New-York tribune., 1907-08-04
OIL FINE S29,24O,OOO.
TO TAKE UP ALTON NEXT.
JUDGE Landis Scores STANDARD an
Imposing MaTimum Penalty
[By Telegraph 70 The Tribune. ]


States District Court fined the Standard OH
Company to-day S29.24O.OOO. the extreme pen
atty possible for it's conviction on 1.462 counts
for the acceptance of Illegal rebates. In the ar
nouncement he closes. SO far his court is
concerned one OF the important cases
against a corporation in the history of the
United States.
Before attorneys for the corporation could
recover their breath the judge gave them a
second shock when he called special grand
jury for August IA to investigate the same vio-
lations of law from the point of view Of con-
spiracy between the Standard Oil. the Alton
road and officials of both This charge. if proved.
may land some OF the railroad and oil officers
in jail Not only was District Attorney Sims
instructed 10 proceed against the Alton Rail-
road as a corporation. but he will also direct
an investigation of the individuals who were
parties to the scheme by which the Standard
Oil Company OF Indiana secured the tran5porta-
ton o, It's products at less than one-third the
legal rate
The charge TO be made against these men Is
conspiracy to violate general law. known as
Section $40 of the Revised Statutes OF tho
United States. The punishment for conviction
OF this offence is fine of $1,000 or a sentences
of two years In the penitentiary, or both
men mentioned may escape Indictment at the
hands of the grand jury, there is said TO be
no hope for the railroad company The evil
dence used to indict and convict the Standard
Oil Company will also be used against the
Chicago & Alton 1t has already been tested in
court and the conviction OF the road Is ex-
pected to be simpler than was that OF the
Standard Oil Company In the Alton case there
will be no necessity show that the tariffs wers
not posted as required by law. since that is a
Sf0 Torr rd
carrier. In fact. every point which the Alton
might choose for its defence. has already been
decided.
NO IMMUNITY PLAN.
The company furnished the evidence although
reluctantly. upon which the conviction OF the
Standard Oil Company was based. and now tnls
same evidence will be used for it's own convic-
ton There will be escape for IL on an i'm
nunity bath plea, such cleared the packing
companies. for since that time Congress has
passed law expressly stating that immunity
| does not cover a corporation whose officials are
forced to testify 10 their Illegal acts as Off
I GERS OF the company.
The future course of the defendant IN the
| case decided to-day has not been announced
| There are constitutional questions involved
| under which it can take the case directly 70 the
United States Supreme Court. or it can take
| the case TO the Circuit Court Of Appeals. which
| would De the usual course in seeking Judgment
| from higher tribunal 1t is probable the case
| will be taken to the Court of Appeals
| Seven other cases against the Standard OIL.
with 4422 counts. charging offences -ef-sin1-
liar character and involving the possibility OF
| further Of SSS.44OOnp remain 20 De trled-
| Nassrs Starr Stewart and Martyr issued a
| statement to-day on behalf Of the Standard oil
! Company after Judge Lands had given his de-
! cision Among other things the statement sa1c;
This prosecution and its result Illustrate how
| law may be applied 10 promote the evll II
was designed 20 prevent and penalize that which
II was intended promote and secure Ihe pur-
pose Of the Interstate commerce law was % pre-
vent restraint and promote the freedom or com
rnerce As here applied these laws put shackies
pon commerce. II the measure of law here deaIc
out TO this shipper 10 be applied WIN eqHai
hand 10 all shippers in interstate commerce. they
would carry their business at the daily FISK OF
violating those laws. although they shipped at the
i1s- ana acuaI rates which these laws were in
tended to secure and which were equally open TO
other shippers
The fine imposed to-day is the largest ever
assessed against any individual or any corpora
,ton in the history of American criminal 1urls-
prudence and IS slightly more than 13l times
as great the amount received Dy Ihe coi1I-
pany through its rebating operations IL was
announced at the end Of long opinion. IN whlcn
the methods and practices of the Standard on
Company were mercilessly censured
GUILTY MEN LIKE THIEVES
The Judge. IN fact. declared in his opinion that
the officials Of the Standard OIL Company who
were responsible for the practices OF which the
CORPORATION was found guilty Were no better
than counterfeiters and thieves. his exact IAN
g1age being:
We may as well look at this situation squareiy-
The men who thus deliberately violate this law
wound society more deeply than does he who
counterfeits coin steals letters from ths
mail.
Judge Lands began reading his decision at 10
o'clock and occupied about one hour in its de-
livery He reviewed the facts in the case. took
I'M the arguments of the attorneys for the de-
fence and answered them. and then passed judg-
ment upon the company. which he declared viO-
lated the law for the sole purpose of swelling its
dividends
The court held that the railroads have
more right to make a secret rate for a shipper
than a board Of assessors would have to make
q secret assessment of any particular piece OF
property He expressed regret that the law
tailed 10 provide more serious punishment than
a fine but insisted that the penalty should DO
sufficiently large TO act deterrent and not
of such size as TO encourage the delehder 20
persist In lawlessness-
The decision Of Judge Landis aroused alnlC<t
as much public interest did the presence Of
John D. Rockefeller Snd other officials of the
Standard Oil Company In the courtroom on July
The crush was great that a large force OF
denutv rnarshaIs had much difficulty in
troII,nr the crowd that anxious to force is
way into the courtroom
The government was represented in the court
room by Mr. Sims. United States District At
tornev and Mr.. Wilkerson. Assistant District
Attorney The attorneys who tried the case for
the standard oil Company. John 5. Miller. Nor
trz RosenthaI and Alfred d. Eddy. not
present the company being represented by Mer-
rift Starr. partner Of Mr.. Miller. and Chauncey
uartvn from the office OF Mr. Eddy
When JudSe I.andis took his seat on the bench