Camas Prairie chronicle. [volume] (Cottonwood, Idaho) 1901-1917, 1907-08-09
FINED S2g,24O,OOO
STANDARD OIL COMPANY GOT
1T FROM JUDGE lands.
Administers. Maximum Penalty for
Violation of Law by Secret Rebates
Immediately Orders Grand Jury
to Investigate Alton Railroads Part
in Conspiracy-Story of the Case.

Chicago.-A fine of $29,24O,OOO was
imposed upon the Standard Oil Co. of
Indiana by Judge Lands. In conclud-
ing his decision Judge Lands said;
THE law prohibiting preferential
railroad rates was passed 20 years
ago. It's adoption was preceded by
the opposition of beneficiaries of var
ious practices to be prohibited.
Immediately thereafter these per-
sons set about to devise plans for its
evasion. DEGREES of courts and the
interstate commission show the en-
ployment of a large variety of
schemes to accomplish this result.
Finally in 1903 the Elkins law was
passed Hope was entertained that
this law would put an end to prefer
entail rates, yet beginning few
months thereafter the Standard Oil
procured 1900 carloads of property
to be shipped at an unlawful secret
rate.
For this offense the .Elkins law
authorized punishment only by fine,
an obvious defect remedied, however,
by the present law prescribing impris-
onment for like offenses.
However, it is the business of
judge to administer the law as he
finds it rather than to expatiate upon
the adequacy of punishment author
lied for it's infraction.
at is the judgment and sentence of
this court that the defendant, Stan
dard OIL pay fine of $29,420,O0O on
the counts charged.
"One thing remains. 1t must be as
sumed that in this jurisdiction these
laws may yet be ignored. If they are
not Obeyed they will be enforced.
The plain demands of justice re-
quire that facts disclosed in this pro-
ceeding be submitted to the grand
jury with a view to consideration of
the conduct of the other party to those
transactions. Let an order be en-
tered for panel of 60 men, returna-
BILE at 10 o'clock on the morning of
August IA. The United States dis
trict attorney is directed to proceed
accordingly"
The grand jury ordered will tnves-
tigate charges of rebating against the
Alton railroad. All through the de-
cision the court exhibited evidence
that the Alton was equally guilty. He
reviewed waybills and tariff schedules,
showing that upon application of the
Standard the Alton road rendered
trust officials a statement that the
rate on oil from Whiting, Indiana, to
East st. Louis was cents, whereas
the rate to the public was Is cents.
This alleged occurrence between
the traffic manager and rate clerk will
receive more detailed consideration
hereafter, said Judge Lands.
Judge Lands held it was neces-
sary to know whether the Standard
Oil accepted the concession knowing
ly, declaring an honest search by hon
est men would reveal the legal rate.
He added:
THE law does not permit a shipper
to assume that certain rate is the
legal one; he must know. The court
is not impressed by the doleful pre-
dtction of defendants counsel that en-
forcement of this rule will work a
hardship on the honest shipping pub
lie"
The court construed the law as not
giving the defendant any immunity
from punishment. He said the Stan
dard had been an old offender.
Tho dnPfcinT1 r1nfoSng y EOO
and took the judge 55 minutes to read.
Attorney Starr, for the Standard, OBJ
jected to final entry of the order be-
cause defendants attorney was not
present. He was oVerruled.
Starr wanted the judgment set aside
because it violates the eighth amend
ment of the constitution which pro-
hibits infliction of excessive fines.
The court overruled this and many
other motions.
Sixty days are given the defendants
to file a bill of exceptions. The case
goes to the court of appeals in Jan.
uary.
Federal Judge Lands is the most
talked about man in Chicago today.
All attorneys agree that his decis-
ion has no parallel in the history of
Anglo-SaXon Jurisprudence.
Technically the fine is imposed on
the Standard Oil Co. of Indiana. Prac-
tically it will be paid by the Standard
OF New Jersey. This was demonstrate
ed in the hearing in which John D.
Rockefeller recently testified.
1t was there stated that the Stan
dard of New Jersey was the parent of
the Indiana concern. The latter is
the best paying of its subsidiary COM
panies. Its capital is $1,000, 900.
Had the minimum fine of 81 ,462. 900
been imposed the capital would not
be sufficient to pay it. But the value
of the property of the Indiana com
pany is said to be $4,000, 900. At
torneys say that a fine greater than
that paves the way for a reversal of
the decision when the case reaches a
higher court.
A fine of 100000 could be col
lected, lawyers say by an officer of
the court Selling the property. with
the maximum of $29,O0O.OOO imposed
the value Of the property is not suf-
fcient to cover the judgement an5