Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-04-06
In Suit to Dissolve the
Standard Oil Co.
After Two Years Spent In the
Taking Of Evidence.
Claims the Oil Trust Is still Acting
In Restraint Of Trade,

st. Louis, Mo-. April 5.-The govern
| nent Monday filed in the circuit court
of the United States for the eastern
division of the eastern judicial district
of Missouri. it's brief in the case Of the
United States against the Standard OIL
Co. OF New Jersey. by which It Is
| sought to dissolve that corporation. In
this brief the history of the company
from its inception to the present time
Is reviewed and the declaration Is
made that the testimony shows that
the various defendants have from tho
first pursued a system Of unfair COM
petition against their competitors,
! whereby the Independent companies
selling and marketing petroleum have
either been driven out of business or
their huciness So restricted that the
Standard Oil has practically controlled
the prices, and monopolized the COM
merce in the products of petroleum In
the United States. This system, 1t Is
colltcndcd. has taken the form of price
cutting in various localities. while
keeping rp high prices or raising them
still higher in other localities where no
competition exists; Of paying rebates
to customers as a part of their system
OF price cutting; of obtaining secret in
formation as to competitive business,
largely through bribing railway en-
playes. and using their secret informa-
ton to procure the countermanding OF
orders of independent producers, and
to facilitate the price cutting policy:
Of the use of so-called independent
companies. that is, companies held out
by the STANDARD Oil as independent
which are engaged in price cutting.
while the Standard OH Co. maintains
the price through it's well-known COM
panies and other abusive competitive
methods against the competitors
The Standard Oil Co.. the brief al
leges, is particularly able to carry on
predatory competition for the reason
that it does not sell its product at GEN.
trail markets or through ordinary chan
nels, as most other ordinary manufac-
turers. It markets its products to the
retailer in every village and commu-
nifty in the United States and it sells
directly to the consumers. 1t does from
65 to 80 per cent. of the business Of the
United States. leaving about 10 to Is
per cent for all its competitors. It is
also held that the testimony taken In
the Standard Oil prosecutions shows
in which it owns a majority of stock
(thc Galena Signal Oil Coz also con-
trols about 971s per cent. of the lubri-
cation of railroads throughout the
United States. and that 1t sells to most
railroads at enormous profits Thos Is
evidenced by the net earnings Of the
company which in 1906 were about liz
per cent. on the capital stock actually
ctN on q h.
eyal valuation of the capital used. 1t Is
also shown by the further fact that the
prices to these railroads are substan-
TALLY double the prices charged to q
few favored lines, notably the Pennsyl-
vanla For instance, the brief says, the
New York Central Railroad tor 10
years has paid about 100 per cent per
gallon more than the Pennsylvania. 1t
Is also stated that wherever the Stand
ard can do so. it has made contracts
whereby it has either marketed a part
or all Of the product Of the indepond-
emit refinories, or has limited the out
put Of the same. .-ls A.
| One Of the evidences Of the monopoly
Of the defendants, 1t is charged. is It's
enormous earnings. These earnings
are summarized as follows: The STAN
|
| Co. on an investment Of SOS, 024, $50 had
earned up to the end OF 1906 $S3S7S5.-
7s3. Aiding the estimated profits OF
1907 and 1908, we have substantially,
the brief states, a billion dollars earn
| ed by this company in q years with
an original investment of about 89.000.-
! 600
Further of the brief says:
| 1T has usually been claimed for large
corporations in this country that they
have increased business and decreased
| the cost to the consumer. but In the
case of the Standard Oil Co. 1t has
during 10 or Is years actually increas-
ed the price to the retailer. and this
a good deal more than the prices OF
other products throughout the country.
although the price Of its raw material
and cost Of manufacture and sale dur
ing these years has increased very
little, If any"
It is stated that during the years
from 1874 to 1872 the Standard Obtained
control of practically all Of the pipe
lines then existing and brought them
together under the control Of the Ma.
tional Transit Co, and ever since II
has sought to prevent or destroy com,
petition In pipe line business. 1t first
sought to control the Tidewater Pipe
Co., then the only pipe line to the sea.
board and succeeded in getting ar
agreement with that company for d.
vision of the business. s
Through this and other agreement.
with other companies. and. purchases
the Standard, it Is alleged, has at ths
present time control Of about 95 pei
cent. Of the transportation Of crud.
oil to the Atlantic seaboard, which b,
reason Of the large percentage OF oil
exported, gives it tremendous advan
tage. Recognizing the Importance IL
the Standard of railway transportation
it's officials and their associates dur
ing the last 10 years, it Is said, thaYt
been directors in many Of the leadinf
railroad systems Of the United States
For instance. the Standard interest.
have in the Chicago, Milwaukee & st
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