The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-06-07
Do TRUSTS OBEY COURT?
CONTEMPT OF COURT PROCEED.
INGS CONSIDERED AGAINST
STANDARD OIL co.
Special Report of Attorneys Discussed
BY Wilson ration-Viola-
ton of Courts Orders i'm Tobacco
Case Receives Attention.

Washington, June 3.-Whether de-
crees of the United States court dis
membering the Standard Oil and To-
bacco trusts" are being carried out
was considered today by the Wilson
administration with a view 10 possi-
bic institution of the most important
antitrust moves yet contemplated by
the president and Attorney General
McReynolds.
In the Standard Oil case the at
torney general received from Charles
Il. Morrison and Oliver Pagan, his
special assistants, a report of the re-
suits Of their investigation of condi-
tions in the oil industry and began
consideration of the question whether
,he facts disclosed will justify the
department of justice IN beginning
contempt of court or criminal pro-
ceedings against oil interests ON
charges of violations of the dissolu-
ton decree. Tonight this question was
unsettled.
In the tobacco case practically the
entire meeting of the cabinet was de-
voted to considering whether surface
conditions in the tobacco trade war
rant the attorney general in begin
ming an investigation similar to that
just finished in the Standard Oil case,
to determine whether the decree OF
dissolution Is being violated and
whether all semblance of tobacco
trust" has disappeared. The attor-
ney general after the meeting was
noncommittal as to whether the in
quiry will be undertaken.
Consideration Of the workings of
the DEGREES in the two big cases
the Standard Oil at the cabinet meet
ing and the tobacco at the depart.
ment OF justice-toOk place today ap-
parently by coincidence. Around the
rule Of reason" principles first enun-
ciated by the United States supreme
court in these cases, has been built
practically all of the antitrust lit
igation since. The opinions have been
the guiding stars for the attorney
general, so far as the Sherman anti.
trust law is concerned.
Mr.. McReynolds, who as special as
sistant to the attorney general orig
inally prosecuted the tobacco trust, !"
has been studying the workings of the
decree ever since he ENTERED the cab
met. 1t Is known that he disagreed
with former Attorney General Wick
ersham as to the adequacy of the
adopted plan Of disintegration. 1t has
been understood that his objections
centered around the pro rata distri-
button among shareholders OF the
trust" of stock OF the II corpora
tions into which the American To-
bacco company was disintegrated. He
was quoted at the time as saying the
plan deserved IAN expeditions com
mitment to the scrap heap"
The report made to the attorney
general by Messrs. Morrison and Pa
gan I'm the oil case is the result of
several months investigation. They
have studied conditions in various
localities and paid particular atten-
tion TO the soaring prices of oil
Their conference with the attorney
general today was inconclusive and
IL will be continued tomorrow. The
nature OF their findings has not been
made public.
In the preliminary report made to
former Attorney General Wickersham
just before he retired from office these
attorneys declared that their then
partial investigation raised a serious
doubt as to whether the Standard Oil
trust had been actually dissolved.
They found that unfair competition
had been eliminated and the last few
months of their investigation have
been largely devoted To an effort to
ascertain whether the control and
management of the disintegrated
parts of the trust" and the con
troll OF the prices of oil still are di-
rected by the same concentrated in
terests as previously.