The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1910-04-13
Alleged Monopoly Which Govern
ment Seeks to Dissolve Has
Had Intensely Interesting His
tory.
History of Standard Oh.

| oil Co., of Ohio, by Rockefeller and
! others.
/ IS71.-South Improvement Com
/ pany arranged for rebates from rail-
roads.
1879, Organization of "vilas-Keith-
/ Chester Trust"
1852. O ganzation of the so-called
standard Oil Trust
1890. Passage of the sherman an
tt-trust act.
1892. Dissolution of Standard Oil
Trust"
1899. Reorganization of Standard
Oil Co. of New Jersey as holding
company.
1906. Filing of petition for dssolu-
ton of Standard.
1910. Circuit court at st. Louis de-
crees dissolution asked for by gov
eminent.
1910. Appeal to Supreme Court of
the United States.
Attacks of Years.
For years STANDARD Oir' has been
under the SCRUTINY of state and fed
nral governments. During the last
four years the litigation has engaged
the attention of the federal courts.
Since March IA of this year, the SUI
preme court has weighed the contro-
versv of these years.
The first great fight over the meth
DDS of the Standard Oil interests was
directed against the Standard oil
Company of Ohio. AS result of the
litigation, this organization was dis
solved. The stock drifted into the
Of of
othe~, and more litigation followed.
Then the Standard Oil Company nf
New Jersey was reorganized in 1893.
With its capital stock of $110.000,0o0
It became the holding COMPANY. that
$. it acquired the stock of nineteen
other oil companies, which in turn
controlled a still larger number OF
companies engaged in Varinne
branches Of the oil business. The task
If fighting STANDARD Oil" had out
grown the states, and the federal gov
eminent took up the cudgel.
Gets Hit in Missouri.
The Bureau of Corporations was
organized, and as its first assignment,
unde took an investigation of the
standard OIL. ut reached into the very
vitals of the corporation" according
70 the description of that inquiry given
III court by the Standards counsel.
Then in 1905, Justice Moody, now
nr the Supreme Court, then Attorney
General of the United States, directed
the filing of a petition in the federal
circuit Court for the Eastern District
of Missouri. for the dissolution of the
standard Oil Company of New Jersey,
as a combination in restraint OF in
lerstate trade and monopoly, all i'll
violation of the Sherman antitrust
law The petition was loaded with thu,
ammunition collected by the states
and nv the Bureau of Corporations.
John %. Rockefeller, William Roch =
efeller, Henry H. Rogers. Henry NJ
Flagler. John d. Archbold. Oliver II.
Payne and Charles M. Pratt were
named as individual defendants. The
standard on Company of New Jersey
headed Est of ia companies desig-
mated rs "detendant corporations"
Decree is Rendered.
The hearing finally came on. Only
the Waters Pierce Oil Company was
resident in the circuit, and the Stand
aid denied the right of the court to
compel the other defendants. outside
in this contention. Testimony was
oxen in Missouri and in New York.
Finally, early in this year over three
years after the filing of the petition
III the circuit court. the four judges
who had been called in TO pass on the
suit announced the decree of the court.
That decree upheld nearly every
contention the government had made
It did, however, dismiss some of the
defendant companies. 1t decreed that
the reorganization of the Standard Oil
Company of New Jersey in 1899 con-
stituted a combination and u con-
Spiracy in restraint of commerce
among the states and with foreign
nations, and a combination and con-
spi"acy to monopoliZe that commerce
IN violation of Sections one and two
respectively of the Sherman anti
trust act.
The principal or holding company
was enjoined from directing the at
fairs of the subsidiary corporations,
and the subsidiary corporations We're
prohibited from paying dividends to
the holding company. The defend
ants were enjoined from engaging in
interstate commerce until the Illegal
combination was discontinued.
Safeguards in Decree.
Lest the defendants get around the
decree In some manner the court ell
iointed them from carrying the com
binatlOn into further effect either by
the use of liquidating certificates CIV
en- to trustees, or by an agreement or
a, rangement like that adjudged Tile
gal.
1t did, however, grant permission.
specifically for the distribution rat
ably to the shareholders of the hold.
ing company of the shares in the sub
sidiary corporations.
Then the suit was brought to th,.
Supreme Court of the United States
on the appeal of the Standard. On
account OF the great Importance OF
The case, ii was advanced for an
early hearing
On March IA of the present yea
| the final argument of the case began.
1t lasted three days. For the Stand
ard Oil, the most brilliant lawyers
obtainahle pleaded its cause. John G.
| Johnson, of Philadelphia, headed the
list, and associated with him We're
/ John G. Milburn, of New York, and
| ID. ~. Watson. of Pittsburg. For the
government ATTORNEY General Wick
ersham in person and Frank b. Kel-
| logg, Of St. Paul. directed the fight
Enormous Profits Cited.
The government dwelt upon what I
termed the Standards enormous prof
its and high prices, the pipe lines as
an aid to monopoly numerous CON
tracts in restraint of trade" railroad