Daily Kennebec journal., 1911-01-16
Has Alone Prevented the
Standard Oil Go.
GobbIing Up Every Independent
Dealer in The Country
Says Kellogg In Arraignmsnt Of
the Great Trust.

w uSlllUStOii, Jan. i0.-l aiming tie
| Standard Oil organization as bred by
expressing competitors and hanging
| Friday as threatening cloud over the
| country. Frank b. Kellogg. special as.
| sistant attorney general of the Unit
ed State. Friday pleaded with the SUI
preme court of the United States to
dissolve the Standard Oil Co. of New
| Jersey as violative of the Sherman
| antitrust law.
| He gave to the court the beginning of
| the government side of the controver-
| sy and viii complete it probably next
| Monday or Tuesday. Mr. Kellogg spoke
for nearly four hours. following the
closing of the defence by John Mil
| burn. Mr.. Kellogg went over the early
years of the Standards business lead
| ing up to the central point of the pres
| ent controversy, the reorganization of
| the STANDARD Oil Co. of New jersey in
| 1899. He characterized this re-organiza-
| tlon rs amounting merely to the sub
| stitu.ion of one illegal form of hold
| ing together the oil companies for an
other Illegal corporation. First it was
| the Trust of 1882. with its several
trustees, and the second. the stan
dard of New jersey"
When Mr.. Kellogg reached in his ar
gum"nt tile trust agreement of 1882
whereby the stock Of the owners of
various oil companies was put into the
hands >of trustees. he was interrupted
| by Justice Holmes.
THAT sort of agreement was quite
| common in New England" the jurist
remarked.
Il have no doubt of that" replied
Mr.. Kellogg, and continued.
The trust agreement was copied by
| the Sugar Trust which was declared
illegal in New York; by the 'Whiskey
| Trust which was declared illegal in
| Illinois: by the Lead Trust which vas
declared illegal in Missouri.
1.-The plan has been condemned as
| in restraint of trade in every state of
! the Union, and when the Standard
Oil Co. Of New Jersey succeeded the
| trustees, the properties were amply
turned over from one to the other. a
perpetual corporate form that should
hold their common wealth was substi-
tuteG for the trustees whose lives
might be cut short by death. Is one
any more legal than the other?'
Touching on point of the defence,
Mr.. Kellogg said that if the companies
whose stock was procured by the
Standard in 1899 We're not competing,
| it WAS because they were held to-
gether in illegal trusts. that of 1879
and that of 1882.
Take away the fear of prosecution
by the government and the Standard
would put every independent in this
country out of business in five years" !"
Mr. Kellogg continued. THE indie
pendent can exist cnly under the pro-
lection of the law
In connection with this point. Chief
Justice White asked if the complaints
against the Standard Oil Co. were
based upon their methods. and if OBJ
iections was made to the methods be-
cause illegal.
"That, and size" responded Mr.. kel-
logg. Great wealth enables them to
use methods. some unfair. which would
be illegal or reprehensible in the hands
of the corner grocery man.
Suppose they are giant. but do
not use a giants strength" suggested
Justice McKenna.
They'd use their power were 1t not
for the law" was the reply. Mr.. kel-
logg dwelt upon the enormous profits
of the companies as further evidence
of monopoly. The record did not snow
where all the profits went, lie said
For instance there was nothing to SHOW
what happened to s23.06O,0o0 out of the
earnings of zone small pipe line Mr.
Kellogg said that it was paid to r. ;.
Trainer
"who is this man Trainer?' inquired
Justice Burton.
"Oh. he's purchasing agent in New
jersey" said MIR. Kellogg. II tried in
every way to learn where that little
sum went The officials of the STAN
dard when on the stand told me that
they could find out. Mr.. Milburn once
said that he would not crafty my Gu
riosity by telling me-
The large profits we're argued as not
justified to offset small profits in for
eign trade.
Build up the foreign trade If you
can," said Mr.. Kellogg, but / deny
the right to do so at the expense OF
American men and women
DUFREsNE's BOUTS.