Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1911-01-11

GOVERNMENT SEEKS
DISSOLUTION OF TRUST
Held to Be Monopoly Similar to-
Northern Securities Company
and in Violation on Provisions
of Sherman Act,

IBy Morning Journal Special Leased wirel
ard OIL dissolution suit will come up
In the supreme court OF the United
States tomorrow Immediately after
arguments are concluded on the to-
bacco dissolution suit. For the rest
of the week the court win give its
attention to the oil suit.
The governments chief object is to
have the court declare void the corp
crate organization Of 1899. whereby
the Standard OH company OF New
Jersey, with its increased capitaliza-
tion. exchanged its stock for the stock
OF nineteen other oil corporations.
which In turn controlled many other
similar corporations
The resultant control of oil through
the subsidiary corporations Is said to
constitute monopoly. Both results.
the government contends. are In vio-
lation Of the Sherman law.
The government will claim that fol-
lowing the action Of the court In the
Northern Securities case, II must dis
solve the Standard oil company of
New Jersey as holding company.
In urging that the Standard is
monopolizing, the government will
argue that the court must consider
evidence OF price-cutting to drive
competitors out of business, rebatinp
and preying on competitors by secret
organization.
If the Sherman act means any
thing in this country says counsel
for the government In their brief. III
means a monopoly acquired by such
methods of competition as this. I'm
less II Is enforced, the small corpora
tion or individual who wishes to en-
gage in business Will have absolutely
no opportunity at all
This testimony Is valuable as
showing the intention of the Standard
Oil company to monopolize the com
merce in oil throughout the United
States. In many districts II has alb.
solute monopoly We mean by abso-
lutte monopoly that It does all of ths
business and has eliminated eveTs
competitor.
Practically this is the case
throughout the Rocky mountain
country and in most of the Pacific
coast states. The percentage OF In
dependent BUSINESS throughout the
entire southern states is very small.
Moreover where there is competition
the competitors are usually strictly
under the control Of the Standard In
that they must sell oil at practically
the price the Standard dictates and
conflne themselves to small per-
oentage of the trade"
Combinations affected by purchase
according to the contention OF the
government are just as much within
the law, as combinations effected by
trust agreements, or pooling.
Replying to these accusations and
conclusions, counsel for the Standard
Oil will argue that the Sherman law
does not prohibit the method of hold
ing property by stock ownership.
"All methods are lawful" the com
pany's attorneys will argue, IF not
used to restrain trade or gain an un-
lawful monopoly
"The sherman act has no applica-
tlon to the transfer to, or the stocks
Of the various manufacturing and
producing corporations for the rea-
son that such transfer and acquisition
were not acts of Interstate or foreign
commerce, nor direct and immediate
in their effect on interstate or foreign
commerce, nor within the power OF
congress to regulate interstate or for
eign cmmerce.'
Following out this line OF argu
ment, they will urge that purchase or
acquisition of property is not In any