New-York tribune., 1907-08-04
OIL FINE S29.24O.O00.
Continued from second psse.

Continued from second
shipping T.lbIc, where the convicted defendants
Transportation affairs were in the charge OF an eN
pert traffic Official Of least ordinary intelligence
and many y~ars railroad traffic experience, ann
who was frequent visitor at the general fTelght
+oA o4 tho railway COMPANY: Nfere the unlawful
rate was shown only by a paper appearing on us
fac 70 ho = sDeciai billing order. and which d.
recte6 that settlement for service rendered at the
rate which II authorized should be made through
the railway cnmpany's auditors office instead OF at
the railway station freight cfice, as is done by
- - ,c-t@-o--,I,, - ,,,a;r+ains that tna
Constitution Of the United States guarantees 10 II
the right make private contract for a railroad
rate. this Catr- is obliged to confess that ne is
unable 20 indulge the presumption that IN this
case the defendant was convicted OF us virgin
offence.
II IS the DEFENDANTS position that its offence was
wholly technical that nobody has been injured be
cause there was 10 other shipper Of oil. and that
therefor the punishment. If any should be
modest fine This impresses The court as peculiar
argumcrt-
THE INJURIES CAUSED.
II is novel. indeed for a convicted defendant 20
urge the complete triumph Of dishonest course as
q reason why such course should unpunished-
Of course. there VS. TO other shipper Of OIL nor
could there ~ 50 long by secret arrangement
the property Of the Standard oil Company was
hauled by railway common carriers for one-third
Of what anybody else would have to pay 1t re
ouires very great wisdom to understand that II
other men Of capital genius and integrity should
embark in the oil business and possess theffstIVe
Of ali the facilities known the trade the methods
unveiled IL this proceeding would force them out.
The only way for them 10 stay in the Oil business
would be for them adopt the practice Of this de-
fen6art and procure the great public power OF ran
way companies TO be secretly perverted in their in
terest. Under no other possible theory could they
hope to survive.
Nor is this the ONLY injury To the extent that
the Standard OIL Company has not paid what the
law requires that il should pay. the shippers OF
other kinds Of property have had to bear the ouF-
den. To the rate which il would be fair for the
railroad - charge for the transportation OF prod
nets Of the farm and factory has been added what
the Standard ofl Company cid not pay for the
transportation Of its property And herein hes not
The least vicious element OF such A system
In addition TO this is the question Of common
honesty among men. which ought not TO he alto
sether ignored IN business even in this day The
conception and execution Of such q coiIlrneFcla
policy necessarily involves the contamination OF
the tine when testimony viii be required for the
protection Of the Of the offender from the
exactions Of the law for its violation We might
Wen look at this situation SquareiE me men
who thus deliberately violate the law wound so
ciety more deeply than does he VINO Sooh'eI-e''s
the coin OF steals letters from the mall
THE REAL. DEFENDANT
TIE nominal defendant Is the standard OIL COM
many o. Indiana a 81 effh.o corporation Inc
Standard OIL Company Of New Jersey. whose cap
tai is SeH9rl.eel is the real defendant Ihs Is 50
for the reason that il a body of organize a
large CORPORATION under the laws OF one state Tor
ira r-,rose of carving on business throughout the
United States. and for tie accompaniment OF ''a'
rurpose absorb the stock of other corporations
such corporations so absorbed have thenceIor"drd
e I---N-~N-
execute any independent business pohcy' tlelF
elimination in this respect being prime considera-
1icn for their absorption 50 when aIter thls pro-
has taken place. a crime Is colili''e.i Al -,
rarA OF such small~ corporation. the law VIII
consider that the larger corporation Is the real
offender. -. --.,~,
Is the enhancement of dividends. and the only
punishment authorized Is fine. great caution nlust
h. exercised hy the court lest the fixing or srfaii
amount encourages the defendant to future VIOLA
lions bv esreeirg the penalty 10 De in the nature
cf q license. The defendant argues that 10 ho4d II
for zs9 offences would be q violation OF the con-
s-itutional prohibition against the imposioh OF eA
cessive fines. and il Is urged that congress couu
never have intended 10 confer upon the court SUN
7oer Il is the view Of the court that for the law
TO take from Of Its corporate creatures as
,,e,sI+x for the commission Of a dividend pro-
ducng crime less than one-third Of its net reVe-
rues accrued during the period OF violation, ialls
far short Of the imposition OF an excessive me- anu
surely 10 do this would not be the exercise OF as
much real power IS Is employed FVheh SeI-le1Cs
is imposed taking from human being one day o.
his liberty In this connection II may De oDsI ",
that the figures exhibiting the net eaIIl-llss "a & 80
Standard oil Company Of New Jersey during the
period covered by this Indictment are exceedingly
Instructive because OF the peculiarly intimate fea
tion between the character OF the crime %ilu '-47
The law prohibiting preferential railroad rates
was passed twenty years ago. Its adoption was
--aceGed by vigorous opposition, lnterpoSed ps
those who had been the benedciares Of the VICIOUS
PRACTICES its enactment was designed to abolish
Immediately thereafter these persons set about 70
devise means for its evasion The records of the
co11rrs Of the Interstate Commerce CoIrlisSlo
show the employment OF large variety Of schemes
n ACCOMPLISH this result. During the period since
1s87 Congress has repeatedly endeavored to et-
fectfyelv amend the law. with view 10 the accom-
pIshrent Of its great object -.
Finally. in 1873. the E1kins law was passed Inc
court recalls that that time the earnest nope
Was very generally entertained that at last means
had heerl devised that would pat an end 70 prefer
en+ial railroad rates. and yet beginning a teW
r,orrg,s thereafter. the Standard on Company pro
cured $50 carloads Of property 20 be shipped a.
an unlawful secret rate and for this offence tl'
Flkins law authorizes punishment only by line. az
obvious defect rernedied. however. by the present
law prescr5bfngy imprisonment in the perliteItlaT1
for rhe like offence However il Is the business O.
s 5udge to administer the law as he iInds IL ratfel
than 10 eSUa1iate upon the inadequacy OF puiish
rnent ant thorized for its infraction
II IS the Judgment and sentence OF the court ina
sbe defendant Standard OIL Company pay a INT
- t29 z4o,ea -.
One thing remains. It must not be assumed ina
., this jurisdiction these laws may De ignored /
rhev are not obeyed they Will be enforced IN
Main demands justice require that the facts dls
rlos-d in this proceeding be submitted 10 STaIlS
111-v with = view the consideration or the con
duct Of the other party to these transactions lie
an order lie entered tor = panel Of sixty men, r.
r11ra bic at 70 O'Clock the morning or August II
The United States District Attorney Is directed u
proceed accordingly