Nicole Savinda

CASE BRIEF

THE STANDARD OIL COMPANY OF NEW JERSEY ET AL. v. THE UNITED STATES
221 US 1 (1911)

FACTS: The Standard Oil Company obtained interests through stock ownership. They entered
into agreements with other corporations for the purpose of fixing the price of oil, thus
restraining trade among several states and creating a monopoly of the oil industry.

PROCEDURAL HISTORY: The case against the Standard Oil Company was first heard by the
Circuit Court of the United States for the Eastern District of Missouri. Standard Oil appealed the
ruling. The case was then taken to the Supreme Court of the United States in 1910.

ISSUE: Did the Standard Oil Company violate the Sherman Anti-trust Act of 1890?

DECISION: Yes, Standard Oil Company attempted to monopolize the oil industry and violated
the Anti-trust Act of 1890. The company was ordered to dissolve.

REASONING: The Standard Oil Company was illegally controlling the stocks and ownership of
various corporations in the oil industry by holding the majority of their stocks. Using methods
such as local price cutting, contracts with competitors and unfair practices against competitors,
Standard Oil was able to monopolize control of the oil industry and the pipe lines.