Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1907-08-10
STANDARD
OIL FINED
JUDGE lands MAKES
1T S29, 240, 900
PENALTY FOR VIOLATION OF
LAW BY SECRET REBATES
TO RAILROADS.

lug Ills NtClSlbh JuuSe LduulS
1.-THE law prohibiting preferential
railroad rates was passed 20 years
ago. It's adoption was preceded by
the opposition of benefciaries of var
ious practices to be prohibited.
Immediately thereafter these per
sons set about to devise plans for its
evasion. DEGREES of courts and the
interstate commission show the EN-
ployment of a large variety of
schemes to accomplish this result.
Finally in 1903 the Elkins law was
passed Hope was entertained that
this law would put an end to prefer
entail rates yet beginning few
months thereafter the Standard Oil
procured 1900 carloads of property
to be shipped at an unlawful secret
rate.
For this offense the Elkins law
authorized punishment only by fine,
an obvious defect remedied, however,
by the present law prescribing impris-
eminent for like offenses.
However,, it is the business of a
judge to administer the law as he
finds it rather than to expatiate upon
the adequacy of punishment author
lied for its infraction
at is the judgment and sentence of
this court that the defendant Stan
dard Oil, pay a fine of $29 APO 900 on
the counts charged
"One thing remains. 1t must be as
sumed that in this jurisdiction these
laws may yet be ignored If they are
not obeyed they will be enforced
The plain demands of justice re-
Quire that facts disclosed in this pro-
ceeding be submitted to the grand
jury with a view to consideration of
the conduct of the other party to those
transactions. Let an order be en-
tered for a panel of so men, returna-
BILE at 10 o'clock on the morning of
August IA. The United States dis
trict attorney is directed to proceed
accordingly"
The grand jury ordered will inves-
tgate charges of rebating against the
Alton railroad. All through the de-
cision the court exhibited evidence
that the Alton was equally guilty. He
reviewed waybills and tariff schedules.
showing that upon application of the
Standard the Alton road rendered
trust officials a statement that the
rate on oil from Whiting, Indiana. to
East St Louis was 6 cents, whereas
the rate to the public was IS cents.
This alleged occurrence between
the traffic manager and rate clerk will
receive more detailed consideration
hereafter said Judge Lands.
Judge Lands held it was neces-
sary to know whether the Standard
Oil accepted the concession knowing
ly, declaring an honest search by hon
est men would reveal the legal rate
He added:
"The law does not permit shipper
to assume that a certain rate is the
legal one; he must know. The court
Is not impressed by the doleful pre-
diction of defendants counsel that en-
forcement of this rule will work a
hardship on the honest shipping pub
lie"
The court construed the law as not
giving the defendant any immunity
from punishment He said the Stan
dard had been an old offender
The decision contains 1900 words,
and took the Judge 55 minutes to read
Attorney Starr, for the Standard, OBJ
Jeeted to final entry of the order be
cause defendants attorney was not
present. He was overruled
Starr wanted the judgment set aside
because 1t violates the eighth amend
ment of the constitution which pro-
hibits infliction of excessive fines.
The court overruled this and many
other motions
Sixty days are given the defendants
to file bill of exceptions. The case
goes to the court of appeals in Jan.
uary
Federal Judge lands is the most
talked about man in Chicago today
All attorneys agree that his decis
ion has no parallel in the history OF
Anglo-SaXon jurisprudence
Technically the fine is imposed or
the Standard Oil Co of Indiana. Prac
tically it will be paid by the Standard
of New Jersey. This was demonstrat
ed in the hearing in which John D
Rockefeller recently testified.
1t was there stated that the Stan
dard of New Jersey was the parent o
the Indiana concern. The latter il
the best paying of its subsidiary com
panies. Its capital is 100000.
Had the minimum fine of $l,462 90
been imposed the capital would no
be sufficient to pay it. But the valu
of the property of the Indiana con
pany is said to be $40 100000 A
torneys say that fine greater tina
that paves the way for reversal c
the decision when the case reaches
higher court
A fine of $4,000 900 could be co
leeted. lawyers say by an officer {
the court Selling the property. Wit
the maximum of $4,000 600 impose
the Nalnn of thn n.-.o...o.... l. -. -