Milford chronicle., 1912-09-20
TRUST VIOLATED
OIL DECREE
. Nlsge Dissolution Order Has
Not Been ObeyGd in Texas.
SEVEN PERSONS INDICTED
Government Charges Conspiracy In
Plot to Destroy Business of Rival
Flrm-Archbold In Net.

The first move of the government
against the Standard Oil Co. since it
was dissolved last November under the
mandate OF the supreme court of the
United States to it's thirty-three COM
ponent parts to restore competition,
was brought when the federal grand
jury for the northern district of Texas
returned an indictment against several
oil men as representatives of the oil
trust
Restraint of trade and commerce
and unlawful conspiracy and combina-
tion in violation of the antitrust laws
are alleged in the indictments.
1t is charged that the individual de-
PENDANTS, the Standard Oil company
and the Magnolia Petroleum company,
cOnspired to destroy the business of
the Pierce-Fordyce Oil association, of
Texas The specific offense is alleged
to have occurred on June 20. 1912.
The names OF the following persons
appear in the Indictment: Calvin N.
Paine, Titusvile, Pa; John D. Arch
bold, New York; Henry c. Folger, Jr.,
New York; John Sealin, Galveston,
Tex; A. c. Ebie, Dallas, Tex; 4. r.
Brown, COrsicana, Tex; W. S. Teagle,
Plainfield, n. j.; Standard Oil Com
pany of New York; Standard Oil Com
pany of New Jersey; Magnolia PetrO-
leum Company of Texas.
At the department of justice it was
said that the indictment was the re-
sult Of a fhroa n1ontbss Investigation
Of charges that the decree dissOlying
the trust has been violated. The govern
ment, it was added, had not decided
whether or not it would proceed on
the question of the violation of the de-
cree, which would involve contempt
proceedings. The question was con
sidered under the criminal feature Of
the Sherman law by the Texas grand
jury.
Contempt proceedings would have to
be undertaken directly before a fed
eral court. Such action is beyond the
function of a grand jury. The indict-
ment, it is pointed out, will not bar
the government from prosecuting for
contempt of court in case that course
IS COuSiu6I14 utSlIdDlt- OluCAdlS VI thS
department of justice believed, it was
declared, that the initial move in the
case should be made through a grand
jury, and then if it developed that an
indictment did not promise to satisfy |
the laws demands, they could resort |
to contempt proceedings as well.
The special grand jury which re-
turned the indictment had been work !
ing on the case since last Tuesday, |
when it was convened to consider the |
governments allegations and evi-
dence. The celebrity with which it con |
cluded the inquiry surprised officials !
in Washington.
A fight between Standard Oil inter
ests and the Waters-Pierce Oil com
pany, now pending in the federal court
at st. Louis, involves the faithfulness
Of the Standard Oil in carrying out the
decree of dissolution.
The federal government is not a
party to this suit, which was brought
nominally by the state Of Missouri to
compel the inspectors of the election
Of officers of the Waters Pierce Oil
company at St Louis last February to
vote the proxies of the Rockefeller and
other Standard Oil interests which
are said to have named Standard Oil
men as officials of the company.
The inspectors refused on the
g,ound that it would violate the disso-
luton decree.