Manchester Democrat., 1911-01-18
KELLOGG CLOSES
HIS OIL ARGUMENT
Bitterly Arraigns Standards Mo-
nopolist Methods.
WATSON OPENS FOR TRUST
Tells Court Big Corporation Is Being
Prosecuted for Alleged offenses
Committed Nearly Quarter
of Century Ago.
WATSON OPENS FOR TRUST

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Washington, Jan. 17.-Breaking into
Oils monopolistic methods, unfair
treatment of competitors and criminal
practices with railroads with which
Frank b. Kellogg, trust buster, closed
his argument in the supreme court,
David I. Watson, the Pittsburg lawyer
and counsel for the oil company, told
the court the Standard Oil was being
prosecuted for offenses alleged to have
been committed more than twenty
years ago; that it was beneficent
law-abiding corporation; that its meth
DDS were legitimate and that its dis
section would be disastrous and un-
Just.
No Evidence of Influenced Rates.
ut is said there is no evidence of
the Standard Oil having influenced
rates." said Mr.. Kellogg. "Of course
there is not. But the Standard Oil had
Its directors on the board of directors
of the great railroads of the country.
Did anyone expect they would testify
to having influenced rates? When it
is shown that Independent oil compa-
MES had to pay higher rates than the
Standard Oil that should suffice"
He showed how the prices of refined
oil and it's products had risen since
1897 from 80 to 65 per cent, while
the price of crude oil had declined.
This combination, with all It's
wealth, power and boasted capacity,
did not give the American people the
slightest consideration in the cheap
ened productions through improved
methods" he observed.
Mr.. Kellogg produced evidence to
show that in sections of the country
open to independent oil companies the
Standard Oil had cut prices to break
the independents, making up for this
loss by advances in prices in purely
Standard Oil territory. In the inter-
mountain states the profits run from
$50 to 100 per cent.
"One Of the greatest advantages to
the people is to keep open the door of
opportunity" declared Mr.. Kellogg.
"The Standard Oil has closed this door
to hundreds"
Received Discriminating Rates.
Then Mr.. Kellogg charged Standard
OIL with receiving discriminating
rates from railroads to the disaster of
Independents through concession. Sc
cret agreements and unpublished tariff
schedules.
There lisa desire among the Ameri-,
can people" concluded Mr.. Kellogg,
ITO end these great combinations. Con
gress has announced in the Sherman
act the policy 1t desires. 1t remains
for this court to determine whether
these combinations are to continue.
The speeches of Senators Sherman,
Davis. Vest, Hoar and Edmunds and
of Representative Wilson of West Vir-
.ginia when the Sherman act was be-
Ing framed are enlightening and CON
elusive on this point. They knew for
what they were legislating. They in
stanced the Standard Oil as monop-
oily to be broken. l believe the law is
against the unrestricted control of un-
limited capital"
Oil Running Product.
The supreme court" said Mr.. Wat.
son, counsel for the Standard Oil. has
never had case like this. Oil is a
running product. Millions were thrown
away in wild cat borings. AS much
money has been sunk in unproductive
wells as has been made out of oil.
These Standard Oil men engaged in
this as life work. They risked every
dollar they had or made. All the 1S
original refineries were built by one
group Of men. That group is still to-
gether in .the Standard Oil. There
never was competition among these
partners. They have connected, uni
fed plant for refining and handling of
the products of oil. 1t is an unequaled
plant, capable Of infinite good. You
are engaged In the destruction of this
unified plant, worth fully 100000 900,
and protest"
Mr.. Watson contended the only issue
In this case is that in 1870 the Rookie
fellers and their associates combined
and engaged in a conspiracy to re-
strict trade and create monopoly in
the oil business. The department of
Justice. he said, had dropped this
charge and was trying the Standard
Oil for acts committed since 1890.
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