The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1907-09-19
OIL TRUST BONDS
! SET AT S6,0OO,OO0
BIGGEST SECURITY ON RECORD
FIXED BY JUDGE eRosscUP.
IN APPEAL FROM lands
Attorneys for Both Sides Dissatisfied
STANDARD May Ask Reversal Of
I! Fine Because of Immunity
! Ii Agreement. IA

.
: Chicago, Sept. 1S.-The largest
bonds in the history of criminal juris.
prudence were fixed Tuesday by
Judge Peter s. Grosscup, of the
United States circuit court, to secure
the governments s29,24O,OOO judg-
ment against the Standard Oil com
pany of Indiana pending an appeal
from the sentence imposed by Judge
Lands.
The aggregate security required by
Judge Grosscup is 100000, repre-
scented by.two bonds-a forthcoming
bond of $4,OO0,OOO and a conditional
bond of 100000. The total was con-
sidered by Judge Grosscup to repre-
sent the value of the property owned
by the defendant company.
Both Sides Dissatisfied.
Both the attorneys for the govern.
ment and the oil company expressed
chagrin over the courts decision. Dis
trict Attorney Sims announced to the
court that he was not satisfied with
the amount Of the security. His argu-
ments had been in favor of a bond
equaling the amount of the fine. John
s. Miller, attorney for the Rockefeller
corporation, protested that the esti-
mate of the assets of the Indiana
company were too high.
Judge Grosscup announced that he
would grant the district attorney an
opportunity later on to submit argu-
ments to show why the bonds should
be larger
Another matter still to be definitely
settled before the bond is filed and a
writ of supersedeas granted to stay
execution of the judgment is whether
the Standard OIL company of New Jer-
sey can go on the bonds of the In
diana company How to obtain the
record-breaking security appeared to
puzzle Attorney Miller.
Standard May Sign Bond.
After protesting briefly that the
amount was too high, he inquired IL
the larger bond might not be an indl-
vidual bond or whether the guaranty
OF surety company was required.
The court ruled that the 100000
bond might be supplied on individual
security, but that the smaller bond
must have a surety company.
1T has been suggested" said Mr..
Miller, that the Standard Oil COM
pany of New Jersey might be surety
upon the bond and l should like to
settle that matter"
The court will accept it II the cor.
poration has the power to make a
bond" responded Judge Grosscup. II
am not sure that 1t has"
1T has been shown in this record
that the Standard Of New Jersey owns
practically all the stock of the de-
PENDANT company" said Mr.. Miller,
"and any corporation has the Incl
dental power to protect its own"
IT its ownership is considered In
that light" interposed Mr.. Sims, why
is 1t not considered in fixing the
amount OF the bond?"
Judge Grosscup replied that IN M
ing the fine the lower conrt had the
right to consider who the real and
who the nominal defendant was, but
that he himself had no right to create
a liability against the Standard Oil
company of New Jersey without trial
In court.
It was announced that the 1900, 900
bond is to indemnify the government
against any alteration of the value Of
the plant of the defendant company at
Whiting, Ind, and the 100000 bond
is to be applied toward payment of
the judgment II 1t is sustained in the
court Of appeals.
Immunity May Affect Big Fine.
It is believed IN government circles
that the Standard Oil company will
appeal to Judge Lands to reverse
the fine he imposed and that the
grounds for this plea will be that the
attorneys for the oil company should
have been informed Of the immunity
agreement between the government
and the Chicago & Alton road. Attor-
ney John s. Miller declined to say
whether or not the step was contem,
plated
The immunity agreement will be the
subject of conference between Dis
trict Attorney Sims and Attorney
General Bonaparte. who arrived in
Chicago Tuesday afternoon from
Washington. The ostenslble purpose
OF his visit to Chicago is TO deliver an
address at the University of Chicago.
No announcement of the final decision
OF the prosecutors regarding the Alton
case is expected until September "a,
when Judge Lands returns and the
grand jury convenes.