The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1909-04-15
STANDARDS PROFITS
NOT so ENORMOUS,
When Large Investment Is Con-
sidered, Says Attorney
Milburn.

st. Louis, Apr. 12.-Attorney Milburn..
heading the Standards array of law
Ners here In defense of the govern
ment's now celebrated suit to have the
great corporation with its many MILL
ions OF capital, declared illegal as q
violator of the Sherman act. yesterday
resumed his argument, commenced
late Tuesday evening, The four digni-
fed Judges Of the United States circuit
court. sitting en- banc, are following the
attention, but 40 not hesitate to pro.
pound perpleXing questions to him
when his meaning is not quite clear to
them. His answer, however, is always
ready and apt.
This morning Mr.. Milburn devoted
Attorney General Prank b. kellogg's
charges that the Standard had earned
the enormous profit of over half Il bill
ion dolalrs upon q capitalization of
s91.25o,o0 This s1o0.ooo.000 Mr.. kel-
logg charges Was both enormous and
had made either enormous or unreal
sonab! profits. MIR. Miiburn denied at
the commencement of today's argu-
lnert in no uncertain terms. That the
profits exceeded the sums paid out as
dividends, the attorney said was true,
but that such surplus had been used in
the extension of and construction of
other properties.
Another statement was that the value
of the properties owned by the Stand
ard of New Jersey, which the govern
ment seeks to dissolve, capitalized at
worth not less thai 100000 900.
And" declared MIR. Milburn. with
marked emphasis. the governments
theory for estimating profits, as set
forth in the petition. is unsound in taw
and does not accord with business prln-
Il, - Yl, y.,L< -.r ,~,-~ ~-,.
ence. 1t is ever difficult to discuss
such a proposition With patience
The attorney pointed out that the
fundamental fallacy in the govern
ment's position was hat it failed in any
way to recognize the enormous cu,nu-
lative effect of compound interest.
Taking as a basic proposition that
the properties of the Standard in lSS.
were worth $4,000. 600. as testified to
BY Mr.. Archbold. The attorney quoted
from a table to show that compounded
at : per cent from 1882 to 1906. the
Very comfortable amount Of 1856, O65.-
6S6.74. Assuming that this z per cen
had been added to the capital, irrespec-
tive of dividends, Mr.. Milburn sug-
gested 1t might in a way explain the
rapid and apparently phenomenal
growth of the Standards assets.
Its but a matter OF 9. pencil. a bit
OF paper and a school boy to figure
1t out-no lawyer is required" added
Mr.. Milburn.
Even taking the value OF the props
critics OF the defendant in 1882, $685.
100000 as claimed by the government,
the attorney said compounded at 8 per
cent from 1882 to 1906 it grew to $780,
2Tl.000, which was but $6,128,5S8 less
h the actual assets OF the latter year
as shown by the accounts Of the corr
poration.
Why said he, "if we had never pur-
chased q gallon OF Oil, but loaned our
capital eNpeditiously and carefully, we
could have made as much, and res
calling the high interest rates OF that
period, probably more
David L. Watson. P~ittsburg's most
noted corporation lawyer, this morn
ing concluded his argument upon the
law for the defense. Mr.. Watson APP
peared as the governments counsel in
the now famous Northern Securities
case, and his argument is credited with
having Won that suit for the govern
1melat.
Moritz Rosenthal. the standard's
$1,000 a day legal adviser, and who has
taken the greater portion of the $780,
900 words of evidence in the present
case, had recovered from his tempo
rary lndisposition and was early about
his hotel. MIR. Roscnthal will take up
the argument of the defense following
Lawyer Watson. Many expected that
the noted Chicago lawyer, who secured
the reversal of the governments s2a.-
100000 case, would discuss, like Mr..
Watson, the law in the case. When
asked this morning to which portion OF
the suit he would address himself, MIR,
Rosehthal replied that he would dis
cuss facts.
It's facts-facts,' said he, that win