The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-01-04
TRUST TO FACE TRIAL
Indictments Against Stand
ard Oil of Indiana Upheld.
ACCUSED OF 6,325 OFFENSES
Prosecution Grows Out of Alleged
Accepting Rebates On shipments to
Observation-Disclosures Fines in Case
of Conviction Would Aggregate
SI26, 500, 0OO-Rate Law Construed

Chicago. IAN. S.-Judge Lands, in the
United States District Court. to-day,
overruied the demurrer Of the STANDARD
Oil Company. Of Indiana, to eight indict-
ments pending against that corporation,
but sustained the demurrer as TO two
other indictments, because of technical
defects.
The indictments charge accepting
preferential rates on oil shipments 10
The Whiting Gnd) refneries. The total
maximum fines, in case of conviction,
would aggregate Si26,5ll,0o0
These prosecutions" said the court,
"are for alleged violation of section ! OF
the act approved February 10, 1893, known
as the EIsins law. The charge is that
the defendant obtained the transportation
Of its property by various railway com
panles at rates less than those named
In the carriers published schedules The
offenses are alleged 10 have been COM
mittcd prior 10 the enactment OF the la"
approved june ., 1906, known as the rate
Law. The indictments We're returned Au-
gust y, 1905"
UphoIds 6,325 Counts.
out of the ten indictments Judge Lands
found two defective. The others stand
They include 6,525 counts. Had individ-
uals been indicted a penitentiaTy SEN
tence might have gone with conviction
Since a corporation cannot be imprisoned,
the worst The court can do is to assess a
maximum fine of $4,000 on each count
The indictments were returned under an
amendment to the EIltins law
The oil company maintains that, If u
violated any law at all, 1t Was not the
amended statute, but the old Eikins law.
The latter statute. it was argued. was
virtually repealed by the terms OF the
amendment
itself immune from prosecution and de
INJURED to the indictments. Judge Lands
takes q different view.
Old Law strengthened.
1t is the courts duty" he said TO en-
force the will Of Congress. That object
was the establishment of uniform railroad
rates, reasonable in amount The former
law failed TO accomplish this. and WAS,
therefore. strengthened. Instead of being
wiped off the books, additional and Sc
Vprer liabilities were created and more
drastic penalties authorized.
The court is asked 10 hold that this
same Congress intended 10 pardon all un-
indicted prior offenders whose conduct
more than all other causes, moved the
enactment of a more rigid measure"
Judge lands considered this contention
ridiculous, and overruIed the demurrers-
1T is also urged, continued the
court that some of these indictments
are bad, because they charge the defend
ant with securing less than the legal rates
on shipments beyond the carriers own
lines, the argument being that the law
only requires d carrier to publish rates
on its own road
Two Indictments Dismissed.
THE court does not so understand the
law. When the carrier publishes q rate
the law regards it as thereby announcing
that il has facilities for transportation
between the points scheduled. Whether
part of the distance is covered over leased
lines or by some traffic arrangement is
immateTiai"
The two defective indictments were
quashed, because as the prosecution ad-
mits, the grand jury found itself unable
to draw a bill covering the maze of COM
binatiOns, local and through rates, re-
sorted to By several of the railroads 80
defeat the Eikins law
The railroads figuring in this alleged
combination we're the Chicago Terminal
Transfer. Chicago and Eastern Illinois,
Evansville and Terre Haute, and Illinois
Central companies.
Attorneys for the oil company refused
10 comment on the decision. United
States District Attorney Simms says it
marks the beginning of real government
control of railroads,