The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1910-04-14

.ut u9t VI IHuiUdtfliS NtiAliibdttn XIV /
N to trustees. or by an agreement
u arrangement like that adjudged H. |
egal
1t did, however, grant permission
for the distribution rat
lbly to the shareholders of the hold
ing company of the shares in the sub
sidiary corporations.
Goes To Supreme Court
Then the suit was brought to the
supreme court Of the United States
on the appeal of the Standard On
account of the great Importance Of
the case, it was advanced for an early
hearing.
On March IA of the present year
the final argument Of the case be-
gan. It lasted three days For the
Standard Oil. the most brilliant law
yers obtainable pleaded its cause.
John G. Johnson, of Philadelphia,
headed the list, and associated with
Linn were John G. Milburn, of New
York. and d. r. watson, Of Pittsburg.
For the government. Attorney Gener-
ri Wickersham in person and Frank
3. Kellogg, of ST. Paul, directed the
fight
The government dwelt upon what
ii termed the Standards enormous
profits and high prices the pipe lines
as an aid to monopoly, numerous
contracts in restraint of trade,
railroad rebates and determinations
in connection with the alleged monop-
cly by the Standard of railroad lubri-
cation and various forms of unfair
methods Of competition"
The circuit court based its decree
on the single finding that the reor-
ganization of the Standard Oil in
1899 was a violation of the Sherman
antitrust law. In its fight before
the supreme court the government
argued that even If this were not a
violation of the law, other acts We're
For instance there had been con
tinuing conspiracy to monopolize the
trade. the government claimed In
support of this contention of existing
monopoly, Il pointed to the findine
Of the circuit court to the effect tha'
The Standard from 1899 to 1907:
Some OF The Allegations
Produced more than lilo of The
crude oil obtained in this country.
Owned and operated more than L.
Of all the tank cars used to dlstrib
ute its products.
Manufactured more than S-l of al
the crude oil refined in the unltet
States
Transported more than As of tht
petroleum derived from the Pennsyl
yania and Indiana oil fields.
Marketed more than AS OF all thf
Illuminating oil sold in the United
States.
Exported more than As of all th'
illuminating oil sent forth from th'
United states. j..
Sold more than As of all the naph
tia sold in the United States.
Sold more than $40 of all the lub
ricating oil sold to railroad compan
les in the United States.
Throughout the fight the reorganl
zation of 1899 was the storm-center
and in defense of that action the le
cal talent of the Standard dlrectel
its energy.
The claim was set up that the re
organization of 1899 did not restrain
trade by reducing competition, be
cause "the properties involved in this
state forbid a non-competitiye groul
prior to the passage of the Sherman
act of 1890 and their transfer to TN
New Jersey corporation in 1899 dix
not alter their status or restrict com
petition"
This same defense was made in h
circuit court. That court held tha
the power of the principal compan'
after the transfer of 1899 to fix tn
prices at which the corporation
should buy and sell the articles il
which they dealt, the terms of thel
purchases and sales, their rates TO
transportation of oil and its product
and all the infinite details of thei
vast operations in which they nigh
compete was greater, more easily ant
quickly exercised and hence more el
fective, than it could have been i
The hands of 5000 scattered stock
holders. It held that the corpora
tions were potentially competitive
not active competitors.
Advanced Same Argument
The government advanced IN
same argument before the snprem
court, as it had done before the cil
cnit court. The Standafd replied b.
contending that the doctrine Of "pt
tential competition" would mean tha
one person could be compelled Z
compete with himself The argumen
oyer The subject and the discussion
Ct what constitutes a monopoly col
sumed many hours of the hearing.
/ AS to its monopollstie tendencie
I The Standards attorneys entered
denial but boasted of its largeness
as the natural development and on
I growth of business begun nearly II
/ ~ years before.
by untriDg energy, with infinit
J skill, With abundant capital and th
steady Feiuyestment Of early pro-
it's, said Mr.. Watson In his brif
prepared for the court, these me
and their associates created out {
an entirely new, unique aud unpr'
cedented production OF crude oil,
new universally used and cheapes
1 illuminant the world has know
They succeeded. as II one had dcve
oped unexpectedly gold or damon
mine. and abundant revenue leglt
mately became theirs
The reply of the government
this line of argument was summed II
in one outburst OF Mr Kellogg IA az
dressing the court, when he shouted
''rhey waved the black flag over tn