Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1909-11-21
Finds Amalgamation of Subs :
Companies Violation of Law
THREE JUDGES ARE Z
Sanborn, Vandeventer and Hook Con-
cur in Opinion.
CASE FROM MISSOURI DISTRICT
Decision Declared to He One of the
Most Noteworthy I'm History of
United states-Appeal
VIII be Filled.

ST. PAUL, Mimi, Nov. 2O.-In an opln-
ion written by Judge Walter II. Sanborn
Of, St. Paul and concurred I'm by Judges
VAndeventer. Eook and Adams, with
special concurring opinion by Judge Hook,
the United States circuit court for the
eastern district Of Missouri today handed
down an opinion declaring the Standard
oil company of New Jersey an Illegal COM
blnaGion operating in restraint Of trade and
ordered its dissolution.
The opinion Of the court was filed
simultaneously in st. Louis and in ST.
Paul.
In this decision the government Of the
United States wins a sweeping victory and
according to Frank b. Kellogg Of this
city, who was the governments special
prosecuting officer, the government has
won every point for which It contended.
The case will be appealed direct to the
United states supreme court, as the judges
who signed todays decree are in effect
the judges Of the United States circuit
court of appeals, although they were sit
ting for the purpose of trying this case
as the circuit court for the eastern dis
trict of Missouri.
The decree Of the court dlssolvlng the
Standard OIL trust becomes effective in
thirty days when, no doubt, a stay will
be granted for the purpose of an appeal.
When the decree takes effect, unless a
stay is granted, injunction will issue
restraining the Standard oil company from
further continuance of its business un-
der its present formation.
Decree Is Sweeping.
It appears from the concurring opinion
written by Judge Hook that the company
cannot do business under any other form
with the object of sitting competition, for
he says on this subject that it is thought
that with the end Of the combination the
monopoly will naturally disappear, but
should 1t not do so and the members of
the combination retire from 1t, except one
who might perpetuate the monopoly by
the aggregation Of the physical properties
and instruinenta,ities, it would Constitute
violation of the decree of the court
In the trial Of the case the point was
made that the Standard OIL company was
a beneficent corporation in that IT, by
reason of economy in operation, reduced
the price of its product. This, Judge Hook
says, can have no weight.
The suit was begun by direction Of the
attorney general of the United States in
st. Louis, November Is, 1906. Frank d.
Kellogg of st. Paul was appointed special
prosecutor, assisted by Charles b. Nor
rison of Chicago, Frank II. Poole and ].
II. Graves Of the Department of Justice;
w II. Higgins of Minneapolis and c. A.
Severance OF st. Paul.
The Standard oil company presented a
formidable array of legal talent ed by
John G.. Milburn of New York Its defense
was that the present organization of the
Standard on corporation was the result
Of the natural growth Of a great industry
and that no statute had been violated.
Court IL Unanimous.
In an opinion written by Circuit Judge
w. H. Sanborn Of st. Paul, filed in St.
Louis and ST. Paul today, the United States
circuit court for the district of Missouri
held that the Standard Oil company of
New Jersey was an illegal corporation and
ordered that it be dissolved.
The case was heard in the United States
circuit court at st. Louis in April last by
Circuit Judges sanborn of St. Paul. Van
deventer of Cheyenne Hook of Leaven-
worth and Adams of st. Louis.
Judge Sanborn, the presiding Judge,
wrote the opinion and the decree, in which
all the judges concur and sent by them TO
Judge Adams at St. Louis, who filed them
and entered the decree in that city this
morning.
EnjOins Big OIL Combine.
It was brought to enjoin John d. Rockefel.
Ter, William Rockefeller Henry NJ. Flagler,
Henry H. Rogers, John d. Achbold, oliver
II. Payne, Charles NJ Pratt, the STANDARD
OIL Company Of New Jersey and about
seventy other corporations, from maintain
ing a combination and conspiracy in
restraint Of trade, to monopolize Interstate
and international commerce and the decree
ia,
ernment.
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