The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1909-11-26


mercial clause of the constitution to
regulate and. restrict the use of COM
merce among the several states and
with foreign nations of contracts, of
the method of holding title to property
and of every other fundamentally EN-"
ployed in that commerce so far as it
may be necessary to do in order to
prevent the restraint thereof denounc-
ed by the antitrust act of July z, 1890,
26 stat. 2O9.
The test Of the legality Of a COM
bination under this act is it's necessary
effect upon competition in commerce
among the states or with foreign ma
lions.
IF its necessary effect is only Incl
dentally or indirectly to restrict that
competition while its chief result is to
foster the trade and increase the bust
ness of those who make and operate it,
it does not violate that law.
But if it's necessary effect is to
stifie or directly and substantially to
restrict free competition in commerce
among the states or with foreign Ma
tons it is illegal within the meaning
of that statute.
1.-The power to restrict competition
in commerce among the several states
or with foreign nations vested in a
person or an association of persons by
a combination is indicative of the char
acter of the combination, because it is
to the interests of parties that such
a power should be exercised and the
presumtion is that it will be-
Many Firms Knit Together.
The combination in a single cor
poration or person by an exchange of
stock OF the power of many stockhold.
ers holding the same proportions re.
spectively of the majority of the stock
OF each of several corporations engag,
ed in commerce in the same article
among the states, or with foreign ma
lions, to restrict competition therein,
renders the power thus vested in the
former greater, more easily exercised,
more durable and more effective than
that previously held by the stockhold-
ers, and it is Illegal
I'm 1899 the stockholders of the
Standard Oil Company of New Jersey
owned majority of the stock of 10
other corporations in the same proper
lions that they owned the stock of the
Standard Company and those 20 cor
porations controlled by the ownership
of the majority of their stock, or other
wise many other corporations. Each
of these corporations was engaged in
some part Of the business of produc-
ing, buying, refining, transporting and
selling petroleum and it's products and
they were conducting about 80 per
cent. of the production of the crude
oil and more than rs per cent. of the
business Of purchasing, refining, trans
porting and selling petroleum and its
products in this country. Many os
them were engaged in commerce iE
these articles, among the several
states and with foreign nations, and
were naturally competitive.
Competitors Disappeared.
During the 10 years prior to 1875
the seven individual defendants had
acquired control of many corporations,
partnerships and refineries that had
been competing in this business, had
placed the majority of the stock Of
those corporations and the interests in
property and business thus obtained in
various trustees to be held and oper-
ated by them for the stockholders Of
the Standard Oil Company, of Ohio,
one of the 10 companies in which the
individual defendants were principal
stockholders, and had thereby sup
pressed competition among these cor
porations and partnerships.
I'm 1879 they and their associates
caused all the trustees to convey theiE
interests in the stock, property an1
business of all these corporations to
five trustees to be held, operated and
distributed by them for the stockholdr
ers of the Standard Company Of Ohio.
From 1879 until 1892 they prevented
these corporations and others engaged
in this business, where they secured
control, from competing in this CON-
merce by causing the contrC. Of their
operations, and generally of a majority
the stockholders of the Standard COM
pany, of Ohio, and from 1892 until 1899
they accomplished the same result by
a similar stockholding device and by
the joint equitable ownership of the
majority of the stocks of the corpora
tons.
All Merged in 1899.
"In the year 1899 the seven individ-
ual defendants and their associates
caused the majority Of the stock Of
the 10 corporations to be transferred
to the Standard Oil Company of New
Jersey in exchange for its stock, SO
that the latter company thereby &C.
quired the legal title to a majority Of
the stock of each of the 19 companies,
the control of these companies and OF
all the companies which they con-
trolled and the power to fix the rates
of transportation, the purchase aud
selling prices of petroleum and liz
products, which all these corporations
should pay and receive in the conduct
of their business in commerce among
the states and with foreign nations.
"Since that exchange of stock the
seven individual defendants have been
and are stockholders and officers of
the Standard Company of New Jersey.
which has exercised and is still using
that power, and by it's use 1t mas pre-
vented and is still preventing competi-
ton in commerce among the States
and with foreign nations among these
corporations.
Branded "Conspiracy."
Held, the transaction constituted
a combination and conspiracy in re-
straint of and to monopcIze commerce
among the states and with foreign ma
tions in violation of sections an0 =
of the antitrust act of July T. 1890.