FIVE JUDGES ENDORSE OIL TRIAL VERDICT
Five Judges Endorse Oil Trial Verdict Convictions Are Upheld by U. S. Supreme Court WASHINGTON, D. C—Conviction of 12 major oil companies and five individuals for violation of the Sherman...
...In the dissenting opinion on the phase of the case decided this week, Justice Roberts wrote: "No case decided by this court was held a combination illegal solely because its purpose or effect was to raise prices...
...The criterion of legality has always been the purpose or effect of the combination unduly to restrain commerce...
...After the lengthy trial at Madison, the jury returned verdicts of guilty against 46 defendants, but Federal Judge Patrick T. Stone dismissed indictments against 11 of these after they had been found guilty, and the supreme court affirmed his action by a 4 to 4 vote...
...The spectacular oil trials were held i in Madison, Wis., when some of the biggest oil concerns in the nation were indicted for conspiring to raise the price of gasoline sold in 10 mid-western states...
...This week's action by the nation's highest court sets aside the Chicago decision and reinstates the convitcions voted by the jury in Madison...
...Proof that there was a conspiracy, that its purpose was to raise prices, and that it caused or contributed to a price rise is proof of the actual consummation or execution of sr conspiracy under section one ot the Sherman act...
...Regarded as one of the major antitrust cases in recent years, the cases went to the federal circuit court of appeals in Chicago, where the Madison convictions were reversed...
...Justices Roberts and McReyn-olds dissented, and Chief Justice Hughes and Justice Murphy did not participate in the decision...
...When the convictions were returned by the Wisconsin jury, the oil com-•panies were fined $5,000 apiece and the individuals $1,000 each in the federal district court...
...The justice department had accused the defendants of conspiring to raise prices by concerted purchases of gasoline from independent refiners in the mid-continent oil fields and in the East Texas oil field in 1935 and 1936...
...In his decision this week...
...Justice Douglas said that "there was abundant evidence that the combination had the purpose to raise prices," and that "there was ample evidence that the buying programs at least contributed to the price rise...
...It was charged that the purchases were made at a figure which would increase the "spot" tank car price— upon which gasoline prices in that area are based...
...Five Judges Endorse Oil Trial Verdict Convictions Are Upheld by U. S. Supreme Court WASHINGTON, D. C—Conviction of 12 major oil companies and five individuals for violation of the Sherman anti-trust act was upheld this week in a 5 to 2 decision by the U. S. supreme court...
...Justice William O. Douglas of the U. S. supreme court wrote the 67-page opinion which affirmed the convictions...
Vol. 10 • May 1940 • No. 19
