Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-08-03
OIL TRUST FINED
THE LEGAL LIMIT
BY JUDGE Lands
Was MuIcted of the Enormous
Sum of s2e, 240, 900.
THERE WERE 1852 CHARGES
The Extreme Penalty Was Exacted in
Every Case.
SUMMARY OF THE DECISION
Prosecution May Now Be Instituted
Against the Chicago and Alton
for Giving Rebates
The Extreme Penalty Was Exacted in
Every Case.
SUMMARY OF THE DECISION

bates from the Chicago and Alton
railway. Now that the great case is
settled there is every prospect that
the Chicago and Alton will be hailed
into court and fined for giving the
rebates, though they were of course
compelled to do so by the threats OF
the oil trust. 1t is the heaviest
fine ever imposed by any court for
any offense, and comes close to
many national indemnities exacted
by conquering powers at the close
Of victorious war. The case Will
be appealed at once by the Standard
to the United States Circuit Court.
NEW YORK, August s.-The Standard
OIL Company will take an appeal to the
United States circuit court from the $29.-
100000 fine imposed by Judge Lands today.
CHICAGO. August 3.-Judge Lands. in
| the United States district court. today
! imposed fine upon the Standard OIL
| Company of Indiana of S29,24e.o6O. the
| maximum amount upon each one of the
| 1.46o counts Of the indictment on which
! that company was recently convicted Of
rebating.
The Judge also recommended that a call
be issued for a special grand jury which
Is to consider the other party to the re-
batting operations of which the Standard
Oil Company was found guilty. and 1t Is.
therefore, probable that within 4 short
time proceedings will be commenced
against the Chicago and Alton Railroad
Company for the alleged commission OF
similar offenses.
The reading of the opinion by Judge
Lands aroused almost as much interest
as the presence of John d. Rockefeller
and other officials Of the Standard OH
Company upon the witness stand. The
courtroom was crowded to Its utmost
capacity, and the United States deputy
marshals were finally compelled to re-
, fuse admission to all late corners The
government was represented in the ourt-
room by United States District Attorney
Sims and by Assistant District attorney
Wilkerson The only attorneys of the
Standard Oil Company present ia the
courtroom were Attorneys Eddy and Mar
tin, neither of whom bore prominent
part in the actual trial Of the case. At
torney Miller, the leading counsel for the
Standard Oil Company, was In Europe.
,, was in New York. Only a few OF the
lesser officials Of the Standard OIL Com
pany were in the courtroom.
Judge Lands commenced reaotng MS
proximately one hour before he an
nounced the penalty.
The decision in substance was az fol-
lows:
Decision in Brief.
judge Lands in his decision said 1t was
proven on the trial that the defendant.
corpora ton Of Indiana, operates an Oil re-
finery at Whiting. Ind: that the Chicago
and Alton Railway Company. corporation
Of Illinois, operates line OF railroad from
Chicago to East st. Louis. H.. and that
the Chicago Terminal Transfer railroad
operates a switching road from Whiting
across the state line into Illinois. intersect-
ing the Alton road at a station called Chap
pell. 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.
Mo. Prior to the occurrences upon Whlch
the prosecution was based the Chicago and
Alton company had flied with the interstate
commerce commission statement showing
the rates for the transportation or OH IN
car lots from Whiting to East ST Louis TO
be Is cents per hundred pounds and the
rate for like transportation from Chappeil
to ST. Louis to be 1917 cents per hundred
pounds. The court says 1t appeared at the
hearing that the defendant shipped Its goods
from Whiting to East St Louis for cents
and ~ cents to ST. Louis. The dealings OF
the Standard Oil Company We're exclusively
with the Chicago and Alton. which rendered
all bills for the through service.
Plea Of the Defense.
The defense argued that the Eikns law
authorized the prosecution for but one Of
Tense. and maintained that there could be
a conviction on only one count. The court
held that the law Is violated every time
any property is so transported. as the legal
rate was established by the railroad COM
Lot hoc Gle nlgxI yf,rIR
cent rate was granted and accepted on that
basis AS to the defendants claim that the
representations by the Alton rate had mis-
led it into the sincere belief that the Alton
6-cent rate had been filed with the inter
state commerce commission, the court held
that as the law required the carrier to keep
the schedule at its freight Office for public
inspection, 1t was the defendants duty to
ascertain at the railroads office whether
the rate was so fixed. and 1t being for the
jury to determine whether testimony exhib-
tied the truth OF the transaction. The Jury
having found verdict of guilty. 1t became
the duty of the court to fix the punishment
Fixing the Schedule.
The court then discussed the evidence Of
fered by the defendant to the effect that
during the period covered by the fndict-
ment the Chicago and Eastern Illinois rail-
road published an open rate OF 6A cents
from Whiting to East st. Louis. The court
mitigation II true. although iuadmissible
before the jury as to guilt or innocence,
and the court after verdict had been given,
directed the production Of all schedules by
that railroad. From these 1t appeared that
the Eastern Illinois. In connection with
other railway companies. issued and filed
with the commerce commission class tar
III and fixed the rate at Is cents from Chi
casro to East St. Louis. On October 9, 1896
the Eastern Illinois company fled with the
commission its commodity tariff fixing q
rate OF ca cents on oil from Dalton. Ill. to
East st. Louis. and providing that out OF
this rate a switching charge Of not to ex-
coed So per car would be absorbed on ship
ments from Whiting. Ind. On July 1. 1893.
sixty days prior to the beginning Of the Pc
riod covered by the Indictment in this case,
the Eastern Illinois issued its joint tariff.
No. 1869. This general class tariff pro-
vlded that between Chicago suburban sta
lions. including Whiting. Ind. and East St.
Louis ILL.,, the current rates in effect from
Chicago. ILL.,. should apply. except on coal.
coke. grain and grain products. lumber and
articles taking the same rates or arbitraries
higher, live stock and hay" OIL was not