The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1909-04-15
STANDARDS PROFITS
NOT 50 ENORMOUS
When Large Investment Is Con.
sidered, Says Attorney
Milburn.

81 Louis, APR. 11.-AttOrncy Milburn,
q the Standards array OF law-
yers here in defense OF the govern
ment's now celebrated suit to have the
great corporation with its many milf
Ions OF capital, declared Illegal as
violator OF the Sherman act, yesterday
resumed his argument: commenced
fed Judges OF the United States circuit
court. sitting en- banc, are following the
noted lawyers address with marked
attention, blu do not hesitate to pro-
pound p~erplexing questions to him
when his meaning ID not quite clear to
them. Els nswer. however. is always
ready and apt.
This morning Mr.. Milburn devoted
several hours to replying to Special
Attorney General Frank B. Kellogga
charges that the Standard had earned
the enormous profit of over half a bill
lon dolalrs upon a capitalization Of
$97, $50. 900. This $780, 00. 900 Mr.. Kel-.
logg charges was both enormous and
unreasonable. That tho defendants
sonable profits, Mr.. Milburn denied at
the commencement of today's argu-
ment in no uncertain terms. That the
profits exceeded the sums paid u as
dividends. the attorney said was true.
but that such surplus had been used in
the extension Of and construction OF
othe properties.
Another statement wan that the value
Of the properties owned by the Stand
ard of New Jersey, which the govern
s97.25o.ooo. really possesses interests
worth not less thar 5000, 900, 900.
And" declared Mr.. Milburn. with
marked emphasis. 'the governments
theory for estimating profits, as set
forth in the petition, is unsound in law
ciples or the facts of human expert
ence. 1t is sven difficult to discuss
such a proposition with patience"
The attorney pointed out that the
ment's position was that 1t failed In any
way to recognize the enormous cumu-
lative effect OF compound interest.
Taking as a basic proposition that
the properties OF the Standard in 1889
were worth $4,000, 900, as testified to
by Mr.. Archbold, the attorney quoted
from a table to show that compounded
at Z per cent from 1882 to 1900, the
original 70.O80.O 900 would reach the
very comfortable amoun Of $355.065,-
6S6.74. Assuming that this 7 per cent
had been added to the capital. trrespec-
tive Of dividends. Mr. Milburn sug-
gested it might In a way explain the
rapid n apparently phenomenal
growth Of the Standards assets.
ITS but a matter OF q pencil, q bit
1t out-no lawyer is required" added
Mr.. Milburn.
Even taking the value of the prop.
critics of the defendant in 1882, $685.
10000 as claimed by the government
The attorney said compounded at s per
cent from 1882 to 1906 it grew to $685.
s71,000. which was but $6.12S,5 SS less
han the actual assets Of the latter year
rs shown by the accounts of the cor
poration.
Why" said he, eft we had never pur-
chased a gallon Of Oil. but loaned our
capital expedttiously and carefully. we
could have made as much, and re-
Ealing the high Interest rates Of that
period. probably more"
David L. Watson, Pittsburgs most
noted corporation lawyer, this morn
ing concluded his argument upon the
law for the defense. Mr.. Watson APP
peared as the governments counsel in
the now famous Northern Securities
Ease, and his argument Is credited with
having won that suit for the govern
ment.
Moritz Rosenthal, the Standards
taken the greater portion of the 9,OO0,-
800 words of evidence In the present
case, a recovered from his tempo-
rary ~indisposition and was early about
his hotel. Mr.. Rosenthal will take up
the argument Of the defense following
Lawyer Watson. Many expected that
the noted Chicago lawyer. who secured
The reversal of the governments $29,-
100000 case, would discuss, like Mr.,
Watson, the law In the case. When
asked this morning to which pol...h of
the suit he would address himself, Mr.,
Rosenthal replied that he would dis
cuss facts.
IT'S facts-facts." said he. that win
law GuifS"