The Birmingham age-herald., 1910-03-16

burns statement yesterday that the
 Standard oil of Ohio had not dismantled refneries purchased.
 1 MT. Milburn has not been connected with this case since its beginning as l
 have" said MT. Kellogg. He Is not informed on this point. In lsso MT.
 Rogers testified they had dismantled DO
 rehneries. I may say without exagger-
 ation that Pennsylvania was streWh with dismantled refneries.' | Competition Killed. 1 In answer to the argument that the cor
 porations which went into the comhin-
 ation in 1899 were non-competing, MT. kel- logg declared if they were not competing | 1t was because they were in trust that was void. But this trust, he added, MT. Rockefeller had transferred, had been dissolved pursuant to a decree of the su- preme court of Ohio. and 1t did not lie in the mouth of the Standard oil to deny that now.
 MT. Milburn said he did not deny it; that he merely asserted the property had eom- mon owners.
 Just before the court adjourned for lunch MT. Kellogg touched upon some of the methods of competition and manage ment of corporations. He told the court that to meet the purposes of the Standard Oil. two balance sheets were kept in one pipe line company. On one of these an employe was credited with a receipt of s22 OO0 He said the employe never got 1t and that the Standard declined to tell who did
 Did they distribute it?'' inquired Jus tice Lurton.
 we don't know. When I asked MT.
 Mllburn he said he could not gratify my almost feminine curiosity After the recess MT. Kellogg took up the question of profits. He recited long list of subsidiary corporations and the profits he said they had earned.
 The Colonial oil company, he said, in
 1906 had earned a profit of 502.7 per cent on it's capital stock.
 "What!'' interrupted Justice White. Five hundred and two and seven-tenths per cent on its capital stock and l.2 per cent on it's net assets"
 MT Kellogg next discussed prices of oil as compared with other articles. and then turned to the pipe line business Pipe Line Rates. MT Kellogg charged that the Standard, since it's pipe lines had been made com mon carriers, had established delivery sta
 tions at ''outlandish places, where nobody ever had a refinery"
 Their rates were prohibitive. the coun- sel said and that was the reason appli- cdtlOnS to use tilc plpc lines idu uot peeii
 made by independent concerns. Railroad rates as a means of unfair competition was next considered He spoke of the number of Standard Oil of | ficals in many railroads. From the rail- read question he turned to what he called 1 the unfair methods Of competition. Az an example, he told Of the Standard oil selling oil at loss in Los Angeles, where there was competition. and at profit n | Portland. and Seattle, where there was no competticn.
 "They may say that is only competi- | tiCn but we say it is competition that is dangerous in the hands of corpora | ton spreading all over this country | Bogus independent companies organ | ized by the Standard were likewise class | flied as dangerous competition mediums. l MT. Kellogg then turned to discus | sion of the purely legal phases of the controversy. Under the common law he urged that the combining Standard was urlawfu. because for 1899 showed tie | Northern Securities was analogous to | the present case. In hitting at the | c;eim of ownership, he said at times when
 it was convenient the opposition dwelt upon corporate entity, but In the pres- | ent instance they were anxious to go be- ycnd the characterization to the indi- vidual's rights. He urged that the action l of the corporations was before he court
 Justice White and Justice Lnrton ques- | toned him on how he interpreted the 1 two sections of the Sherman antitrust flaw in question. He answered that much