Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-04-06
GOVERNMENTF|LES
SUIT TO DISSOLVE
THE STANDARD OIL
Declares That the History of
Monster Trust Shows It Has
Always Been Unfair and
Oppressed the u c,;;

sistant 20 the UniteQ states A0toIhey
General Frank B. kellogg today filed
his brief of 400 printed pages with the
clerk OF the United States circuit court
OF this city and commenced his argu-
ment after two years OF evidence-tak-
ing, In the governments suit to dissolve
the Standard oil corporation Of New
Jersey for alleged violation OF the Sher-
man act.
The argument was heard By the full
circuit court bench, Judges Sanborn,
Van DeVenter, Hook and Adams. With
Mr. kellogg, for the government. was
Assistant Attorney General c. b. Nor
rfson, Of Chicago. who will argue GER
tain phases OF the case. The defense had
half a score OF counsel present. includ-
ing it's principal attorneys, Messrs- Mil
burn. OF New York; ROsenthal, OF Chi
cago; Johnson. OF Philadelphia and
Watson, OF Pittsburg. The Importance
Of the case 20 lawyers and laymen alike
resulted In a crowded court room
Review of the Evidence
Mr.. kellogg commenced with q rather
fun review OF the evidence taken by the
government before discussing the law
applicsble TO his case. He told Of the
combination effected by John ID. Rookie
teller, william Rockefeller and Henry
NJ. FlagIer IN 1873, conceived he declared
10 erect a monopoly OF the petroleum
trade, both domestic and export.
II was at this moment. according 10
the federal lawyer, that the alleged con-
suiracy 10 monopolize the oil trade OF
the country was conceived Later. said
Mr.. kellogg. Henry II. Rogers. John ID.
Archbold. Oliver II. Payne and Charles
NJ Pratt were taken into the conspiracy
by the other defendants.
To tell more clearly the story Of Stan
dard oil. Mr.. Kellogg divided the alleged
conspiracy into three periods-the nrst
from Is70 to 1Ss2. when II was, he SAID
a simple combination. acting in harmony
with its stock interests pooled IN tne
hands Of three trustees
Trust and Trustees
From 1SSa. continued Mr.. kellogg, to
1893 the defendants interests were in the
form OF a trust controlled by three uus-
tees This trust. declared illegal by the
ohio courts. was liquidated, and from 1873
"a the present time, said Mr.. Kellogg
haa taken the form OF a holding COM
many. the Standard OH company, OF New
Jersey. controlling subsidiary corpora
ttons IN alleged restraint OF trade and
otherwise
In the brief the history OF the company
from its inception to the present time Is
r.[Isued and the declaration is made
defendants have from the first pursued
svsfer, OF unfair competition against their
rompetttors. whereby the independent
eompanIes selling and marketing petrol
eur, have either been driven out OF bust
ness or their business so restricted that
the Standard on company has practically
controlled the prices and monopolized the
commerce in the products Of petroleum in
the United States.
Saws System is Unfair
This system. II Is contended. has taken
the form Of price-cutting In various To-
raIittes. while keeping up high prices or
raising them still higher In other localities
where no competition exists; Of paying
rebates to customers as a part Of their
system OF price-cutting; OF obtaining Sc
cret information as to competitive busi-
ness. largely through bribing railway en-
pIoyes. and using their secret information
TO procure the countermanding Of orders
OF independent producers. and facilitate
the price-cutting policy: Of the use of
so-caIled independent companies, that Is
companies held out by Standard OIL COM
pany as independent. which are engaged
in price-cutting, while the Standard OIL
company maintains the price through it's
well known companies and other abusive
methods against the competitors.
The Standard oil company. the brief
alleges, is particularly able to carry on
this predatory competition. for the reason
that Il does not sell its product at central
markets or through ordinary channels. as
most other ordinary manufacturers.
Does Bulk OF Business
II markets its products to the retailer
in every village and community in the
United States. and IT sells directly to the
consumers. II does from S. to 20 per cent
OF the business Of the United States, leav-
ing about 10 to Is per cent for all OF its
competitors. II is also held that the tes-
timony taken in the Standard OF prose-
cution shows that the that company,
through a company IN which IT owns
majority of the stock Cthe Galena Signal
OIL company also controls about 81 1-2
per cent Of the fabrication Of railroads
throughout the United States and that II
sells to most railroads at enormous
profits.
This Is evidenced by the net earnings
Of the company, which in 1905 were about
III per cent on the capital stock actually
paid IN and about los per cent on a liberal
valuation Of the capital used II Is also
shown by the further fact that the prices
TO the railroads are substantially double
the prices charged to a few favored lines,
notably the Pennsylvania.
For instance. the brief says, the New
York Central railroad for ten years has
paid about 100 per cent per gallon more
than the Pennsylvania II Is also stated
that wherever the Standard can do so, Il
has made contracts whereby II has either
marketed q part or all Of the product OF
the independent refneries. OF has limited
the output Of the same.
Evidence of Monopoly
One Of the evidences Of the monopoly
OF the defendants. II Is charged, is its
enormous earnings These earnings are
summarized as follows: The Standard
OIL trust and the Standard oil company
on an investment Of sss.O24. $50 had earned
Up TO the end OF 1906. 1888 Ts5. 7S3
Adding the estimated profits OF 1907
and 1905 We have substantially" the brief
states. "a billion dollars earned by this
company in q years with an original
investment Of about SIS. COO O0O."
Further on the brief says:
1T has usually been claimed for large
corporations in this country that they
have increased business and decreased the
cost 10 the consumer. but in the case
of the Standard Oil company, il has dur
ing ten OF fifteen years actually increased
the prices Of other products throughout
the country, although the price OF its
raw material and cost OF manufacture
and sale during these years has increased
very little. II any"