The Washington herald., 1911-01-17
REVIEWS BUSINESS
OF STANDARD OIL
Kellogg Makes Recital of
Unfair Practices.
ARGUES ON FREIGHT RATES
Special Counsel for Government Out
lines Action of Different States on
roads in Connection with Trust.
Arguments to End To-day.

Business methods of the Standard Oil
Company received another airing in the
Supreme Court yesterday. Frank B.
Kellogg, special counsel for the govern
ment, resumed the argument he begun
Friday, and devoted nearly two hours
to recital of the unfair practices of
the corporation.
: All the evidence in the way of corre-
spondence. tending to show the manner
in which the Standard Oil has interfered
with its competitors and by which it
las gained information as to their ship
mentS, were recited by Mr. Kellogg. He
read a comparison of the preferential
freight rates enjoyed by the Standard
with those enjoyed by the independent
rehners. In some cases. according to MIR.
kellogg's figures, the Standard enjoyed a
rate OF about one-half that imposed upon
the shipments of its rivals in business.
Directors in Railroads.
Mr. Kellogg accounted for these prefer
enceS on the ground that the Standard
Oil corporation, with the great power it
exercised through the aggregation of
wealth and the control over the busi-
ness, had forced its own directors into
the directorates of most of the leading
had never contended that the decree of
the court could correct the business
methods. but he did insist that if the
standard Oil Company of New Jersey
were dissolved. in accordance with the
decree of the lower court, no single one
of the twenty companies that made up
the trust could successfully employ the
methods that he insists are being used
by the giant corporation and long sur
vive.
THE Standard Oil Company of Cali
fornia, for example. could not stand the
losses that are incident upon the cutting
OF prices of refined oil that are employed
To wipe out competition in that field
said Mr.. Kellogg.
Mr.. Kellogg was reviewing the action
Of the different States that had ousted
the Standard Oil Company when Chief
Justice White asked what there was in
the absence of affirmation of the decree
in this case to prevent the States from
continuing the work of ousting the al
legged monopoly. On its face, the qucS-
ton appeared to suggest the capacity of
the States TO deal with the alleged trust
problem without the necessity of the in
terventiGn OF the Federal government. To
this Mr.. Kellogg replied that the action
of the various State governments had the
effect simply Of excluding the Standard
Tree to continue in interstate commerce.
Would Exclude Companies,
Justice Lurton made the suggestion to
Mr.. Kellogg that another effect Of pure
ly State control based on what has act
ually happened heretofore, would be to
exclude one of the affiliated companies in |
the STANDARD Oil of New Jersey and have
its place Immediately taken by another. |
Justice Lurton stated that in his own
State of Tennessee, when the Standard
OH of Kentucky was driven out the
business.
Mr.. Kellogg occupied all the time up
TO the recess for lunch which the court
took at ; O'Clock. When the court re-
sumed its sessions at 80. ID. T. Watson
argued for the Standard Oil Company
He said that the issue raised in the case
did not involve any evil intent on the
part of his client. and there had been
no exclusion of others from commerce |
Attorney General Wickersham followed
Mr.. watson and reviewed the history of |
the Standard Oil corporation. contending
that from its inception il had been an |
attempt to secure the absolute
control of the business of refining OIL
Arguments will be concluded to-day. !
Attorney General Wickersham will con-
tinue his argument, and the case will be |
closed by John G. Johnson, of Philadel- |
phia.