The Irish standard., 1909-11-27

SMoGn ~, 4OV0.
cipal subsidiary comprehension Q to-
tai capital and investment of $1,000
900 has earned $4,000 900 per annum;
in other words, 1o51.6 per cent. and
has a surplus of over 1000, 900. The
Combination controls from IS to 81
per cent of the various branches of
the petroleum business In the United
States, and practically all of the lubri.
cating-oil business Of railways. 1t has
directors In all the leading railways of
the country, and 1t is dominant force
in the country's financial institutions.
No Political Significance.
The Standard OIL victory 10 sup.
posed to make Mr.. Kellogg a candi-
date for the United States Senate.
When asked relative to this POSSIBLE
ity, he declined to be interviewed. Il
have absolutely nothing to say about
that he said, 4 am not prosecuting
the Standard OIL case for political ef-
feet, but as lawyer for the Govern.
ment."
The nature Of the case and the char.
acter of the decision appear from the
syllabus Of Judge Sanborn's opinion,
which reads as follows:
Congress has power under the COM
mercial clause Of the constitution to
regulate and restrict the use of COM
merce among the several states and
with foreign nations Of contracts, of
the method of holding title to property
and of every other instrumentality en-
ployed in that commerce so far as it
may be necessary to do in order to
ed by the antitrust act of July 2, 1890,
26 stat. 20s.
THE test Of the legality Of COM
bination under this act Is it's necessary
effect upon competition in commerce
among the states or with foreign ma
lions.
IF its necessary effect is only Incl
dentally or indirectly to restrict that
competition while Its chief result is to
foster the trade and increase the busi-
ness of those who make and operate it.
1t 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 Ms.
tions it is illegal within the meaning
of that statute.
THE power to restrict competition
in commerce among the several states
or with foreign nations vested In q
person or an association Of persons by
combination is Indicative of the char
acter of the combination, because 1t is
to the interests Of parties that such
a power should be exercised and tho
presumtion is that it will be.
THE combination in a single cor
poration or person by an exchange Of
stock Of the power Of many stockhold-
ers holding the same proportions re.
spectively Of the majority Of the stock
of each of several corporations engag-
ed In commerce In the same article
among the states. or with foreign ma
tions. to restrict competition therein,
/ renders the power thus vested in the
former greater, more easily exercised,
more durable and more effective than
that previously held by the stockhold.
ers, and 1t is illegal.
I'm 1899 the stockholders Of the
Standard OIL Company of New Jersey
owned majority of the stock of 10
other corporations in the same proper
tions that they owned the stock of the
Standard Company and those 20 cor.
porations controlled by the ownership
of the majority of their stock. or other.
wise many other corporations. Each
of these corporations was engaged In
some part Of the business of produc.
Ing, buying, refining. transporting and
selling petroleum and It's products and
they were conducting about 30 per
cent. of the production rof the crude
oil and more than IS per cent. of the
business Of purchasing, refining, trans
porting and selling petroleum and it's
products in this country. Many Of
them were engaged In commerce In
these articles, among the several
states and with foreign nations, and
were naturally competitive.
I'm the year 1899 the seven individ'
ual defendants and their associates
caused the majority Of the stock OF
the 10 corporations to be transferred
to the Standard OIL Company Of New
Jersey in exchange for Its stock, 60
that the latter company thereby &C.
quired the legal title to majority Of
the stock Of each Of the 10 companies
the control Of these companies and Of
all the companies which they con
trolled and the power to Ak the rates
of transportation, the purchase and
selling prices Of petroleum and ito
products, which all these corporations
should pay and receive In the conduc,
Of their business In commerce among
the states and with foreign nations.
"Since that exchange Of stock the
seven individual defendants have been
and are stockholders and officers ol
the Standard Company of New Jersey
which has exercised and is still usina