Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-08-04
Penalty of $29, ,240,0OO As
SeSSed Against Trust for Vio-
lation of Interstate COM
merce Act in Alton Case,
NEW JERSEY CORPORATION
DECLARED REAL CULPRIT
Biggest Fine in History Of
Criminal jurisprudence Fails
to Spoil John D, Rockefeller S
Golf Game.

OOtl OCtfIlOi
TBy Morning Journal Special Leased WIre.l
I Chicago. Aug. S.--Judge ]. M. Lam
dis today in the United States court
fined the Standard oil company of
Indiana $29,240.000 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
thirty-one times as great as the
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 long opinion in which
the methods and practices of the
Standard Oil company We're merci-
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 were
no better than counterfeiters and
thieves, his exact language Deing
1--WE may as well look at this situa-
tion squarely. The man who thus de-
liberately violated this law wounds So
ciety deeper than does he who cOun-
terfeits the coin or steals letters from
the mail The nominal defendant Is
the Standard OIL company of Indiana
a million dollar corporation. The
Standard Oil company of New Jersey
whose capital Is 500, 10000 Is the
real defendant This Is for the reason
that IL 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
purpose absorb the stock Of other cor
porations. such corporations so abb
sOrbed have thenceforward but a
nominal existence. They cannot exc
cute or initiate any inherent business
policy, their elimination in this respecl
being a prime consideration for their
absorption. So when after this pro-
cess has taken place, crime Is com
mitted In the name of such smaller
corporation, the law will 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-
latons by esteemlng the penalty In
the nature of a license.
The defendant argues that to no
II for l,462 offenses would be a vio' l.
tion of constitutional prohibition
against the imposition of excessive
fines, and II Is urged that congre IS
could never have Intended to confer
upon the court such power. 1t Is tht
view 0f theseourt that for the law tC
take from One Of Its cooperative crea-
lures as 4 penalty for the commission
of a dividend producing crime less
than one-third OF rs net revenues DUE
ing the period OF Violations falls far
short of the imposition of an exces-
sive fine, and surely to do this woult
not be the exercise of as much rea
power as Is employed when sentenc,
Is imposed for taking from human
being one day Of his liberty. In thi'
connection it may be observed thai
the figures exhibiting the net earn
ings of the Standard OF COMPANY o.
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 beneficlaries
Of the vicious practices its enactment
was designed to abolish. Immediately
thereafter these persons set about tC
devise means for It's evasion. The rec
ords of the court and of the Interstate
commerce commission show the EN-
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 a view to the ac.
complshment OF It's great objects
Finally, IN 1903, the Elkins law was
passed The court recalls that at thai
time the earnest hope was very gen
orally entertained that at last means
had been devised that would put an
preferential railroad rates. and yet q
few months thereafter the Standard
oil company procured 1900 carloads
of property TO be shipped at an un
lawful secret rate. And for this Of.
fense, the Elkins law authorizes pun
ishment only by fine, an obvious de.
feet, remedled. however, by the pres
ent Law which prescrlbes imprlson.
ment Ia the penltentlary for a like of.
fense. However, Il is the business o
Judge to administer the law as h'
finds Il, rather than expatlate upOv
the lnadequacy Of punishment author
lied for It's lnfractlOn
1T Is the Judgment and sentence O
the court. that the defendant, th'
Standard OIL company pay a fine o.
s29,240. GOO.
"One thing remains tt must no
be assumed that In this Jurisdiction
the lawscan beignored. If theyare no
obeyed they win be enforced. Th'
plain demands Of Justice require tina
the facts disclosed IN this proceedinI
be submitted 70 grand jury with