Omaha daily bee., 1909-04-07
KELLOGG FLAYS OIL COMBINE
Government Attorney Declares Orig
inal Agreement il Was Illegal.
RATES IN VIOLATION OF LAW
Asserts Interstate COmmerce Act
was Freauently violated ~
standard Company-court
Can Enioin Trust.

Was Frequently violated by
standard Company-oeurt
Can Enioin Trust.
ST. LOUIS, Mo. April s.-Government
Attorney Keiloss this morning, before re
Stunning his argument In the governments
case TO dissolve the Standard oil company
Of New Jersey, stated with great positive
ness that he would complete his preliminary
address by noon, and that his associate,
c. B. Morrison OF Chicago. would there
fore complete the governments openins
today. He only asked five hours. he added
to close his side OF the case. He thought,
therefore, that the intervening three days
before Saturday would be sufficient for the
defense, and the arguments could be con
cluded by Saturday evening. Lawyers Nil
burn. Rosenthal. johnson and Watson
merely smiled when asked " their argu-
ments could be completed in that time.
Il guess we will make arrangements 10
be here a few days next week. said
Lawyer John ]. Milburn, when asked about
the case closing Saturday.
At 10 o'clock Frank b. KelloEg, the fed
eral attorney, resumed his discussion Of the
law points, applicable. according TO his
contention, to a proper Interpretation OF
the sherman act, The crux OF his srsu-
ment was that the original twenty eompa-
MES involved in the trust agreement Of
1873 and 1882 we're at that time competitive
and illegal under the then existing common
law, the trust was, therefore. void. The
same conspiracy to monopolize and restrain
had existed continuously until
the present day, bringing the defendants
well within the purview OF the existing
Sherman law he inSstad
illegal Rates Used.
Discussing the governments allegations
or railway determinations made in favor
OF the defendant. and its continued use Of
rates not filed with the Interstate Com
merce commission, MIR. Kellogg said;
The testimony plainly shows that many
or the unified and unpublished rates used
by the STANDARD Oil in the transportation
or petroleum were in clear violation OF the
Sherman act, as well as discriminatory
against its competitors" The attorney
also charged that the defendants had used
interstate rates, neither filed nor pub
lshed, az interstate raes, In plain violation
OF the old interstate act. In
supporting this position. the governments
attorney quoted at length from the inter
state act, and the later Hepburn
law.
Continuing. Mr.. Kellogg touched upon tht
alleged abuse OF rates between whiting and
Evansville Ind, via Illinois, stating the
shipments were clearly Interstate, and the
tariffs should have been filed.
THE Standard Pipe lines have refused to
onpi with the laws Of congress-. re.
duirine them to act as common carrier,
and file tariffs with the Interstate Com.
merce commission" was another declars-
ton OF the attorney In a discussion Of that
phase Of the case.
AS a final proposition Of law, Nj. kel.
loss stated that III the court finds thi,
combination to be In restraint Of trade.
and a monopoly, It has not only the power
to enjoin the defendants, but possesses
as well the plenary power to enforce the
terms and provisions OF the Sherman law
A score Or more OF decisions we're cited
supporting this contention.
President Taft Quoted.
For the first time in the courts OF this
country a president of the United States
was quoted as a prevailing legal authority
yesterday during the close Of MIR. KEEL
losss argument. Mr.. kelogg read al
length from a decision rendered by this
president in the Addyston Pipe case. when
a Judge in Cincinnati.
The Issue in the case involved being an
alleged restraint Of trade.
The defense today gave the Royai,n n,A,,s
lawyers a copy Of its brief on the fact.
OF the case, but reserved the brief on the
law points until the close OF the
The brief on the facts comprises 500 printed
pages in three volumes. Volume onA
deals with the origin ana growth Of the
standard OIL and its properties ana dia-
cusses at length the facts SURROUNDINGS
the two trust agreements OF 10 ana ia.
contending the common ownership Of tina
twenty original companies were not AZ.
fected by the dissolution OF the "truxtn
In Ohio.
The defendants early contracts" air.
line system, alleged agreements in restrsIr,
OF trade, and profits ana prices, ara
taken up and argued in turn. Much snac.
Is also devoted to the alleged unfair COM
petition as charged, and also 10 the
subject OF fabrication.
The defense asks also that the charsss
against the Galena Signal OH comnsnv
the subsidiary iubrieatfng corporation b.
dismissed for lack Of proof. An analysis
OF profits and prices" unfair .oonn.tI-
uon ana railway fabrication in detail"
Ia the subject matter OF the third volun.
Threat to Commercial I~ndepenaenee
Mr.. Kellogg entered into a technical dis
cusSion OF monopoly In general and the
STANDARD in particular. as defined bv the
Sherman act and attendant decisions.
The large m~onopolieS threaten the com
mercial Independence OF the country" h.
said by way OF commencement. @
Judge Hook interrupted to ask IL one
person without q corporation, could offend
under section two OF the Sherman law. Mr..
keifosg replied in the affirmative and saId
an individual could III he can stretch
human imagination far enough to conceive
an individuals accomplishing the mono
poly"
Anticipating the argument OF the de.
Tense. Mr.. Kellogg told the court It's
attorneys would not deny. but that the
original trust agreement was void under
the Sherman act as well az under N.
common law.
The company probably will claim" sAio
the attorney. that IT is no longer re-
oeivinS discriminatory rates; that II has
ceased to employ secret and predatory
companies In composition, and that II no
Longer engages In unfair competition. whye