The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-08-03
FINE S2S,24O,OOO
Judge Lands Gives Standard
Oil Company the Limit.
Recommends a Grand Jury to
Get After the Alton.
MUST OBEY THE LAW.
He Says if They Don't DO 1t
He Will Make Them.
President of Indiana Co. Crlt1-
ciSes the Courts Judgment.
TO TAKE AN APPEAL.
Standard Will Carry Case to
Court of Appeals.
MUST OBEY THE LAW
He Says if They Don't DO 1t
He Will Make Them.
President of Indiana Co. Crlt1-
cises the Courts Judgment.
TO TAKE AN APPEAL.
Standard Will Carry Case to
Court of Appeals.

Chicago, Aug. 3.-Judge Lands in
the United States district court today
imposed a fine upon the Standard Oil
company of Indiana of $29,24O,O00,
the maximum amount upon each one
of the 1.462 counts of the Indictment
on which that company was recently
convicted of rebating.
The judge also recommended that a
call be issued for special grand jury
which is to consider the other party to
the rebating operations of which the
Standard Oil company was found
guilty, and 1t is therefore probable that
within a short time proceedings will
be commenced against the Chicago &
Alton Railroad company for the al
legged commission of similar offenses.
The reading of the opinion by Judge
Lands aroused almost as much inter-
est as the presence of John D. Rookie
Teller and other officials of the Stand
ard Oil company upon the witness
stand. The court room was crowded to
its utmost capacity and the United
States deputy marshals were finally
compelled to refuse admission to all
late corners.
The government was represented in
the court room by United States Dis
trict Attorney Sims and by Assistant
District Attorney Wilkerson. The only
attorneys or the standard OIL company
present in the court room were Attor-
neys Eddy and Martin, neither of
whom bore a prominent part in the act
ual trial of the case. Attorney Miller.
the leading counsel for the Standard
OIL company, was in Europe, and his
chief assistant, Moritz ROsenthal, was
in New York. Only few of the lesser
officials of the Standard Oil company
were in the court room.
Judge Lands began reading his de-
cision at 10 o'clock and consumed ap-
proximately one hour before he an
nounced the penalty.
The maximum penalty that the oil
company could be compelled to pay
was $2s.24O,O0O, and the minimum
$1,462,000.
The trial was commenced March 4,
and was concluded April ID. After
elaboration of two hours the jury re-
turned a verdict of guilty. After argu-
ments for new trial had been heard
Judge Lands called for information
concerning the relations of the Stand
ard Oil company of New Jersey and
the Standard OIL company of Indiana,
their financial status and holdings so
that he might be guided in determin-
ing the amount of the fine and when
this was refused by the defense the
court issued subpoenas for John D.
Rockefeller and fourteen other off,
Gals connected with the two COM
panies. The examination of Mr..
Rockefeller and his assistants July
showed that the Indiana corporation
is owned by the New Jersey company
and all other information desired by
the court was obtained. Judge Lands
then took the case under Amusement
and today marks the climax so far a
the United States district court is con-
cerned. A number of indictments are
still pending against the company.
Summary of Opinion.
Judge Lands in his decision said it
was proven on the trial that the defend
ant, a corporation of Indiana, operates
an oil refinery at Whiting, Ind, that the
Chicago and Alton Railway company.
corporation of Illinois. operates a line
of railroad from Chicago to East st.
Louis. Ill. and that the Chicago Ter
minaI Transfer railroad operates a
switching road from whiting across the
state line into Illinois. intersecting the
Alton road at station called Chappell,
q short distance from Chicago, and that
there are three companies operating
terminal roads from East st. Louis, Ill,
across the Mississippi river to st. Louis,
Mo. Prior to the occurrences upon
which the prosecution was based. the
Chicago and Alton company had filed
with the interstate commerce commits
sion tariffs showing the rates for the
transportation of oil in car lots from
Whiting TO East ST. Louis Ill, to be IS
cents per 100 pounds and the rate for
like TRANSFORMATION from Chappen to St
louis to be 1914 cents per 100 pounds.
The court SAYS 1t appeared at the hear
INK tilttI Inc QeIHD0allL SflIpbeu us SOOuS
from Whiting to East St. Louis for six
cents and ~ certs tn st. Louis. The
dealings of the Standard Oil company
were exclusively with the Chicago and
Alton which rendered all bills for the
through service
The defense argued that the Flkins
law authorized the prosecution for but
one oftense and maintained that there
would be conviction on only one count
The court held that the law is violated
every time any proDerty is so trans
ported. as the legal rate was established
by the railroad company on a car lot
basis. The unlawful six cent rate was
granted end accented on that basis AS
to the defendants claim that the renre-
sensations by the Alton rate had nisled
It into the sincere belief that the Alton
Interstate commerce commission. the
carrier to keep the schedule at its
freight offices for uuhlic inspection If
was the defendants duty to ascertain
at the railroads office whether the rats
was so fixed. il being for the i,lrv to
determine whether testimony exhibited
the truth of the trsrsa ction. The i,lrv
having found a verdict of guilty it he
cau1a the duty Of the court to fix the
punishment
The Evidence Discussed.
The court then discussed the evil
deuce offered py the defendant to the
effect that during the period covered
hv the Indictment. the Chicago and
Eastern Illinois Railroad company
published an open rate of 6A cents