Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-08-03
OIL COMPANY is FINED $29,24OOOO
JUDGE Lands IMPOSES BIG
fine AGAINST THE STAND
ARD OIL FOR REBATES

throughout the United States and for
the purpose of accomplishing that pur-
pCse absorbing the stock of the other
corporations. Such corporations, so alb
sorbed, have thencefOrward but Il nom
inal existence and they cannot initiate
or execute any Independent business
policy.
The court then passed Judgment, as
follows:
cit il the Judgment and sentence
of the court that the defendant
standard Oil company pay Il fine of
S2G,24O.0O0. One thing remains. 1t
must not he assumed i'm this juris-
diction these laws may he ignored.
IL they are not obcycd, they will he
enforced. The plain demands of JUS
tice require the facts disclosed in
this proceeding be submitted to the.
grand jury with u view 10 c0nsid-
GRAFTON OF the conduct of the other
party uhc Alton raiIronD 10 these
transactions. Let an order he en-
able Aug. II; and the United states
district attorney il directed to pro-
cccd accordingly"
Basis for Large Fine.
While at first thought a fine APPROX
imating $29,O00,O00 might seem crush
ing enough to warrant the United
States supreme court in setting I
aside as "cruel and unusual punish.
ment," prohibited by the federal con
stltutiOn, it is not so regarded in thie
instance
Demonstration of this fact was made
at the inquiry last month in whisl
John ID. Rockefeller was the central
figure, and it was to prevent this shoN.
ing, doubtless with a view of making
use of the oversight on the appeal
that the Standard Oil attorneys refus-
ed to furnish the information volua.
tarily.
The suit was against the Standard
Oil company of Indiana. charged with
accepting rebates. aggregatirg $223.
eco, from the Alton railroad. During
the trial and prosecution was not per.
mitted to show the Standard of IL.
diana was a subsidiary company to tbs
Standard of New Jersey. This. how
ever, became an issue when Judge
Lands was called on 10 assess the fine
and he asked the attorneys for the de
fense to furnish the information. They
refused, and subpOenas were issued for
John D. Rockefeller. president of the
New Jersey company, as well as other
officers in both concerns.
No Pleas OF Mercy Go.
Despite the fact that Mr.. Rockefellel
professed TO know little about the
great company Of which he is the head
Judge Lands discovered at the inquirt
that the parent company owned al
save five shares of the Indiana com
pany's capital stock. Moreover, it was
shown that all the profits of the Indi
ana company wore turned over to the
New Jersey corporation. The gross re-
ceipts of the trust during 19O3'O4-O5
the years when the offenses were con-
mitted, were $199.S0O0G0. The capita
stock of this great holding company
was shown to be S100000.O00.
By this showing of facts the distri !;
attorney expects to be able to over
throw any plea for mercy should one
| be made in an upper court. Thes,
demonstrate that even the maximum
| fine would be only between one-thir-
and one-fourth of the dividends pal,
| by the holding company to its stoc!;
| holders during the period involved, au,
less than Is per cent of the company;
gross receipts.
Has Plenty of Cash.
! The stock of the Standard Oil com
pany of Indiana is $1.OOO,OO0. so thu
| the fine imposed will be twenty-nin'
: times the capital stock. The plant \
Whiting, however was estimated by
Standard Oil attorney to be worth $50