The Washington times., 1907-08-04
TREMENDOUS PENALTY
AGAINST THE OIL TRUST
IS IMPOSED BY LANDIS
CONTINUED from First Page)

the trust. Two newspaper photog-
raphers who attempted TO take pictures
in the courtroom were elected by deputy
marshals.
When Judge Lands had finished the
hundred attorneys in court sat stupe-
fed. Nos ever the district attorney,
who had hoped for big fnc. seemed
able to realize what rad happened.
In his decision, Judge Lands said:
This court is obliged to confess that
he cannot indulge the presumption that
in this case the defendant was discov-
cred OF its virgin onfeHse.
Would Force Honest Men Out.
1T is the defendants position that It's
offense was purely technical because
nobody was hurt, there being no other
shippers of oil and, therefore. the pun
ishment should be a modest fine. 1t is
useless, indeed. for a convicted defend
ant to urge the complete triumph of
dishonest course as reason why such
a course should go unpublished.
''Of course, there was no other ship
per of oil; nor could there be so long
as by a secret agreement the property
OF the Standard OH Company was han
died by a railroad common carrier for
One-third Of what anybody else would
have to pay. II other men of genius
and. capital, with all the facilities
known to the trade. had conducted their
business WITH honesty and integrity,
they would be fore out by these
Standard men by the methods unveiled
In this prosecution.
The only way for other men to stay
In the OIL business would be TO adopt
the Illegal practices OF this defendant
and procure the great public power of
railroads perverted to their use. This
Is not the only injury To the extent
that the Standard has prOnted by Sc
cTet illegal rebates other shippers had
TO bear the burden.
We might as we'll look al this situa-
ton squarely. The men who thus de-
hoerately violate this Law offend more
deeply than does he who counterfeits
coin or steals letters from the mails.
The Real Defendant.
The nominal defendant is the stand
ard OIL of Indiana, a mlllion-donar
corporation with the Standard OIL Com
pany OF New Jersey, whose capital Is
100000, the real defendant. So when
crime has been committed in the name
OF the smaller corporation, the law will
consider that the larger corporation is
the real offender.
1T is the view OF this court that for
the law to take from one Of its corporate
creatures as penalty for the commits
sion of a dividend producing crime less
than one-third Of It's net revenues ac-
crued during the period of violation falls
far short OF the Imposition of an eXces-
sive fine and surely to do this could
not be the exercise OF as much real
power as is employed when a sentence
IS imposed taking from a human being
one day OF liberty
In this connection II may be OBJ
served that the figures exhibiting the
net earnings OF the Standard on Com
pany Of New Jersey during the period
covered in the indictments are exceed
ingly instructive because OF the charac-
ter OF the crime and the revenues OF
the offenders"
Guilty on I,462 Counts.
Judge Lands stated the charge, which
was that the Standard OIL Company of
Indiana shipped oil over the Chicago
and Alton at rates less than those
named in the published tariff schedules.
Some of the oil was hauled from Whit
ing. Ind, to East St Louis, Ill, and
Mo. The plea was not guilty on 1903
counts but on l462 counts the verdict
was guilty
Il was shown that the lawful rate
cents. while the Chicago and Alton
granted the Standard a 6-cent tariff 70
East St Louis and ~ cents TO st.
Louis.
Alton Gave State ent.
The court showed that upon applica-
ton Of the Standard Oil. the Alton has
rendered them an official statement that
the rate on oil from Whiting TO East
St Louis was cents, whereas the rate
TO the public was is cents.
The defense sought to have the in
dictments quashed upon the plea that
the defendant had a natural incoherent
right to make a private contract for
railroad rate under the clause of the
Constitution that provides that no per-
son shall be deprived Of lie, liberty, or
property without due process Of law
and on the ground that the Eikins act
was unconstitutional.
Judge Lands threw these aside as
worthless pleas.
show whether the Standard accepted
the concession knowingly. He con-
tinued:
THE law does not permit a shipper
TO assume that certain rate is the
legal one He must know. the burden
of diligence being wholly upon him.
The honest man will not be led by a
railroad company into allowing it to
haul a commodity for less than the law
authorizes It to collect. The only man
liable to get into trouble is he who be-
ing In control of the routing of large
volumes OF business. conceives a scheme
for the evasion of the law and con-
nives for its execution"
No Immunity Bath.
The court construed the law as not
giving the defendants any immunity
from punishment. saying the law was
violated every time any property was
so transported.
There is nothing in the language Of
the law" he continued, ito indicate
that II a defendant shall offend habItu-
ally he shall have immunity save only
as to one Violation"
After reviewing the law which allowed
him to summon John D. Rockefeller
and other officers of the Standard oil
the court quoted a communication from
the counsel for the defense and waived
what he called It's studied insolence In
so far as it is aimed at the present oc-
cupant Of the bench"
Judge Landis then assessed the enor-
nous fine, and, after sixty days had
been granted for fling a bill of excen-
tionsi the proceedings were over.
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