The Washington herald., 1911-05-16

city to-day refused to comment in any
way whatsoever on the decision hand
ed down by the Supreme Court. The
statement made at the Standard OIL
building late in the afternoon was that
nobody connected with the company
would have anything to say regarding
the decision until tomorrow or until
they had time to read 1t in its entirety.
NJ. F. Elliott. general counsel for the
company. and John D. Archbold. vice
president. left their Offices after the
first news regarding the decision and
its tenor reached there. but neither had
anything to say.
Once before the institution of the
present suit, the Standard Oil Company
was dissolved by the courts and forced
to reorganize. This was in 1892. when
the company was a Ohio corporation.
In March, 1892, the Supreme Court of
Ohio decided that the making and oper
alton of trust agreement. by which all
the stocks of the companies making up
the holding company were conveyed to
nine trustees was beyond the corporate
powers Of the Standard Oil Company
of Ohio, and enjofned that corporation
from continuing business as a monop-
oily
On March 21. 1892, these trustees, as
a result of that decision, met and ter
minated their trust agreement and re-
solved to distribute to the owners of
the trust certificates the stocks of the
different companies which they had
held. AS result of this reorganization
the Standard Oil Company of New Jer-
sey, against which the present suit was
aimed, was formed.
Capital stock Increases.
haI
of the twenty subsidiary companies
whose stock the trustees had held. Its
capital stock in 1ss. was increased from
100000 to S10OOO0,0oo. and its charter
amended SO as to empower 1t to do all
kinds Of mining. manufacturing. trading,
and transportation business. to acquire,
hold, VOTE sell. and assign shares of
capital stock and carry on its business
in all parts of the world. The stock of
the other companies, returned to their
original holders by the trustees, was
then exchanged for the stock Of the
Standard Oil Company of New Jersey.
The present suit against the Standard
Oil Company of New Jersey was filed
by the government on November Is,
1906. by Attorney General Moody. under
the direction of President Roosevelt.
The form of the suit was petition in
equity against the Standard Oil Company
Of New Jersey and its seventy constitu-
ent corporations.
It was filed in the United States Circuit
Court at st. Louis. The filing of this
suit came six months after Commissioner
of Corporations Garfield had made I re-
port on the company to the President
declaring II to be a monopoly. This re-
port was made in response to a resolu-
tion in Congress.
In reply to this report. the company
in long statement made to its stock
holders on May 16. 1906, declared that
It was a ''palpable absurdity" to call
the company a monopoly, and took the
government to task for casting asper
sions on 1t when the courts were open.
Kellogg Is Appointed.
The petition filed in St. Louis was the
outcome of action taken by Attorney
General Moody in appointing Charles B.
Morrison and Frank B. Kellogg to make
an investigation Of the company and its
methods Of doing business. and to re-
port as to whether or not there had
been a violation of the Sherman law
by 1t.
Their appointment was made in June,
1906, and their report was the basis of
the petition filed in the following No
vember. Besides naming the seventy
subsidiary companies as defendants, this
petition named as defendants seven in
dividuals-John D. Rockefeller, William
Rockefeller. Henry HI. Rogers (now
dead. Henry NJ: Flagler, John D. Arch
bold, Oliver H. Payne, and Charles H.
Pratt.
The parent company. it's subsidiaries,
and these individuals were charged with
having entered into an agreement to
monopolize the trade in petroleum. The
United States asked for a perpetual in
junction and for the dissolution of the
company.
One Of the things which the bill alleged
was that the purpose and effect of the
use of the Standard Oil Company of
New Jersey as a holding company was
exactly the same as the purpose and ef-
feet of the appointment Of the old
trustees of the company dissolved in
Ohio, namely to suppress competition
among the corporations and limited part
nerships whose stocks was first held by
the trustees and then by the Standard
Oil Company of New Jersey.
It was alleged further that in many
ways, and by the aid Of favorable rates
for transportation discriminating in
favor of the different subsidiaries, the
Standard Oil Company had not only OBJ
tanned in large sections Of the country a
monopoly, but the prices to the
consumer within the territory covered
were very much higher than where COM
petition to some extent existed.
The government asked the court to
prohibit any and all of the subsidiaries
from declaring of paying any dividends
to the Standard OIL Company Of New
Jersey.
Hearings Are Held.
Following the fling of this bill hear
ings were held and the taking Of evi-
dence went on IN st. Louis. Chicago,
Cleveland. New York. and other places.
About 400 witnesses were examined. The
record exceeded 100000 words. and has
been estimated as the largest ever taken
in any single action in this country. The
bulk of the testimony for the defense
was taken In New York in September,
1907, and among the witnesses called at
that time were Charles N. Pratt, John
d. Rockefeller. and John D. Archbold.
The Standard Oil Company's answer to
the, suit was q general denial Of the
allegations Of conspiracy to establish
a monopoly. They denied accepting re-
bates from the railroads. and said that
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