State ex inf. Hadley v. Standard Oil Co.

91 S.W. 1062, 194 Mo. 124, 1906 Mo. LEXIS 149
CourtSupreme Court of Missouri
DecidedFebruary 26, 1906
StatusPublished
Cited by13 cases

This text of 91 S.W. 1062 (State ex inf. Hadley v. Standard Oil Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex inf. Hadley v. Standard Oil Co., 91 S.W. 1062, 194 Mo. 124, 1906 Mo. LEXIS 149 (Mo. 1906).

Opinion

LAMM, J.

Original proceeding on information in the nature of quo warranto. The Waters-Pierce Oil Company is' a domestic corporation. The Standard Oil Company of Indiana is a corporation of that State. The Republic Oil Company is a corporation of the State of New York. The two latter companies a.re domiciled for business purposes in Missouri by virtue of licenses issued to them under our statute, and upon compliance therewith. Each and every of these corporations was created for the purpose of engaging in the business of refining petroleum and buying and selling the products thereof and all are engaged in the. business of selling naptha, benzine, gasoline, kerosene, lubricating oil and other products of petroleum in Missouri; not only so, but the said Standard Oil Company has established, owns and is conducting a refinery in this State and is refining petroleum thereat.

On the 25th of March, 1905, the Attorney-General commenced an original proceeding in this court in the form of an information in the nature of quo warrmito, filed ex officio, against all of said corporations, thereby causing this court, to be informed that said corporations had created, entered into and become members of a [130]*130pool, trust, agreement, confederation, combination and understanding among themselves and each other, to regulate, fix and control the prices to be paid by retail dealers and others in Missouri for naptha, benzine, gasoline, lubricating oil and other products of petroleum sold in this State, and to control and limit the trade therein and to control, limit and prevent competition in the buying and selling thereof between themselves and others engaged in like business, and tb deceive and mislead the public into the belief that said respondents were separate and distinct corporations, each pursuing an independent business as legitimate competitors in the purchase and áale of said products of petroleum. Said information informing this court, .furthermore, that said corporations by said pool, trust, combination, etc., had actually fixed and maintained the price of such products of petroleum so offered for sale by them in this State, and had controlled and limited the trade in such products, and had prevented and destroyed competition therein, and had deceived and misled the public into the belief that said corporations were separate and distinct corporations, pursuing their independent business as legitimate competitors in a legitimate business, although in truth and in fact they had entered into and were members of such pool, combination, trust, etc., and no real competition existed between them.

The information proceeds with due, legal precision and particularity to inform this court of the scope and tenor of the trust scheme and of the specific methods claimed to have been employed therein and thereby to rivet upon the people of this State, contrary to public policy and in the very teeth of express law, an alleged odious monopoly. For present purposes the inventory of details pleaded need not be set forth in this opinion. Suffice it to say that the substance and pith of the agreed plan and method, as gathered from the formal averments of the information, are, speaking figuratively and by way of comparison, that, as all Gaul was di[131]*131vided into three parts (see the opening sentence of Caesar’s Commentaries), and as the Eoman world was parceled ont in thirds in a certain historic domestic partition between Antony, Octavius and Lepidus presently after Caesar’s death, so the State of Missouri has been divided into three parts by said corporations for the purposes of illegal exploitation and tribute — one part, chiefly north of the Missouri river, being assigned to the Standard Oil Company; another part, chiefly south of said river, being assigned to the Waters-Pierce Oil Company; and the other parts (varying from time to time in dimension and location as the alleged needs and whims of said trust may direct and point) being assigned to the Eepublic Oil Company— the novel and startling role played by the latter corporation, under the scheme outlined by informant and. said by him to exist, being to act as a sort of wandering Ishmaelite, so to speak, with a name but no fixed local habitation, armed by the alleged trust with a roving commission to range up and down and to and fro only in such trade territory in Missouri as may have dealers in and consumers of such sundry products of petroleum, who refuse for any cause to deal with the Standard Oil Company or the Waters-Pierce Oil Company in their said respective tributary divisions of the State, and where competition perchance may have lifted its head, and there and then beat down the price of oils until such competition is smitten hip and thigh, as it were, and crushed out, whereby and wherefrom such recalcitrant dealers and consumers become mellow and subservient to and are made to pass under the yoke of the said general plan of trust exploitation. Moreover, this court is caused to be informed that the Standard Oil Company by said trust agreement has agreed to sell and sells said products of petroleum only to the Waters-Pierce Oil Company, and Eepublic Oil Company, and through itself, and the Waters-Pierce Oil Company and Eepublic Oil Company have agreed to buy and do buy said products

[132]*132of petroleum only from the Standard Oil Company. That by virtue of said agreement and the working plan adopted to effectuate its purposes, said corporations have monopolized eighty-five to ninety per cent of the current market supply of the said products of petroleum in Missouri and control the price thereof, and have secured the control of the oil business for the purchase and sale of oils in this State to the injury and damage of its people.

The object of this information is to oust the said corporations and each of them from their franchises, rights, authority, license and certificate to do business under the laws of this State and to forfeit the same.

On the filing of said information, straightway a rule was passed and handed down to show cause and to which said rule respondent corporations severally made answer and return. Respondents, the Standard Oil Company and the Republic Oil Company, made return by the same counsel and in common form (mwtatis, mutandis) admitting their incorporation, charter, purposes and license and authority to do business in the State of Missouri as pleaded in the information. The Standard Oil Company also admitted that it had established and is now conducting a refinery in Jackson county, Missouri, for the purpose of refining petroleum and averred that it had spent many thousand dollars in the construction thereof. The said respondents further admit that they were doing business in the State of Missouri as venders of the products of petroleum as set forth in the information, hut they generally, as well as specifically at length, deny, seriatim, the 'averments of the information having the sting of charging any illegal agreement, confederation and combination and the alleged plan and method of effectuating the same, etc. The Water s-Pierce Oil Company admitted its incorporation and business as a dealer in oil, as averred in the information, hut denied all averments thereof charging the formation of a trust or any violation of law.

[133]*133Thereafter, on May 3rd, 1905, this court made and entered the following order:

“Now on this day, it appearing to the court from the pleadings in the above-entitled cause that issues of fact are joined therein, therefore, upon motion and request of Herbert S.

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Bluebook (online)
91 S.W. 1062, 194 Mo. 124, 1906 Mo. LEXIS 149, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-inf-hadley-v-standard-oil-co-mo-1906.