The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1909-04-15
STANDARDS PROFITS
NOT 50 ENORMOUS
When Large Investment Is Con-
sidered, Says Attorney
Milburn.

st. Louis, Apr. 12.-Attorney Milburn,
heading the Standards array OF law
yers here in defense OF the govern
ment's now celebrated suit to have the
great corporation with it's many mill
ions of capital, declared illegal as q
violator of the Sherman act. yesterday
resumed his argument, commenced
late Tuesday evening. The f~oursdigni-
fled judges of h United States circuit
court, sitting en- banc, are following the
noted lawyers address with marked
attention, but do not hesitate to pro-
pound perplexing questions to him
when his meaning Is not quite clear to
them. His answer, however, is always
ready n apt.
This morning Mr.. Milburn devoted
several hours, to replying to Special
Attorney General Frank B. Kellogg's
charges that the Standard had earned
the enormous profit of over half a bill
ion dolalrs upon a capitalization of
$97, $50, 900. This $500, 000, 900 Mr.. KEEL
logg charges was both enormous and
unreasonable. That the defendants
had made either m or unrea-
sonable profits, Mr.. Milburn denied at
the commencement OF today's e
ment in no uncertain terms. That the
profits exceeded the sums paid out as
dividends, the attorney a was true,
but that such surplus had been used in
the extension OF anu CONSTRUCTION OL
other properties.
Another statement was that the value
of the properties owned by the Stand
ard of New Jersey, which the govern
ment seeks to dissolve, capitalized at
S97, $50, 900, really possesses interests
worth not less tina $500, 600, 900.
And" declared Mr.. Milburn, with
marked emphasis, the governments
theory for estimating profits, as set
forth in the petition, Is unsound in law
and does not accord with business prin-
ciples or the facts Of human expert
ence. 1t is even difficult to discuss
such a proposition with patience"
The attorney pointed out that the
fundamental fallacy in the govern
ment's position was that it failed in any
way to recognize the enormous cumu-
lative, effect of compound interest.
Taking as a basic proposition that
the properties of the Standard in 1882
were worth $40, 1000, 900, as testified to
by Mr.. Archbold, the attorney quoted
from a table to show that compounded
at Z per cent from 1882 to 1905, the
original $40, 900, 900 would reach the
very comfortable amount of 1856, 065,-
6S6.74. Assuming that this 7 per csnt
had been added to the capital, irrespec-
tive of dividends, Mr.. Milburn sug-
gested it might In a way explain the
rapid and apparently phenomenal
growth Of the Standards assets.
ITS but a matter of a pencil, a bit
of, paper and a school boy to figure
1t Out-no lawyer is required" added
Mr. Milburn.
Even taking the value Of the prop
critics OF the defendant in 1882, $751;
710,0 900 as claimed by the government,
the attorney said compounded at S per
cent from 1882 to 1906 it grew to $685.
,271 900, which was but $6,12S,5 SS less
than the actual assets Of the latter year
as shown by the accounts Of the COR
poration.
why" said he, IF we had never pur-
chased a gallon of Oil, but loaned our
capital expeditiously and carefully, we
could have made as much, and re-
calling the high interest rates Of that
period, probably more"
David T.. Watson, P~ittsburg's most
noted corporation lawyer, this morn
ing concluded his argument upon the
law for the defense. Mr.. Watson ap-
peared as the governments counsel in
the now famous Northern Securities
case, and his argument is credited with
having won that suit for he govern
ment.
Moritz Rosenthal, the Standards
1000 a day legal adviser, and who has
aiken the greater portion of the 9,000,-
900 words Of evidence In the present
case, had recovered from his tempo-
rary indisposition n was early about
his hotel. Mr.. Rosenthal will take up
the argument of the defense following
Lawyer Watson. Many expected that
the noted Chicago lawyer, who secured
the reversal of the governments $29,-
600, 900 case, would discuss, like Mr..
Watson, the law in the case. When
asked this morning to which portion OF
the suit he would address himself, Mr..
Rosenthal replied that he would dis
cuss facts.
IT'S facts-facts," said he, that win
law suits"