New-York tribune., 1911-01-11
STANDARD OIL TO FRONT.
Reargument Of Dissolution Suit
in Supreme Court Today.
WHAT BOTH SIDES ASSERT
Delaney Nicon Denies That
American Tobacco Company
Restraints Trade.

Washington, Jan. 1o-The Standard Oil
dissolution suit will advance to the centre
OF the stage in the Supreme Court OF the
United States tomorrow. Immediately after
arguments are closed in the tobacco dis
solution suit. For the remainder Of the
week the court will give its attention 10
this second problem under the Sherman
antitrust law.
For the government Attorney General
Wickersham. Frank B. Kellogg. and pos
sibly c. a. Severance. will appear. OPP
rosed to them for the Standard OF will be
John G. Johnson, John G. Milburn and d.
T. Watson.
The governments chief object is to have
the court declare void the corporate organ
Ia ton Of 1899. whereby the Standard OIL
Company of New Jersey. with its increased
capital exchanged its stock for the stock
OF nineteen other oil corporations. which In
turn controlled a great many more such
corporations. 1t is asserted that this ANAL
gamation Of the stocks of all these COM
panies IN the Standard Oil Company OF
New Jersey resulted in combination more
closely and effectively held together than
before and In restraint Of trade The re-
sultant control of oil through the suosidi-
sry corporations is said to constitute mo-
nopoly. Both results. the government con-
tends, are in violation of the Sherman anti
trust law.
/ In support Of its case the government
will claim that, following the action OF the
court In the Northern Securities case, IL
must dissolve the Standard Oil Company
of New Jersey as holding company sup
pressing competition.
| In reply counsel for the Standard OH
Company will argue that the Sherman la"
does not prohibit the method of holding
property by stock ownership All meth
DDS are lawful" Mr.. Watson will say IL
not used TO restrict trade or gain an un-
lawful monopoly"
The Sherman act has no application 10
the transfer to or the acquisition by the
| Standard on Company Of New Jersey OF
] the stocks of the various manufacturing
and producing corporations" It is argued IN
the brief Of Messrs. Johnson and Muourn'
"for the reason that such transfer and ac-
nuisition were not acts Of interstate or for
eign commerce, nor direct and immediate
in their effect on interstate or foreign COM
nerce. nor within the power OF Congress 10
regulate interstate or foreign commerce.
Because all these properties had and
have common owners it will be argued that
the case involves the rights Of individua!
citizens to own private property 1t Will
he asserted that the contention OF the gov
arnrnsnt would require an individual own
ing two concerns TO compete with himself.
instead of growth by unfair competition
ripenine into a monopoly. it will be argued
for the Standard that It was created as
lawful business and continues 10 this DAY
as such.
Arquina Tobacco Case.
For more than two hours Delaney
Nicou argued to-day before the Supreme
Court against the proposed dissolution OF
the American Tobacco Corporations as Vio-
lating the antitrust laws. He first spoke
q, the growth OF the togacco organization
as an orderly and legal economic develop
ment Of the day and then turned TO the
Lnottv noints OF law involved in the case.
Mr. Nicou told the court that the TOBACCO
company was not a combination OF COM
nAtitors. but an association in one depart
mont of MANY various branches Of the TO-
bacco business.
| He said that intent to restrain could not
| be found in the covenants to stay out u
the tobacco business taken from those VINO
sold out to the American. These were rea-
/ sonable covenants, he argued, because they
were limited to ten or twenty years. be
cause they forced no skilled workers cut OF
business. but only the owners thereof and
we're necessary TO protect the business OF
the American. He declared that there was
nothing in the purchase Of leaf tobacco to
show, intent 10 restrain trade.
| Turning from intent to size as affording
the element necessary TO form violation
Of the law, he quoted President Tart as
saving in effect when on the bench tha'
| there must be something more than SIZE
| something like the coercion OF buyers oE-Ol
[ competitors, some element o. uu4esS'