Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1909-11-20

WI ~ WV GOs--lI - dutnOTitd-
lively stated an appeal will be taken
from the ST. Paul decision of the
Standard Oil case to the United States
supreme court.
ST. Paul, Nov. 2o.-In an opinion
written by Circuit Judge Sanborn of
St. Paul filed in ST. Louis and ST. Paul
today the United States circuit court
for the district of Missouri held the
Standard Oil company of New Jersey
an illegal corporation and ordered
that Il be dissolved.
Heard Last April
The case was heard in the United
States circuit court at st. Louis IN
April, 1909, by Circuit Judges Sanborn
Of st. Paul. Vandeventer of Cheyenne,
Hook of Leavenworth and Adams Of
st. Louis. Sanborn, the presiding
Judge, wrote the opinion and the de-
cree in which all the judges concur
and sent them, with the concurring
opinion of Hook, 70 Adams at st.
Louis, who filed them and entered the
decree in that city this morning.
---- Suit to EnJOin.
Suit was brought to enjoin John >.
Rockefeller, William Rockefeller,
Henry NJ. F7agler, Henry H. Rogers,
John D. Archbold, Oliver H. Payne,
Charles NJ Pratt. the Standard OIL
company of New Jersey and about 20
other corporations from maintaining
a combination and conspiracy in re-
straint of trade to monopolize inter
state and International commerce and
the decree grants the Injunction
sought by the government.
One of Most Important Ever Decided.
The case is one of the most notable
of the important industrial and legal
questions and the vast financial In
terests 1t involves.
Congress Has Power.
The opinion holds that congress
has the power under the commercial
clauses of the constitution to regulate
and restrict the use in commerce
among the states and with foreign ma
tions of contracts, Of the method of
holding title to property and Of ev-
cry other instrumentality employed N
that commerce, so far as 1t may be
necessary to do so in order to prevent
the restraint thereof denounced by
the antitrust act of July 2. 1890.
Effect is Test.
It also declares "the test of legality
of a combination under this act is rs
necessary effect upon competition in
commerce among the states or with
foreign nations"
The opinion continues: eff it's neces-
sary effect is only incidentally or IN
to restrict that competition,
while it's chief result is to foster the
trade and increase the business Cf |
those who make and operate it, it |
does not violate that law.
But If its necessary effect is TO |
stife or directly and substantially 70 /
restrict free competition in commerce |
among the states or with foreign ma
ions it is illegal within the meaning
Of that statute.
Power Shows VIII.
The power to restrict competition
n commerce among states or with
'oreign nations vested in a person or
IN association of persons by combina-
ion is Indicative of the character uf
he combination because it is to the
interest Of the parties that such power
should be exercised and the presump-
ion is it win be.
What Unlawful Combine Is.
Combination in a single corporation
,r person by an exchange of stock,
If power of many stockholders hold
ng the same proportions, respectively,
If a majority of the stock of each Of
he several corporations engaged IN
commerce in the same article among
he states or with foreign nations, 10
'estrict competition therein, renders
he power thus vested in the former
he greater, more easily exercised,
more durable and more effective than
hat previously held by stockholders
md it is Illegal
Reviews steps.
The various steps taken to organ
re the Standard Oh combination are
-eviewed Beginning with the control
If 19 competing oil companies. the
Standard Oil gradually absorbed the