Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-04-16
STANDARD OIL NOW
FIGHTS TENNESSEE
CUSTER JUDGMENT
Subsidy Battle in Federal Su.
prene Court Early Next
Week.

WASHINGTON, April 1.-THE gov
eminent has for the moment given way
to let the State of Tennessee wrestle
with Standard Oil in the arena Of the
Supreme Court of the United States.
While the main attack upon h great
oil corporation under the Federal anti
trust law has been deferred for weeks
by the courts decision hat the case
must be r%eargued, a subsidy battle will
be fought before the court early next
week over the attempt OF the State
of Tennessee to GUST the Standard Oil
from doing business there because of
alleged violation of the antitrust
statute of that State. The State courts
have adjudged against the corporation,
which now appeals to the Federal Su-
preme Court from the judgment of
custer.
John J. Vertrees is counsel for the
appellants, the Standard Oil Company
of Kentucky, which is one of Standard
offs subsidiary corporations. Charles
T. Gates, jr., encouragement of Ten
nessee. will have charge of the States
response to the appeal.
The custer proceedings originated out
of a transaction at Gallatin, Tenn, in
1903. The Evansville Oil Company, of
Evansville, Ind, sent a drummer into
Tennessee and sold a quantity of oil to
merchants in Gallatin. The Standard
Oil agent. learning of this. offered to
give them ten gallons of oil per barrel
to countermand their purchase orders.
-Four of the merchants accepted.
Two Agents Indicted.
The Standard Oil Company and two
of its agents were indicted on a charge
of criminal conspiracy in restraint of
trade, in violation of the Tennessee
antitrust act. One of the agents was
convicted and his sentence to pay a
fine was affirmed by the Supreme Court
of Tennessee, while the company went
free on the ground that the statute did
not authorize a fine on corporations,
but provided for custer or dissolution
as a punishment. The custer suit was
then brought.
Mr.. Nertrees has filed his brief in OPP
position to afirmance. His first point
ne states as being:
THE alleged criminal agreement Gf 1t
be an offense) is an offense against the
Federal, the Sherman act and not an
offense against the laws of Tennessee,
and, for this reason, the transaction at
which it was leveled and affected was
strictly and purely one of interstate
commerce, and the offense was neces-
sarily an offense against interstate,
and not intrastate, commerce., which
Congress alone can regulate"
The second point is that the Tennes-
600 90 500 - - 5-xsa -
lection of the laws and of due process
of law. as guaranteed by the Federal
Constitution The third point is that
the statute of limitations applies in the
case.
Mr.. Vertrees calls attention to what
he claims the Standard rs doing for the
people of Tennessee.
THE merchant can get oil when he
wants it and as he wants it," says he.
There are no long delays in ship
ments. The small merchant is not
obliged to order a carload, nor to club
with Others (even when he can do sol
in order to get the advantages of car
load lots. The company will deliver
any quantity from twenty gallons up,
as desired, Oil is delivered at the mer-
chants door and measured before his
eyes. There is no leakage and evapo-
ration, no loss in shipment, no leakage
while stored. There are no drayage
and carriage charges"
Attorney-General Gates refers to the
of the Standard that the at
tempt of custer is for only one offense.
rs it meant by this" he inquiries,
that a law should not be enforced for
one violation? How often, it may be
asked, must a statute be broken before
the punishment provided by it shall be
visited upon the offender"