The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-08-04
STANDARD OIL COMPANY
SOAKED TO FULL EXTENT
Continued from PAGE

Continued from Page /.
AS to the defendants claim that the
representations by the Alton road had
mlsled IL into the sincere belief that the
Alton 6-cent rate had been filed with the
interstate commerce commission the
court held that as the law required the
carrier to keep the schedule at its freight
office for public inspection it was the
oefendants duty to ascertain at the rail-
, road office whether the rate was so fixed
IL being for the jury to determine whether
testimony exhibited the truth of the trans
action; The jury having found a verdict
of guilty 1t became the duty of the court
to fix the punishment.
Review of the Evidence.
The court then discussed the evidence
offered by the defendant to the effect
that during the period covered by the
Indictment the Chicago & Eastern ILL
nois Railroad company published an omen
rate of GA cents from Whiting to East
St Louis. The court held that this fact
should be considered in mitigation if
true, although inadmissble before the
jury as to guilt or innocence, and the
court, after the verdict had been given
directed the production of all schedules
by that railroad. From these it appeared
that the Eastern Illinois, in connection
with other railroad companies, issued and
filed with the interstate commerce com
mission class tariff and fixed the rate
at Is cents from Chicago to East ST.
Louis.
On Oct. 9, 1895, the Eastern Illinois COM
pany filed with the commission it's COM
modify tariff, fixing a rate of 81 cents
on oil from Dalton, Ill, to East St
Louis, and providing that out of this rate
a switching charge of not to exceed IS
per car would be absorbed on shipments
from Whiting. Ind
On July /. 1893, sixty days prior to the
beginning of the period covered by the
indictment in this case, the Eastern Il
llnois issued subjoint tariff No. H.
90. This general class tariff provided
that between Chicago suburban stations,
including Whiting, Ind, and East ST.
Louis, ILL.,, the current rates in effect
from Chicago should apply except on
coal, coke, grain and grain products
or arbitrarleS higher, livestock and hay"
Oil was not included in the cOmmodi-
ties thus excepted from these class rates.
among the tariffs specifically named In
connection with which this schedule was
TO be effective. was tariff No 1886, above
mentioned, which fixed a rate of is cents
per hundred pounds on oil from Chicago
10 East st. Louis, and the tariff herein
before referred to- to which the Eastern
illinois road was a party, which is de-
scrlbed as tariff on classes and COM
modltIeS between Chicago and East st.
Louis" and which also showed the rate
on oil to be is cents. The court held that
its effect was to exhibit to the general
shipping public a rate of Is cents on oil
from Whiting to East St. Louis.
Amendment Not Filed.
The court then recites than on July 7.
1903, one day after this tariff became eff
fective, the Eastern Illinois company, ap-
parently realizing that the effect of this
tariff was to nullify the 614-cent rate
shown by its schedule No. S,0I3 effective
IN October 1925, issued what it denOmi- |
mated amendment No. l to tariff No |
1886" that being the Eastern Illinois class
tariff of September, 1895, which had fixed !
a rate OF Is cents per hundred pounds
on oil from Chicago to East St. Louis, |
and which was embraced within the gen.
eral class tariff referred to. This amend |
ment purpOrted to cancel the 6A-cent !
Whiting-East St. Louis oil rate shown |
upon the tariff filed with the commits |
sion in October, 1895, and named a COM
modify rate on oil of 81 cents from Chi
cagO to East st. Louis. However. this |
amendment No 1 WAS not filed with the !
interstate commerce commission until |
March, 1906, one year after the expira- |
ton of the period covered by the indict- |
ment, and nearly three years after its |
issue. In view Of these facts, the court |
held that the Eastern Illinois situation |
could not serve the purpose of excusing |
or pallatlng the accepting by the de- |
PENDANT of the unlawful Alton 6-cent rate. |
The Real Defendant.
The court then reviews its action in de- |
termining what corporation held the stock /
of the defendant Standard Oil company
of Indiana. The following demonstrated |
that a very large proportion of the stock /
was held by individuals for the stock /
OF the STANDARD Oh company OF 4
New Jersey, which has outstanding stock /
of approximately 500, 600 600.
The court discussed at length the vari- /
Gus defenses offered by counsel and SAYS /
the nominal defendant is the Standard /
Oil company of Indiana, a million-doilar /
corporation. The Standard Oil company /
of New Jersey, whose capital is 500 Co., |
CO., is the real defendant. This is so. for /
the reason that if a body of men organ /
ize 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 pur- |
pose, absorb the stock of other corpora |
lions, such corporations so absorbed have /
thencefOrward but nominal existence. |
They cannot initiate or execute any in /
dependent business policy.
The court then passed judgment as fol- |
lows:
1t is the judgment and sentence of the |
court that the defendant Standard on /
pay a fine of S29, $40, 600.
'-One thing remains. 1t must not be 1
assumed that in this jurisdiction those 1
laws may be ignored. II they are not /
obeyed, they will be enforced. The plain /
demands of jUstices require that the facts /
disclosed in this proceeding be submitted /
to a grand jury with view to the con-
sideratiOn of the conduct of the other /
party to these transactions. Let an order /
be entered for a panel of sixty men, re-
turnable at 10 o'clock upon the morning /
of Aug. "A. The United States district /
attorney is directed to proceed accord
ingly."
SAW THE AK DESCENDING