New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-07-22
STANDARD OIL SUIT
SETTLED FOR $5OO,OOO
Penalties Asked by the State
of Texas Aggregated
S102,000,0 900.
CONCESSIONS AGREED TO
Stock in the Individual Control
of ArchbOld and Folger To
Be Transferred to Charge
of a Trustee.

Greenvile. Tex July 21.-Haif million
dollars as a PENALTY and the transfer OF
e $50 Of the 1880 shares Of stock in the
Magnolia Petroleum Company, of this
state. from the individual control Of II. c.
Folyer. ir.. and John y. Archbold TO a
trustee mutually agreed upon. was &C
ccpted by the State of Texas to-day IN
settlement OF the states 800, 10000 pen
atty and custer suit.
This action was instituted here recently
Jy the State Attorney General against
the Magnolia and Corsicana Petroleum
companies, OF Texas; the Standard Oh
companies OF New Jersey and New York
and twenty-ciyht individuals. Judge f. a
williams. Of Austin. was named as trus-
tee Tor the stock in question. The penalty
was paid under Geographic instructions
from the Standard Oil Company OF New
Jersey.
TIE agreed verdict holds the Magnolia
company, the chief Texas Interest IN the
suit. not guilty Of antitrust law viola
tons and il is privileged TO continue busi-
ness with the proviso that the stock
owned by Messrs. Folger and Archbold
shall be administered by the trust under
and independent operation OF the COM
pauy The Corsicana company is also
given the right TO continue operation. The
penalty assessed IS based on alleged vio-
lations Of the antitrust laws prior to 1903
To-day's action makes the fourth time
in six years that oil companies have been
penallzed in this state, but the first IN
stance IN which any Of the companies
sued have been permitted 10 continue in
operation.
Attorney General 3. +. Looney. OF
Texas. commenting on the compromise to-
day. said: The penalty Of $4,000, to-
gctner with safeguards placed about the
operation Of the Magnolia and Corsicana
petroleum companies, satisfies the de-
mand OF the state. II seems TO me that
prevention Of combinations I'm 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
i'm the long run to prevent crime than to
punish crime"
Testimony has been taken in several
Texas cities before a special commissioner
as preliminary TO the scheduled trial OF
the suit at Greenville next fall, and II
had been planned TO begin hearing IN
New York August Is BY testimony taken
I'm Texas the state endeavored to show
that the Magnolia was practically con-
trolled by Standard Oil interests, tending
t. raise prices and destroy competition.
In reply the defence submitted evidence
which. il was contended. showed that the
hpgun
action 10 enter other states to compete
with STANDARD oil companies.
Penalties of $4,000 each were asked
against the Standard Oil of New York
Standard oil Of New Jersey, Corsicana
Petroleum Company, John d. Archbold.
John d. Rockefeller. L. c. Ledyard.
Charles NJ Pratt Charles W. Hardness.
H. c Folger. jr., all Of New York. and
c. y. Payne. Of Titusville, Penn; S,775O0
each against w. c. Proctor Corsicana,
Tex; s. G.. Bayne and Howard Bayne. of
New York; O. c.. Edwards, Of Norwalk,
Conn, r. Waverley Smith and John
Sealy, Of Galveston, Tex; Z. r. Brown
Corsicana. Tex; George c. Greer and
Courtenay Marshall. Of Beaumont, Tex,
and 81, 10000 against the Magnolia Pc
troleum Company.
Eight hundred thousand dollars addi-
uonal was asked collectively against Ed
wards and Sealy as Magnolia trustees.
Five New York financial institutions
the Columbia Knickerbocker Trust Com
pany, the Central Trust Company, the
United States Mortgage and Loan Com
pany, the Chase National Bank and the
Seaboard National Bank-were made
parties to the suit on the allegation that
they held bonds Issues OF either Of the
Magnolia or Corsicana companies. pen
atty Of si,sO0,0O0 was asked of the Column
bia-Knickerbocker Trust Company. and
81. 800 against each of the four others.
No penalties were asked OF the other
defendants.
Attorneys fees allowed to-day were 3d.
509. divided between Richard G. Maury, Of
Houston. special prosecutor Of the state,
and officials Of this HunD county. who
assisted In the receivership into which the
state threw the Magnolia company on
March 6, the day after the suit was filed
here. The compromise automatically ends
the receivership.