The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1909-04-06
Kellogg Says Arguments Will
be Concluded by the End
of the Week
ORIGINAL CONSOLIDATION
WAS IN VIOLATION OF LAW
Trust Formed in 1879 Was in Viola.
ti0n of the Common Law and There.
fore Void-Asks Court to Enjoin the
Defendants From Continuing.

st. Louis, April 6.-GOVernment At
torney Kellogg to-day, before resum-
ing his argument IN the governments g
case to dissolve the Standard Oil
company of New Jersey, stated with
great positiveness that he would
complete his preliminary address by
noon and that his associate, G. s.
Morrison Of Chicago would therefore
complete the governments opening
today. He only asked five hours. he
added, to close his side of the case.
He thought, therefore, that the inter-
vening three days before Satur-
day would he sufficient for the de-
fense and the arguments could be
concluded in that time.
II guess we will make arrange
ments to be here few days next
week" said Judge Milburn. Mr.. Kel-
logg. resumed his discussion of the
law points applicable, according to
his contention. to the proper inter-
probation of the Sherman act. The
crux fhis argument was that the
original twenty companies involved
in the trust agreement of 1879 and
1882 were at that time competitive
and illegal under the existing COM
mon law, and that the trust was,
therefore, void. The same conspiracy
to monopolize and restrain commerce
had existed continuously until the
present day, bringing the defendants
we'll within the purview of the Sher-
man law, he insisted. AS final
proposition of law, MIR. Kellogg stated
that IF the court finds this combina-
tion to be in restraint of trade and a
monopoly, it has not only the power
to enjoin the defendants. but possess
es, as we'll, the plenary power to en-
force the terms and provisions of the
Sherman law" -
Mr.. Kellogg has told of the wonder
ful profits of tine Standard OIL CON-
pany For the ten years ending with
1906, the concern had earned, he as
serted, the sum of $59S. S.226,526. upon
capitalization of $97,25O,0OO.
The Standard trust and the Stand
ard Oil company had paid dividends
of $54S,436,446 between 1882 and
1906.
"And yet" exclaimed Mr.. Kellogg,
"Mr Rockefeller, while on the wit
ness stand. talked cf the hazard of
the business"
That the defendants profits had
averaged about three vents a gallon
for ten years was another of Mr.. Kel-
logg's assertions. Between 1903 and
1907, he stated. the prices of oil and
gasoline had increased from 80 to 65
per cent.
"The only place where oil is cheap
is where independents sell it," ob-
served Mr.. Kellogg. "and If this court
gives the Standard Oil company carte
blanc to do as it pleases. there will
not be an independent company in
this country in two years."
The attorney took up the defend
ants transportation properties, con-
sisting of its pipe line system, and
discussed the various state require
ments that made the pipe lines COM
mon carriers. The state line term
inals between New York. Pennsyl-
vania and New Jersey, Mr.. Kellogg
insisted, had been so arranged that a
common carriage by independent
shippers was impossible. One pipe
line was cited which cost. according
to the Standard Oil company's books
he said, $4,000 to construct. and 1t
was earning all annual dividend of a
million and a quarter dollars