Coeur d'Alene evening press. (Coeur d'Alene, Idaho) 1907-1929, 1910-03-14
STANDARD OIL
CASE IN COURT
Two History Making Suits Before
Supreme Tribunal This Week

The final stage of the three year
struggle between the department of
justice and the Standard Oil company
was reached today when the argu-
ment was begun before the supreme
court. The case was appealed from
the decision of the general circuit
court at st. Louis, which ordered the
trust to dissolve.
John c. Milburn opened the argu-
ment for Rockefeller's company and
the court granted three days for each
side. The government contends
that the Standard Oil company is a
monopoly in the restraint of trade.
The cases to be heard today and on
succeeding days of this week will stir
the foundations of the commercial
world. The government suit for the
dissolution of the Standard Oil COM
pany and the test of the constitu-
tionality Of the corporation tax are
both on the calendar for today.
Not less than ten cases growing
out of the corporation income tax
provision of the tariff law are before
the United States supreme court, and
seven of these, including the typical
Vermont case Of Stella p. Flint
against the Stone-TTacy company, are
assigned for argument today.
The decision in the Vermont case,
it is declared, will affect a great ma
jority of the corporations in the Unit
ed States. Maxwell Eyarts, of New
York, appeared before the court as
counsel for Mrs. Stella p. Flint, of
Windsor. VT, who instituted proceed
ings in the federal circuit court in
Vermont, as general guardian of the
property OF Samuel N. Stone, Jr, a
minor, against the Stone Tracy COM
pany, a general retail mercantile cor
poration of Windsor, Vt. Part of the
property of the minor consists of
shares in this corporation. It was
sought to enjoin the corporation
from making a return of its net in
come, as required by the corporation
tax provision, and from paying the
tax, If levied. The Vermont court
ordered the bill dismissed.
The case has reached the court in
record-breaking time. An injunction
was sought in the United States court
| for Vermont, demurrer filed the
same day and at once sustained and
the case was hurried to Washington
within two days of the time 1t was
filed.
Objections TO the law.
The principal objections to the law
as urged in this case are as follows:
First-The tax is burden upon a
franchise granted by the state of Ver-
mont, and is based upon preroga-
tive and function of sovereignty be-
longing to the state and never re-
linquished.
Second-It is a violation of the
fifth amendment to the federal con-
stitution. which protects citizen
against being deprived of property
without due process of law, in that,
through the publicity of its bust
ness, the privacy of the corporation S
affairs will be largely destroyed and
its chief competitor, general store
operating as a partnership. and all
others. will be able to gain an init.
mate knowledge Of the company and
its trade secrets, while no correspond.
ing publicity will be permitted to the
corporation. BY reason OF such un-
lust advantage the corporation Is dan
gerously threatened. and will be
compelled to surrender fits charter
to the state and go into voluntary
dissolution.
Third-The tax is uneonstitutiona
because the private property Of the
corporation will be taken for public
use without Just compensation and
without any compensation whatever
in that its private books, records, etc.
are taken for publication by the col
} lector OF internal revenue and giyer
! to the public. The corporation vii
have no right against unreasonable
search to disclose its trade secrets
to competitors.
FOurth-It Is q violation OF thi
tenth amendment to the constitution
in that it is a burden and a tax uRor
and an interference with the powe