Troy weekly news. (Troy, Idaho) 1897-1933, 1907-08-09
FINED S29,24O,OOO
STANDARD OIL COMPANY GOT
II FROM JUDGE LANBIS.
Administers Maximum Penalty for
Violation Of Law by Secret Rebates
Immediately Orders Grand Jury
10 Investigate Alton Railroads Part
In Conspiracy-Story of the Case.

CnlcdBO-A nne Oh SIS,zfO,OOU was
imposed upon the Standard on Co. of
Indiana by Judge Landis In conclud-
ing his decision Judge Lands said
THE law prohibiting preferential
railroad rates was passed 20 years
ago. Its adoption was preceded by
the opposition of beneficiaries 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-
ployment of large variety of
schemes to accomplish this result.
Finally in 1903 the Elkins law was
passed Hope was entertained that
this law would put an end to prefer
ential rates. yet beginning few
months thereafter the Standard Oil
procured 1900 carloads of property
to be shipped at an unlawful secret
rate.
For this offense the Elliins law
authorized punishment only by fine,
an obvious defect remedled, however,
by the present law prescribing impris-
'onment for like offenses.
However. 1t 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 it's infraction.
ut is the judgment and sentence of
this court that the defendant, Stan
,dard Oil, pay fine of S29, 900 on
the counts charged.
"One 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-
ceedlng 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-
tlgate charges of rebating against the
Alton railroad. All through the de-
'cislon the court exhibited evidence
that the Alton was equally guilty. He
reviewed wayblls 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 cents. whereas
the rate to the public was Is cents.
This alleged occurrence between
the traffic manager and rate clerk will
receive more detailed consideration
hereafter, said Judge Lands.
Judge Lands held 1t was neces-
sary to know whether the Standard
Oil acce oted the concession knowing
ly. decla ing an honest search by hon
lest men would reveal the legal rate.
He added
1.-THE law does not permit a shipper
s. 10 assume that a certain rate is the
legal one; he must know. The court
s. is not impressed by the doleful pre-
'diction of defendants counsel that en-
Increment of this rule will work a
hardship on the honest shipping pub
lie"
The court construed the law as not
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 90 minutes to read.
Attorney Starr, for the Standard. OBJ
jected to final entry of the order be-
,rN
present. He was overruled.
Starr wanted the judgment set aside
because It violates the eighth amend
ment of the constitution which pro-
hibits infliction OF excessive fines.
The court overruled this and many
other motions.
Sixty days are given the defendants
TO file a bill of exceptions. The case
goes to the court of appeals in Jan
uary.
Federal Judge Lands is the most
talked about man in Chicago today.
All attorneys agree that his decis-
ion has no parallel in the history OF
Anglo-Saxon jurisprudence.
Technically the fine is imposed on
the Standard Oil Co. of Indiana. Prac-
tically 1t will be paid by the Standard
of New Jersey This was demonstrate
ed in the hearing in which John d.
Rockefeller recently testified.
1t WAS there stated that the Stan
dard of New Jersey was the parent of
the Indiana concern. The latter is
the best paying of its subsidiary COM
panies. It's capital is S1,0O0.000.
Had the minimum fine OF $1.462, 900
been imposed the capital would not
be sufficient to pay it. But the value
Of the property of the Indiana com
pany is said to be s1e.0OO,0O0. At
torneys say that fine greater than