The Miller press. [volume] (Miller, S.D.) 190?-current, 1910-03-17
COUNSEL DENoUNcEs METHODS
OF THE GOVERNMENT
INVESTIGATORS.
READY FOR Big STRUGGLE
Success Of Firm Is Due to Foresight
and Energy.-Brief Declares That
Pipe Line Monopoly Does
Not Exist.

Washington, ID. c. - Although
a brief ION the part of the appellants
was already on file in the supreme
court of the United States a second
group of legal talent of the Standard
Oil presented to the court additional
Independent defense of that organiza-
ton.
The new defenders were three
prominent Eastern attorneys, John G.
Johnson, of Philadelphia; John G.
MilburD and Frank l.. Crawford, Of
New York. The first defense was pre-
pared by Pittsburg counsel, ID. T.
Watson, John NJ. Freeman and Ernest
Irwin. On Monday the court will hear
oral arguments on the decree Of the
district court of the United States
for the eastern district of Missouri,
~dissolving the Standard Oil company
OF New Jersey.
The Eastern counsel went more full.
ly into the facts" in the controversy
than the Pittsburg attorneys. Partic.
ular stress is laid on the claim in the
brief that the record shows no un-
reasonable advance in the average
prices of the Standard Oil.
1T appears, in fact, that there was
nc increase in their net prices" say
counsel. What the governments po-
sition amounts to is that the actual
prices for refined oil should have
stood still, while all other prices were
rising, including the prices of all COM
modities used In the manufacture of
oil and chiefly. the price of labor. But
IL were otherwise; there is
no principle of law or of political econ
omy which requires a manufactures to
give away a profit which he can make
by economies in manufacture"
The governments method of esti-
mating the profits the Standard Oil
has been making Is denounced In the
brief as "unsound in law" and as
contrary to business principles and
the facts of human experience"
Considering only the rate of pro-
H., which for sever years, l9O0-19O6,
averaged less than % per cent on the
total net capita invested year by year
in the business, that rate of profit Is
a reasonable one for a great manu-
featuring business. involving the ele-
ments of risk, which characterize the
oil industry, especially where, as here,
a great proportion Of the profits is
derived from business with foreign
countries outside of the protection of
American laws and in competition
with the manufacturers and merchants
of the world.
ut Is believed that few, if any
large manufacturing business enter
prises in this country, at least in pros
porous years, make less than 20 per
cen profits per annum when such
profits are reckoned upon the actual
cash value of their net tangible as
sets"
This is the explanation given of
what is designated as the remark
able success of the Standard Oil bust
ness"
THE success of the Standard Oil
business, broadly considered" the
foresight, energy and holiness and to
a policy of investment OF an immense
scale displayed and carried out in
every branch of the petroleum in
dustry.
This industry may be analysed I'M
der four great heads:
"1-Insuring a constant and ade-
Quate supply of crude oil.
"2-Getting the crude oil to the re-
flneries.
Maintaining extensive, ap-to-
date. well situated reineries and EN-
ploying the latest and most economi-
cal refining methods.
"4-Developing and extending mar
kets. domestic and foreign. by i'm
proving marketing methods"
The charge that the Standard Oil
company through their control of pipe
lines have m~onopolized the purchase
and transportation of crude oil is de-
clared in the brief to be entirely un.
supported by the record"