The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1909-04-05
n iae Kellogg Brief Of the
Government in It's
Suit
FOR BIS SOL . / lOElN
of New Jersey Corporation.
Alleged Violations Of
Sherman Act


lof the United States fer the castcra
division Of the eastern juliefal dIstels
.Io[ MlsroNri' Its brief In easg i
tile United States against tIl6 stanllasI
ion Company of New Jcrsey; by witlclI
~ Is sought 10 dlssolyr that eorporl-
tioq, In this brief The history OF tlie
company from It's deception 10 ~
present time Is reviewed. aud tsip aec,
hratIon Is made that tie trstinons
shows that the various defendants
have from the ilrstFpursusl a systam
Of unfair competition against tiielr
icompetllors, whereby the lndepen.
dent companies selling and market.
ipg petroleum have etthcrlbecn driven
out Of business or their. blelness u
restricted that the Standard pn-c6n.
pany has practically 7controlleil tha
prices, and monoroIized The CONF
merce In the products IT petrDIsini
in the United States This system, i
Is contcndcl. mas taken the form or
price cutting In various localities.
while keeping up high prices or rals-
lug them sill higher In other locail-
ties where no competition exists; ot
paying rebates to customers asa TART
OF their System Of price cutting; OF
obtaining secret Information as xo
competitive business, largely through
bringing railway employees. and using
their secret Information to procure
the eountermanding Of orders OF IN
dependent producers. nd-to facilitate
the price cutting policy: OF the use oC
so-ealled Independent companies. thai
Is, companies held out by the stand
ard oil-company as Independent which
Fare engaged in price-cutting, while
the Standard Oh Company malptans
the price through It's well known COM
1panfcs and other abusive compatttire
methods against the competitors.
The Standard on Company. the
brief alleges. is particularly able 70
carry on this predatory competition
for the reason that 1t does not. sell It's
product at cenral markets or through
ordinary channels. as most other orr
dlnary manufacturers. 1T markets IFS
products TO the retailer in every VIZ
lagc and community In the United
States. aud 1t sells directly to tho con-
simcrs. It does from SO to 90 per
cent Of tho business Of the United
States, leaving about 10 to 10 per cent
irnr all lts competitors II IL also held
that the testimony taken in the stand
ard on prosecutions shows that that
company through company
in which II owns a majority or
the stock (thc Gaicna SiguaI on
cotnpauy) also controls about 97t.
per cent OF the fabrication Of rail-
roads throughout the United staius,
and that II sells To- most railroads
At enormous profits. This. Is evidenced
by the net earnings Of the company
which. IN 1906 were about 1t:-pcr cont
on the capital stock actually paid III
and about 105 per cent on. liberal
valuation Of the capital use8 h Isl
ALSO shown by the further fact that
thu prices To these railroads are sub
stantlaily double the prices charged
10 few favored lines. notably th4
Pennsylvania. For instance. the brief
says. the Now York Central railroad
FOR ten yeurs has paid about 100 ner
cent per gallon more than the Penn
syirantu. II is also stated that whcr-
ever the Standard can do 30, II has
made contracts whereby 1t has either
marketed part or all Of the product
of the independent renneries, or has
limited The output OF the same.
onr OF thr evidences. OF the inouop-
oily ar the defendants. Is Il charged.
is It's enormous earnings. These
earnings nrr summarized as follows:
The Standard on trust and the stand
ard OH Company on an Investment ~
s69,psr.49O had earned up 10 the end
Of 1905. $sss,7Ss.7S2. Adding thr
estimated profits of 1907 and 1908. we
have substantially. the brief says, 4
billion dollars earned by this COM
lpany In % years with an original In
vcstmcnt of about $4,000. .OOO.
Further on the brief says:
1T has usually been claimed FOR
large corporations in this country that
they have increased ana decreased ths
cost to the consumer. but in the cas-
nf the Standard OH Company it i1a.
during ten or fifteen years actually in
/ creased the price to the retailer, and
this good deal more than the price,
i OF other products throughout tn,
country. although the price of is IA 8
material and cost OF manufacture AM
sale during these years has Increased
very little. II any
1t is stated that during the year.
from 1874 to 1SSs the Standard IS.
+ tained control o. practically al. u IL.
splpe lines then existing ana bp5us
/ them tosether under fhs contfoI
:. -s~--.-e----eye.S~-@
] gconiinued on pass 80