Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-11-21
STANDARD OIL
ORDERED To
DISSOLVE
COURT HOLDS COMPANY
Is ILLEGAL COMBINATION
Decision Sweeping Victory for.
Government; Will at Once be
Appealed Direct to Supreme
Court of United States,

80 q
opinion written by Judge Walter +
Sanborn of st. Paul, and oncurre i
by Judges Vandeventer. Hook an
Adams, with a special concurrin
opinion by Judge Hook, the Unite
States circuit court for the easter
district of Missouri today handle
down an opinion declaring that tn
Standard OIL company of New Jerse,
was an illegal combination operatin.
In restraint OF trade, and ordered it
dissolution.
In this decision the government o
the United States wins a sweeping vic
tory and, according to Frank b. KEEL
logg, of this city, who was the spe
ella prosecutor, the government hai
won every point for which it con
tended.
The decree filed by Judge Sanborl
is comprehensive and enjoins the
Standard company, its directors, of
ficers, agents, servants and employees
from voting any of the stock in any
of the subsidiary companies and from
exercising or attempting to exercise
Any control, direction, supervision or
influence over the of these
subsidiary companies by virtue of its
holding of their stock.
The subsidiary companies, their Of
Ulcers, directors. agents, servants and
employees are enjoined from declaring
or paying any dividends to the STAN
dard company on account of any of
the stock of the subsidiary companies
held by the Standard company, and
from permitting the latter to
vote any stock in or TO direct the
policy of the subsidiary companies, or
TO exercise any control whatsoever
over the corporate accounts of any of
the subsidiary companies by virtue OF
such stock, or by virtue of the power
over the subsidiary corporations ac-
quired by means of the Illegal combi-
nation by the use of liquidation GER
uficates.
The case will be appealed direct to
h United States supreme court, as
the judges who signed today's decree
are, in effect, the judges of the Unit
ed States circuit court of appeals, al
though they were sitting for the pur-
pose of trying this case as the circuit
court for the eastern district of Mis-
souri,.
The decree of the court dissoIving
h Standard Oil trust becomes effect
i've in thirty days, when no doubt a
stay will be granted for the purpose
of an appeal.
When the decree takes effect, I'M
less a stay is granted, an injunction
will be issued restraining the Standard
OIL company from a further cOntinu-
n of its business under its present
formation.
1t appears from the concurring
opinion written by Judge Hook h a
the company cannot do business I'M
der 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
will naturally disappear, but
should it not do so, II the members
the combination retire from it, eX-
cept one who might ~perpetuate the
by the aggregation of the
properties and Instrumental
tiles, it would constitute a violation
of the decree of the court.
In the trial of the case the point
was made that the standard oil com |
was a beneficent corporation in
it, by reason of economy in OPP
reduced the price of its prod |
net. This, Judge Hook says, can have |
weight. !
The suit was begun by direction of
federal attorney general in ST. |
November Is, 1906. Frank b. |
Kellogg of st. Paul was appointed
special prosecutor, assisted by Charles
[. I1Sofl VI 1iltdSpt IL 1
Poole and j. II. Graves of the depart
nent of Justice; w. H.. Higgins of
and c. A. Severance OF
81. Paul.
The Standard Oil company present.
ID a formidable array of legal talent
ed by John G. Milburn of New York.
defense was that the present
of the standard on
corporation was the result of the nat
jral growth of a great industry and
hat no state law had been violated.
The acts of the defendants prior
o July ., 1890. did not violate the
act because ii was not then
n existence. Whether or not their
Transactions constituted a violation OF
he m law is a questiin much
discussed m which it Is unnecessary
o determine in this case. However,
hat may be the acts of the defend
ints and the effect if their transac-
ions in the conduct of the oil trade
prior to July 2, 1880. which. If done
hereafter would have constituted a
collation. of the Law of that date, are
and material evidence OF
he dominant purpose and the prob
ible effect of their similar transac-
ions in that business since hat date
md for that purpose they may be
considered.
<tdNtst ool VI = ~ i
defendants prior to July 2, 1890. ex- |
as evidence of their purpose, OF
heir continuing conduct and its ef-
'ect. do the stockholding trust of 1893
md its continuing operation, const-
ute an Illegal restraint OF interstate
Or international commerce in viola ,
lion of the antitrust act of 1907
THE purpose of this statute was TO |
keep the rates of transportation ana |
prices of articles in interstate ana
commerce open 10 Tree
competition. Any combination OF
two or more parties whereby the con-
of such rates or prices is taken
from separate competitors in that
trade and vested in a person. or as
ISOLATION OF persons necessarily re-
stricts competition and restraints that
commerce."
The court here cites a long list OF
decisions bearing on the formation OF
by competing corpora
ton Of an association to determine
their rates of transportation. IL on
In the construction and enforce
ment of this statute corporations are
BY the trust OF 1899 more
than thirty corporations were COM