The enterprise. [volume] (Harlem, Mont.) 1899-1926, 1909-12-01

600 has earned $1O,OOO,UU0 per aHnuA,
in other words, 1O51.6 per cent. and
has surplus of over $24,000,000. 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 it is dominant force
in the country's financial institutions
No Political Significance.
The Standard Oil victory is 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, Il 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
MERGE 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
prevent the restraint thereof denounc-
ed by the antitrust act Of July 2, 1890,
&c stat. 209.
"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
tons.
IF it's necessary effect is only Incl
dentally or indirectly to restrict that
competition while it's chief result is to
foster the trade anG increase the bust
ness of those who make and operate it,
it does not violate that law.
But if it's necessary effect is to
stif1e or directly and substantially to
restrict free competition in commerce
among the states or with foreign hit
tons 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 a
person or an association of persons by
a combination is indicative of the cha1-
acter of the combination, because it is
to the interests of parties that such
a power should be exercised and the
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 it is illegal.
"In 1899 the stockholders of the
Standard Oil Company of New Jersey
owned a majority of the stock of 10
. other corporations in the same proper
lions 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 80 pei
cent. of the production of the crude
oil and more than Is per cent. of the
! business of purchasing, refining, trans
porting and selling petroleum and its
products in this country. Many OF
them were engaged in commerce ir
these articles, among the severa
states and with foreign nations, enc
.. 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 it's stock, Sc
that the latter company thereby &C
quired the legal title to a majority O.
the stock of each of the 10 companies
= the control of these companies and o
all the companies which they con
: trolled and the power to fix the rates
of transportation, the purchase an(
selling prices of petroleum and II:
. products, which all these corporations
= should pay and receive in the conduc
. of their business in commerce among
the states and with foreign nations.
y Since that exchange of stock the
) seven individual defendants have beer
: and are stockholders and officers 0
the Standard Company Of New Jersey
l. which has exercised and is still usin
: that power, and by it's use 1t has pre-
II vented and is still preventing compet1
$ ton in commerce among the state
= and with foreign nations among thes
: corporations.
n Held, the transaction constituted
a combination and conspiracy III re
> straint of and to monopolize commerc
l. | o,,,o,,o tho ctatac onJ with fD,oipn M