The Newark star and Newark advertiser. [volume] (Newark, N.J.) 1909-1909, 1909-04-05
To REVOKE F..
JERSEY CHARTER
OF STANDARD OIL
Argument Begun in United
States Court After Two Years
of Evidence Taking.
VIOLATIONS OF LAW
ARE POINTED OUT
Frank B. Kellogg Recites In-
stances of Trust Operations
and Unfair Competition.

ST. LOUIS, April 5.-E'rank b. KEEL
logg, special assistant to the United
States encouragement, filed his brief
of 1,400 printed pages with the clerk of
the United States Circuit Court of this
city today and began his
after two years of evidence-taking, in
the governments suit to dissolve the
gigantic Standard Oil Corporation of
New Jersey, for alleged violations of the
Sherman act.
The argument was heard by the full
circuit court bench, Judges Sanborn,
Vandevanter, Hook and Adams. The
defense had half a score of lawyers, in
GLIDING its principal attorneys, Messrs.
Milburn, of New York; Rosenthal, of
Chicago; Johnson, of Philadelphia, and
Watson, of Pittsburg.
Mr.. Kellogg CAV the history of the
company from its inception to the pres
ent time, and the declaration is made
that the testimony shows'that the varl-
GUS defendants have from the first pur-
sued a system of unfair competition,
whereby the Independent companies
selling n marketing petroleum have
either been driven out of business or so
restricted that the Standard Oil Com
pany has practically controlled the
prices, n m~onopolized the
in the products of petroleum in the
United States.
Says Pennsylvania is Favored.
The Standard OIL Company. the brief
alleges, is able to carry on predatory
competition for the reason that it does
not sell its product at central markets
or through ordinary channels, as most
other manufacturers. 1t markets it's
products to the retailer in every village
and community in the United States,
and it sells directly to the consumers.
1t does from IS to 80 per cent. of the
business of the United States, leaving
about 10 to Is per cent. for all it's COM
petitors.
1t is also held that the testimony
taken in the Standard Oil prosecutions
shows that that company, through a
company in which it owns a majority
of stock Ghe Galena Signal Oil Com
pany), also controls about 97h per cent.
of the fabrication of railroads through
out the United States, and that it sells
to most railroads at enormous profits.
This is evidenced by the net earnings
of the company. which in 1906 were
about liz per cent. on the capital stock
tht~ PaAo ~ GAAio oDON " PCT
cent. on a liberal valuation of the cap
.tal used. 1t is also shown by the fur
Their fact that the prices to these rail-
roads are substantially double the
prices charged to a few other lines,
notably the Pennsylvania.
For instance the brief says, the New
York Central Railroad for ten years has
paid about loo per cent per gallon more
than the Pennsylvania. 1t is also stated
that wherever the Standard can do SO
it has made contracts whereby it has
either marketed a part or all of the
product of the Independent refineries,
or has limited the output Of the same.
One of the evidences of the monopoly
of the defendants. it is charged, is it's
enormous earnings. These earnings are
summarized as follows: The Standard
Oil Trust and the Standard Oil Com
pany on an investment of $50, 924, 4S0
had earned up to the end of 1906 $685.
1888. 1888. Adding the estimated profits of
1907 and 1908 we have substantially. the
brief states, $1,000, coo, 600 earned by this
company In twenty-seven years with
an original investment of about $69,-
900, 900.
Further on the brief says:
1T has usually been claimed for
large corporations in this country that
they have increased business and de-
creased the cost to the but
in the case of the Standard Oil Com
pany it has during ten or fifteen years
actually increased the price TO the re-
taller, and this a good deal more than
the prices of other products throughout
the country. although the price of it's
raw material and cost of manufacture
and sale during these years has in
creased very little. If any"