Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-08-03

Schedule Amended.
Among the tariffs specifically named in
connection with this schedule which was to
be effective were tariff No. 1886. above
mentioned which fixed rate of Is cents per
hundred pounds on OIL from Chicago to
East st. Louis. and the tariff hereinbefore
referred to, to which the Eastern Illinois
road was a party. which is described as a
tariff on CLASSES and commodities be-
tween 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
rate of IS cents on oil from Whiting to
East st. Louis
The court then recites that on July Z.
1903, one day after this tariff became ef
fective, tho Eastern Illinois company. APP
parently recognizing that the effect of this
tariff was to nullify the six-and-a-quarte:-
cent rate shown by its schedule No so73
denominated amendment No. l to Tariff
No 1856 that being the Eastern Illinois
class tariff of September. 1905, which had
fixed rate of IS cents per hundred pounds
on oil from Chicago to East St. Louis and
which was embraced within the general
class tariff referred to. This amendment
purported to cancel the six one-Quarter cent
Whiting East ST. Louis oil rate shown on
the tariff filed with the commission in Oc-
tober. 1880. and named commodity rate of
oil at Ga cents per hundred pounds from
Chicago and Dalton Junction. Ill.,. to East
st. Louis.
with the interstate commerce commission
until March. 1906 one year after the ex-
pfration Of the period covered by the in
dictment and nearly three years after It's
issue. In view Of these facts the court
held that the Eastern Illinois situation coul
not serve the purpose OF excusing or pal
liating the accepting by the defendant Of
the unlawful Alton six-cent rate.
Parent Corporation.
The court then reviews its action in de-
termining what corporation held the stock
of the defendant Standard Oil Company
of Indiana. This demonstrated that a very
large proportion of the stock was held by
individuals for the stockholders Of the
Standard OIL Company Of New Jersey,
which has outstanding stock Of approx
mately $1OO,OOO,OOO.
defenSes offered by counsel and says: The
nominal defendant is the Standard OIL
Company OF Indiana, q million dollar cor
poration. The Standard OIL Co. of New
Jersey, whose capital Is 800. 900. 600. Is the
real defendant. This Is SO far the reason
that If a 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 oorpo -atfons such corpora
lions 50 absorbed have thenceforward but
nominal existence. They cannot initiate
or execute any Independent business
policy
The court then passed Judgment as fol-
lows:
ut Is the Judgment and sentence of the
court that the defendant Standard Oil
Company pay fine of $780, 4O 900
"One thing remains It must not be as
sumed that in this jurisdiction these laws
may be ignored. If they are not obeyed,
they will be enforced. The plain demands
Of Justice require that the facts disclosed
IN this proceeding be submitted to grand
jury with a view to the consideration of
the conduct OF the other party to these
transactions. Let an order be entered for
a panel OF sixty men returnable at 10
O'Clock on the morning of August IA. The
United States district attorney is directed
to proceed accordingly"
Course Of the Trial.
The maximum penalty that the oil COM
pany might be compelled to pay is s29.24O.-
600. and the minimum was 81 .462 CO.,
The Standard OIL Company of Indiana,
the corporation to be punished, Is capital
lied at $1,OOO.0OO. Its visible assets. includ-
ing refineries pipe lines. ETC.. have a value,
It Is declared, Of $10.00O.OO0.
The trial was commenced March 4 and
was concluded April 13. After delibera-
ton Of two hours the jury returned a YER
dict of guilty. After arguments for a new
trial had been heard Judge Lands called
for information concerning the relations Of
the Standard Oil Company OF New Jersey
and the Standard Oil Company OF; Indiana.
their financial status and holdings. so that
he might be guided in determining the
amount of the fine. and when this was re-
fused by the defense the court issued SUBJ
penas for John D. Rockefeller and four
teen other officials connected with the two
companies.
The examination Of Mr.. Rockefeller and
his associates July 9 showed that the In
diana 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 advtsement,
and today marks the climax so far as the
United States district court is concerned.
A number of indictments are still pending
against the company