The Kendrick gazette. [volume] (Kendrick, Idaho) 1892-1968, 1907-08-09
STANDARD
OIL FINED
JUDGE LANDS MAKES
IT $29, 24O, 900
PENALTY FOR VIOLATION OF
LAW BY SECRET REBATES
TO RAILROADS.

TO RAILROADS.
Chicago.-A fine of $29.240O0O was
Imposed upon the Standard Oil Go. Of
Indiana by Judge Lands. In conclud-
ing his decision Judge Lands said:
"The law prohibiting preferential
railroad rates was passed 20 years
ago. It's adoption was preceded by
the opposition Of beneficiaries of var
ious practices to be prohibited.
Immediately thereafter these per-
sons set about to devise plans for it's
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 Blkins law was
passed. Hope was entertained that
this law would put an end to prefer
entail rates, yet beginning a 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-
onment 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 it's infraction.
1T is the judgment and sentence of
this court that the defendant, Stan
dard Oil, pay fine of $29,420,000 on
the counts charged.
Zone thing remains. It must be as
stunned 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 view to consideration Of
the conduct of the other party to those
transactions. Let an order be en-
tered for panel of 60 men, returna-
1ble 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 statement that the
rate on Oil from Whiting, Indiana, to
East st. Louis was 6 cents, whereas
the rate to the public was 10 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
lest men would reveal the legal rate.
He added:
'"The law does not permit shipper
ITO assume that certain rate Is the
legal one; he must know. The court
lis 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
lic."
The court construed the law as not
giving the defendant any immunity
from punishment. He said the Stan
tdard had been an old offender
The decision contains 1900 words,
land took the judge IS minutes to read.
Attorney Starr, for the Standard. OBJ
'jected to final entry of the order be-
cause defendants attorney was not
present. He was Overruled.
Starr wanted the judgment set aside
because it violates the eighth amend
ment of the constitution which pro-
hibits infiictiOn 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
nary.
Federal Judge Lands is the most
talked about man in Chicago today.
All attorneys agree that his decis-
lion has no parallel in the history of
Anglo-Saxon jurisprudence.
Technically the fine is imposed on
the Standard Oil Co. Of Indiana. Prac-
ticafly 1t will be paid by the Standard
of New Jersey. This was demonstrate
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 of
the Indiana concern. The latter is
the best paying of its subsidiary COM
panies. It's capital is 100000.
Had the minimum fine of 81, 462, 900
been imposed the capital would not
be sufficient to pay it. But the value
of the property of the Indiana COM
pany is said to be $10,000,00O. At.
torneys say that a fine greater than
that paves the way for reversal of
the decision when the case reaches a
higher court.
A fine of $10,0OO,0O0 could be col
1ected, lawyers say by an officer OF
the court selling the property With
the maximum of $290O0,0OO imposed