The Marion daily mirror. (Marion, Ohio) 1892-1912, 1911-01-13


Great Sacrifices Made by New Jer-
sey cerpo alton to Prevent Waste
In Pennsylvania FleId-Pleads For
Small Stockholders Who VIII Be at
Mercy Of Spectators.
Washington, Jan. 49, The Stand
ard Oil company was pictured before
the supreme court of the United
States as great hencilcent enter
prise. The man who is conceded to
have been most prominent in devel-
oping the gigantic corporation was
denominated a business genius to be
compared with the stars that shine
in the world of art and literature.
Fer more than three hours John G..
MilbIrn of Buffalo, attorney for the
Standard Oil company, defended the
corporation and John ID. Rockefeller
against the charge of having con-
spired to restrain trade in coNtrayen.
tion of the Sherman antitrust law
II was the opening argument in the
second of the big antitrust cases now
before the supreme court the Ameri-
can Tobacco company case having
been closed
Mr.. Milburn in reviewing the incep-
tion Of the Standard Oil declared
that the idea flashed through the
mind of Mr.. Rockefeller that vol
ume" was the only cure-all for the
ills that at that time beset the rap
idly developing oil industry. Condi-
tions we're chaotic in the refining
business, according to Mr. Milburn,
all sorts of "makeshifts" were called
refneries, and ruinous competition
and crude methods had demoralized
the industry. Prices for refining were
rapidly falling. and there was no sys-
tematic plan of geographical distribu-
tion. Volume" was the only thing
that could meet and overcome the
disordered condition created, accord
ing to Mr.. Milburn, by "a law Of
Providence"
The attorney for the Standard de-
clared that mcst of its acquisitions
OF properties had been with the be-
neficent purpose of relieving the
vendors. Owners of small refneries
discovered after a while that Mr..
Rockefeller's genius had created a
situation in the oil industry with
which a limited capital could not
hope successfully TO compete, and
they came to the Standard with Of
fers to sell. There was no obligation
on the part of the Standard to buy,
according to its legal defender, but
IL was disposed to be gracious, and
as Il could use some of the material
in these plants, it took over a num-
her Of them, at an appraised value,
end their former owners went away
rejoicing and praising the great en-
terprise conceived and extended by
Mr. Rockefeller.
Mr. Milburns voice trembled when
he recited the great sacrifices made
by his client to save the production
of oil in the Pennsylvania field in
"the '7Os," when, at great expense,
upon borrowed capital, upon credit
strained almost to the breaking
point, the Standard extended its pipe
line holdings and increased its
storing facilities to an enormous ex-
tent to take care OF the oil produc.
tion and prevent waste and save the
producers from losing money. He
admitted that some of the railroad
contracts and agreements were open
to criticism, but reminded the court
that in )me instances Mr.. Rockefel-
Ter had personally advised against
these devices and that in the end
most of them had proved impractical
and had been abandoned, and there
by Mr.. Rockefeller's business genius
had been yindicated. He asked the
court to read all such contracts that
the government had introduced in
evidence as exhibits "in the light of
the circumstances surrounding each
case"
Mr.. Milburn declared that rate dis.
elimination in favor of large shippers
was not repugnant to the common
law. II was not until the Interstate
commerce law was enacted and in
troduced an arbitrary rule to be ap-
piled to such matters that the practice
of giving favorable rates to large
shippers was really unlawful. The
STANDARD attorney admitted that this
was the beginning of lot of trouble
and complaint caused by the arbi,
trary rule Of the statute, las arbi.
trary rules always do"
Then Mr.. Milburn proceeded to ex,
press the personal view that the
large shipper who delivered regularly
each day certain number OF car,
loads was entitled TO more consider
alton in the form Of lower rates and
better facilities than was the small
shipper who offered a fraction of q
carload, irregularly, for shipment
The common law rule conceived by
Mr.. Milburn was the rational rule OF
commerce."
The growth and development of the
Standard oil business had come
about through the creation of new
business by the Standard rather than
through acquisition, according to the
attorney. He traced the Standard
company from the Appalachian field