Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-11-20
UNANIMOUS DECISION
BY U. S. CIRCUIT COURT
Opinion and Decree Written by
Judge Sanborn of st. Paul.
APPEAL TO SUPREME COURT
Dissolution Decree Filed at st. Louis
to Take Effect in Thirty Days
Unless Stayed by Appeal.
Points in Opinion.

st. PAUL. November cO.-The gov
ernment wins its suit against the
Standard OH Company. The United
States circuit court today ordered the
corporation dissolved, IL being pro-
nOunced nm illegal corporation.
This case was heard in the United
States circuit court at St Louis. in April
1909. by Circuit Judges Sanborn Of st.
Paul. Van Devanter Of Cheyenne. Hook
Of Leavenworth and Adams OF st. Louis.
Judge Sanborn Of St. Paul, the presiding
Judge. wrote the opinion and the decree.
In which all the judges concur. and sent
them with a concurrng opinion Of Judge
Hook to Judge Adams at st. Louis. who
filed them and entered the decree in that
city this morning.
The case was argued by Frank B. Kel-
losg OF st. Paul and Charles b. Morrison
OF Chicago for the United States and
John G. Milburn of Buffalo, David T.
Watson of Pittsburg Moritz Rosenthal Of
Chicago and John G. Johnson OF Phila-
delphia. on behalf of the defendants.
It.was brought to enjoin John d. Rookie
feller. William Rockefeller. Henry NJ.
F1agler, Henry II. Rogers. John d. Arch
bold. Charles NJ. Pratt, the Standard Oil
Company Of New Jersey. and about sew
enty other corporations, from maintaining
a combination showing conspiracy In re-
straint OF trade to monopolize interstate
and international commerce, and the de-
st, I'D,
government.
The case is one of the most notable
in the history of the nation on account
of the important industrial and legal
questions and the vast financial interests
involved. The evidence filled twenty -one
volumes and occupied more than 10000
printed pages. and the arguments of
counsel more than 300 printed pages
Judge Sanborn's Opinion.
The nature OF the case and the charac-
ter of the decision appear from the syl-
labus of Judge Sanborns opinion. which
reads:
Congress has power under tine COM
mercial clause OF the Constitution to
regulate and restrict the use in COM
merce among the several states and with
foreign nations OF contracts of the meth
cd OF holding title to property and every
other instrumentality employed in that
commerce 30 far as 1t may be necessary
TO do so In order to prevent the restraint
thereof denounced by the antitrust act
OF July =. 1890. IS stat. 200:
Test OF the legality OF a combination
under this act is its necessary effect upon
competition IN commerce among the
states or with foreign nations
IF its necessary effect is only Incl
dentally or indirectly to restrict that
competition while its chief result is to
roster the trade and increase the busi-
ness OF those who make and operate IL,
u does not violate that law.
But II its necessary effect IS to stifle
or directly and Substantially to restrict
free competition In commerce among the
states or with foreign nations It is lille
gal within the meaning of that statute.
The power TO restrict competition In
commerce among the several states or
with foreign nations. vested In a per-
son or an association of persons by a
combination. is Indicative of the charac-
ter of the combination because it Is to
The interest Of the parties that such a
power should be exercised. and the pre-
sumption is that il will be.
Power Becomes Illegal.
The combination in a single corpora
iiOn OF persons. by an exchange of stock,
OF the power OF many stockholders hold
ing the same proportions. respectively, of
the majority OF the stock OF each OF the
several corporations engaged in commerce
IN the same articles among the states,
or with foreign nations, TO restrict com
pethion therein. renders the power thus
vested in the former greater, more easily
exercised. more durable and more effect
i've than that previously held by the
stockholders. and II Is illegal
In 1889 the stockholders O. the stand.
ard OIL Company of New Jersey owned q
majority OF the stock of nineteen othe,
corporations in the same proportions thai
they owned the stock OF the STANDARD
company, and those twenty corporation
controlled, by the ownership Of the ma
iority of their stock or otherwise, man,
other corporations. Each OF these cor
porations was engaged In some part O,
the business OF producing buying, REIN
ing. transporting and selling petroleum
and its products, and they were conduct
ing about 30 per cent OF the production o.
the crude Gil and more than 75 per cent o.
the business Of purchasing. refining. trans
porting and selling petroleum and ~,
products In this country. Many OF then
were engaged In commerce in these arti
cles among the several states and will
f"-sisn nations and were naturally com
petitivs.
Origin Of the Trust.
t',iriag the ten years prior 10 1879 til,
seven individual defendants had acquired
control Of many corporations. partner