The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-08-04
Judge J. Landis Imposes
Penalties for Rebates to
Amount Of $40, 24o, 900
LARGEST FINES
IN OUR HISTORY
More Than 100 Times as Great
as Amount Received Through
Rebates Methods and Prac-
tices ofDefendants Severe
" Scored Courts Rul-
il1gs Create Surprise.
ll1gs = reate Slrprlse.

CHICAGO, ILL, August s--Judge
kenesaw Nj Lands to-day. In the
United States District Court, fined the
standard Oh Company of Indiana
S2a.24o000 for violations Of the law
against accepting rebates from rnll-
roads. The fine is the largest eyer ag-
sessed against any individuals Or any
corporation In the history or American
criminal Jurisprudence. and Is slightly
more than l3l times az great as the
Il 5AE?ountrece!red by the company through
/ ttf rebating operations. The case VIII
be carried to the higher courts BY the
defendant company.
H the penalty imposed upon the COM
panS is the maximum permitted under
the law, and It was announced at the
end OF long opinion. III which the
methods and practices OF the Standard
Oil Company were mercilessly scored
The Judge, in fact. declared IN his opin.
ion that the officials OF the Standard Oil
company who We're responsible for the
practices ofswhichH the corporation was
found guilty were no better than coun-
terfeiters aud thieves. his exact Ian
guage being:
we may as well look at this situa-
tion squarely. The men who thus
deliberately violate this law wound
aociety more deeply than does he who
counterfeits the coin or steals letters
from the nail s45
Hands Down Long Opinion.
Judge Lands commenced reading
his decision at 10 o'clock and occu-
pied about one hour In It's delivery.
Z lie reviewed the facts in the case,
took up the arguments OF the attor-
neys for the defense. and answered
them. and then passed Judgment upon
the company. which he declared ,io-
lated the law for the sole purpose OF
swel,ing its dividends.
The court held that tie railroads
have no more right TO make a secret
rate for shipper than a board OF
4 assessors would have to make a secret
assessment of any particular piece of
property.
The court expressed regre, that the
z law failed to provide more serious
punishment than a tine. but Insisted
f that the penalty should be sufficiently
large to act as deterrent. and not OF
such size as to encourage the de-
fcndant to persist In lawlessncss
At the conclusion Of his opinion and
after announcing the amount of the
fine. Judge Landis directed that spe-s
cial grand jury be called for the pur-i
Chicago and Alton Railroad Company.
1t having been proved in the case lust
closed that the Oil Company accented
rebates from that corporation. This
{ jury is summoned for August l4tn.
Great Interest shawn.
The decision of Judge Lands arous-
cd almost as much public interest as
did the presence OF JohnsD. Rockefeller
and other officials Of the Standard Oil
I,,e tI,a I,,1,
9Th.
The crush was so great thatta large
!. force of deputy marshals had much
difficulty in controlling the crowd that
was anxious to force its wa" into the
courtroom.
The government was represented in
the courtroom by United States Dis
6'ict Attorney Sims and Assistant Al.
torncy Wilkcrson. The attorneys who
tried the case for the Standard Oil
Company. John S. Miller, Meritz Rosen.
thai and Alfred D. Eddy. We're not pres
ent, the company being represented BY
Merritt STAR, a partner of Mr.. Miller
and Chauncey Martyn, from the office
of Mr.. Eddy.
When Judge lands took his seat on
the bench he said quietly: THE United
States vs. the Standard Oil Company.
Is the defendant representcd?"
Counsel Cut on.
'lf the Court pleases." said Mr. starr,
ION behalf of the defendant and in the
absence OF tEns regular counsel, but
with their authority, ! desire to mako
sugScAtiOn or TIVE pertaining to the
ma crder in lhe case before -
"Does not 1t strike YOU" broke in
Judge Lands. that it would be well
to wait until ] have finished with this
document? Then ! will hear what you
have to- say IN
The judge shook his manuscript as
nc spoke, and Mr., Starr sat down. Dur
ing the reading of the opinion, when
the court said something especially
strong against the company and Its
methods. the spectators would laugh
loudly, and the bailiffs We're compelled
to repeatedly rap for order.
The court had not proceeded far in
his opinion when he was interrupted by
some attorneys who We're trying to
transact business with the clerk Of the
court. Leaning over the railing. in
front of him, the Judge inquired with
quiet sarcasm; Il am not interrupting
you, gentlemen, am II"
The attorneys fed and the reading
was resumed.
Convicted of Virgin ORenAe.
Loud hand-clappng broke out when
the court said; "When after all the
circumstances of the trial have been
brought out, and the defendant persist
entity maintainsttilat the Constitutional
the United States guarantees to it the
right to make private contract for a
railroad rate, this court is oblCed to
confess that the presumption Is. that
In this case the defendant was convicted
Of it's virgin offense.
Sentence of the Court.
Judge Lands, in passing sentence
said: =
at ts the judgment and kentcnce