The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-08-07
In Starting ProceedingsAgainst
the Alton Railroad.
TREMENDOUS PENALTY
The Minimum Fine Would
Amount to $75,9SO,OOO.
Government May Collect a Total
of 27,9OO,OOO.

Washington, Aug. 7.-Determined as
the government is to prosecute the
Standard Oil company to the full limit
of the law. it has no such designs upon
the railroads which give the rebates to
the trust.
In directing District Attorney Sims
to impanel a special grand jury to in
dict the Chicago & Alton, Judge Lam
dis has taken a step the administra-
ton is disposed to regret. Its attitude =
is due to the fact that it was through
the railroads that the evidence was OBJ
tained which enabled the prosecution
of the Standard Oil company on such
a large number of counts. In addition.
the investigation made by the bureau
Of corporations esta ablished the fact
that the Standard Oil company acted
the part of a highwayman toward the
railroads. just as it did toward the
people. It forced them to grant re-
bates by declaring they would get no
business if the regular tariff were ap-
piled, and that their competitors would
be given all shipments, so that they
would suffer in consequence.
Sims Likely to Go Slow.
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 the
counts yet to be disposed of with the
same grim earneStnesS he displayed in
his attack upon the oil corporation. OF
course, the government had no control
over Judge Lands in this matter, but
if it had had there is little doubt 1t
would have advis ed against prosecution
of the railroads.
This does not mean that any sympa-
thy is entertained here for rebating.
But the moral effect of the tremendous
fine imposed upon the Standard OIL
c q
believed to be finished forever, unless
the government later on should relax
its vigilance.
Some months ago the railroads were
given a hint of what might happen to
them when the New York Central was
convicted of granting one rebate to
the Standard and was fined $4,000,
which is S.. .oe0 less sthan the maximum
York Central was brought because
that road declined to furnish the bu-
reau of corporations with any tnfor-
nation whatever in regard to it's rela-
tions with the oil octopus.
Would Cost Alton Dear.
In the case of the Chicago & Alton
and all other railroads which have had
dealings with the Standard it is highly
proba BILE If the cases are brought into
court that the government will suggest
the imposition of the minimum rather
than the maximum fines. But even
this would be a tremendous penalty
1t is estimated it would aggregate
SIS, 5,98O,0OO. If the Standard should
be convicted on all counts pending
against it and the maximum fine i'm
posed on each count 1t will have to pay
a total of $151, 100000. This, with the
fines. will mean an aggregate
of 1927, 0,0O0 which the government
will collect as a result of the prosecu-
tions.
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 is
not so much that of the quantity of oil
or that of the actual saving
on freight rebates which the Standard
made AS matter of fact, the re-
port of the commissioner of corpora
tions estimates that the determinations
saved the Standard only about a quar-
ter of million dollars yearly.
How 1t Crushed Rivals.
But this discrimination gave the
trust an advantage far above the mere
reduction in rate. 1t insured the sue
cess of it's monopolistic tactics. An in
dependent refiner would have to pay
The open rate while the Standard en-
loved the secret and lower rate, and
the difference would enable lower
selling price, to his injury and final
destruction.
Until the bureau of corporations
it's investigation. the in
could not understand why |
-hey were unable to meet the Stand |
ards competition. They did not sus- |
oect the advantage in freight charges |
which their grasping competitor en-
loved. By means Of the rebates from |
he railroads connecting Chicago and |
St. Louis the Standard was able to |
gain absolute control of the entire |
field. which includes the |
,tates of Missouri Arkansas and Texas |
and the territory of Oklahoma