The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1909-11-20

opinion written Dy circuit JuuBe san
born of st. Paul, filed in st. Louis and
St. Paul today, the u. S. Circuit court
for the District of Missouri held the
Standard Oil company of New Jersey,
an illegal corporation and ordered
that IL be dissolved
The case was heard in the u. S. Cir
cult court at st. Louis in April 1909,
by Circuit Judges Sanborn. of St.
Paul; Vandevanter, OF Cheyenne:
Hook, of Leavenworth, and Adams of
st. Louis.
Sanborn, the presiding judge, wrote
the opinion and decree in which all
the judges concurred.
A Notable Case.
Suit was brought to enjoin John d.
Rockefeller, William Rockefeller, Hen
ry NJ. Flagler, Henry III. Rogers, John
u. Archibald, oliver III. Payne and
Charles NJ. Pratt, of the Standard Oil
company of New Jersey and about
seventy other corporations from main
tanning a combination and conspiracy
in restraint of trade to monopolize
Interstate and international commerce
and the decree grants the injunction
sought by the government.
The case is one of the most notable
in the history of the nation on ac-
count of the important Industrial and
legal questions and vast financial in
terests it involves.
What the Opinion Holds.
The opinion holds Congress ha
power under tho commercial clause OF
the constitution to regulate and re-
strict the use. in commerce among the
states and with foreign nations, of
contracts If the method of holding title
To property and of every other instru-
mentality employed In that commerce,
so far as 1t may be necessary to do so,
i'm order to prevent the restraint there
Of is denounced by the anti trust act
Of July 2, $780," and also declares ''the
test of legality of a combination under
this act is its necessary effect upon
competition i'm commerce among states
or with foreign nations"
The opinion continues: 'Tf its ne
cessary effect as only incidentally nr
indirectly. is to restrict that compe-
tition. while its chief result is to fos-
ter the trade and increase the business
of those who make and operate IT, Il
does not violate that law. But IN it's
necessary effect is to stine. or directly
and substantially to restrict free COM
petition in commerce among states or
with foreign nations. it is illegal with
In the meaning of that statute.
Dangerous Combination.
The power 10 restrict competition
In commerce among the states, or with
foreign nations. vested i'm n person ,r
an association of persons by combina-
tlon, is indicative of the character of
the combination, because IL is to the
interest of the parties that such pow
cr should he exercised, and the pre-
sumption is il will be.
Combination in a single corporation
or person by an exchange of stock Of
the power of many stockhC 'crs hold
ing the same proportions, r. pectively.
OF the majority of stock of each of
the several corporations engaged i'm
commerce i'm the same articles among
states or with foreign lions to re-
strict competition therein, renders
power thus vested in the former great
er, more easily exercised, more durable
and more effective than that previously
held by the stockholders and it is ille-
gal"
History Of Combination Reviewed.
Various steps taken to organize tho
standard oil combination are review
ed. Beginning with the control of the
le competing oil companies STANDARD
OIL gradually absorbed the others until
that corporation had absolute control
of the production and selling of oil,
limiting the production and debating
Of prices.
The decree enjoins the individual
defendants of the Standard Oil COM
lany and subsidiary corporations from
continuing or carrying into effect the
illegal combination they have formed
ana from entering into any like COM
blnation Of conspiracy the effect cf
which will be to restrain interstate
commerce in petroleum or its pro-
duets. or to prolong an unlawful mon
opoly of such commerce obtained by
'he DEFENDANTS as stated in the de-
cree, and they are forbidden from en-
gaging or continuing in interstate COM
merce until they discontinue their IL
legal combination.
Decree Effective in Month.
81. Louis, Nov. 2O.-The decree Of
dissolution in the Standard oil case
taxes effect in thirty days unless sus-
pended by an appeal to the Supreme
court Of the United States.
Comment Bv Wiokersham.
Leavenworth. Kas., Nov. 20.-"It Is
one OF the most important decisions
ever entered in this country. declared
Attorney General wickersham, who Is
mere when told by the Associated
fress OF the Standard OIL decision.
The decision of dissolution against
great corporation like that Of the
standard OH Is the utmost that could
oe imposed by law upon great mono
pohes' which has been the object OF