STANDARD OIL LOSES $70,000,000 'STIFLED COMPETITION' SUIT
Standard Oil Loses $70,000,000 'Stilled Competition' Suitj Indiana Corp. Held Guiltv by N. Y. J us t i c e Fan American Minority Stockholders Vi in Big Verdict NEtV YORK CITY.—Minority stock...
...In the decision Justice Rosenman directed that Standard Oil of Indiana account and pay to the Pan American profits made by the Standard Oil and Gas Corp...
...The oil was produced on properties acquired by Standard Oil and Gas in the East Texas fields and the Gulf coast area where at one time Pan American was active...
...He held that five individuals connected with the Standard Oil Co...
...Here responsible with, the Indiana company in connection with this phase of the case...
...A number of officers of Standard Oil of Indiana were listed as defendants as was the Standard Oil Co...
...The damages are from April 1, 1933 to date...
...won a major victory in the supreme court last week, in an accouuntins and damage suit against the Standard Oil Co...
...former justice of the Appellate Division, as referee in the accounting proceedings to determine damages due the plaintiffs since April 1. 1933...
...In one part of the decision Justice Rosenman said: "The modern growth of the corporate form of business has been accompanied by ingenious and artificial legal devices to divorce the stockholder from any semblance of control over his investment...
...The rate of increase In employment has been below the usual rise during the spring of each year, the A. F. of L. declared...
...or if this cannot be done to pay Pan American a reasonable value thereof, including the potential value of the reserves...
...It became known that the Standard Oil interests will appeal...
...upon proper reimbursement by Pan American of all the costs thereof...
...Justice Rosenman fouud for the Standard Oil Co, of New Jersey, and its officials...
...a former vice president of Pan American and son of Louis Blaustein...
...Uncle Sam Floats Another Warship NEW YORK CITY—The 35.000-ton North Carolina, the second battle-*hip to take the water in two weeks, has slipped down the ways of the Brooklyn navy yard...
...Started 6 Years Ago The proceedings were started s:x years ago, and the hearings before Justice Roseman began last December...
...He held- that Edward G. Seubert...
...Damages to Pan American were ordered for failure by the Indiana corporation to permit Pan American to construct its own gathering system and direct pipe line in the East Texas field...
...The plaintiffs estimated that $50.-000,000 to $10,000,000 was involved in the damages...
...Justice Rosenman restrained Standard Oil of Indiana from taking any action to interfere with the free competition of Pan American and its subsidiaries and any of the subsidiaries of Standard Oil of Indiana in connection with the buying of crude oil producing properties, or preventing Pan-American from establishing its own crude oil purchasing department, and he ordered Standard Oil of Indiana not to divert any legti-mate business opportunities of Pan American to the ase of the Indiana corporation...
...Charles J. Barkdull, Louis L. Stephens...
...Says Jobless Cut By Over 400,000 WASHINGTON, I...
...Edward G. McKeever and James A. Carroll Jr...
...of Indiana, majority stockholder...
...Justice Samuel I. Bosenman found that the Standard Oil Co...
...of New Jersey, and several of its officials...
...Held Guiltv by N. Y. J us t i c e Fan American Minority Stockholders Vi in Big Verdict NEtV YORK CITY.—Minority stock interests of the Pan American Petroleum and Transport Co...
...In a decision of 182 pages...
...C. — America's jobless rolls have been reduced by over 400.000 since the lirst of the year, but 10.255.000 are still out of work, the American Federation of Labor estimated last week...
...Transfer Is Ordered The Indiana corporation was ordered as "a constructive trustee ot Pan American to transfer to it all oil properties acquired from it by Standard Oil and Gas in the East Texas and Gulf Coast field frcm April 1, 1933 to July 1, 1935...
...The complaint charged that Standard Oil of Indiana had stifled competition by Pan American, of whose stock is owned 78 per cent...
...The North Carolina and her sbver •hip, the Washington, which ws launched at the Philadelphia navy yard on June 1. are the first rapltM ships built for the n;>vy in 19 yean: Each <).' them sets Uncle Sam back iibijut $80,000,000...
...The Indiana corporation was ordered to account and pay to the Pan American all the profits from the sale of crude oil from April 1. 1933, to date to any person or corporation other than Pan American, which produced from these oil fields, and that Indiana pay profits on all crude oil purchased by it and resold to Pan American during the same period...
...a subsidiary' of the Indana company, on all crude oil sold to Pan American since April 1, 1933...
...The more tenuous that vestige of control becomes, the more keen mast be the eyes of equity to safeguard the investment in the hands of those who have the power to waste it...
...of Indiana had enriched itseit at the expense of Pan American Petroleum...
...The plaintiffs included the estate of Louis Blaustein, former president of Pan American and founder of the American Oil Company: Jacob Blaustein...
...of Indiana were liable in the accounting and damage proceedings but emphasized that "there is no claim and no finding that any of the individual defendants profited personally in any way in any of these transactions...
...and companies controlled by those interests...
...He appointed Clarence J. Shearn...
...The Blaustein interests controlled 20 per cent...
Vol. 10 • June 1940 • No. 25
