or inter-
national commerce Tor stock or share
ownership OF a single corporation. the
necessary effect OF which Is a direct
and substantial restriction of competi-
ton on that commerce constitutes
combination in restraint OF commerce
among the states OF with foreign ma
tons that Is declared Illegal BY this
law.
THE business OF the defendants Is
the production and the purchase OF
petroleum, It's storage. its transDorta-
ton from the producing wells 10 refin-
cries, the refining OF this oil and the
transportation and sale OF It's products
TO purchasers in this and other coun-
tries"
FORMATION OF COMPANY.
The court here inserts history Of the
formation OF the STANDARD OH company
beginning in 1866. when John d. Rookie
Teller owned a refinery In Cleveland, /
ohio, and later absorbed By It's sue
cessora IN 1870. the STANDARD on COM
pany or Ohio, with a capital OF 81. 000,-
900. The opinion continues:
Between the organization Of that
corporation in 1870 and April 5. 1873
Henry NJ. Rogers, John -. Archb0ld
oliver N. Payne and Charles NJ Pratt
associated themselves with Rockefeller
aud flagler and became stockholders in
this corporation ana these seven de-
PENDANTS ana their associates increased
It's number OF stockholders 10 81. lis
capital stock 10 S35O0.000. the value OF
its property 20 a much larger sum and
acquired for the stockholders OF that
corporation by the p-Tchaso OF prop
eriy conveyed directly 10 a. by the eN-
change of ~ stock for stock OF other
corporations and FOR interests IA part
ncrahips and by placing the Title 10
the business and property obtained la
new corporation organized 20 hold
them and then Yesting the title 20 n
individuals in trust Tor the stockholders
"a al ny