The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1909-04-06
Action to Dissolve Standard Oil Com
pany of New Jersey on at
st. Louis in Federal
Court.
WILL FIGHT HARD
Leading Lawyers of Country Gathered
to Wage COntest.-AttOrney Kellogg
Tells History of Gigantic Combina-
tiOn from 1870, When it Was Simple
Concern, Down to the Present.

S. LOUIS, April 5.-For the first
time in American courts, a president
of the United States was quoted as a
leeual authority today during Special
United States Attorney General Frank
B. keIogg's argument in the govern
ment's case to dissolve the Standard
Oil company of New Jersey as VIOLA
tor of the Sherman act. Mr.. KeIoou
read at length from a decision rem
dered by President Taft in the Adds
ton pipe case, when a judge in Gin
cinnati. The issue involved was an
alleged restraint of trade.
Mr.. Kellogg will conclude his re-
marks at noon tomorrow. AS one of
the four judges of the federal court
hearing the case will leave st. Louis
Saturday, Mr.. Kellogg will insist up
on the defense completing it's argu-
ment by Friday evening. This would
leave John G. Milburn of New York,
Moritz Rosenthal of Chicago, John G..
Johnson of Philadelphia and David G.
Watson of Pittsburg, but two and one
half hours each. This the defense
will bitterly oppose.
Mr.. Kellogg told of the wonderful
profits of the Standard. For the 10
years ending with 1906, the concern
had earned, he asserted, the comfort
able sum of $59S, S,226,525 upon a cap
italization of $97,25O,OO0.
The Standard trust and the Stand
ard Oil company had paid dividends
of $54S,436,446 between 1882 and 1906.
Yet" eXlaimed Mr.. kellogg, mfr.
Rockefeller, while on the witness
stand talked of the hazard" of the
business. That the defendants prof
its had averaged about 8 cents a gall
Ion for the following years was an
other of Mr.. Kellogg's assertions.
The only place where oil is cheap, is
where the independents sell it, OBJ
served Mr.. Kellogg, "and if this court
gives the Standard Oil company carte
blanc to do as it pleases there will
not be an Independent company in this
country in two years. The state line
terminates between New York, Penn
sylVania and New Jersey" Mr. Kel-
logg insisted, "and had been SO ar
ranged that common carriage by in
dependent shippers was impossible.
One pipe line was cited which cost,
according to the Standard Oil COM
pany's officials, $4,000 to construct
and it was earning an annual devidend
of $1,250,000."
ST. LOUIS, Mo-, April Especial
Assistant to the United States Attor-
ney General Frank B. Kellogg filed
his brief with the clerk of the United
States circuit court here today and
then commenced his arguments, after
two years of evidence taking, in the
government suit to dissolve the Stand
ard Oil corporation of New Jersey for
alleged violations of the Sherman
antitrust law.
The argument was heard by the full
circuit bench, Judges Sanborn, Van
deventer, Hook and Adams. With Mr..
Kellogg, for the government, was AS
sistant Attorney General c. B. Nor
rison of Chicago, who will argue GER
tain phases of the governments case.
The defense has half score of coun-
sci present, including it's principal at
Messrs. Milburn of New York,
Rosenthal of Chicago, Johnson of
and Watson of Pittsburg.
The Importance of the case to law
yers and laymen alike resulted in a
crowded court room when the argu-
ments commenced.
Mr.. Kellogg commenced with rath-
er full review of the evidence taken
by the government before discussing
he law applicable to the case.
To tell more clearly the story of
Standard Oil, the special attorney gen.
eral divided the alleged conspiracy in
o three periods: The first, from 1870
% 1882, when it was, he said, sim
Die combination acting in harmony
With its stock interests pooled in the
lands of three trustees; from 1882,
continued Mr.. Kellogg, to 1899, the de-
endant's interests were in the form
If a trust syndicate. This trust de-
,lared illegal by the Ohio courts, was
iquidated, and from 1899 to the pres
mt time, said Mr.. Kellogg, concluding
hat portion of his narrative, has TIA
zen the form of holding corporation,
he Standard Oil company of New Jer-
ley, controlling subsidiary corpora
ions in alleged restraint of trade. Mr..
Kellogg then proceeded to retrace his
steps, and went into the history of
he first period, from 1870 to 1882,
With great care and descriptive detail.