New-York tribune., 1912-08-30
Charqed with COnspiring to
Destroy Business Of Pierce
FordyCe Association.
SAY TRUST is STILL INTACT
Department of Justice Declares
Supreme Court Decree Dis
solving Big Corporation
Has Been Violated.

OF IeXES To-Day Te'uiNtN an 'l'C4N'
ment against several prominent Oil
men as representatives. Of the Stand
ard Oil Company. The charge is re-
straint of trade and commerce and
unlawful conspiracy and combination
in violation of the antitrust laws.
II is alleged the individual defend
ants. the Standard Oil Company and
the Magnolia Petroleum Company.
conspired to destroy the business of
the Pierce Fordyce Oil Association Of
Texas.
The specific offence is alleged TO
have occurred June 30. 1912. The
names of the following persons appear
in the indictment:
Calvin N. Paine, Of TitusvilIe, Penn;
John D. Archbold, Henry c. Foeer, Ir"
Of New York; John Seain. Of Calves
ton; A. c. Ebe, of Dallas; {. r. Brown.
Of Corsicana, Tex: w. S. TeaeIe, OF
PlainfieId, N. j.. and the Standard Oil
Company of New York and the Stand
ard Oil Company Of New Jersey and
the Magnolia Petroleum Company Of
Texas.
Makes Sweeping Charges.
The indictment alleges that the
Pierce -Fordyce Oil Association is en-
gagged in selling various oils and lubri-
cants In the territory named. and, not
being g producer or manufacturer, it
has bought it's supplies from the three
companies charged in the indictment;
that the defendants entered into a con-
spiracy for the Magnolia Company TO
establish rival agencies and sell direct
20 consumers in the towns where the
Pierce Fordyce Association has agen-
,ies: TO hire away the agents and Off
GERS of that association; to announce
that the association would not last; to
sell oils to the trade at prices lower
than II charged the ASSOCIATION, and "a
refuse TO sell that association engine
naphtha and gasoiene, without which
products it could make no sales what
ever to many customers.
Based on these allegations. the de
PENDANTS are charged on two counts:
First, with conspirins in restraint Of
trade, and, second. with attempting to
create a monopoly in the Interstate
trade in coal oil, etc.
The case is set for the January term
Of court.
Three years ago the Waters Pierce
oil Company. in one proceeding, and
the Security Oil Company and the Ma
varro Refining Company, in another
proceeding brought by the Attorney
General Of Texas. we're held to be
trusts The expulsion of the former
concern from Texas, and the corporate
death Of the other was decreed. Their
properties were sold out under judg-
ment.
Washington, Aug. 2e.--The indict-
ment of the STANDARD Oil officials at
Dallas. 1t is said st the Department of
Justice, Is the result of a three months
investigation Of charges that the de-
cree dissolving the so-called trust had
.
added. has not yet decided whether ii
Will proceed on the question of the viO-
lation OF the decree, which would in
volve contempt proceedings. The Texas
xrand Jury considered the question
nnder the criminal feature Of the Sher-
man law.
VIII Not Stop Contempt Case.
Contempt proceedings would have TO
be undertaken directly before federal
court. Such action is beyond the func-
ton of a grand jury. The Indictment
returned to-day, however, 1t Is pointed
out, will not bar the government from
prosecuting for contempt OF court III
case that course is considered desir-
able. Officials Of the Department Of
Justice believed. it is declared, that the
initial move in the case should be made
through d grand jury. and then, if 1t
developed that an indictment did not
promise 10 satisfy the laws demands,
they could resort TO contempt proceed
jngs as we'll
The special grand jury Whlch fe-
turned the indictment has been work
ing on the case since last Tuesday,
when II was convened 10 consider the
governments allegations and evidence.
The celerity with which il concluded
the inquiry surprised officials here.
To-day's action conxtituted the fed
eral governments first move against
the Standard oil since il was dissolved
last November under the mandate OF
the Supreme Court of the United
states into it's thirty three component
parts TO restore competition.
A fight between Standard Oil inter
ests and the Waters-Pierce Oil Com
pany. now pending i'm 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 party 20 this suit,
which was brought nominally by the
State of Missouri to compel the in
spectors 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 ground that Il would violate the