The Washington herald., 1911-05-16

nearly $500, ,0OO, 900, and that In 1903 the
profits Of the Standard Oil Company Of
Indiana alone had amounted to more
than so, coo on a capitalization Of only
81, ,O0O, 600.
At the time the suit was first fled the
company issued another statement ad.
dressed to its stockholders in which the
directors expressed confidence that they
would successfully vindicate themselves
before the public and the law
In its fight against the government the
company employed such legal lights as
Moritz Rosenthal, of Chicago; John g.
Milburn. Of this city; John G. Johnson.
OF Philadelphia. and many others.
In January, 1907. the company. through
its lawyers. tried unsuccessfully to have
the service revoked on ali the companies
except the one in Missouri. the Waters
Pierce Oil Company, on the ground that
the others were nonresidents. This was
overruled, as were also many exceptions
which the company subsequently filed
After the hearings the case was argued
before the st. Louis court, the arguments
beginning on April 5, 1903, and continuing
for week. On November 90 1909. Judges
Sanborn, Van Devanter, Hook, and
Adams. of the Federal Circuit Court Of
Appeals. handed down their decision in
st. Louis in which they held that the
company was in restraint Of trade and
stiflled competition, in violation of Sec
tions l and of the antitrust law.
Court Issues Order.
It not only ordered the return Of the
securities to the different subsidiary
companies and their separate stockhold-
crs, but granted the governments appli-
cation for an injunction restraining the
parent company from voting any stock
CIR paying any dividends on the stocks Of
subsidiaries.
The decision was unanimous on the
part of the four judges, the opinions be-
ing written by Judge Walter H. San
born. There was a separate concurring
opinion by Judge Hook. Standard Oil
stock. on the receipt of the news of this
decision. fell ten points, reaching $50.
Steps were Immediately taken by the
lawyers for the company to take the case
to the Supreme Court. ard on March 13,
$50, arguments on the appeal began be-
fore that tribunal in Washington.
Attorney General Moody had become a
member of the court himself at this time
but did not sit in the case.
The closing argument for the govern
nent was made. by Attorney General
,Wickersham. and John G. Johnson closed
the case for the Standard, the argument
lasting three days
when the court announced that it desired
to have an entire rehearing of the argu-
nIents This necessitated the preparation
CT new arguments and new briefs and
was the occasion for a rsng delay.
1t was not until last January that the
court again listened to the lawyers on
the subject, this time with the addition
of Justices Hughes. Van Devanter, and
Lamar, who had been appointed to va
cancies in the court by the President
since the first argument.
The reargument began on January IL
and was closed on January II, the same
sttorneys appearing on behalf of the
company and Attorney General Wicker
sham closing the case for the govern
ment.
Hold Huge Assets.
1t has been estimated that the assets
for the Standard Oil Company. which
the highest court has now ordered to be
dissolved, amount to s6OO.OOo,OOO in plants
and properties. Since the company took
over the stocks of the various subsidi-
aries IL has never issued annual reports
and its earnings have never been made
public, except when brought out in court
proceedings.
For the last seven years it has paid
dividends of $40 share. In 1900 and 1901
1t paid s4S a share. Its lowest dividend
was 36 per cent in 1904. These dividends
were paid on an outstanding capitalization
Of s9s. .33S. 900.
While the capitalization of some Of the
subsidiary companies has been increased,
no change has been made in the hold
ing company's stock. though about the
time of the beginning of the govern
ment suit 1t was reported that such a
plan was in contemplation. Serious con-
sideration of such an increase, however,
was put over until the result Of the
suit was known.
In 1909 the stock of the company got
down to $685. a share, and later. in 1910,
to 1855. Its low record for this year was
s617 To-day it sold at s679x. The high
water mark for Standard Oil stock was
touched in 1901. when it sold for sS43.
The Standard Oil decision. coming as 1t
did late in the afternoon, made traders
who wanted to unload stocks or buy on
the strength of the decision take their
first chances at the London market This
meant that brokerage houses with Lon
don connections kept open late to take
commitments en- the foreign exchange.
There was some activity in the corri-
doris of the Waldorf and other hotels
where traders are apt to gather after
dark and in the nearby brokerage offices
which undertook TO take care of the late
at night business. New York hasn't had
so much after dark stock trading In q
long time.