The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-01-11
Presentation of Tobacco Case Will
Be Concluded This Afternoon
and Oil Case Then
Taken Up
ACTION WAS STARTED IN 1906
Department Of Justice in That Year
Instituted Proceedings Against ia
Oil Corporations and Seven
individuals.

Washington, D. c., Jan. 1.-THE I'm
al fight OF the Standard oil company
for it's existence under the present or
ganization is expected TO begin late
today in the supreme court. The ar
guments I'm the tobacco dissolution suit
are expected to be concluded before
court adjourns this afternoon. The
STANDARD Oil defense will then be pre-
sented.
Action Started In 1906.
The suit under the Sherman anti
trust law to dissolve the Standard Oil
organization was instituted in 1906 in
the Circuit Court of the United States
for the Eastern District of Missouri.
The proceedings were begun by the
Department of Justice in the name OF
the United States against ia corpo-
rations and seven individuals.
The principal corporation was the
Standard oil Company of New Jersey.
From 1882 to the present time this
company is said to have operated re-
fineries itself but in 1899 it's stock was
increased to s1O0.000,00 so as to en-
able 1t TO acquire the stock of nine
teen other oil companies, which in turn
owned a large number of companies.
concerned in the oil business. The
Standard Oil Company of New Jersey
was designated as a holding company
and is similar to the American Tobac-
co Company, the organization of which
was considered by the court during the
last few days.
The seven individuals named in the
suit as defendants were John d. Rock
efeller William Rockefeller. Henry NJ.
Flagler. Henry II. Rogers, John ID.
Archbold, Oliver II. Payne. and Charles
NJ. Pratt. The part these men are said
to have played in the alleged viola
tion of the Sherman antitrust law has
been summarized by the government
as follows:
History of The "Trust."
About 1870 the Rockefellers and
Tlagler conceived the purpose of con-
trolling the petroleum trade. both do
nestle and export, and obtaining a
monopoly thereof, They entered into
conspiracy to accomplish this purpose,
which from time to time took the form
of various combinations. Shortly after
1870 the Rockefellers and F'lagler were
joined in the conspiracy by Rogers,
Archbold, Payne and Pratt.
The form which the alleged conspi-
racy took is described by the govern
ment as being from 1870 to 1882 "a
combination between a large number
of manufacturers, who acted in har-
mony and whose stock interests were
pooled in the hands of three trustees in
1879" From 1882 TO 1899, the form Of
the alleged combination was that of a
trust agreement, whereby the stock OF
a large number of corporations was
placed in the hands of trustees, who
managed the property. From 1899 TO
the present time. the combination is
alleged to have taken the form of a
holding company, the Standard oil
Company of New Jersey.
Finding Of Lower Court.
The four judges in the circuit court
found that the Standard oil was an i'll
legal combination in restraint of inter-
state Commerce and was also mono
policing the oil trade. A decree was
entered enjoining the holding compa-
ny from exercising any control over
the subsidiary companies. and enjoin-
ing the subsidiary companies from
paying any dividends 20 the holding
company. All were enjoined from en-
gaging in interstate commerce until
the illegal combination was discontin-
ued.
The court also found that the STAN
dard Oil:
Produced more than 1-10 of the
crude oil obtained in this country.
owned and operated more than 1-2
of all the tank cars used to distribute
its products.
Manufactured more than IA of all
the crude oil refined in the United
States.
Transplanted more than As of the
petroleum derived from the Pennsylva-
mia and Indiana oil fields
Marketed more than As Of all the IL
Illuminating oil sold in the United
States.
Exported more than 4-5 of all the
Illuminating oil sent forth from the
United States.
Sold moro than As OF all the naphtha
sold in the United States.
Sold more than e-1o of all the lubri-
eating oil sold to the railroad compa-
mics in the United states.