Iowa state bystander. [volume] (Des Moines, Iowa) 1894-1916, 1907-08-09
SIS, 40, 600 FINE IMPOSED
on STANDARD OIL COMPANY
Judge Lant5is lnfIcts Record PUNISH
n1ent on Trust for Accepting Re-
bates--O Orders New Probe Into
Conspiracy Charges.

rent heresy could not be conceived.
It is the defendants position that
its offense was wholly technical; that
nobody has been injured because
there was no other shipper Of OIL and
that therefore. the punishment. II
any, should be q modest fine.
1t is novel, indeed. for convicted de-
PENDANT to urge the complete triumph
Of dishonest course as reason why
such course should go unpublished.
The nominal defendant is the Stand.
ard Oil company Of Indiana, million
dollar corporation. The Standard Oil
company of New Jersey, whose CAPT.
tai is 10000, is the real de-
PENDANT
Where the only possible motive OF
the crime Is the enhancement OF diyi'
dends, and the only punishment au-
thorized is a fine, great caution must
be exercised by the court lest the fix.
ing of small amount encourage the
defendant to future violations by es'
teeming the penalty to be in the na-
ture of license
For the law to take from one OF Its
corporate creatures as a penalty Tor
the commission of dividend pro-
ducing crime less than one-third OF Its
net revenues accrued during the
period of violation falls far short OF
the imposition of an excessive line.
and surely to do this would not be the
exercise of as much real power as Is
employed when sentence is imposed
taking from human being one day OF
his liberty.
The court is obliged 20 confess that
It is unable to indulge the presump-
ton that in this case the defendant
was convicted Of its virgin offense.
More Trouble In Store.
Chicago The Standard on COM
pany Saturday received the most ter
rife blow in its history, and stimuli
taneously was served with notice that
more serious trouble was in store for
it. Ss.
Judge Kenesaw M. Lands, in the
United States district court, fined the
company s29,24O,OO0, the extreme limit
of the penalty fixed for the acceptance
of illegal rebates under the conviction
of last April. This fine is by far the
largest ever assessed in any case In
the history Of jurisprudence. 1t was
accompanied by scathing criticism
of the oil trusts methods.
Then the judge instantly called for
a special grand jury for August IA to
follow up the same violations of law
from the standpoint Of conspiracy be-
tween the Standard Oil, the Alton
road and the head officials Of both.
This charge, If proved. may land some
of the railroad and oil officers in Jail.
Will Contest the Decision.
The trusts lawyers served notice
that the infection of the fine will be
contested to the court of last resort.
This means two steps: An appeal to
the circuit court OF appeals and thence
to the federal supreme court.
The judge gave the defendants 60
days in which to file bill of excep-
tions. This was after three formal
and quite hopeless, motions had been
made by Attorney Merritt Starr, rep
resenting the defense as senior coun.
sci, during the absence of John
S. Miller, who is in Europe.
One motion was to set aside the
courts judgment, and another an ar.
rest of judgment, and third to va
cate the Judgment, setting up the
grounds that the courts action was in
violation of section 8 of the federal
constitution, which is directed against
the imposition Of excessive fines
"Overruled," said the Judge, quick.
~. Lets go on with the next case"
Mr.. Starr then secured the GO day
stay of execution in accordance with
an agreement between the prosecuting
and defending counsel, in which the
bill Of exceptions will be filed.
Call II an Injustice.
The character of the appeal to the
higher courts was indicated by later
statement by an official Of the corpor-
alton in New York, who said .'the,
amount Of the fines evidenced the in.
justice against the company"
THE amount Of Judge Lands
fnes," said this official authoritatively
for the company, lis SO times the value
Of the oil carried under the indict.
ment. Total value Of the oil was
$650,000. For each car Of oil, valued
at about $3.50, we have been fined
100000. An appeal will be taken to
the United States circuit court of ap.
peals and carried to the court Of last
resort, but whether it will be entered
at once or whether the full time al.
vised statutes Of the United States.
The punishment for conviction Of this
ohense is q fine Of $4,000, or sentence
lowed by law will be taken will be
determined by our counsel