Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-03-12
[)|L FACES CRISIS
| BEFORE HIGH COURT
MOST SERIOUS LEGAL BATTLE
TO BE BEGUN IN WASHING
TON MONDAY.
ORDER OF DISSOLUTION
TO BE ARGUED ON APPEAL
Three Days to Be Consumed by At
torneys in Discussion of Merits Of
Order Of United States. Circuit for
District of Missouri-RockefeIIer ct
aI. Convicted Of Conspiracy.

District of MISUNDERSTANDING ct
ai. Convicted Of Conspiracy.
Washington, March 12.-Three entire
days probably will be given by the SUI
preme court of the United States to the
hearing OF arguments in the Standard
Oil dissolution suit, beginning Monday.
Counsel have agreed to ask for that
much time. John G. Johnson, Of Phil
adelphia and John G. Milburn. of New
York, probably will argue for defend
ants. D. T. Watson, Of Pittsburg, may
also aopear. The side OF the govern
ment will be presented by Attorney
General Wickersham and Frank B.
Kellogg, of Minnesota.
The most serious legal battle that
STANDARD Oip' has ever faced will con-
front 1T on the day set by the court Of
the United States to hear arguments
on the appeal Of the Standard Oil Com
pany. Of New Jersey, from the adverse
judgment OF the United States circuit
court for the eastern district of Mis-
souri,, which ordered the dissolution Of
the New Jersey corporation as an IL
legal combination and monopoly in re-
straint OF interstate commerce. To
point out the alleged errors of the cir
cult court in it's findings and in it's de-
cree, the keenest intellects within com
mand have been procured.
Face Grave Charges.
The circuit court announced grave
findings against the seven individual
defendants, John D. Rockefeller, Will
liam Rockefeller, Henry M. Flagler.
. Henry II. Rogers, John ID. Archbold.
Oliver H. Payne and Charles NJ. Pratt,
the Standard Oil Company of New
Jersey and other defendant companies.
Tho court found that In 1899. by an
exchange Of stock by the seven indi-
7 viduals, the Standard Oil Company OF
New Jersey acquired the legal title to
VI majority OF the stock OF nineteen
|companies, which In turn controlled
large number OF others, all but one en-
gagged in the oil business. What it
found as to this combination was this:
That since 1899 the affairs Of all
these companies have been managed
by the principal company as the busi-
ness of single person, SO as to fix for
them the price of crude oil. the rates
for transportation and the selling prices
Of its products.
That the par value Of the combined
capital stock in 1899 was about $780,
lOOO, 900, and that In 1903 it was $780,
100000.
That twelve Of these companies
owned 54,565 miles OF pipe lines.
That six of these companies had
- ~, xha
tied States.
That these companies from 1899 to
1907 produced more than one-tenth OF
the crude oil obtained in this coun-
try.
That they owned and operated more
than one-half Of all the tank cars to
distribute its products.
That they manufactured more than
three-f -fourths of all the crude oil re-
fined In the United States.
That they transported more than
four-fXths OF the petroleum derived
from the Pennsylvania and Indiana oil
fields.
That they marketed more than four
fifths Of all the Illuminating oil sold in
the United States.
That they exported more than four
afths of all the illuminating oil sent
forth from the United States.
That they sold more than four
ffths of all the naphtl1a sold in the
United States.
That they sold more than nine
tenths Of all the lubricating oil sold
to railroad companies in the United
States.
Conspiracy in Restraint Of Trade.
On this finding the court decreed:
Irt> ~, MI 1P uyoa q
combinations or, conspiracy in restraint
OF interstate commerce in petroleum
and its products, such as the first sec
tion Of the Sherman antitrust act de-
clares is illegal; that the seven in
diyidual defendants, the Standard Oil
Company of New Jersey and thirty
nine other companies had entered into
combination or conspiracy to mon
sopolize and had In fact monopolized
substantial part of interstate COM
merce in violation of the second sec
ton Of the Sherman antitrust act; !
that thirty three other companies ac-
cused were proven not to be in this
combination.
The court enjoined the principal
company and its directors from exer-
cising any control over the subsidiary
companies; 1t enjoined the subsidiary
from declaring or paying
any dividends to the principal COM
pany, but not from distributing ratably
to the shareholders of the principal
company the stock ,f the subsidiary
it enjoined those found 10
|be IN the illegal combination from
continuing IN 1t or forming a new COM
bination by means of aggregation of
the physical properties in the hands OF
one member of the combination, and
forbade those in the combination from
engaging In interstate commerce until
the combination was discontinued.
Plead No Composition.
The defense has urged that the cor
porations, which entered into the or
eanisation Of 1899, had not been COM
nefitors since 1S79; that the stock
holders Of the principal comnan.' were
the joint. owners Of the stock OF the !
eubsidtaNy ycempaniessand had the right