The Mena weekly star., 1913-07-24
COMPROMISES
 OIL CUSTER SUIT
Texas Settled Suit Against the Mag nOlia and Standard-Penalty of 102 Million and Custer From
 the State Was Sought.

Greenville Tex, July 22.-Half a million dollars as a penalty and the transfer of 2i,596 of the 24,500 shares of stock in the Magnolia Pe- troleum Company of this state from the individual control of H. c. Fol ger, Jr., and John D. Archbold to trustee mutually agreed upon, was accepted by the state of Texas yes terday in settlement of the states l02 million dollar penalty and oust- CT suit.
 This action was instituted here recently by the state attorney gen. era against the Magnolia and Cor sicana Petroleum Companies of Texas, the Standard Oil Company of New Jersey and New York and 2S individuals. Judge F. A. Will Hams of Austin was named as trus- tee for the stock in question. The penalty was paid under telegraphic instructions from the Standard Oil Company of New Jersey.
 Texas Fourth Victory Over Oil.
 The agreed verdict holds the Magnolia company, the chief Texas interest in the suit, not guilty of antitrust law violations, and it is privileged to continue business with the proyiso that the stock owned by Folger and Archbold shall be ad- ministered by the trust under guar antee by the trusteeship of com .plele and independent operation of the company. The COrsicana com pany is also given the right. to con- tinue operation. The penalty as- sessed is based on alleged violations .of the antitrust laws prior to 1909.
 Yesterdays action makes the fourth time in six years that oil companies have been penalized in this state. but the first instance in which any of the companies sued have been permitted tO continue in operation.
 Better Prevent Than Punish Crime.
 Attorney General B. F. Looney of Texas, commenting on the compro- mise, said:
 The penalty of one-half million dollars. together with safeguards placed about the operation of the Magnolia and Corsicana Petroleum companies, satisfies the demands of the state. It seems to me that pre- yention of combinations in any line of industry is of greater benefit to the state than could possibly be the assessment of large penalties after the violation of law had taken place. It is better for the state in the long run to prevent crime than to punish crime"
 Magnolia Claimed Independence.
 Testimony has been taken in sev- eral Texas cities before a special commissioner as a preliminary to the scheduled trial of the suit at Greenville next fall, and it had been planned 10 begin a hearing in New York August b. By testimony talk en in Texas the state endeaVored to show that the Magnolia was prac- tically controlled by Standard Oil interests. tending to raise prices and destroy competition. In reply, the defense submitted evidence which. it was contended, showed that the Magnolia Company had ac- tually begun action to enter other states to compete with other Stand ard oil companies.
 Attorneys fees allowed yesterday | were Si3,500 divided between Rich | ard G. Maury of Houston, special | prosecutor of the state, and officials | of this Hunt county, who were | assisted in the receivership into | which the state threw the Magnolia | March 6, the day after the suit was filed here The compromise auto ends the receivership.