Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1907-04-18
CONVICT STANDARDDURY DISCHARGED
OIL COMPANY FACES FINE OF
$40. $50, 900.
JURYS VERDICT IN PROMPTLY
Reach vervict on. First Ballot Taken
--Defense Seeks New
Trial.

Chicago. April 1.-THE Standard
OIL company of Indiana which has
been on trial for the last six weeks
before Judge X. M. Lands in the
United States district court, on a
charge of having received rebates
from the Chicago & Alton raiload on
shipments of oil fom whiting. Ind,
to East st. Louis, H., was found gull.
" last night on 1,463 counts out Of
the original 1908 in the indictments.
The remaining 4i0 counts were
dropped from the indictment on ac-
count OF errors, If the verdict is sus.
tanned the oil company is liable to a
| fine of 29,260,000, since the Elklns
| law, which the indictments charged
the company with having violated,
| provides a fine of $1,000 to $50, 900
| for each offense.
Pending motion or n new trial.
| which John S. Mailer, chief counsel
for the defendant, announced would
be made Immediately, no action will
| be taken by the court towards col
| lecting the fine. The indictments
charge the shipments OF 1903 cars OF
oil over the Chicago terminal trans
fer and the Chicago & Alton railway
from whiting, Ind, to East st. Louis
by way of Chappell, III. The charge
| was that the oil company accepted
a rate of 6 cents for 100 pounds
| when the legal rate was Is cents
When the case first came to trial the
attorneys for the defense endeavored
to have all the counts In the indlct.
ment thrown out on technicalltles,
but the court ordered that each count
be taken up and considered separ.
ately, which was done, and after n
great deal OF arguing, the counts In
which errors have been found were
dropped, The defense then put forth
all It's efforts towards proving that
they were unaware OF the fact that
the special rate" had not been fled
With the interstate commerce com.
mission as provided by the Elklns
law.
Evidence was offered by the govern.
ment showing that it was the duty
OF the company's officials TO sec that
the reduced rate was In the hands OF
the commerce commission.
Touching on this part OF tho evi.
dence. Judge Lands, in his charge
to the jury, said:
"The indictment alleges that the
defendant accepted concession
knowingly. To sustain this averment,
the proofs need not establish that
the defendant had actual knowledge
OF the lawful rate. 1t was the duty
of the defendant diligently to inquire
In good faith OF the Chicago a Alton
the lawful rate by applying to one
OF the railroad company's Offices. In
making this endeavor the defendant
Is presumed to have known that the
railway company would go guilty OF
a mlsdemeanor II IL gave the defend.
| ant rate on interstate traffic which
was not set down on paper and a
copy OF the schedule filed with the
Interstate commerce commission"
Prove Standard Must Have Known.
In regard to the assertion made by
the defense that the Standard OIL
company did not know OF the exist.
ence of the tariff on which the In.
dictment was based. Judge Lands
| said:
"The evidence submitted by the
government goes to show that there
Is department In the Standard OIL
company which deals with oil lots
less than one carload and that Il
would have been absolutely necessary
for the head OF this department to
be familiar with the tariff In ques.
tion."
The jury was out less than three
hours and reached the verdict ON the
first ballot.