The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1910-04-13
CHECKERED CAREER Of
STANDARD OIL COMPANY

| The circuit court based its decree
on the single finding that the reor-
| ganization of the Standard OH in 1899
was a violation of the sherman anti
! trust law. In its fight before the Su-
preme Court the government argued
| that even if this We're not n violation
| of the law, other acts were For in
stance, there had been continuing
conspiracy to monopolize the trade.
| the government claimed. In support
of this contention of existing monop-
| oily it pointed to the finding of the
circuit court to the effect that the
Standard from 1899 20 1907:
! Something About Standard Oil.
Produced more than one-tenth of
! the crude oil obtained in this country
| owned and operated more than
| onc-half of all the tank cars used to
! distribute its products.
! Manufactured more than three
/ fourths of all the crude oil refined in
/ the United States.
| Transported moe than four-fifths
of the petroleum derived from the
Pennsylvania and Indiana oil fields.
Marketed more than four-fifths of
all the illuminating oil sold in the
United States.
Exported more than four-ffths Of
all the Illuminating oil sent forth from
the United States.
Sold more than fOur-fifths of all
the naphtha sold in the United States.
Sold more than nine-tenths of all
the lubricating oil sold to railroad
companies in the United States.
Throughout the fight the reorgani-
cation of 1899 was the storm center,
and in defense of that action the 1a-
gal talent of the Standard directed it's
energy.
The claim was set up that tho re-
organization of 1899 did not restrain
trade by reducing competition, be-
cause the properties involved in this
suit formed a non-competitive group
prior to the passage of the Sherman
act in 1880 and their transfer to the
New Jersey corporation in 1899 did
not alter their status or restrict COM
petition"
Make Same Defense.
This same defense was made in the
! circuit court. That court held that
the power of the principal company
after the transfer Of 1899 to fix the
should buy and sell the articles in
which they dealt, the terms of their
purchases and sales. their rates for
the transportation of oil and its pro-
ducts and all the infinite details OF
their vast operations in which they
might Gampete was greater, moe
easily and quickly exercised and hence
more effective than it could have
stockholders, 1t held that the cor
porations wee potentially compete
{ tive if not active competitors.
The government advanced the same
argument before the Supreme Court,
as it had done before the circuit court
The Standard replied by contendinl
that the doctrine of potential com
petition" would mean that one person
could be compelled to compete with
/ himself. The argument over the sub
ject and the discussion of what con-
stitutes Il monopoly consumed man.
hours Of the hearing.
Deny MOnopolistic Tendencies.
AS to its monopolistic tendencies.
the Standard attorneys entered a de-
NAL but boosted of its largeness, Il
the natural development and out
growth of business begun nearly fifty
years before.
by untiring energy, with infiuite
skill, with abundant capital and the
steady relnvestment OF early profits
said Mr.. Watson in his brief prepared
for the court, these men and thei'
associates created out OF an entirely
new, unique and unprecedented nr1-
uuctlon of crude oil, new, univer-
sally used and cheapest illumnant the
world has known. They succeeded,
is If one had developed unexpectedly 4
gold or diamond mine. and abundant
revenue legitimately became theirs"
'Fhe reply of the government to this
line Of argument was summed uu in
one outburst of Mr.. Kellogg in adj
dressing the court when he shouted
''They waved the black flag over the
land, as others had done over the sea"