Omaha daily bee., 1910-03-15

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reply Of Frank b. Kellogg on the part Of
the government.
The hearing Of the suit against the
Standard OIL company attracted to the
court room, lawyers and spectators from
all sections Of the country. Members Of
both houses of congress foresook their re-
spective chambers to hear what was To be
said In the review OF the decree Of the
circuit court of the United states for the
eastern district OF Missouri. dlssolving the
STANDARD OIL company OF New Jersey, as
a conspiracy in restraint Of trade and as a
monopoiy'in violation Of the Sherman anti
trust act.
Growth Of the Business.
The greater part Of Mr.. Milburn's ad-
dress to the court consisted Of a review Of
the growth of the Standard Oil company
with the object Of laying the foundation
for the claim that the corporations enter
ing into the reorganization Of the Standard
OIL company OF New Jersey I'm 1899 were
non-competitive, because for many years
they had been under a so-called common
ownership.
He told Of the tremendous size Of the
business Of the Standard on company and
explained how It had grown, according to
his conception. He said large factors in
this growth were the building OF pipe lines,
which anybody had a right to build" as
he described 1t; the building Of refineries
and the extending of the marketing faclli-
ties throughout this country and the entire
world,
I'VE compete abroad with great cor
porations," he said, that are protected and
shielded by their governments and com
PEELED to combine so that they may be
powerful. We nav been able to meet
them, because Of our strength"
standar Owns the stock.
Mr.. Mllburn then outlined briefly the
argument on which the defense relies so
largely, that the properties Of the COM
panies that went into the Standard OIL
company Of New Jersey in 1899 were owned
by the same persons who owned the
Standard OH company OF New Jersey after
its organization and in the same proportions
and hence was not competitive at the time
the Standard Oil company of New Jersey
was organized.
Justice White interupter Mr.. Milburn,
asking IL the Standard OIL company Of New
Jersey was the only stockholder of the
subsidiary companies. Mr.. Mirburn said it
was.
How does that affect the existence Of
the subsidiary companies" inquired the
justice.
THE question has not arisen,' was the
reply.
But 1t arises right here" Justice White
said. Tn Louisiana, for instance, IL the
stockholders are reduced t. less than 12 1t
goes out OF existence. 80 5'a htsaH
Mr.. Miiburi said the court would be told
the organization OF the Southern Improve
.-z-A 1900, L., fCTJ -a1 Ato ka-s,og--
of the alleged conspiracy. As a matter of
fact, he said, Mr.. Rockefeller lad no con-
fidence in that organization, but went into
it merely to avoid offending railroad men,
who wished to settle rate troubles
In answer to Justice Day, he estimated
tina 81 to 80 per cent Of the oil refining
business was in the hands of the STANDARD
company.
Toward the close of the day he entered
upon a discussion Of the Sherman anti
trust act. He said inasmuch as the circuit
court had held that the mere method Of
organization wa sa conspiracy TO monopo-
lie and had not considered the alleged
monopolistic conduct, he felt an embar-
rassment about discussing whether they
violated the law.
you discuss them in your briefs, do
you not?' queried one of the justices.
"Oh. yes was the response.
After a discussion of the general meaning
of a monopoly, he reverted to the alleged
mcnopolistic conduct of the Standard Oil
company.
Mr.. Milburn said he did not think that
the corporation was in restraint OF trade,
in view Of the common ownership" 1t
had never restrained the liberties or capital
- pvyoY, Who hna aptnvaI into e. nor
anyone who was its competitor, he as
serted. Instead OF being q monopoly, it
was urged by Mr.. MIlburn, that the amount
of business it was doing was decreasing.
Question by Harlan.
Justice Harlan asked Mr.. Milburn II ne
would call an organization of men to buy
all the coal lands in Pennsylvania a con-
spiraoy in restraint of trade and monopoly.
"The question you put is one difficult
Of solution" responded the counsel. He
explained to the court that he was really
getting out Of his line OF business In
discussing monopolies.
~ think you are in your line said Justice
White.
"Well, the Sherman. law is very interest
ing" observed Mr.. Milburn. Napoleon
complained that the laws did not lend
themselves to the Imagination, but he had
never read the Sherman antitrust act"
Finally Mr. Milburn took up the charges
of monopolistic conduct as alleged 10 have
been shown by transportation discrimina-
ton. He declared the idea that railroads
throughout the country would discriminate
in favor of a business that afforded only
half OF / per cent Of the total traffic, was
preposterous. He said the government cries
Of tremendous discrimination in favor OF
the Standard Oil refining points and
against the independent refining points.
mo independent refiner since 1887" he
added, when the Interstate Commerce act
was passed, has complained to the Inter
state Commerce commission Of discrimina-
tons"
Denies Unfair Competition,
He spoke OF the alleged unfair competl-
ton. Competition does not breed the vir-.
tues" he said. 1T is the lower nature that
comes uppermost, under such conditions,
you know. But are we to be held re-
sponsible for all the acts OF our en-
ployes?'
"Out Of 1900 towns In which the Standard
OH company Is located" he said, "the
record showed complaints OF unfair compe-
tition from thirty-seven. An example Of
those who had complained Of competition
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