Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1909-11-25

mercial clause OF the constitution to
regulate and restrict the use of COM
rcerce among the several states and
with foreign nations of contracts, of
the method of holding title to property
and oil every other instrumentality 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 2, 1890,
| 26 stat. 209
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
stifle or directly and substantially to
| restrict free competition in commerce
| among the states or with foreign ma
tions it is illegal within the meaning
| of that statute.
'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
power should be exercised and the
| presumtion is that it will be-
| Many Firms Knit Together.
"The combination in 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.
'In 1899 the stockholders of the
Il
owned majority of the stock of 19
other corporations in the same proper
tions 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
! OF Of
ing, buying, refining, transporting and
selling petroleum and its products and
they were conducting about 80 per
cent of the production of the crude
oil and more than IS per cent. of the
business of purchasing, refining, trans
porting and selling petroleum and its
products in this country. Many OF
them were engaged in commerce in
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.
"In 1879 they and their associates
caused all the trustees to convey their
interests in the stock, property ano
: business of all these corporations tC
five trustees to be held, operated and
: distributed by them for the stockhold
ers of the Standard Company Of Ohio
r From 1879 until 1892 they prevented
, these corporations and others engaged
J in this business, where they secured
control, from competing in this com
} merce by causing the control OF thell
r operations and generally of a majority
of their stocks, to be held in trust fol
| SOAAA
!, pany of Ohio, and from 1892 until 1895
. they accomplished the same result BY
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 it's stock, sc
: that the latter company thereby &C
ol1ired the legal title to a majority o.
the stock Of each of the 10 companies
the control OF these companies and o.
all the companies which they con
trolled and the power to fix the rates
of transportation, the purchase ano
selling prices of petroleum and Its
products, which all these corporations
should pay and receive in the conduc
: of their business in commerce among
the states and with foreign nations.
"Since that exchange of stock the
seven individual defendants have beer
: and are stockholders and officers o
the Standard Company of New Jersey
which has exercised and is still using
that power, and by its use 1t has pre-
: vented and is still preventing competi
ton in commerce among the states
and with foreign nations among these
corporations.
Branded "Conspracy."