The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1908-07-23
U. S. Court of Appeals Re
verses Decision of
Judge Lands.
AMOUNT OF FINE
WAS $29, 24O, O0O. 90
Higher Court Says Fine Was
Not Based on the Facts in
the Case-Company Was
Charged With Receiving
Rebates on Oil in Illinois.
BY Associates Dress.

Chicago, July 2z.-The Standard Oh
case has been reversed and remanded
and a new trial ordered. The decis
ed States circuit court of appeals was
made on an appeal of the Standard
Oil Company of Indiana from the YER
dict rendered April Is. 1907, by which
the company was found guilty OF &C
cepting rebates and was later fined
by Judge Lands of the United States
district court, s29,240,000, the maxi
mum under the counts of the indict-
ment-
The specific charge against the
STANDARD Oil company of Indiana was
that it had accepted rebates on ship
ments of oil in car load lots from
Whiting, Indiana to East St Louis,
Illinois, over the Chicago and Alton
railroad. Evidence was adduced at
the trial showing that the company
received rates one-third as large as
other shippers were compelled to pay.
1t was contended by the counsel for
the oil company that the rate was not
secret but the jury found otherwise
During the trial, counsel for the oil
company refused to give information
called for by Judge Lands, after he
had taken the case under Amusement
The court thereupon issued subpoe-
naeS for the officials of the Standard
Oil company of New Jersey, among
them John d. Rockefeller. These Of
ficials appeared in court on July 8,
1867. and were personally examined
by Judge Lands.
1t developed from the questions
put by the court that the Indiana cor
poration, against which indictments
had been returned, is owned by the
Standard Oil Company of New Jersey,
the earnings of which during the three
years in which occurred the tranSac-
tions covered by the indictments
amounted to nearly 5000, 600, and
that dividends averaging 40 per cent
per annum were paid during that
time.
Judge Lands, after keeping the
case under Amusement for several
weeks. passed sentence on the Stand
ard Oil Company of Indiana on Aug
ust 3, 1907 The company entered a
motion for a new trial, which was re-
fused and it then appealed from the
decision of the jury in the United
States district court on the ground
that the verdict was not based upon
facts.
Will Continue Fight.
That the government forces will
continue the legal battle there is no
doubt The government has thirty
days in which to file a petition for a
rehearing-
Judge Grosscup's opinion leaves but
little open to contention, as each car
load at a six-cent rate, constituted a
separate offense.
The fine should have been based
on the settlements between the two
companies. OF these there were just
s. The maximum fine on THIS basis
would amount to s720.00O, and the
minimum $4,000.
In the event TeheaTing is denied,
the government may try the case on
the original Indictment, containing
I.462 counts. There are seven other
indictments of 4,422 counts each. 1t
is unlikely that a new case will be in
stituted.
A portion of the decision epitomiz-
ing the attitude OF the court says:
Counsel for the government in con-
Guiding their brief say the EikinS act
was passed because the peace of so
Getty and the welfare of the people
demanded it; that railroad inequality
means business ruin to all except
those powerful enough to make them
selves beneficiarieS.
The court affirms this but says,
the intarstate act is important as
that law is not the only law under
guarantee planted in the constitution
that no one shall be punished until he
has been heard