The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-08-04

Motive MOI Matcrisl where rrOO. CT Crime
! Is 80 clear. Justice says, In CONSIDER.
Ing Plea That There Could BE No In
Jur, 20 Competitors. There Heinz Mono
special Grand Jury Ordered TO Ne
Empsncsed for august 10 TO Con-
slider case Of other Party to Rcbat-
Ing, the chicago and ASon Railroad
Opinion rs Couched In Violent Terms
standard Ou VIII Appeal the CASE.
CHICAGO, Aug. .. A fine OF s29, $40. 100,
the greatest in the history of criminal juris-
prudence, was the penalty imposed upon
the Standard Oil Company of Indiana to-
day after a conviction for accepting re-
bates from the Chicago and Alton Railroad
in violation Of the interstate commerce
law by Judge X. NJ. Lands in the United
States District Court. The punishment Is
the maximum possible under the statutes.
$40, 600 on each Of the / ,4e2 counts OF the in
dictment upheld during the trial. Judge
lands expressed regret that he could not
strike a harder blow.
Judge lands ordered that a special
Grand Jury be convened on August IA to
consider the evidence brought out in ths
Standard Oil trial concerning the Chicago
and Alton Railroad as the giver Of the re-
bates which the oil corporation accepted.
Judge Lands discussed the contentious
Of the corporations counsel in detail and
INDUCED in much caustic comment, or
the contention that the Constitution Of the
United States gives the inherent right to
make secret agreements regarding rail-
road rates he said. "Candor obliges the
Court to say that he knows nothing to sup
port il but the eminence Of the counsel who
asserted it. A more abhorrent heresy
could not well he conceived. One might
as we'll assert the right to make a secret
agreement with the collector OF custom5
or a tax assessor for a low rate OF Gust oms
duty or a much reduced assessment on
property
The Court classified those who evade the
laws on rebates with the counterfeiters oi
money and others who rob the mails. Conn
mon honesty is not to he ignored. even In
this day. was another shaft followedb by the
statement that more offences like those
charged in this trial would wound society
more deeply than the acts OF the lawless Of
less prominent position.
In leading up to the announcement OF the
penalty Judge lands declared that the
Standard Oil Company Of New Jersey. the
main corporation. was the real offender.
and that its only motive was the enhance
Inent Of its dividends. Therefore the only
adequate punishment was a fine OF sufficient
size to deter others from follow ng the re-
bate course to great wealth
A small penalty, the Court insisted. might
be taken by lawbreakers OF this class as
being In the nature Of a license, and there
fore anything less than onc-third Of the net
revenues Of the corporation in the thres
years covered by the offences charged couil
he comparable to the imprisonment OF a
human being for one day.
Merritt Starr. partner OF John s. Miller.
the chief OF the Standard Oil counsel, who
with Chauncey W. Martyr and Robert W.
Stewart Of A. ID. Fddy's Office represented
the defendant. arose in the crowded court
room when the case was called saying he had
a few suggestions to offer relative TO any
order the Court might enter. Judge lands
waved the attorney aside with the remark
that such matters could be taken up after
the order had been read and plunged at
once into the document which he held
As the reading went on The Judges head
bowed over The manuscript. His feelings
we're visible in the workings OF his face aud
the emphasis with which he voiced the de-
nunciations OF corporate dishonesty. The
reading went on with a rapidity that tried
the abilities OF the court ste~nographers.
Attorneys Starr, Stewart and Martyr
gave out q ct atement after Judge lands
had finished. in which they declared for the
Standard Oil that this case and it's result
illustrates how a law may be 60 applied
as to prom ote the evil IL is designed to
prevent and penalize that which IL is in
tended to promote and secure" They as
serted that while the purpose OF the inter-
state law was 20 prevent re-
strsints and promote freedom Of COM
merce, as it was applied in this case 1t put
shackles upon trade.
The punishment proposed by Judge
Lands recalls the severe blow dealt the
Waters Pierce Oil Company in Texas on
June I, when that branch Of the Standard
was found guilty on 1881 counts OF violating
the antitrust Law and penalty liked at a
fine Of 81, o23, 900 and revocation Of license
to do business in the State.
United States District Attorney sims
and his assistants. James II. Wilkerson.
Robert W. Childs and Harry A. Parkin,
who devoted all OF their time to the casa.
were pleased at tho victory.
we studied the Courts directions said
Mr.. Sims. and acted as instructed. It Ia
hard to say whether the Standard Oil Com
pany will take the case 10 the United States
Court Of Appeals or directly TO the Supreme
Court Of the United States. The attorneys
for IL defence assert that there are con-
stitue6onal questions involved In the de-