Omaha daily bee., 1907-08-04
OPINION OF THE COURT
His Analysis of Evidence ShowI
Wilful and Frequent 0ffenses.
CoLLUsIoN WITH RAILROADS
Device for Keeping Within Letter Of
Law is Exposed.
ORDERS GRAND JURY FOR ALTON
other Party to Rebating is Not to
Escape LishtIy-COurt strongly
Censures the Corporate
Interests.

Censures the Corporate
Interests.
/ CHICAGO. Aug. s-Judge Lands In the
United States district court today imposed
fine upon the Standard oil company OF
Indiana Of 900. the maximum amount
upon each one Of the l.462 counts Of the in
dictment on which that company was re-
Gently convicted Of rebating
] The Judge also recommended that a call
be issued for special grand jury which Is
TO consider the other party to the rebating
operations Of which the Standard Oil COM
pany was found guilty and 1t is therefore
probable that within a short time proceed
ings will be commenced against the Chi
cago & Alton Railroad company for the al
legged commission of similar onenses.
The reading Of the opinion by Judge Lam
dis aroused almost as much interest as the
presence of John d. Rockefeller and other
officials of the Standard on company upon
the witness stand The court room was
crowded to its utmost capacity and the
United States deputy marshals were finally
compelled to refuse admission to all late
corners.
The government was represented in the
court room by United States District Attor-
ney Sims and by Assistant District Attor-
ney Wilkerson. The only attorneys OF ths
Standard OIL company present in the court
room were Attorneys Eddy and Martin,
neither Of whom bore q prominent part in
the actual trial OF the case. Attorney
Miller: the leading counsel for the Standard
oil company. was in Europe. and his chief
assistant, Moritz Rosenthal, was in New
York. Only few of the lesser officials OF
the Standard OIL company were in the
/ court room.
Judge Lands began reading his decision
at 10 o'clock and consumed approximately
one hour before he announced the penalty.
Opinion of the Court.
Judge Lands in his decision said it was
proven on the trial that the defendant.
corporation of Indiana operates an oil
refinery at Whiting. Ind. that the Chicago
& Alton Railway company, a corporation OF
Illinois, operates a line of railroad from
Chicago to East St. Louis. Ill. and that
the Chicago TermiI al railroad operates a
switching road from Whiting across the
state line into Illinois, intersecting the
| Alton road at a station called Chappell. a
short distance from Chicago and that there
are three companies operating terminal
railroads from East ST. Louis, Ill, across
the Mississippi river to st. Louis, Mo.
Prior TO the occurrences upon which the
/ prosecution was based. the Chicago a
Alton company had FLED with the Inter-
J state Commerce commission showing the
| rates for the transportation OF oil in car
lots from Whiting to East St Louis TO be
IS cents per 100 pounds and the rate for
like transportation from Chappen 10 st.
LOUIS TO be 1871 cents per 100 pounds The
court says it appeared at the hearing that
I the defendant shipped its goods from
Whiting TO East st. Louis for cents and
| ~ cents TO St Louis The dealings OF the
Standard oil company were exclusively
I with the Chicago & Alton which rendered
ali bills for the through service. The de-
/ fense argued that the Elkins law authorized
the prosecution for but one offense and
maintained that there could be a conviction
on only count.
Extent of the Violation.
The court held that the law is violated
every time any property is so transported
! as the legal rate was established by the
/ railroad company a car lot basis The
unlawful 6-cent rate was granted and ac-
I cepted on'Thst basis. AS to the defendants
claim that the representation by the Alton
/ rate has misled II into the sincere belief
/ that the Alton scent rate had been filed
with the Interstate Commerce commission,
/ the court held that as the law required the
carrier to keep the schedule at its freight
office for public inspection II was the de-
PENDANTS duty 10 ascertain at the railroads
ONCE whether the rate was so fxsd and il
being for the jury to determine whether
testimony exhibited the truth of the
transaction. The jury having found a
verdict OF guilty. It became the duty Of the
court TO hx the punishment.
The court then discussed the evidence Of
fered by the defendant to the effect that
=.
the Chicago & Eastern Illinois railroad
published an open rate OF Ga. cents from
/ Whiting 10 East St Louis The court held
that this fact should be considered in miti-
cation. II true. although inadmissible be-
fore the jury as 10 guilt OF innocense and
the court after the verdict had been given
directed the production Of all schedules by
4 that railroad.
Tarins Were Filed.
I From these IL appeared that the Eastern
Illinois. in connection with other railroad
companies. issued and filed with the COM
meroe commission a class tari1 and fixed
the rate at Is cents from Chicago to East
81. Louis. on October 3. 1885, the Eastern
Illinois company filed with the commission
4 its commodity tarin, fixing a rate OF 81
cents on oil from Dalton, H., TO East
St. Louis and providing that out Of this
rate a switching charge Of not 10 exceed
IS per car would be absorbed on shipments
from Whiting. Ind on July /, 1913. sixty
days prior 70 the beginning Of the period
covered by the Indictment in this case, the
Eastern Illinois issued its joint tartI No.
17575. This general class tarin provided
that between Chicago suburban stations,
including Whiting, Ind, and East ST Louis.
III the current rates in effect from Chlc-
AGO III should auuly exceut on coal coke
grain and grain products. lumber articles
taking the same rates or arbitraries higher.
live stock and hay. on was not included
in the commodities thus excepted from these
class rates Among the tariffs specifically
ramrd IN connection with NhIch fhls scheh-