Hathaway v. State

• Decision Date: 26 June 1896
• Citation: 36 S.W. 465
• Parties: HATHAWAY v. STATE.
• Court: Texas Court of Criminal Appeals

Page 465

36 S.W. 465

HATHAWAY v. STATE.

Court of Criminal Appeals of Texas.

June 26, 1896.

Appeal from district court, McLennan county; S. R. Scott, Judge.

E. T. Hathaway was convicted of engaging in a conspiracy against trade, and appeals. Reversed.

C. P. & J. D. Johnson and Clark & Bolinger, for appellant. Mann Trice, for the State.

HENDERSON, J.

Appellant was convicted of engaging in a conspiracy against trade, and his punishment assessed at a fine of $50, and prosecutes this appeal.

1. The indictment is in six counts. The first count is as follows: "That in said county of McLennan, state aforesaid, on or about October 1, 1894, John D. Rockefeller, Henry M. Flagler, William Rockefeller, John D. Archbald, Benjamin Brewster, Henry H. Rogers, Wesley H. Tilford, Henry Clay Pierce, Arthur M. Finley, C. M. Adams, J. P. Gruet, E. Wells, Wm. Grice, E. T. Hathaway, and F. A. Austin did unlawfully agree, combine, conspire, confederate, and engage with William E. Hawkins and divers other persons, to the grand jurors unknown, in a conspiracy against trade, then and there, with the said William E. Hawkins and the said other persons, creating a trust by a combination of their capital, skill, and acts with the said Wm. E. Hawkins and other persons, for the purpose, design, and effect to create and carry out restrictions in trade, to wit, in the manufacture, production, sale, trade, and shipment of petroleum, petroleum oils, all the products of petroleum, refined oils, illuminating oils, and lubricating oils, the same being commercial commodities, by keeping the price of said oils at a certain price per gallon, and at a certain price as otherwise sold, which price was far above the true market price of said oils, and for the purpose and effect to prevent competition in the manufacture, production, sale, trade, and shipment of petroleum, petroleum oils, all the products of petroleum, refined oils, illuminating oils, and lubricating oils, and to limit and reduce the production of said products, and to raise the price thereof above the true market value, and cause the same to be purchased by the actual consumers at a great price above the true market value, and to prevent competition in the manufacture, production, sale, trade, and shipment of petroleum, petroleum oils, all the products of petroleum, refined oils, illuminating oils, and lubricating oils, the same being commercial commodities, and products of prime necessity to the people, and for the purpose and effect to fix at a certain standard and figure the price of petroleum, petroleum oils, all the products of petroleum, refined oils, illuminating oils, and lubricating oils, whereby the prices thereof were and are established and fixed in said county of McLennan at a fictitious value, greatly in excess of the true market value. And the said John D. Rockefeller, Henry M. Flagler, William Rockefeller, Benjamin Brewster, John D. Archbald, Henry H. Rogers, Wesley H. Tilford, Henry Clay Pierce, Arthur M. Finley, C. M. Adams, J. P. Gruet, E. Wells, Wm. Grice, E. T. Hathaway, and F. A. Austin, did then and there unlawfully make and enter into a trust, combination, contract, agreement, obligation, and conspiracy with the said William E. Hawkins and other persons in said county, and all of said persons did agree, combine, conspire, confederate, and engage with each other and among themselves, that they would not manufacture, produce, sell, trade, and ship petroleum, petroleum oils, all the products of petroleum, refined oils, illuminating oils, and lubricating oils below a certain price, which price was and is far above the true market value of said commercial commodity, and that they would fix and keep the price of said oils in said county at a certain price and graduated figures, and that for the purpose of establishing and setting the prices of said oils amongst themselves, and to preclude and destroy free and unrestricted competition in the manufacture, production, sale, trade, and shipment of said oils, they agreed to pool, combine, and unite their interests in the manufacture, production, sale, trade, and shipment of said oils, so that the price thereof would be affected and fixed at a certain figure; against the peace and dignity of the state."

So far as this appellant is concerned, the four succeeding counts are similar to the first count, above quoted. The sixth count is as follows: "And the said grand jurors aforesaid, upon their oaths in said court, do further present: That on or about the 2d day of January, A. D. 1882, a great many corporations, partnerships, firms, and individuals controlling, owning, and operating 95 per cent. of the capital invested in petroleum, its products, refined oils, illuminating oils, and lubricating oils, and in the manufacture, sale, and transportation thereof, met at some place in the United States, to the grand jurors unknown, and organized themselves into a trust, combination, conspiracy, and confederation with each other and among themselves to organize a monopoly to control the oil trade in the United States. That there were about thirty-nine corporations, partnerships, firms, and individuals who entered into and bound themselves by said trust, conspiracy, combination, and agreement, and that they were scattered over many states of the United States, and owned, controlled, and operated almost the entire petroleum oil industry of the United States, and that the purposes of said trust, conspiracy, combination, and agreement were to organize said corporations, partnerships, firms, and individuals into an agreement, combination, and trust, to be known as the `Standard Oil Trust,' for the purpose of mining, manufacturing, producing, refining, and dealing in petroleum and all its products, and all the material used in such business, and transact other business collateral thereto, and for such other purposes and powers as should be embraced in the several charters, such as should seem expedient to the parties thereto procuring charters. That, aside from the ostensible purposes already mentioned, the agreement, conspiracy, and trust were created and organized for the purpose of absorbing and controlling and monopolizing the petroleum oil industry of the United States, and that said thirty-nine corporations, partnerships, firms, and individuals also entered into and organized said agreement, conspiracy, trust, confederation, and combination known as the `Standard Oil Trust' for the purposes of—First, creating and carrying out restrictions in trade; second, of limiting the production and increasing the price of petroleum and its products, the same being a commercial commodity; third, of preventing competition in the making, manufacture, and transportation and sale of petroleum oil and its products; fourth, of fixing at a certain standard and figure the price of petroleum oil and its products, whereby their prices to the public would be controlled and established, and said products being of prime necessity to the people for use and consumption; fifth, for the purpose of binding themselves not to sell, dispose of, and transport petroleum oil and its products at a fixed and graduated figure, and to establish and settle the price of petroleum and its products at such figures so as to preclude a free and unrestricted competition in the making, manufacturing, sale, and transportation of petroleum and its products, and for the purpose of pooling and combining their interests in the making, manufacture, sale, and transportation of petroleum and its products in such a manner that the price thereof would be affected; the said petroleum oil and its products being an article of trade and commercial commodity. That each of said corporations, partnerships, firms, and individuals agreed among themselves and with said trust to form in the states where they were respectively domiciled a corporation known as the `Standard Oil Company,' of the state where formed, and to become a part of the trust known as the `Standard Oil Trust,' and that many such corporations, in pursuance of such agreement and trust, became a member and part of said `Standard Oil Trust.' The corporations, partnerships, firms, individuals, and corporations formed in pursuance of the agreement mentioned agreed to transfer and assign, and did transfer and assign, all their stock to nine trustees of the `Standard Oil Trust,' to be held by said trustees indefinitely. That the said corporations, partnerships, firms, and individuals agreed that nine trustees should be appointed to take charge of, control, and operate the affairs of the `Standard Oil Trust,' and that a certain number of trustees should be elected annually after the election of the original trustees. That said trustees were required, empowered, and authorized to issue trust certificates to said corporations, partnerships, firms, and individuals in consideration for their said stock delivered and transferred to said trustees. That the value of said trust certificates so issued amounted to many millions of dollars. That the general office of said `Standard Oil Trust' should be in New York City. That the meetings should be there held, and the trustees should be elected in New York City, and that the headquarters and general offices of the said nine trustees should be and remain in New York City. That the said corporations, partnerships, firms, and individuals then and there on the 2d of January, 1882, agreed and contracted that the `Standard Oil Trust' should be perpetual, and that it has existed since said agreement and trust, and that its general offices and headquarters and the general offices and headquarters of the said trustees are now situated and located in New York City, state of New York, pursuing and carrying out the purposes of said trust, conspiracy, combination, contract, and confederation as hereinbefore detailed and stated. That said trustees are now engaged in carrying out, enforcing, and executing the...