The free lance. (Fredericksburg, Va.) 1885-1926, 1911-05-18
WON t EVADE LAW
Standard Oil Go. to Obey
Courts Mandate.
PLANS FOR REORGANIZATION
All Companies Involved in DISCO
luton Order Will Conduct Its
Own Business as Usual,
Says Solicitor.

DAYS OOllOitoi'
New York, May 1.-THE Standard
Oil company, whose dissolution was
ordered by the decision Of the United
States supreme court, gave out Il
statement regarding the decision
through its chief counsel, NJ. +. FL
lott
The statement says that any lengthy
reply TO the decision cannot be made
AT this time, and adds that the law
will be obeyed and that the companies
embraced in the courts decree Will
carry on their business through their
own corporate organization.
Mr.. Elllott's statement follows:
Having only before us the press
reports Of Chief Justice Whites oral
opinion and the remarks OF Justice
Harlan. and not having yet seen the
opInion OF the court in full, II Is I'M
fpossible to make any legnthy state
ment The full opinion must be read
and studled by my associates and my
self before II can be inteliigenuy
dealt with.
ut may. however. be now said tha'
the Standard Oil company will obey
the decree of the court, and that all
the companies embraced In the courts
decree will carry on their business as
usual under the direction Of their own
officers and through their own corpor'
ate organizations.
William Rockefeller, one OF the vice
presidents OF the Standard, said re-
garding the decision:
The company will make a state
ment through Mr. Elliott after the de-
cision has been read In every par
tlcular. All we can do Is to hope that
the decision Is for the best. After all
the Standard oil case was only one oil
the things affecting general business
conditions unfayorab."
A conference OF directors and ON
GERS Of the company was held at its
Offices. attended by John c. Milburn'
special counsel, but no further state
ment was forthcoming.
Among those who attended were:
John ID. Archbold. II. c. Folger, Jr,
/ A. Moffatt, Walter jennings. A. {.
Bedford. Charles A. Pratt and +. T.
BEDFORD John ID. Rockefeller did not
come down from his country place.
Now that the case has been decided
the business world and big financial
interests. which awaited the supreme
courts decision so long, will watch
closely every step in the Standard s
reorganization
Plans For Reorganization.
Although officials OF the company
have denied from time to time that
they would make any plans in advance
Of the courts dictum, II has been re
ported perslstently that the company
object in raising the capitalization oil
its subsidiaries, as il has done from
time to time in the last two years,
has been with the object OF putting
them upon capital basis In line with
plant values. This, it was thought
would enable the company easily to
diclde I'D the stocks Of its subsidiar
les among the shareholders OF the
parent organization should the con
Germs corporate life be ended.
Those who we're willing to venture
a guess as to what the Standard OIL
company would do pointed out that II
would be a comparatively simple thing
to divide the shares Of the subsidiary
companies among the present holders
of the parent company's stock. The
pro rata division would. Of course
leave the control OF the business as
conducted by the subsidiaries exactly
where It stands through ownership by
the holding company.
One plan which 1t was said the cor
poration was considering was the dIyi'
sion Of the present corporation into
six separate companies, each operat
ing its own we'll defined territory. Yet
the ownership Of all these separate
companies would remain in the same
hands. There would not need to be
competition between the branches, as
for example, between New York and
Indiana companies, and there need not
be any agreement as to dividing ter
ritOry.