Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-08-03
Alton Road is Held to
be Likewise
Guilty.
EvADING THE LAW
Chicago Federal Jurist Reviews
the Celebrated
Case.

Lands today imposed a fine of $40,
10000, the maximum amount under
the law, on the Standard Oil company
Of Indiana, which corporation was re
Gently convicted on the charge Of ac-
cepting rebates aggregating q-23, -
from the Alton road.
This is the largest ever recorded in
the history of criminal Jurisprudence
In imposing the penalty, the judge, af-
ter eNhaustively reviewing the charges
and history of the trial, and quoting
the statutes bearing on the case, sail
it was proved on trial that the defend
ant corporation operates an oil refinery
at Whiting. Ind; that the Alton COM
pany operates a line of railroad from
Chicago to East st. Louis, H.; that tho
Chicago Terminal Transfer railroad op-
crates a switching road from Whiting
across the state line into Illinois, in
tersCcting the Alton ar a station called
Chappell a short distance from Chi
oago and that there are three com
Danies operating terminal roads from
siYii river to St. Louis.
How 1t Was Worked.
Prior to the occurrences upon which
the prosecution is based, the Alton had
filed with the interstate commerce COM
mission showing rates for transporta-
tion of oil in car lots from Whiting 10
East st. Louis to be IS cents per hun
dc tho
transportation from Chappell to 81.
Louis to be 1912 cents. The cCur' said
II agDcared at the heaui.G that the de-
PENDANTS had shipped it's goods from
Whiting TO East ST. Louis for 6 Gems
ana ~ cents to St. Louis. The deal
ings of the Standard were exclusively
with the Alton, which rendered all
bills for through service.
Manifold Violations.
The defense argued that the Elkins
law authorized the prosecution for but
one Offense, and maintained there could
be conviction on only one count. The
court held the law is violated every
time any property is so transported
as a legal rate was established by the
al
The unlawful G-cent rate was granted
and accepted on that basis. As to tn
defendants claim of representation o!
the Alton rate had led it into the sincere
belief that the Alton G-cent rate had
been filed with the interstate commerce
commission, the court held, as the law
required the carrier to keep a schedule
at its freight office for public inspec
ton, it was the defendants duty to as
certain at the railroad Office whethe,
the rate was so fixed and it being fol
the jury to determine whether the tes
tlmony exhibited the truth of the trans
action. The jury having found the yer
dlct of guilty, it became the duty OF
the court to fix the punishment.
The Evidence for the Defense.
The court then discussed the evi
denCe offered by the defendant to the
effect that during the period covered
by the indictment the Chicago & East
ern Illinois railroad published an oper
rate of Hcents from Whiting to East
st. Louis. The court held this fac
should be considered in mitigation. i
true. although inadmissible before the
jury as to the guilt or innocence, anC
the court, after the verdict had beer
given, directed the production of al
schedules by that railroad.
The Real Defendant.
The court then reviewed it's action il
determining what corporation held the
stock of the defendant company. 1hi;
demonstrated that a very large pro
portion of the stock was held by indi
viduals for stockholders of the Stand
ard Oil company of New Jersey. Tht
court discussed at length the various
defenses offered by counsel and say
the nominal defendant IS the StanGart
of Indiana, a million dollar corporation
the Standard of New jersey. who's,
capital is $1OO,OOO,000, is the real de
fendant. This is so for the reason tha
the same men organize the large COZ
poratlon under the laws of one stat
for the purpose Of carrying on bushes