Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-08-07
Government Not Anxious to
Prosecute Railroads For Re
baling to Oil Trust
EXPECTED
MINIMUM FINES
Government Believes Rebate System
Has Been crushed-May Collect
s227, 100000 in Understanding Fine
Will Stand, in Opinion Of tho Admin
istration.

Washington, Aug. 7.-Determlned as
the government is TO prosecute the
Standard OIL Company to the full limit
of the law, 1t has no such designs upon
the railroads which give rebates TO the
trust, 1t Is said
In directing District Attorney Sims
to lnpanel a special grand jury 10 in
dict the Chicago & Alton road, Judge
tration is disposed to regret. Its at
titude is due to the fact that 1t was
thru the railroads that the evidence
was obtained which made possible the
prosecution Of the Standard Oil Com
pany on such large number of counts.
In addition, investigation by the bu-
reau of corporations established the
fact that the Standard Oil Company
acted the part of a highwayman
toward the railroads, just as it did
toward the people.
1t forced them to grant rebates by
utCiiIIIIS tieS WOuld Scl ITO
if the regular tariff was applied, and
that their competitors would be given
all the shipments. so that they would
suffer in consequence.
District Attorney Sims has been in
formed of the view of the authorities
here. and it is not expected he will
proceed against the Chicago & Alton
and other railroads involved in counts
yet to be disposed of with the same
grim earnestness .he displayed in the
attack upon the oil corporation. OF
course, the government had no con-
troll over Judge Lands in this matter,
but if it had, there is little doubt it
would have advised against the prose
cution of railroads.
This does not mean that any sympa
thy is entertained here for rebatng.
But the moral effect Of the tremendous
fine imposed upon the Standard Oil
Company is such that the practice is
believed to be finished forever, unless
the government later on should relax
its vigilance.
In the case of the Chicago & Alton
and all other railroads which have had
dealings with the Standard, it is high
ly probable, if the cases are brought
into court. that the government will
suggest the imposition of the minimum
rather than maximum fines. But even
this would be a tremendous penalty.
1t is estimated it would aggregate $751;
$4,000. If the Standard should be con-
victed on all counts pending against
it, and the maximum fine imposed on
each count, it will have to pay total
of $151.960,000. This, with railroad
fines, will mean an aggregate of $221,-
100000 which the government will col
lect as the result of prosecutions
In considering the justice of the ac-
ton of Judge Lands in imposing the
maximum fine upon the Standard Oil
company, attention may be called to
the fact that the question involved
was not SO much that of the quantity
of oil transported or that of actual
saving on freight rebates which the
Standard made. AS a matter of fact,
the report of the commissionef-of COR
porations estimates that the discrim-
nations saved the Standard only about
quarter OF a million dollars yearly.
But this discrimination gave the
trust an advantage far above mere re-
QuCllO0 IN rate. IL insured SUCCESS
of it's monopolistic tactics. An indie
pendent reiiner would have to pay an
open rate, while the Standard enjoyed
d secret and lower rate, and the diff
ference would enable a lower selling
price. meaning injury and final de-
struction.
The authorities here do not believe
for moment that the supreme court
will reduce the fine on the ground the
punishment is cruel or unusual. The
suggestion of John d. Rockefeller that
it will be a long time before the fine
is paid is not likely to be a true pre-
diction in view of the determination
to expedite the consideration of the
case by the higher courts.