Los Angeles herald., 1910-03-11
STANDARDOILHA
DOUBLE DEFENSE
TRUST ATTORNEYS DECLARE
PROFITS REASONABLE
NEW LEGAL TALENT APPEARS IN
BEHALF OF OCTOPUS
Lawyers Declare Company's Success
Is Due to Foresight and Bold
ness and Not to Crushing
Out Competition
Associated Press1


WASHINGTON March 10.-Although
brief effort on the part of the ap-
pellants" was already on file in the
supreme court OF the United States, a
second group of legal talent of the
Standard Oil company today presented
to the court an Independent defense Of
the organization.
Todays defenders are three prom
inent eastern attorneys, John G. john
son of Philadelphia, John G. Milburn
and Frank r.. Crawford OF New Y Iork.
The first defense was prepared by
Pittsburg counsel, d. 7. Watson, John
NJ Freeman and Ernest Irwin. Mon
day the court will hear arguments on
the decree of the circuit court dissolv-
ing the Standard Oil company of New
Jersey.
The eastern counsel went more fully
into the facts in controversy than the
Pittsburg attorneys. Particular stress
is laid on the claim in the brief that
the record shows no unreasonable ad-
vance in the average, prices of the
Standard oil.
1T appears, in fact, that there was
no increase in their net prices" say
counsel What the governments posi-
tion amounts to is that the actual
prices for refined oil should have stood
still. while all other prices were rails
ing, including the prices of all COM
modities used in the manufacture of
oil, and chiefly the price of labor. But
suppose it were otherwise; there is no
principle of law or of political economy
requiring manufacturer to give away
a profit which he can make by econ
omies in manufacture"
The governments method of estimat-
ing the profits the Standard Oil has
been making is denounced in the brief
as "unsound I'm law" and as contrary
to business principles and the facts of
human experience"
"Profit Is Reasonable"
Considering only the rate of profit
| which for seven years-1900, 1906-aVer-
aged less than % per cent on the total
net capital invested year by year in
the business, that rate of profit is a
! reasonable one for great manufac-
turing business, involving the elements
of risk which characterize the oil in
dustry. especially, where as here, a
great proportion of the profits is de-
rived from business with foreign coun-
! tries outside protection of American
laws and in competition with manufac-
turers and merchants of the world.
1T is believed few, if any, large bust
ness enterprises in this country, at
least in prosperous years, make less
than 25 per cent profit per annum
when such profits are reckoned upon
the actual cash value of their net
tangible assets
This Is the explanation given of what
is designated as "the remarkable sue
cess of the Standard Oil business"
THE success of the Standard Oil
business, broadly considered" the brief
continues lis due to extraordinary
foresight, energy and boldness and to
policy of investment on an immense
scale, displayed and carried out in
every branch of the petroleum indus
try. This industry may be analyzed
under four great heads:
i. Insuring a constant and ade-
quate supply Of crude OIL
y. Getting the crude oil to the re-
flneries.
49, Maintaining extensive, up-to-
| date, well situated refneries and en-
ploying the latest and most economical
refining methods.
"A Developing and extending mar
kets, domestic and foreign, by i'm
proved marketing methods"
The charge that the Standard Oil
companies, through their control of
pipe lines, have monopolized the pur-
chase and transportation of crude oil. is
declared in the brief ITO be entirely
unsupported by the record"