The Mobridge news. [volume] (Mobridge, Walworth Co., S.D.) 190?-1917, 1909-11-26

COTpOTdtIOuS 10 Ue illegal, duU pro-
hibits the exercise of any control over
the various corporations by the prin-
cipal company. 1t also prohibits any
of the defendant corporations, or the
individuals, from accomplishing the
same purpose Of placing the control
of the same corporations. or any two
or more Of them in the hands OF any
! trustees, persons, or corporations,
from managing or operating them to-
| gether or in harmony, or from making
any express or implied agreement one
| with the other for the purpose OF con
trolling the management Of the cor
porations or the prices Of petroleum
and its products or the rates of trans
! portatiOn; and it prohibits the de-
| PENDANTS from engaging in any inter-
state commerce while the combination
continues. This, if sustained, will end
| all combinations to control business,
and will restore competition through
out the country, and will protect the
Independent manufacturer who is to-
day struggling for living.
Startling Figures.
| It appears in this case that the
Standard Oil Is the most gigantic cor
J pOratiOn in the world. On an original
investment of $69,000.000. the Stand
ard Oil Company has paid in dividends
since the organization of the Trust
down to and including 1906, $54S, 1885,
1867, and at the end of 1906 had
surplus of over $261 100000 on its
! books. 1t has actually earned on this
investment Of 500 100000 over $1,000
600, 1000, and during the last few years
has earned over 100 per cent. per
annum. These profits have been made
principally in this country, as the for
eign companies have made much less
profit than the companies doing bust
ness in America. Some Of the Amer
lean companies, like the Standard Oil
Company Of Indiana,-One of the prin-
cipal subsidiary companies,-on a to-
tai capital and investment Of 81 ,000.-
900 has earned 100000 per annum
in other words, 1O5l.6 per cent and
has a surplus Of over $24, ,000, 900. The
Combination controls from 85 to 81
per cent Of the various branches Of
the petroleum business in the United
States, and practically all Of the lubri-
cating-Ol business of railways. 1t has
directors in all the leading railways of
the country, and it is dominant force
in the countrys financial institutions.
No Political Significance.
The Standard Oil victory is sup
posed to make Mr.. Kellogg a candi-
date for the United States Senate.
When asked relative to this possibi-
ity, he declined to be interviewed. Il
have absolutely nothing to say about
that he said, am not prosecuting
the Standard OIL case for political eff
feet, but as a lawyer for the Govern
ment"
Judge Sanborn's Opinion
The nature of the case and the char
acter of the decision appear from the
syllabus of Judge Sanborns oplnion,
which reads as follows:
congress has power under the com.
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 instrumentality en-
piOyed 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 its necessary
effect upon competition in commerce
among the states or with foreign ma
tiOns.
If its necessary effect is only Incl
dentally or indirectly to restrict that
competition while It's chief result is to
foster the trade and increase the busi-
ness of those VINO make and operate it,
it does not violate that law
But if its necessary effect is TO
stihe 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
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
tions. 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 il is Illegal.
I'm 1899 the stockholders of the