The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1911-05-19
HOW SUIT STARTED
Has Been Dragging Through Courts
Since 1906.

New York, May 16. Representa-
tives OF the Standard Oil company in
this city refused to comment In any
way on the decision handed down by
the supreme court. The statement
made at the Standard Oil building at
26 Broadway was that nobody con-
nected with the company would have
anything to say regarding the de-
cision until they had had time to
read 1t in its entirety.
On March "a last, at time when
the business community was awaiting
the decision, the company inserted
the following advertisement IN many
newspapers under the heading, "A
Denial" Persistent reiteration In
various publications that the Stand
ard Oil company has prepared plans
for reorganizing in anticipation OF the
decision of the United States SUI
preme court, renders 1t necessary to
state officially and emphaticaily that
there is absolutely no truth IN such
reports. No such plans have been
made; no preparations undertaken,
and all statements to the contrary
are untrue and misleading"
Not the First Time.
Once, before the institution OF the
present suit, the Standard Oil com.
pany was dissolved by the courts and
forced to reorganize. This was in
1892, when the company was an Ohio
corporation. In March, 1892, the su-
preme court of Ohio decided that the
making and operation of the trust
agreement by which all the stocks OF
the companies making up the holding
company were conveyed to nine trus-
tees was beyond the corporate pow
ers of the Standard Oil Company of
Ohio and lenjoined that corporation
from continuing business as mo-
nopoy. On March a. 1892, these
trustees, as a result of that decision,
met and terminated their trust agree
ment and resolved to distribute to the
owners OF the trust certificates the
stocks OF the different companies
which they had held As a result OF
this reorganization the Standard Oil
Company of New Jersey. against
which the present suit was aimed,
was formed,
A company by that name had been
one OF the 20 subsidiary companies
whose stock the trustees had held.
Its capital stock In 1892 was increas.
ed from $l0,000,000 to S100,000,000
and It's charter amended SO as to en-
power IT. to do all kinds of mining
manufacturing, trading and transpor-
tation business, to acquire, hold, vote,
sell and assign shares Of capital
stock and carry on Its business In ali
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 Oh Company OF New Jer-
sey.
The present suit against the Stand
ard OH Company of New Jersey was
fled by the government on Nov. Is,
1906. by Attorney General Moody, un-
der the direction of President Roose-
welt The form the suit took was a
petition IN equity against the Stand
ard OIL Company OF New Jersey and
Its 70 constituent companies. 1t was
filed In the United States circuit
court at 81. Louis. The fling OF the
suit came six months after Commits
sioner OF Corporations Garfield had
made report on the company TO tho
president declaring II TO be monop-
oily. This report was made In re-
sponse TO resolution In congress.
The case was argued before the st.
Louis court, the arguments beginning
on April s, i90s and continuing for q
week. On Nov. 20, 1909, Judges San
born. Van Deventer. 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 stifled competition IN violation OF
sections and 2 Of the antitrust law
II not only ordered the return OF the
securities 10 the different subsidiary
companies and the.r separate stock.
holders, but granted the governments