The Washington herald., 1907-08-04
TERMS IN PRISON
THREATEN OIL MEN
FRoM PAGE De.

Judge LdndlS wore a gray EnBuSn Walk
ing suit For once he was without the
white flower in his buttOnhOle. He took
his seat promptly at 10 o'clock. The doors
were closed. The room became silent and
the jurist began TO read his opinion.
When he had finished, newspaper men
bolted for the telephone.
Standards Attorneys stupehed.
The Standards attorneys sat stupefed
Not even the district attorney. who had
hoped for a big fine, seemed able 10 real
ize what had happened. Few lawyers
had expected the court to impose the
maximum fine. The largest amount ever
predicted for the penalty was $10,6500OO.
When the crowd began 70 applaud. At
torney Martyr jumped to his feet with q
handful of papers. These were a long
list Of formal motions. Nearly all were
overrued by the court with crispness
that startled all his hearers.
Il have here a motion" Attorney Mar
tyn would begin
THAT motion has already been over
ruled" would come the comment.
Then this motion for a new trial"
"Overruled.
Judge Lands allowed formal bin of
exceptions and gave time limit for an
appeal Then he asked for the clearing
OF the room that he might hear the grand
jury report.
After the trial It became known about
the Federal building that a prominent
Chicagoan, who is a personal friend Of
President Roosevelt is IN possession Of q
letter from the President asking him to
keep d close watch on Judge Landis The
letter is said TO contain the statement;
He is the coming man Of America
Judge Landis' Decision.
Judge Lands in his decision said 1t
was proven at the trial that the defend
ant. a corporation OF Indiana, operates
an oil refinery at Whiting, Ind; that the
Chicago and Alton Railway Company, q
corporation Of Illinois, operates a line OF
railroad from Chicago 10 East St Louis,
H., and that the Chicago Terminal Trans
fer Railroad operates q switching road
from Whiting across the State line into
Illinois. intersecting the Alton road at q
station called ChappeH. a short distance
from Chicago, and that there are three
companies operating terminal roads from
East ST. Louis. H.. across the Mississippi
River to ST. Louis. No.
Prior t. the occurrences upon which the
prosecution was based the Chicago and
Alton Company had filed with the Inter
state Commerce Commission statement
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
Chappell TO St Louis to be IS - cents
1a
cd at the hearing that the defendant
shipped its goods from Whiting TO East
St Louis for cents and II cents to
st. Louis. The dealings Of the Standard
OH Company were exclusively with the
Chicago and Alton. which rendered all
bills for the through service
Plea Made by Defense.
The defense argued that the EIkins law
authorized the prosecution for but one Of
fense. and maintained that there could be
a conviction on only one count The court
held tha: the law is violated every time
any property is so transported. as the
legal rate was established by the railroad
company on a car-lot basis The unlaw-
ful 6-cent rate was granted and accepted
on that basis.
As to the defendants claim that the
representations by the Alton rate had
misled It into the sincere belief that the
Alton scent rate had been fled with the
Interstate Commerce Commission, the
court held that as the law required the
carrier 70 keep the schedule at its freight
Office for public inspection. it was the de-
fendant's duty 10 ascertain at the rail-
roads office whether the rate was SO
fixed. and 1t being for the jury to deter
mine whether testimony exhibited the
truth Of the transaction. The jury hav-
ing found a verdict Of guilty, it became
the duty Of the court TO fix the punish
ment.
Holders of stock.
The court reviews its action IN deter
mining what corporation held the stock
Of the defendant Standard Oil Company
Of Indiana, This demonstrated that
very large proportion Of the stock was
held by individuals for the stockholders
Of the Standard Oil Company Of New
Jersey, which has outstanding stock of
approximately slO0OoO,O0O
The court discusses at length the vari-
Gus defenses offered by counsel and says:
1.-THE nominal defendant is the Standard
oil Company Of Indiana. a million-dollar
corporation. The Standard oil Company
of New Jersey, whose capital is $780, 000, 600, |
is the real defendant. This is so for
the reason that If a body Of men organize
a large corporation under the laws Of one
State for the purpose Of carrying on bus
mess throughout the United States and
for the accomplishment of that purpose
absorb the stock of other corporations /
such corporations so absorbed have
thenceforward but a nominal existence. |
They cannot initiate or execute any inde-
pendent business policy"
Court Passes Judgment.
The court then passed judgment as fol-
lows:
'It is the judgment and sentence Of the
court that the defendant Standard Oil
Company pay a fine of $29, ,240,OOO.
zone thing remains. It must not be as
sumed that in this jurisdiction these laws
may be ignored. If they are not obeyed,
they will be enforced. The plain demands
of justice require that the facts disclosed
in this proceeding be submitted to a
grand jury with a view to the considera-
tion of the conduct of the other party
to these transactions. Let an order be
entered for q panel OF sixty men return
able at 10 o'clock on the morning Of
August IA. The United States district at
torney is directed TO proceed accordingly"
BRYAN APPROVES FINES.
Glnd that Judge Landis Gave Standard
the IIuf4