New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-16
mems q, funds i, was necessary.

mems OF funds /, was necessary
The case was argued before the mr.
States Circuit Court in St Louis in Apfl'
lac. by Messrs. Kellogg anc Morrison io'
the government and John c. Mnourn' MOT
itz Rosenthal. David T. Watson. OF Plus
burg. and John 6. Johnson, Of PhiladeipHi'.
for the defendants on November ~ OF
that year the court. all four judges con-
curing. handed down an opinion sustain
ing the contentious or the government
The Circuit Court held that the reorsani-
zatfon u the Standard OIL Company G.
New Jersey In lsee was not only Noiahon
Of tne Hrs, section OF the act when re-
ferred TO restraints OF trade, but also ~ the
second section. which applied 70 monopoilz-
ing Tie standard oil argued that there
could he no additional restraint a. result
Of the reorganization. because the STANDARD
oil Company Of New Jersey vas owned %
a common body Of owners in exactly me
same proportion that all the SUBSIDIARY
companies taken over BY this new oFEahl-
zatiCn had been held By these same COM
mon owners for years past. The court heid
otherwise and said that the combination
in single corporation or person. by an
exchange % stock ~ the power OF many
stockholders holding the same proportions
respectively ~ the majority Of the STOCK
% each q g .ersl corporations engaged IN
commerce in the same articles among the
states. or with foreign nations, % restrict
competition therein rendered the power
thus vested I'm the CORPORATION or person
greater. more easily exercised. more dur
able and more effective than that previous
~ held by the stockholders In these e.
fects the court found a restraint on conf
rnerce.
New Jersey Company Enjolned.
The court then proceeded 10 evolve
plan ~ remedy the situation II entered
decree enjoining the Standard OH Company
~ New Jersey from exercising any control
by reason Of its stock ownership over the
subsidiary companies. Furthermore. If en-
Joined these subsidiary companies from
paying any dividends 10 the Standard On
Company OF New Jersey. u put pro
vision in the decree 20 enjofn any possible
evasion If the decree by the organization
OF similar combination or by the convey
ance II the property 70 one II the defend
ants Unless the defendants should sever
the relations and cease the combination
within thirty days they were TO he enjoined
from engaging in interstate commerce until
they did cease the combination.
From the circuit court the case was
taken 70 the Supreme Court ~ the United
States. The record laid before the higher
tribunal probably vas the largest ever IRE
pared IN an American case. The petition,
pleadings. testimony, opinions and decree
,.T
more tran FIVE hundred pages each.
The case was first argued before the Su-
preme Court in March. 1871. but r. was re-
stored 20 the docket for reargument The
case was heard the second time in January
1911. before a fun bench. Noted attorneys
= ppesred for either side For the govern
ment Attorney General Wickersham and
Frank 3 Kellogg. his special assistant. al
dressed the court. For the STANDARD oil
there appeared John 9. Johnson. OF Phila-
delphia: John G. Mlburn. Of New York.
and p. r. Watson. Of Pittsburg The same
counsel represented the two sides a. 10th
appearances before the Supreme Court.
Born and Reared in Fraud"
who took all the testimony in the case on
Standard Oil organization was not a nat
ursl growth, but was born and reared I'm
fraud and oppression and hangs over the
commerce of this country to-day Ike a
threatening cloud
The Standard Oil Company % New Jer-
sey, he told the court. controlled from s. 10
q per cent Of the oil business Of the coun-
Try. with financial power beyond that
possessed by anv other combination ever
known. The combination, ne added. was
made effective and powerful by reason Of
preferential rates and rebates in transpor-
tation the greatest ever known 10 have been
made. and by unfair and brutal methods OF
competition. which IN and OF themselves be
tween merchants and corner grocery men
would not he dangerous but In the hands
OF combination Of this size and OF this
power are the most dangerous Instruments
70 INDEPENDENT dealers. manufacturers and
men engaging in enterprise known in com
mercc.'
The Country Profited."
The other side Of the contest was sum
married. by John 6. Johnson in the closing
argument in the case. lie declared that
the country did not suffer by the mere
largeness of the corporation. but proflted
For the alleged sins that the corporation
had committed. he argued. there existed
an adequate remedy at law, and therefore
II was not necessary for an equity TO step