Bonners Ferry herald. [volume] (Bonners Ferry, Idaho) 1904-current, 1907-08-10
FINED S29,24O,OOO
STANDARD OIL COMPANY GOT
IT FROM JUDGE lands.
Administers Maximum Penalty for
Violation of Law by Secret Rebates
Immediately Orders Grand Jury
to Investigate Alton Railroads Part
in conspiracy-Story of the Case,

Chicago.-A fine of $29,240,000 was
imposed upon the Standard Oil Co. of
Indiana by Judge Lands. In conclud-
ing his decision Judge Lands said:
THE law prohibiting preferential
railroad rates was passed 20 years
ago. It's adoption was preceded by
the opposition of benefciaries of var
ious practices to be prohibited.
Immediately thereafter these per
sons set about to devise plans for its
evasion. DEGREES of courts and the
interstate commission show the en-
pIoyment of large variety OF
schemes to accomplish this result
Finally in 1903 the Blkins law was
passed. Hope was entertained that
this law would put an end to prefer
entail rates, yet beginning a few
months thereafter the Standard Oil
procured 1000 carloads of property
to be shipped at an unlawful secret
rate.
For this offense the Elkdns law
authorized punishment only by fine,
an obvious defect remedied, however,
by the present law prescribing impris-
onment for like offenses.
However, it is the business of a
Judge to administer the law as he
finds it rather than to expatiate upon
the adequacy of punishment author
lied for its infraction.
at is the judgment and sentence of
this court that the defendant, Stan
dard Oil. pay a fine of S29,42O,OOO on
the counts charged.
zone thing remains. 1t must be as
sumed that in this jurisdiction these
laws may yet be ignored. If they are
not obeyed they will be enforced
The plain demands of justice re-
quire that facts disclosed in this pro-
ceeding be submitted to the grand
jury with a view to consideration of
the conduct of the other party to those
transactions. Let an order be en-
tered for a panel of 60 men, returna-
BILE at 10 O'Clock on the morning Of
August IA. The United States dis
trict attorney is directed to proceed
accordingly"
The grand jury ordered will inves-
tigate charges of rebating against the
Alton railroad All through the de-
cision the court exhibited evidence
that the Alton was equally guilty. He
reviewed waybills and tariff schedules,
showing that upon application of the
Standard the Alton road rendered
trust officials a statement that the
rate on oil from Whiting, Indiana. to
East St Louis was 6 cents, whereas
the rate to the public was 1S cents.
This alleged occurrence between
the traffic manager and rate clerk will
receive more detailed consideration
hereafter, said Judge Lands.
Judge Lands held it was neces-
sary to know whether the Standard
Oil accepted the concession knowing
ly. declaring an honest search by hon
est men would reveal the legal rate
He added
1.-THE law does not permit shipper
to assume that a certain rate is the
legal one: he must know. The court
is not impressed by the doleful pre-
diction of defendants counsel that en-
forcement of this rule will work &
hardship on the honest shipping pub
lie"
The court construed the law as moi
giving the defendant any immunity
from punishment. He said the Stan
dard had been an old offender
The decision contains $500 words
and took the judge So minutes to read
Attorney Starr, for the Standard oh
jected to final entry of the order be
cause defendants attorney was no
present He was overruled.
Starr wanted the judgment set asid'
because it violates the eighth amend
ment of the constitution which pre-
hibits infliction of excessive fines
The court overruled this and man,
other motions.
Sixty days are given the defendant
to file a bill of exceptions. The cas-
goes to the court of appeals in jar
uary.
Federal Judge lands is the mos
talked about man in Chicago today.
All attorneys agree that his deciS
ion has no parallel in the history G
Anglo-Saxon jurisprudence.
Technically the fine is imposed o
the Standard Oil Co. of Indiana Pra'
ticaIly it will be paid by the Standar
OF New Jersey. This was demonstra
ed in the hearing in which John 1
Rockefeller recently testified.
Il was there stated that the Star
dard of New Jersey was the parent
the Indiana concern. The latter
the best paying of its subsidiary con
panies. It's capital is s1.000.000.
Had the minimum fine Of s1,462,OO
been imposed the capital would nj
be sufficient to pay it. But the valu
of the property of the Indiana cor
pany is said to be $10,0O0,0OO. A
torneys say that a fine greater tina
that paves the way for a reversal
the decision when the case reaches
higher court.
A fine of $1O,OOO.OOO could be &C
Iected, lawyers say by an officer
the court selling the property. Wit
the maximum of $2s.OOO,OOO impose
the vaIue of the property is not su