The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-05-16

ngainst tho Standard Oil Company, OF 4
Ohio, reorganized tho Standard Oil9I
Company, OF New Jersey, to take over
their interests and to secure monopoly. B
Evidence Of Rotating. Of price cutting Y
and OF the organization of secret con-
Germs to pose as independents n was IL;
elected to show that the Standard wa "a
seeking by unfair means to restrain 81
trade ana to procure monopoly. ts7S
Denies Conspiracy Charge.
Standard or introduced evidence TO L
show that there had never been such !,
conspiracy. IT sought to provo that Il
the Ohio supreme Court did not hold +
the trust agreement of 1882 void but L
merely required the Standard OH Com y.
pany. of Ohio to withdraw from thu +
trust" III 155. n
Evidence was produced to show that I
Relating had been the order OF the i
day among all commercial concerns: n
that price cutting and secret concerns
were not the rule and wcre used MS 4
legitimate instruments OF competition &
The Circuit Court held that the re-
organization OF the Standard OIL Com 5
pany of New Jersey in 1899 was not
only violation of the nrst section
of the act. which referred to restraints
or trade but also of the second sec
ton. which applied to monopolizing.
The Standard Oil had argued that
there could be no additional restraint &
as Il result OF the reorganiza ton be-
cause the Standard OIL Company OF z
New Jersey was owned by common
body of owners In exactly the same
proportion that all the subsidiary
companies taken over BY this new or
SaniZation had been held by these
same common owners for years past,
The court held otherwise. and said 8
that the combination in single corr
poration or person. by an exchange of Y
stock of the power of many stock
holders holding the same proportion,
| respectively, of the majority OF the !
stock of each Of several corporations
engagcd In commerce in the same
articles among the States. or with FOR
| eign nations, to restrict competition 4
| therein, rendered the power thus vest
| ed in the corporation or person 4
| greater, more easily exercised, more
| durable and more effective than that
previously held by the stockholders-e
In these effects, The court found a re-
straint on commerce
' Court Evolves Plan. S
The court then proceeded TO evolve
| a plan to remedy the situation. 1t
| entered a decree enjointng the Stand
| ard Oil Company of New Jersey from
| exercising any control, by reason of
| its stock ownership, over the sub
| sidiary companies. Furthermore, IT.
| eHJolHeQ these HuOSlulaIy companies
| from paying any dividends to the
| Standard Oil Company of New Jersey
1t put n provision In the decree to
/ enjon any possible evasion of the
decree by the organization OF SINH
! lar combination or of the conveyance
OF the property TO one Of the defen-F
dants. Unless the defendants should
| sever the relations and cease the com
| bination within thirty days. they were
J 70 be entolned from engaging in inter-
| state commerce until they did cease
| the combination S.'i6
! From the Circuit Court the case was
brought TO the Supreme Court If the
| united States. The record laid ,efort 4
the higher tribunal probably was the
| largest ever prepared in an American
case. The petition, plead,ngs, testi. Il
mony. opinions and decree constituted
Twenty-Five large volt mes, or mora
than 500 pages each. il sJts#
Inc case was FIRST argued before the
supreme Court In March 1910, but IN
was restored to the docket for reargn-
ment. The case was heard the second
! timo In January. 191l,ithe latter tina
before a full bench Noted attorneys 7
| appeared on either side For the roya
eminent Attorney General Wicker
shani and Frank B. Kellogg. special
assistant to the Attorney G eneral ad
u nI, the court For the Standard y
oii, there appeared John G. Jchnson.
or Philadelphia; John G. Niilbun. ~
burg. $50 -,
.7a'4 Not Natural Growth. 3H3
] ai IN MS address to tho court Mr. KeI!,
| losS' VINO took all the testimony in The
chse on behalf OF the govern nent said
ina t the Standard OIL organiza ton was
| not natural growth. hut ,yas' 49,
and reared in fraud and oppressinni Z
and hangs over the commerce Of iris
| country to-day like a threatnnin-
| cloud" 49, - ga 80 I'm ms ms
The Standard Oil Company Of New
Jersey. he told the court, con trolla,i
from s. to % per cent. OF the oil busi-
ness OF the country, With a financial
| rower beyond that possessed by any
| other animation ever known The
! combination, he added, was made ef-
| fcctive and powerful by reason OF
preferential rates and rebates in trans
| portation. the greatest ever known to
have. been made and by unfair and y
| brutal methods OF competitions which
| in and OF. themselves between mer-
chants and corner grocery men would f
| not he dangerous. but in the hands OF ].
"A combination OF this size and OF this X
| power, are the most dangerous instru-
mcn;s to Independent dealers. manu-
! facturers and men engaging in enter
| prise known in commerce." .t
| The other side of the contest was
| summarized by John G.. Johnson in s.
the closing argument in the case He
| declared that the country did not suf-a
| fer by the mere largeness OF the cor
poration, but proited For the alleged
| sins that the corporation had com
! mitted. he argued, there existed an
ADEQUATE remedy at law, aud there-l
| fore 1t was not neces sary for equity to "A
step In 10 dissolve the corporation Ha
denied that rebates We're being ac-
ceptcd by the corporatio now, or that
| Ii was cutting prices or organizing
secret concerns. ana characterized the8j
| governments references TO them in
the past MS necessary 10 give rhs
proper color and raise the proper 4
| 4 nj ON nn' In .