The Parma herald. (Parma, Idaho) 1903-1917, 1907-08-10
FINED s2e, 24o, 900.
Great Monopoly Is No Better Than
Counterfeiters or Robbcr.


Counterfeiters or Robbers.
Chicago, Aug. 5.=Judge Kenesaw
NJ. Lands Saturday in the United
States District Court fined the Stand
ard Oil Company, Of Indiana S2g.
10000 for violations of the law
against accepting rebates from rail-
roads. The fine is the largest ever
assessed against any Individual or
any corporation In the history of
American Jurisprudence. The case
VIII be carried to the higher courts
by the defendant company.
Inc penalty imposed on the COM
papy Is the maximum permitted un-
der the law and 1t was announced at
the end OF long opinion, in which
the methods and practices of the
standard Oil Company were merci-
lessly scored. The judge, in fact, de-
clared In his opinion that the off,
Gals Of the Standard Oil Company
who were responsible for the prac-
tices OF which the corporation was
found guilty, were no better than
counterfeiters and thieves, his exact
language being:
We may as we'll look at this sit
|
deliberately violated this law wound
society more deeply than does ne
who counterfeits the coin or steals
letters from the mail. The nominal
defendant Is the Standard Oil Com
pany OF Indiana, million-dollar cor
poration. The Standard Oil Company
of New Jersey, whose capital is
O,000,000, is the real defendant.
This Is for the reason that, II body
OF men organize a large corporation
under the laws of one state for the
purpose of carrying on business
Throughout the United States and for
the accomplishment of that purpose
absorb the stock of other corpora
tions, such corporations so absorbed
have thenceforth but a nominal
existence. They cannot initiate or
execute any inherent business policy,
their elimination in this respect be-
ing a prime consideration for their
absorption. So, when after this pro-
cess has taken place, crime is com
mitted in the name of such smaller
corporation, the law will not consid-
er that the latter corporation is the
real offender. And where the only
possible motive of the crime is the
enhancement of dividends and the
only punishment authorized is a fine,
great caution must be exercised lest
the fixing of a small amount encour-
age the defendant to further viola
lions by esteeming the penalty to be
in the nature of a license.
'The defendant argues that to
hold it for / ,462 offenses would be a
violation of the constitutional pro-
hibition against the imposition OF
excessive fines and it is urged that
congress could never have intended
to confer upon the court such power.
1t is the view of the court that for
the law to take from one Of its cor
! porate creatures as a penalty for the
commission of a dividend-producine
crime less than one-third of its net
: revenues accrued during the period
of violation falls far short of the i'm.
: position of an excessive fine, anc
surely to do this would not be the
exercise of as much real power as il
! employed when a sentence is i'm
, posed taking from a human being
: one day of his liberty.
1T is the judgment and sentence
{ of the court that the defendant, the
Standard Oil Company, pay fine o
s29,240, 900"
Under the seven indictments still
l. pending against the Standard Oh
: Company, an additional fine amount
ing to sSS,44O,O00 may be levie'
!, against the company,
: How to Make Public Pay.
e How the Standard Oil Compan.
/ can exact payment from the public
Il Fine imposed by Judge Lands, $29,
s 100000; attorneys fees ESTIMATED
e 100000; total fine and costs s3l,
Y 100000. Present price (averag
o grade) kerosene per gallon,
leents. Proposed price, same, l
It cents. Gallons refined kerosene [
If one barrel crude petroleum, Il
l. Number gallons to be sold at in
IS crease of l cent per gallon over pres
lie ent quotations to reimburse Standar
r Oil, 3,15O,000. Number barrel
t. crude petroleum, 100000, 900. In
lie crease in dollars, $31, 100000. Cal
E. ital stock Standard Oil Company {
Of New Jersey, 100000. Capita
stock Standard Oil Company of II
t diana, 100000. Wealth of job
c. d. Rockefeller in excess of 81 1000
lg 900, 900. Exact figures not know
Il to himself Rockefeller's interest
is Standard Oil CT 2-5 per cent tot;
n capitalization), s27 100000. Figure
as based on one barrel crude petroleum
producing 80 per cent kerosene an
by-products, paraffin, luoricatin