The Newark star and Newark advertiser. [volume] (Newark, N.J.) 1909-1909, 1909-11-20
l. 5. COURT
OlsS0LvEs TRUST
CONTINUED from First raEe.'


competition. while it's chief result is to
foster the trade and increase the nusi-
ness of those Who make and operate IT,
it does not violate that law.
But il its necessary effect il 10
stife or directly and Substantially 10
restrict free competition in commerce
among the States or with foreign Ia
tons, it is illegal within the meaning
of that statute.
"The power 20 restrict competition
in commerce among the several states.
or with foreign nations, vested IN a
person or ar association OF persons by
a combination is indicative Of the char
acter of the combination ecaus II IS
70 the interest of the parties that sucn
a power should be exercised and the
presumption is that it will be.
1.-THE combination in a single cor
poration or person by an exchange of
stock of the power OF many stock
holders holding the same proportions
respectively of the majority of the
stock Of each of the several corpora
tions engaged in m in the am
4 articles among the States, or with for
eign nations, to restrict competition
therein. renders the power thus vested
in the former greater. more easily ex-
ercised, more durable and moro ef-
fective than that previously held by
| the stockholders, and it is Illegal.
I'm 1899 the stockholders OF the
Standard Oil Company of New Jersey
owned a majority of the stock of nine
teen other corporations in the same
proportions that they owned the stock
of the standard Company. and those
twenty corporations contr1lled, by the
ownership OF the majority OF their
stock or otherwise, many other corpo-
rations. Each of these corporations
was engaged in some part Of the bust
ness Of producing, buying, refining.
transporting and selling petroleum n
it's products, and they were conduct
ing about 80 per cent. of the production
of the crude oil, and more thai rs per
cent. of the business of purchasing, re-
fining, transporting and selling petro-
leum and its products in this country.
Many of them were engaged in COM
merce in these articles among the sew
eral States and with foreign nations,
and were naturally competitive.
During the ten years prior to 1879
the seven individual defendants had
acquired control of many corporations.
partnerships and refneries that had
been competing in this business, had
placed the majority of the stock OF
these corporations n the interests in
property in business thus obtained in
various trustees, to be held and oper-
ated by them for the stockholders of
the Standard Oil Company Of Ohio, one
of the nineteen companies in which the
individual defendants were principal
stockholders, and had thereby sup
pressed competition among the corpora
lions and partnerships.
"In 1879 they and their associates
caused all the trustees to convey their
interests in the stock, property and
business of all these corporations to
five trustees to be held, operated and
distributed by the stockholders of the
Standard Company Of Ohio. From 1879
until 1892 they prevented these cor
porations and others engaged in this
business. of which they secured con-
troll. from competing in this commerce
by causing the control of their opera
ions and generally OF a majority OF
their stock to be held in trust for the
stockholders of the Standard Company
of Ohio. and from 1892 until 1899 they
accomplished the same result by a
similar stockholding device and by the
joint equitable ownership Of the ma
jority II the stocks OF the corpora
tons.
I'm the year 1899 the seven individual
defendants and their associates caused
the majority of the stock Of the nine
teen corporations TO be transferred to
the Standard Oil Company Of New Jer-
sey in exchange for it's stock, SO that
the latter company thereby acquired
the legal title to a majority of the stock
of each OF the nineteen companies. the
control Of these companies and of all
the companies which they controlled
and the power to fix the rates OF a
portation, the purchase and selling
prices of petroleum and its products
which all these corporations should
pay and receive in the conduct Of their
business in commerce among the States
and with foreign nations; since that
exchange of stock the seven individuals
defendants have been and are stock
holders and officers of the standard
Company Of New Jersey, which mas ex-
ercised and is still using that power.
and by its use it has prevented and is
still preventing competition in COM
merce among the States and with for.
eign nations among the corporations.
Held: The transaction constituted a
combination and conspiracy in re-
s%traint, and to monopolize. commerce
among the States and with foreign
nations, in violation of sections 1 and 2
Of the antitrust act of July 2, 1890, and
the government is entitled to an in
junction against the further continu-
ance and operation thereof"
The decree e~njoins the seven indi-
vidual defendants, the Standard Oil
Company and it's subsidiary corpora
tons from continuing or carrying into
effect the illegal combination they have
formed and from entering into any like
combination or conspiracy, the effect of
which will be to restrain interstate
commerce in petroleum or its products.
or to prolong the unlawful monopoly
Of such commerce obtained by the de-
PENDANTS, as stated in the decree, and
they are forbidden from engaging or
continuing in Interstate until
they discontinue their Illegal combina-
lion.