Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-08-04
Penalty of 29,240,0OO AS
seSSed Against Trust for Vio-
Iation of Interstate Com
merce Act in Alton Case.
NEW JERSEY CORPORATION
DECLARED REAL CULPRlT
Biggest Fine in History of
Criminal jurisprudence Fails
to Spoil John D, RockefeIIer'S
Golf Game.

IBy Morning journal Special Leased wire.l
Chicago. Aug. 3.-Judge J. NJ. Lam
dis today in the United States court
fined the Standard oil company Of
Indiana $29.240,O0O for violations Of
the law against accepting rebates from
railroads. The fine is the largest ever
assessed against any individual or any
corporation In the history of Ameri-
can criminal jurisprudence. and IS
slightly more than one hundred and
thrty-one times as great as the
amount received by the cOmpanyl
through its rebating operations. The
case Will be carried to the higher
courts by the defendant company.
The penalty imposed upon the
company is the maximum permitted
under the law and 1t was so announced
at the end of a long opinion in which
the methods and practices or the
standard Oil company We're merei-
lessly scored. The Judge, In fact. de-
clared in his opinion that the officials
of the Standard oil company who were
responsible for the practices of which
the corporation was found guilty We're
no better than counterfeiters and
thieves. his exact language being:
we may as well look at this sltua-
ton sQuarely. The man who thus de-
liberatey violated this law wounds so
ciety deeper than does he who coun-
ferfeitg the coin or steals lettc 3 from
the mail. The nominal defendant %
the Standard OIL company OF Indiana.
million dollar corporation. The
standard Oil company of New Jersey
whose capital Is 100000, ,00OO, Is the
real defendant. This is for the reason
that II a body Of men organize large /
corporation under the laws of one
state for the purpose of carrying on
business throughout the United states
and for the accomplishment OF that 1
purpose absorb the stock Of other cor
porations. such corporations 80 alb
sorbed have theneetorWard but
nominal existence. They cannot exc
cute or initiate any inherent business
policy their elimination in this respect
being a prime consideration FOR their
absorption 80 when after this pro-
cess has taken place "A crime Is com
mitted In the name Of such smaller |
corporation, the law viii not consider
that the larger corporation Is the real
offender And where the only possible
motive for the crime is the enhance !
ment Of dividends and the only pun
ishment authorized Is fine. great
caution must be exercised by the court |
lest the fixing of a small amount en- |
courage the defendant to further Vio- |
lations by esteeming the penalty In /
the nature of license.
The defendant argues that TO no / I
IL for l.462 offenses would be "a VIC o.
tion Of constitutional prohibition /
against the imposition of excessive !
fines, and IL Is urged that congress /
could never have Intended TO confer 4
upon the court such power. IL Is the !
view of the court that for the law TO !
take from one OF its cooperative crea- /
lures as a penalty for the commission /
of dividend producing crime less
than one-third of It's net revenues dur>
ing the period Of violations falls far |
short of the imposition Of an excess
sive fine, and surely to do this would !
not be the exercise Of as much real 1
power as Is employed when a sentence
Is imposed for taking from human
being one day OF his liberty. Ia this
connection il may be observed that /
the hgures exhibiting the net earn.
ings OF the Standard oil company a.
New Jersey during the period covered !
by these indictments are exceedingly !,
instructive because of the peculiarly /
intimate relations between the char
acter OF the crime and the revenues
of the offender
The law prohibiting preferential
railroad rates was passed twenty years
ago. Its adoption was preceded by |
vigorous opposition interposed by
those who had been the benefciaries
Of the vicious practices its enactment /
was designed 10 abolish. Immediately /
thereafter these persons set about TO
devise means for its evasion. The rec Il
ords OF the court and Of the Interstate
commerce commission show the em-
ployment of large variety Of schemes
TO accomplish this result. During the
period since 1887. congress has re-
peatedly endeavored TO effectively
amend the law with view to the ac-
complshnent Of its great objects
Finally. In 1903. the Elkins law was
passed The court recalls that at that
Time the earnest hope was very gen
crafty entertained that at last means
had been devised that would put an
preferential railroad rates. and Yet
few months thereafter the Standard
OH company procured 900 carloads
of property 10 be shipped a an un
lawful secret rate And for this Of
fense the Eikins law authorizes pun
ishment only by fine. an obvious de-
fect. remedled however. by the pres
ent law which prescribes imprison-
ment in the penitentiary for a like Of {
Tense. However. il Is the business OF Z
Judge TO administer the law as he
finds a. rather than eNpatiate upon
The inadequacy Of punishment author
lied FOR its infraction. i
n Is the judgment and sentence ~ !
The court. that the defendant the
standard OIL company. pay q fine of
s2s 240 coo.
one thing remains II must not I
D. assumed that IN this Jurisdiction.
the laws lean BE- ignored ~ theya are not
obeyed they will be enforced. The
plain demands OF justice require that
ihe facts disclosed Ia this proceeding 4,
oe suomitted TO q grand jury with