Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-10-20
\ Dissolution Fable

~ tic trusts in American business Ono
was known as tho oil trust. operating in
the name of tho Standard OH Company of
Now Jersey: the other tho tobacco trust.
known to the public as tho American To-
bacco Company. These great combinations
were believed by the country At large Ia
have been monopolistC and given to whole
sale robbery OF the millions OF oil and to-
hacCo consumers
At that time there upon the statute
books of the United states law known
as the Sherman antitrust act II had been
in effect for many years. but il had served
little purpose. The Northern Securities
case had been won under il. but otherwise
the law was felt to he primarily alb
straction that is. a declaration of national
policy rather than enactment under
which public relief from business oppres-
sion might he guaranteed
An able Attorney General. however aid
I'd by two special assistants. both of whom
later became Senators of the United States,
proceeded In court against the two trusts
under the sherman law. They fought hard
and CALAMITY through the successive stages
Of the litigation. finally submitting their
cause to the highest tribunal in the nation
for action. One day the Supreme Court in
solemn decision pronounced the American
Tobacco Company 10 he a monopoly in re
straint OF trade and volator of the civil
section of tho sherman act. a few days
later another solemn pronouncemcnt issued
from tho court III which the Standard Oil
Company was found 10 be a monopoly and
also a violator of the same act.
Great rejoicing followed ON the part OF
the American people. They believed that Al
last means had hoon found to curb mon6p-
Giles and 10 safeguard them against differing
Ivy groups Of capitalists who might gain I'M
Fl, Cd rnlt g,
In this country They believed that the
opportunity for understandable profteer-
ing through such processes had been made
impossible. and that competition once
more would flourish in the land
But are simple and trusting pco-
PIE. We took the famous dissolution de-
CrceS OF the Suprom. Court at full face
value We believed that a new era had been
uSherci in. and as one trust after another
was officially busted" following the great
triumph" in the oil and tobacco eases Tho
feeling grew that the ultimate consumer
no longer at the mercy Of industrial
buccaneers.
Jus, the other day. however. measure
of disllusionm"nt was visited upon the
country. The Standard Oil Company Of
Sow Jersey, one of the corporations which
rose upon the ruins of tho old oil trust.
conhdcd some inside information to the
y
holders OF the company were informed that
for each share held four new shares would
hc issued without the cost of Il cent. Tho
man who held $1,000 in stock suddenly
found himself possessed Of $4,000 without
& p"nnys outlay. This was made possible
by cumulative profits OF The New Jersey
corporation. And these profits came out Of
the American people. Moreover, they were
made by "A corporation supposed To he in
sma hing competition with all other consri-
tuent elements OF the old trust as we'll a in
ccmpcirion with newer independent com
panes.
ON December 81. 1921. it is stated the
Now Jersey company had surplus prOfts
amounting to $5?2, OOO.O0o on IA capituliza-
ton OF Sl2a.0o0. 900 And yot the price
of oil has steadily increased in recent years
The price Of gasoline has gone mp season by
season Tn" price of lubricaiinc oil has
mounted 10 higher and higher l"vcls II
this had not been true. of course. there
would hay" been no such monStrous surplus
There could have been no melon Ia cut
Trust dissolution was indeed profitable
adventure III this ease and may have been
equally profitable In others Trust mag
mates really ought To invite tn" government
- bust them Occasionally. thereby making
3 prodt possible where only a : pront
vas possible before"