The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1908-09-10
STANDARD OIL co.
REPLIES TO GOVT
PETITION
KEROSENE JOHNS" CONCERN
PLEADS THAT THE FEDERAL
COURTS ARGUMENTS WERE
FILLED WITH FLAWS.

CHICAGO, Sept. -10.-The answer
OF the Standard Oil Co. of Indiana te
the petition of the government trust
busters" for rehearing of the case
in which the corporation was fount
guilty of receiving rebates from tn,
Chicago & Alton railroad, was fled to
day In the United States court for the
northern district OF Illinois by John
S. Miller, Moritz Rosenthal and AL
fred d. Eddy. counsel for the oil com
pany The verdict in the original
case resulted in the famous S29,240,.
600 fine set by Judge Lands. From
that decision the defendants appealed
The decision of the lower court was
reversed on appeals.
The government Is now petitioning
for a rehearing and the Standard
OH Co.'S answer, is in opposition to
the appeal.
The petition says in part:
1T is urged that the court should
give consideration to the purpose
which congress had In the passage of
the act making 1t criminal for ship
pers In interstate commerce to accept
or receive concessions from the law
full, published transportation rates, the
idea being to strengthen the effective.
ness of the interstate commerce act.
All OF this was deliberately present.
ed In former arguments, and full and
fair consideration was given 1t. There
Is nothing OF inequality OF rates, ia.
voritism or preference to this defend
ant averred or proved in this record
The Defendant Is prosecuted for receiv.
ing the same rate (the 6-cent rate)
as was open to other shippers under
substantially similar circumstances
and conditions. The defendant was
not allowed to show that other ship
pers paid the same rate.
Now, obviously, this evidence, II
admitted. would have tended 10 dis
prove any contention that. the Alton
showed any favoritism In applying the
6-cent tariff and not the alleged 49,
cent rate to the defendants shipments
because il the Alton rate department
regarded the scent rate, and not an
lS-cent rate as the lawful rate. any
shipper who might apply would have
received the same 6-cent rate which
was given to this defendant.
But IL is not, after all, for the Sc
curing OF equality OF rates as TO all, or
preventing determinations and prefer
ences as between shippers the court
Is asked 10 reconsider the purpose OF
the Elkins act. The court is invited
TO find a purpose on the part OF con
gress to impose upon shippers the
duty OF ascertaining and knowing that
the rate they pay for transportation Is
the lawful rate. at the peril OF com
hitting a crime If ii turns out other
wise.
Result Would Be Appalling.
Counsel argue that the proof need
not establish that the accused SHIPPER
had knowledge OF the lawful rate to
convict him Of crime for shipping at d
lower rate which was given to him by
the carrier: but that the shipper must
be held TO have known that which
! diligent endeavor would have enabled
him TO find out. Now II counsel were
held to so rigid rule as this. the re
suit would De appalling.
"The ruling is that the shipper must
adhere to the known rates, quite 1
different matter.
The size OF the fine and the con
Meeting OF the New Jersey companies
Is objected to and decisions cited Il
prove their unwarrantedness.
1T is urged that the appeal be al
lowed that the supreme court ma,
pass on the questions involved. thu
h establishing a precedent. The suprem
court already has decided these ques
lions were moi up to them for ruling
THE fact that the district and eli
cult courts have differed In this cas-
has no bearing in view OF the fact tina
tha-fatter- has unanimously decide
lagainst the former in this case"