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Syllabus.

You will have other grave duties to perform, involving other laws enacted to protect and promote the business, welfare, and happiness and security of our people, in so far as that is within the jurisdiction intrusted to you. The assistant attorneys will be your legal advisers, and you can rely on their interpretation and construction of the law. The court will, on occasion, afford you any assistance in its power.

Grave as are the interests of the people intrusted to your care for the government and the people are powerless in the lack of your duty well performed-to you the matter of gravest moment and most lasting import is the effect of your conduct, in the presence of these mighty issues of public law, upon the strength and elevation of character, conscience, and citizenship. I adjure you in familiar words, "Let all the ends thou aimest at be thy country's, thy God's, and truth's." To each grand juryman will I confidently say, "To thine own self be [846] true, and it must follow as night the day, thou canst not then be false to any man.'

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NOTE. The grand jury, to whom this charge was made, presented indictments against a number of parties and corporations, and the principal defendants, on arraignment, having pleaded guilty, the court imposed fines, amounting in the aggregate to $30,000; and, accepting the assurance of the accused that they would not again violate the laws against combinations in restraint of trade, no other or further penalty was imposed.

[290] UNITED STATES v. STANDARD OIL CO. OF NEW JERSEY ET AL.a

(Circuit Court, E. D. Missouri, E. D. March 7, 1907.)

[152 Fed. Rep., 290.]

MONOPOLIES- -ACT TO PROHIBIT CONSPIRACIES IN RESTRAINT OF TRADEFEDERAL COURTS-CONGRESSIONAL POWER ΤΟ AUTHORIZE THEIR PROCESS TO RUN OUTSIDE THEIR DISTRICT.-In a case at law or in equity which arises under the Constitution or laws of the United

See also 173 Fed. Rep., 177; post, page 715. 221 U. S., 1; Vol. 4, page 79.

Syllabus.

States and a suit by the United States under Act July 2, 1890, c. 647, 26 Stat. 209 [U. S. Comp. St. 1901, p. 3200], "to protect trade and commerce against unlawful restraints and monopolies " presents such a case-Congress is authorized by article 3, §§ 1, 2, of the Constitution, to confer upon any national court jurisdiction to summon the proper parties to the suit to a hearing and decree, wherever they reside or are found within the dominion of the nation, although beyond the limits of the district of the court." COURTS-FEDERAL COURTS-DISTRICT WHERE SUIT TO BE BROUGHT— RESTRICTION TO INHABITANTS OF DISTRICT INAPPLICABLE WHERE JURISDICTION CONFERRED BY SPECIAL ACTS.-The inhibition of section 1 of the judiciary acts of 1887 and 1888 (Act March 3, 1887, c. 373, 24 Stat. 552, and Act Aug. 13, 1888, c. 866, 25 Stat. 433 [U. S. Comp. St. 1901, p. 508]), that "no suit shall be brought before either of said courts [the Circuit and District Courts] against any person by any original process or proceeding in any other district than that whereof he is an inhabitant," is ineffective and inapplicable in instances in which exclusive jurisdiction over particular cases or classes of cases has been conferred upon the federal courts by special acts of Congress. MONOPOLIES INJUNCTION-JURISDICTION TO BRING IN NONRESIDENT DEFENDANTS CONFERRED BY ACT JULY 2, 1890.-Act July 2, 1890, c. 647, 26 Stat. 209 [U. S. Comp. St. 1901, p. 3200], “ to protect trade and commerce against unlawful restraints and monopolies," by section 5 (26 Stat. 210 [U. S. Comp. St. 1901, p. 3201]) confers upon any court of the United States, in which a suit has been brought under it by the United States against a conspirator that is a resident of its district, jurisdiction to bring in non-resident co-conspirators by the service of its process upon them without its district. SAME-ENDS OF JUSTICE REQUIRE NECESSARY PARTIES TO BE BROUGHT IN. The ends of justice require, within the true meaning of Act July 2, 1890, c. 647, § 5, 26 Stat. 210 [U. S. Comp. St. 1901, p. 3201], that every necessary party within reach of the process of the court, every party who has an interest in the controversy and who ought to be made a party to the suit in order that the court may finally adjudicate the whole matter, should be brought in.

SAME PRACTICE UNDER SECTION 5.-The approved practice under Act July 2, 1890, c. 647, § 5, 26 Stat. 210 [U. S. Comp. St. 1901, p. 3201], is to make all the conspirators, both resident and nonresident, parties defendant to the bill, to set forth therein the existence and history of the conspiracy and the connection of each defendant therewith, and immediately upon its filing to present a petition to the court in which the places where the nonresident defendants can be served with process are disclosed, and to pray therein that they be summoned. An order granting such a petition before service of Syllabus copyrighted, 1907, by West Publishing Co.

Syllabus.

process upon, the resident conspirator and without notice to the nonresident conspirators is neither premature nor irregular. SAME CONSPIRACY IN REstraint of TRADE-PARTIES.-Act Cong. July 2, 1890, c. 647, 26 Stat. 209 [U. S. Comp. St. 1901, p. 3200], prohibits conspiracies in restraint of trade, and section 4 confers on the several federal Circuit Courts jurisdiction to restrain violations of its [291] provisions; section 5 providing that, whenever it shall appear to the court before which any proceeding under section 4 is pending that the ends of justice require that other parties should be brought in, the court may cause them to be summoned, whether they reside in the district in which the court is held or not. A bill alleged that the Standard Oil Company of New Jersey, a holding corporation, and 7 individual defendants, and about 70 other defendants, called "subsidiary corporations," had formed and were executing a conspiracy to restrain and monopolize commerce in petroleum and its products among the states and territories and with foreign nations; that, pursuant thereto, the individual defendants had caused the control of all the subsidiary corporations and the ownership of a majority of the stock of many of them to be vested in the Standard Oil Company of New Jersey, while the subsidiary corporations were the producers, refiners, traders, and operators, by means of which the restraint and monopoly was effected and the profits obtained; that the individual defendants owned a majority of the stock of and controlled the holding corporation, and through it the subsidiary corporations; that two of the subsidiary corporations, one a corporation of Missouri within the district, in combination with the other defendants, controlled and monopolized the railroad lubricating oil business of the United States; that the defendants had divided the territory of the United States into districts so that certain defendants only were permitted to sell therein; and that the Missouri corporation was a party to this conspiracy. Held, that the ends of justice required that all of the defendants, regardless of their residence. be made parties to such proceeding, though they were not necessary parties to a decree merely restraining the Missouri corporation from further continuing its wrongful acts.

On motions to vacate order to bring in nonresident defendants and to quash the service upon them of subpoenas.

John G. Johnson, John G. Milburn, W. I. Lewis, W. J. McKie, H. S. Priest, George G. Greer, and Motter, MacKenzie and Weadock, for the motions.

Frank B. Kellogg (the Attorney General, the Assistant Attorney General, Milton D. Purdy, C. B. Morrison, and C. A. Severance, on the brief), opposed.

Opinion of the Court.

Before SANBORN, VAN DEVANTER, HOOK, and ADAMS, Circuit Judges.

SANBORN, Circuit Judge.

The United States exhibited its bill in this court under the act of July 2, 1890, "to protect trade and commerce against unlawful restraints and monopolies " (26 Stat. 209, c. 647 [U. S. Comp. St. 1901, p. 3200]), in which it alleged the existence of this state of facts: The Standard Oil Company of New Jersey, a corporation, 7 individual defendants, and about 70 other defendants, called "subsidiary corporations," have formed and are engaged in executing a conspiracy to restrain and monopolize commerce in petroleum and its products among the states and territories and with foreign nations. Pursuant to, and in the execution of, the plan of this conspiracy, the individual defendants have caused the control of all the subsidiary corporations and the ownership of a majority of the stock of many of them to be vested in the Standard Oil Company of New Jersey, a holding corporation, while the subsidiary corporations are the producers, refiners, traders, and operators, by means of which the restraint and monopoly are intended to be and are effected, and the profits of the scheme are gathered. The individual defendants own a majority of the stock of [292] and control the holding corporations, and, through it, the subsidiary corporations. Two of these subsidiary corporations, the WatersPierce Oil Company, a corporation of the state of Missouri, whose principal place of business is in this district, and the Galena Signal Oil Company, in combination with the other defendants, restrain commerce throughout the United States in the lubricating oil used by railroad companies, whose value aggregates about $4,300,000 per annum, so that they control more than 90 per cent. thereof, and thus practically monopolize it. The defendants have divided the territory of the United States into districts, so that certain defendants only are permitted to sell the products of petroleum in specified districts, and all other defendants are restrained by the control of the holding company or by understandings or agreements from effecting sales in these districts. Such an under

Opinion of the Court.

standing and agreement has been made, and is being carried out, between the Waters-Pierce Oil Company and the defendant the Standard Oil Company of Indiana, whereby the territory in the state of Missouri and other southwestern territory is divided between them, and neither corporation is permitted to market the products of petroleum in the district of the other. The defendants have conspired for the purpose of, and are engaged in, restraining and monopolizing commerce in the products of petroleum throughout the United States by these and other similar means, and the complainant prayed in its bill that they might be enjoined from continuing this restraint, and from maintaining this monopoly, and for other equitable relief.

Section 4 of the act of July 2, 1890, confers upon the several Circuit Courts of the United States jurisdiction to restrain violations of its provisions, and section 5 reads in this way:

"Whenever it shall appear to the court before which any proceeding under section four of this act may be pending that the ends of justice require that other parties should be brought before the court, the court may cause them to be summoned, whether they reside in the district in which the court is held or not; and subpoenas to that end may be served in any district by the marshal thereof."

The individual defendants, the Standard Oil Company of New Jersey, and nearly all the subsidiary corporations, except the Waters-Pierce Oil Company, were not inhabitants of, and could not be found in, this district. After the filing of the bill, and upon the presentation by the complainant of a petition which disclosed this fact, the court ordered that the nonresident defendants should be brought in, and that subpoenas should be served upon them in the districts in which they resided. Certain of these defendants have appeared specially, and moved the court to vacate this order and to quash the service of the subpoenas upon them, upon the grounds that the court was without jurisdiction to make the order, that it was prematurely and irregularly made, and that the ends of justice did not require that the non-resident defendants should be brought into this suit.

The judicial power of the United States is vested by the Constitution in the Supreme Court, "and in such inferior

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