Show I STANDARD OIL CO ORDERED DISSOLVED United States CM Circuit Court for the thc District of Missouri Issues Order Gigantic ily From Continuing in Business 1 Government Wins Suit Slit Company to Appeal ST. ST PAUL Minn Nov 20 The 20 Thc T-Thc wins wills its suit against the Standard Oil company The United States circuit court today ordered the corporation to be dissolved as being illegal This case was was heard d nl in the United States circuit court at St. St Louis 1 is in ill April last 1 by Y Circuit Judges Sanborn of St. St Paul r a of Cheyenne Obey Obey- ehne enne Hook of Leavenworth and Adams of St. St Louis Judge Jude Sanborn the presiding judge cr wrote the opinion opinion ion and the decree in which all the judges concur and sent them to Judge Adams at St St. Louis who filed them and entered the decree in that ci city ty this morning inc caso case was Tas ar argued by bJ Frank B. B Kellogg of St. St Paul and Charles B. B Morrison of Chicago for the United Stales States and John G G. G Milburn of of Buffalo falo fao David T T. T Watson Vatson of Pittsburg Moritz oritz Rosenthal of Chicago and John G. G Johnson of Philadelphia a on behalf of or the defendants ants Injunction Is Granted It was brought to enjoin John John j Rockefeller Wi Willi am M M. M Henry II H. Rogers John D D. Archbold Oliver Oi H H. H 1 Payne Charles M. M Pratt tho Standard O Oil l comp compact of New l e J Jersey antI and about sc seventy other corporations from froID maintaining a a. combination combi nation and conspiracy in r restraint of or trade to monopolize interstate and international in iw- t commerce and Jn the tho decree grants raut tho the injunction sought by the government o fh The Tho case caso is one ODO of the tho most notable in the history of tho the national government govern orn ment went on account of important industrial industrial industrial indus indus- trial and legal questions and the Ya vast t financial interests it involves in The Tho ciden ovi- ovi den co filled twenty one volumes and occupied occupied oc oc- moro morn than printed pa pages es and aDd the arguments of counsel moro more than printed pa pages es The Tho nature of t the tho o case and nd tho the character char acter of the time d decision appear from the syllabus of Judge Sanborn's opinion which reads Syllabus of ot Judge Sanborn's Opinion Congress Con has power wor under tinder the tho commercial clause o of the constitution to regulate and restrict the tho use in commerce com corn coerce merce awon among the s several seral eral states and with foreign nations of contracts of the iho method of hol holding title tWo to property an and of over every other instrumentality employed employed em em- in that commerce so o far as it may be bo necessary to do so 80 in order to prevent pre the tho restraint thereof contemplated contemplated contemplated plated by tho the trust anti act of July 2 3 1890 26 G 6 statutes 09 Test Tet of the legality of a 1 combination combination combi combi- nation under this act js ms is its necessary san nary effect fT ct upon competition in commerce com merce among the states or with foreign foreign for for- eign nations If rr its necessary essar effect is o 01 only Y incidentally in in- in incidentally or indirectly to rc restrict that competition on whilo while its chief result rc is to foster tho trade and increase o the tho busi burl business ness of those who mako make and operate it it tines docs not violate that law lC But But if its necessary effect is is to or directly and substantially to restrict free competition in commerce amon among tho states stats or with foreign nations nations na na- it is illegal within the tho meaning of that statute Power Fower Indicative of ot Character The liThe power to restrict competition in ill commerce among tho the several states or 01 with foreign nations vested in a person or an nn association of nf persons by bya a combination is indicative o of tho the character of tho the combination b. b because cause it is to tile the interest of tho parties that such uch a power bo cx exercised and tho ho on is that it will be 5 lC The a combination in a foin lo corporation Corporation corpo Corpo- ration or person h by an exchange of or stock of or tho the po power cr of many stockholders stock stock- I holders jolders holding bolding the same proportions proportion i respectively of ot the tho ma majority of the tho stock flock of c each h of ot the several corporations corpora corpora- en engaged in commerce o in tho the same articles awon among th the thA states or with for for- I i eign nations to restrict competition therein renders renders' the power thOs thus vested in tho former greater r more moro easily cIsily exercised ex more durable and moro ef ef- effective t than held bold that joush by the tho stockholders and It it is illegal Vast Standard Holdings In the tho stockholders of the Standard Oil on company of New Jersey Jeroy owned a majority of or the ho stock of nines nine nineteen teen tear other corp corporations rations in the same proportions ns that they owned tho stock t k of tbt tb- Standard company and those thoc twenty ty c corporations controlled b by the tho ownership of the majority of at their stock or otherwise many other corporations corpo corpo- rations ration U Each of these corporations was engaged en- en griped aed in sonic some part of cf tho the business of producing educing buying boring refining transporting transport lD ing and selling pet petroleum oleum and its products prod acts in this country Many of ot them were engaged d in iu commerce in thc these c articles among among- the several states and with foreign nations na na- nations tion and were naturally competitive o During C tho the ton yearn prior to 1879 the tho several individual indi defendants had acquired control of many corporations partnerships and nd refineries that had bad been competing competing- in this business had bad placed the majority of the stock tock o of those corporations and md the interests iu in proportion in 8 thus obtained in various arlOUS trustees to be held and operated opere oper- oper by them for the stockholders of the tho Stan Standard ard Oil company compan of Ohio OLio one Of f tho nineteen companies in which the individual defendants were principal stockholders and had thereby suppressed suppressed sup pressed competition among th these sc corporations cor cor- p rations and partnerships In Hands of Five rive Trustees Tn In the they and their associates caused all tho the trustees to convey concy their interests in iD the tho stock property and business of all those these corporations to five trustees to bo be held operated and aDd distributed b by them for stockholders ers of tho the Standard company of Ohio From rOID Ism 1879 until 1892 1592 tile they pro lire vented these corporations and Bud others engaged cd in this business of which they the secured control from com competing pc lint in th that Commerce by b causin causing tho control of ot their operations and generally of a majority of or their stocks to be held iu iii trust for tho the stockholders of the tho Standard Standard Stand Stand- ard anI company of Ohio and from rom 1892 until 1899 they the accomplished tho the same banic re result of a similar sit ilar stockholding device b 13 bJ the joint equitable ownership of the tho majority of the stocks of the corporations corpora corpora- New Jersey Company Controls In HIn the year 1899 the seven e individual indi vidual defendants and their associates caused the tho majority of the stock of the nineteen corporations to bo transferred to tho the Stan Standard ard Oil company of ot New Neon Jersey in exchange e for its itt stock eo so that tho the latter company thereby 3 acquired tho the Jc legal nl title to a majority of f tho stock of each h of the tho nineteen companies the control of th these so companies compani's and aDd of all tho the companies i which thc they controlled and aDd the power pot to fix the tho rat rates of trans transportation tho purchase and selling filing price of petroleum and its products which all these corporations should ray pay ay and r receive in tho the conduct of their Continued on QU pago page 10 JO STANDARD STAND OIL Continued from front p pas J. J bu business ines in commerce commerce amon among the tho states and with ih foreign nations Sine Since SinN that o of or stock tock the seven individual defendants l have bavo been anti and are stockholders and aud officers of the Standard rd Oil Oi company CompI of If New Ter Jersey Tersey which lW has and is still sun using that power and n hr its is lB use has prevented pre pre- vented soil and ud is st still l preventing competition compe compe- competition in commerce among tho tInt states tates and imd with wih foreign nations amon among the corporations tons Held Reid to Bo Be Illegal Combination I Hold Itoh The Tho rho transaction t constituted rl a combination com corn combination and Jt conspiracy in restraint of and to monopolize commerce among aDon the states and with wit foreign natoni nations in vio io violation vio violation lation of sections 1 and 2 i of tho the anti ant trust act cl of July ruh 2 1890 and the time CO gov government is entitled lt to an nn injunction against gain t tho the further futher continuance and operation thereof The ThA decree Il reA enjoins tho time seven en c indi individual vidual defendants tho the Standard Oil Oi company compan an and i its fuhs subsidiary lr corporations corpora corpora- corporations tion from continuing or carrying into effect the ic illegal al combination the they have havo formed and anil from entering into any Wee like combination or conspiracy the tho ef of- effect effect feet of which will Trill bo be to re restrain trin int in in- t commerce in petroleum or its products or to prolong tho the unlawful monopoly of such Mich commerce obtained b hy by tho dc defendants as stated in the tho decree de do- re cree and nd they arc forbidden from engaging engin en en- gin or continuing in iii interstate commerce com corn merce merco until they thoy discontinue their ii- ii il illegal i legal combination The Thc decree tak takes cf effect ct thirty days daJ's from the date late of its i filing unless sums sus suspended 1 by hy an appeal tu to tho the supreme court Co U rt o Sanborn in in his opinion sa says Statement of or Case This is a suit suit brought hl II bj 13 t th the e United States to enjoin tho the Standard Oil Oi cOn company pan o of Now New NC Jersey Jesey a corporation corpo ration about seventy nt subsidiary uhs larY cor cor- corporations and md individual de- de seven from front continuing an au illegal al combination in iii r restraint of commerce among time tho several states stales tate in the District District Dis Dis- of Columbia in the tho territories an and with foreign nations in violation of the time wih Sherman trust antitrust act of July Tuly 2 lS O. O 26 6 statutes iOP O The Tho provisions of that act nt pertinent pert pert- perti nent to the issues in this case are Section 1 Every contract combination combi nation Dation in the tho form forum of trust or otherwise other other- wise ise or conspiracy in restraint of trade tra-ic 01 or en commerce amour tho thin several S cral stales or r r with foreign nations is hereby declared de I to bo he illegal Section 2 Een person who ho shall hahl monopolize or attempt to monopolize other or combine or conspire with wih any or Of persons to monopolize any nn part person of tr trade e or em 01 commerce among I the h with foreign foreign- nations several nral states or wih shrill shall bo ho deemed guilty guilt gui of a u miMe meanor Deanor Section 3 i. i The word person or perSons per per- per persons fr shall be lie this net act fOn sons wherever used ler in ne deemed to include e corporations corvo and ant as as- S- S Rules Rues Well VeI Established Repeated Repealed decisions of the purpose and time the meaning of this act have havo established hushed by controlling authority ac beyond doubt donut in iii this tribunal port pertinent rules for its HM interpretation and amid application arp cation to tho time facts of the tho ease case Time Tho caton test of legality of a B contract or combination com corn biaton under this hi riot act is 5 its direct 1 and necessary effect upon competition in in interstate or international commerce If the time necessary effect of a n COD contract combination I or conspiracy is js to stifle stile or directly anti and substantially to restrict freo competition in commerce among tho tim states or with fori foreign n nations itis it itis is is a contract combination or conspiracy in restraint int of that trade and it i violates vie vio i lates bites this law Time The parties to it are art artI I presumed to intend the thc inevitable inevitable- ine result re rc suIt sult of their acts anti and n neither their actual ac no- C intent nor tho the reasonableness of the tIme restraint imposed may withdraw it from rom the thc denunciation of time the stat tat ute ate Tho Time exchange of the stock Mock or shaves in the ownership of competitive organizations tt engaged in in il interstate or international international inter inter- national commerce for stock or share ownership of a single corporation the his direct necessary ar effect of a of competition and substantial restriction constitutes a thou tion on that commerce combination ton in iii restraint of commerce among the states or T with ih foreign nations nations nations na aDon that is declared illegal etral by y this law The business of the thc defendants i is is the production and arid tho time purchase of ofis petroleum its is storage c its is transportation tion ion from rom tho the producing wells wels to refineries eries ones the tho refining of this thi oil and amid the thc transportation an and sale salo of its is products in to purchasers in iu this anti and other coun coun- tries J |