Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-04-09
DECLARES OIL
TRUST PROFIT
LEGITIMATE
FALLACY OF GOVERNMENT
CONTENTION POINTED OUT
Attorney MiIbun Makes AbIeI
Defense Of Rockefeller Cor
poration'S S Methods of DoingI
Business.


tBy Morning journal special LEASED Wire
St Louis. April S--The temporary
Iindisposition OF the standards $1,000
a day lawyer, Moritz Rosenthal. oil
Chicago. interfered slightly With the
program of the defense this afternoon
IN the presentation of its reply TO the|
government S suit to dissolve the stan
dard oil company OF New Jersey for
Ialleged violations of the sherman act.
John j. Milhurn, of New York, the
Standards chief counsel completed
his opening argument and Mr. Rosen-
thai was to have followed With an
address. leaving John j, Johnson, of
Philadelphia, and David r Watson, Of
Pittsburg, to argue the law points and
interpret the sherman act from the
viewpoint of the defendants.
Mr. Rosenthal will make his argu-
ment tomorrow at the conclusion of
Mr. Watsons address
Attorney Watson represented thcl
government in the Northern Securi-
ties" ease, and is credited with hav-
ing won that suit for the government
In his Interpretation Of the decision
in that now oft quoted authority inl
federal law. Mr.. Watson insisted that
in the present case and that suit two
separate and distinct inciples of law
were involved and that under no
stretch Of the imagination could they
be deemed identical
He declared the defendants could
not be held for their conduct of years
past ana that the only point the court
could consider was whether it VAS
acting in restraint of commerce en-
gagiug in unfair competition or doing
any Of tho many divers things alleged
o November 10, 1906 the day the Pc
ttion in the present case was filed.
Mr Watson insisted Mr. Rockefeller
and his associates had the legal right
as citizens TO combine
Mr. Milhurn devoted several hours
to replying to Special Attorney Gen
oral Frank = Kellogg charges that
the standard oil company had earned
the enormous profit of over hair bill
Hon dollars upon capitalization of
S97,25O,00 600.
I'VE ought to be in the fashion !
and increase our capitalization from
it's insignificant $4,000. 600 to a Bill !
lion" he declared IF We had but
made our capital one billion dollars rs
we might easily have done. and de-
clarcd per cent dividend, there
would have been no complaint against |
us And" continued Mr Miburn I
"thc governments theory for cstmat
ing profits. as set forth IN the petition, !
is unsound in law and does not accord
with business principles or the facts
of human experience.
The attorney pointed out that the
fundamental fallacy in the govern |
ment's position that it failed in any |
way to recognize the enormous accu-
mulatvo effect of compound interest |
Taking as a basic proposition that
the properties Of the Standard in |
1882 were worth $4,000 600 as testi-
fled to by Mr.. Archbold. the attorney |
quoted from table to show that |
compound at seven per cent from
1852 to 1906, the original S70,00O,000 |
would reach the very comfortable
amount of 1856. 065,6S6,742, assuming |
that this seven per cent had been add
ed to the capital. irrespective OF divi-
dcnds
Something at this point reminded |
the standard oil attorney of the al
legged missing $22.000,00O Trainer
loan" told of by MI kellogg. who as
serted that he could not trace il John |
D. Archbold testified In New York
that he presumed it was mere mat
ter OF bookkeeping transfer in ex-
planning the entry with am of his
persistence. Mr.. Kellogg could not To-
cato the exact man who knew of that
L..
when this case is comyletcd / will !
tell Mr.. Kellogg just what became
of that $22. 900 600"
Tell il to tho court Interrupted
MI kellogg.
Il will when this ease is closed,
was the response
1t was not used for counsel fecs?'
suggested Judge Hook whose humOr
had hitherto been concealed. The
other Judges smiled grimly at their
associates little joke.
NO the sum was too large. even
for lawyers" rejoincd Mr. Milburn.
Mr. Milburn quoted Charles NJ.
schwab of New York. AS manufac-
turing expert as recently testinlng /
that he considered 20 per cent "A I
proper profit for manufactures.
we admit our profit annually is
"a per cent We do not apologize or /
defend tive stand uron IT," declar- /
ed Mr.. Milburu
But u per cent Of profit comes
to us from all the refined oil in tho
United States was another aSser-
tion.
IN closing Mr. Mnburn toid how tho I
Galena Signal on company had So /
cured 81 por cent OF the railway luo- /
rration Of tho country through what /
tho speaker declared a. Doc the abso- /
luto merit OF the product and not |
through standard oil influence.
Mexican budget sent in.
AI.Nl.n EIfN Ami A-TIu annmal