New-York tribune., 1909-11-21

other countrfeS
ORGANIZATION OF TRUST.
The court here refers 90 the trust
formed i'm 1882 TO tho effect that all the
stock they owned IN tho STANDARD oil
Company of ohio and I'm al other cor
poranons and limited partnerships en-
gagged in the oil business were conveyed
- nine trustees during their lives and
the lfc OF the SURVIVOR Of them and for
twenty years thereafter. unless the
trust was sooner dissolved by vote Of the
shareholders" The opinion says:
six OF the indfy dual defendants were six
~ the nine trustees aud these trustees
issued Ger the stocks the title 20 which
Wa thus conveyed 10 them trust certih-
tween lSs2 ana March II 1872. additional
Ccrrincates OF the par value a 5000, 50
fhst on the latter day there were outstand-
iRg certificates for s'2.sS shares ma the
trust
pho method OF division and distribu-
tion % these stocks adopted by the trus-
sees is described. and the court con-
finues.
Rut fhe receipt by the assignee Of his
Ehsre 81 tne stock ~ any one OF these
companies was conditioned by the terms
~ tse assignment Epon his accepting his
share of the stock OF all Of them. This
method Of distribution appears % have
dsterrsd many 81 the holders of trust GER
fi6cstes from eurTendering them and ae-
oepiinz their shares of the stocks. The IN
more intimate associates surrendered their
trust certihcatss and took sufficient shares
~ the stocks 10 ssgressfe q majority or
fhe stock Of each OF the twenty compa-
niss sR1 ssClred 10 themselves the control
an0 management Of al the companies ln
ihst wsv Until the year lSse.
In wrer the Aafnn1grf- The Sf2wFHTd
Pn Company q New Jersey. = corporation.
vas enc u the twenty companies. The
psr value Of its capital stock vas $4,000
fsrs. lfs charter was then ameuds@ :, 50 that
~ Nas empowered 10 90 ali kinds OF min
inF. manufacturing. trading and trans
T9rfatlon business. 20 acquire. hold. vote,
sell and assign shares Of capital stock ana
80 cerrv on ifs business IN all parts of the
yerld lts cePItsl stock was Increased 10
reeen companies vas exchanged for the
stock Of ths STANDARD oil Company of New
jersey. 50 that tie latter company sue
oeeied 10 the lessl titie IS the majority Of
The stock OF tie nineteen companies. ana
THEREBY - the management ald control ot
those companies and OF 81 the companies
phich they controlled. Hencsforth IN this
discussion the Standard oil Company OF
cornpsRv nnd the COMPANIES u then snd
thereafter controlled Tie subsidiary COM
rsnies
CONTROLS oil INDUSTRY.
Between 1879 snd the fling % the hin N
fhis case I'm Foren1hcr. laS. the affairs -
fhf principal eompsnF sno ths subsldisry
companies have been msl.eged By the for
rner IS tbs business Of a single Iersoo.
subsidiary companies have come and gone
~ its bidding. but it still holds The con-
trol az more than thirty of tho chief c"n-
tanies whose mana cement was committed
50 n IN lse Tho psr value of The capital
stock ~ those companies In 1sS9 was about
sieoosoeoo In lsos n vas more than sio.-
trlEiu
prom fv1a 20 Iq17 the principal company
I'D - s>ltFr.aGr4oc
ated under the trust produced more thar
one-fcnth II the crude oh obtained IN this
tounfrr. Transported more than four-nfths
~ the pstrolelim derived q om the Penn
a. lyauis and Indiana oil fClds. manufact-
1fref more than three-fouTths Of all the
srude OH refined I'm tho United Stsies:
osn.l ana operated more thar one-haf e
81 the tank cars used 10 distribute is
product. marketed more Than four-hfths
of al the ilEmlatinG oil sold I'm the nited
states exported more than four-ffths If
ai the Illuminating OIL sent fofth from the
utcd States, sold NOR, than four-hfth hG
al al the naThtha sold in the nited states
aud soto more th=u uinc-teuths of all tie
Iutricafing on sold 20 railroad companies
iu the United States.
Tho principal company. hy means of this
ffuft and the commanding volume Of the
"l business which % acquired thereby Sc
cured ana has since exercised and Is
usinr the power 10 prevent competition he
tween tho companies ~ controls. TO fix Tor
fnen fne purchase price or The crude oil
the raios for us transportation ana the
selling prices % So products. n has pre-
reuted, and IS preventing, any competition
in interstate and International commerce IN
petroleum. spd its products between ITS
fubsidis,y companies ans letrssn those
companies snd Itself.
RESTRAINING COMMERCE.
The Cnited states charged in IT'S bin that
between 1888 snd 1872 the seven individual
defendants consplred 20 restrain inter
Ntatc and international commerce in pefro-
le'in ana ITS products: that they combined
With each other and with numerous cor
20 iatlons aud partnerships named and by
tho union 81 competing companies, by Ihe
trust of lsss, by the trust Of lss2, and by
tne formation snd operation Of the stock
holding truSt or 1904 they have restrained
and ale sun restraining that commerce.
Attention - challenged 10 the fact that
those defendants constitute 0Ily seven of
about Eve thousand stockholders of the
prlhelpal company ana only seven OF IT'S
rtteen directors. and that they own but
ifte more than one-third OF its stock.
and - iS COntended that DO adequate proof
has been presented mat they arc. or we're
m lslo. when The bin was Med, controlling
or directing the operations of Tho prin-
cipsl or subsidiary corporations or operat-
ing the stOckholcing trust Of 1SH.
But a. third OF the stock Of a great cor
among thousands ~ followers and seven
out az nfteell friendly directors. may con-
fi0n. anc evidence in this case too Nolum-
iuous for recitation or review has con-
WINGED inst prior 10 1873 these seven de-
fencsnts combined 10 secure and obtained
me control of companies competing in
Interstate commerce IN OH aud suppressed
their competition. that they caused the
fgrma ton and execution Of tho trusts II
lGse spd 1877. that they directed and fol-
lowed that unique method OF distributing
she stock held ln the latter trust. by which
sf Was not distributed 10 tho ma ioritv OF
TIE stockholders for many years after
1882. "a nlie they and their associates held
ne control OF II and - the corporations
ii commanded: that they caused the stock
holding trust of IsSs. and that by means
of that truEt they stil hold the actual
control and direction of thu STANDARD
Company and OF its subsidiary corporations,
md thGt since 1893 they have been and still
ere engaged IN carrying into eject and eX-
Ths acts OF these and other defendants
prior 40 July . 1850. did not violate the
snt-trust act Of that year because Il was
not then in existence. Whether or not
their transactions constituted a violation
- TIE common law h. a question much dis
cusscd, nEt q 81 unnecessary 20 determine
IN this case. However that may be. tho
s.ts of tbc defendants aud the effect 81
fheir Transactions ia The conduct OF tho oil
fraoe prior 10 July .. Iss1. which, n done
Hereafter. would have constituted viola
and material evidence u the dominant
purpose and the probable effect 81 their
similar transactions In that business since
faaf date. snd for that purpose they may
.c considered.
PURPoSE or THE LAW.
TIE court here cites a long list Of de-
cisions bearing on the formation or
naintenance by competing corporations
81 or association 20 determine their rates
~ transportation" naming corporations
declared illegal by this Law. and con-