The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-04-07
The Case Against Standard Oil.

The Sherman antitrust law is put to
an extreme test OF efficacy in the Federal
proceedings against the Standard OIL
Company. which have at last reached
the stage Of argument in open court As
the government attorney. Mr.. Kellogg,
AYERS. the Sherman law has no meaning
at all II il was not intended TO prevent
just such a combination as the Standard.
It controls 50 10 % per cent OF the bust
ness OF refining and distributing oil, and
in various sections OF the country en-
Joys a complete monopoly. II levies toll
upon the railroads by compelling them
to pay high prices for their lubricating
oil. and forces them to grant it special
privileges in transportation OF its prod
ucts. It has steadily increased the price
Of its products where It was possible
10 do so, or has, by underseIling, forced
its competitors either TO go out Of bust
ness or 10 conduct themselves so as not
20 interfere with the Standards bust
ness. Since the original formation Of the
trust its total profits have been a billion
dollars upon an initial capitalization OF
less than 100000. It's present capitali-
zation is but S97.25O.OOO. upon which the
average yearly earnings for a period OF
ten years have been nearly $50.000.OO0.
These are the allegations Of the brief
and the argument presented by the gov
ayrr,e,+-e cbfae ,c,,,-or c.;..-s,-- -
sertions have been heard for the past
twenty years or more respecting the con-
duct Of the Standards affairs. The re-
Spouse Of its apologists has been that
its business is carried on in accordance
with the existing code Of commercial
morality; that it does nothing but what
is done every day by merchants and
manufacturers Of unimpeachable eharac-
ter, and that its only offense is that il
does business upon a vast scale. permit
ting enormous profits by reason Of skill
ful management and the economy OF
manufacture and distribution. Yet all
these considerations count for nothing
II the Standard is IN any way monopoly.
II ii has suppressed competition by fair
means or foul or If its operations tend to
hamper that freedom Of trade and COM
merce which the law is intended TO pre-
serve. In the recently decided case Of
the government against the tobacco
trust fl was virtually decided that good
behavior on tie part Of a combination
was no defense against allegations that
the trust had bought out competing con-
Germs. and SO had restrained competi-
ton How much worse appears the case
Of the Standard, which is not only mo-
nopolistic. but has a long list OF com
merCial crimes to its discredlt2
An interesting incident OF the present
proceedings is the citation OF President
Taft's decision. when a Federal Judge
against the AddystOn Pipe and Steel
Company. The gist Of that decision was
that the regulation OF output and the
prices at which it should be sold con-
stituted a violation Of the antitrust law.
That doctrine would at once convict the
Standard Oil Company. as it would a
great many other concerns which have
not yet been indicted for violation Of the
antitrust law Indeed It is difficult 10
see how any other outcome than a Ia
vorable judgment for the government can
be expected in the present case. in view
OF the presidents, and especially in
view Of their application in the tobacco
trust suit