Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-08-21
TO SAVE ELK|NS LAW
Government Files Petition for
Rehearing in Chicago
IN THE STANDARD OIL CASE
Attorney General Bonaparte Appears
a. q Signer.
MUCH DEPENDS ON RESULT
Federal Attorneys Agree IL Appellate
Reversal Holds Rate Prosecu-
tions VIII Be Futile. a.
IN THE STANDARD OIL CASE
MUCH DEPENDS ON RESULT

tions Will Be Futile. :.
CHICAGO, August 21.-The govern.
ment's petition for a rehearing by the
United States court OF appeals OF the csss
against the Standard OIL Company OF In
diana was filed today, and represents. &c
is authoritatively stated. the administra-
tiOn's attempt to save the Elkins act and
the interstate commerce law from becom-
ing futile.
The filing Of the petition marked the
appearance Of Attorney General Bona
parte in the case, as well as that OF
Frank B. kellogg. who is a special as
sistant to the Attorney General. Besides
these two names, the petition is signed
by Edwin w. Sims. United States dis
trict attorney at Chicago. and Special
Assistant James H. wilkerson, both OF
whom presented the governments side
OF the case in the original hearing be-
fore Judge Lands. who administered the
famous fine of $2s.24OOOO against the de-
fendant
Although IL Is not specifically stated
in the petition. it was agreed by counsel
for the government In their conference at
Lenox, Mass. following the reversal by
the appellate court of Judge Landis' de-
cisiOn. that II the Interpretation OF the
law given by Judges Grosscup, Seaman
and Baker were allowed to stand sue
cessful prosecution Of rate cases against
corporations would be impossible In the
future. The lawyers at that conference.
over which the Attorney General of the
United States presided. were a unit in
expressing the opinion that the reforms
In rebate matters brought about by the
Roosevelt administration would represent
SO much waste of time unless the upper
court can be convinced that 1t 10 in err.
ror in its construction of, the law.
"On but a single point involved in the
trial up to the return of the verdict OF
guilty." .sayss the petition. ARE the rulings
OF the trial court criticised by the court
of appeals. In all other particulars his
rulings are sustained. The point on which
the trial judge is reversed by the court OF
appeals relates to his ruling on evidence
and his charge to the Jury with reference
to ignorance on the part of the Standard
Oil Company Of the lawful rate as q de-
fense. The court Of appeals in its opin-
ion has not correctly stated how the
Judge ruled on this subject
Points Out Errors.
Continuing, the petition declares that
whereas the opinion Of the court of ap-
peals states that Judge Lands refused to
admit evidence to the effect that tho
Standard Oil Company did not know what
| the lawful rate was. the record Of pro-
ceedings in the lower court shows that
| such evidence was admitted.
Although the government points out
ion of the appellate court the allegation
that the Standard OIL did know that
il was not paying the legal rate Is re-
garded as the vital point. Ii with the evil
dence introduced at the trial before Judge
| Landis il can be held that the DEFENDANT
| did not have guilty knowledge OF its own
acts then successful prosecution of sim
| liar cases is regarded as impossible. All
the years of legislation designed to correct
rebate abuses would have to be repeated.
| The indictment in the case was for
| a violation Of the Elkins act OF February
| 10. 1903 making ii crime to accept
concession whereby any property is trans
ported in interstate commerce at less
| IMAM tDe puDISucQ iifCo hdNc.
1T was proved at the trial that the Chi
| cago and Alton Railway Company trans
ported to East st. Louis. Ill, and 81.
Louis. Mo-. 1872 carloads of oil.
In all the dealings between shipper
and carrier each carload was treated as .
distinct transaction and handled as .
distinct piece of business.
The published and filed rates on this
| business were Is cents per one hundred
| pounds to East ST. Louis and 1914 cents
70 no nH2rl Oil COmnany
actually settled on the basis OF cents
! to East St. Louis and ia cents to 81.
Louis. These facts were admitted.
The Standard Oil Company interposed
| the claim in defense that the Elkins act
was unconstitutional that the tarins had
not been posted in two public places ae
| the stations. and interposed many techni-
| cal defenses.
| trial up to the return OF the verdict OF
guilty are the rulings or the trial judge
| criticised by the court of appeals In
| all other particulars his rulings are sus-
tained.
The point on which the trial judge il
reversed by the court OF appeals relates
to his rulings on evidence and his charge
to the jury with reference to ignoran0s
on the part of the Standard Oil Com
pany of the lawful rate as a defense.
The court of appeals in his opinion has
not correctly stated how the judge ruled
on this subject. II is said In the opin-
ion that he refused to admit evidence to
the effect that the Standard Oil Company
did not know what the lawful rate WAS.
The fact is. and the record so shows. that
all evidence tending to show ignorance on
the part OF the Standard Oil Company
was admitted for the consideration OF
the jury.
Controversion of Evidence.
This evidence was largely that of the
traffic manager Of the Standard Oil Com
pany. Bogardus, who swore to a con.
yersation with Hollands. the rate clerk
of the Alton, in which he said Hollands
told him that the rate had been filed.
Tho government met this testimony by
great array of circumstances which tend
ed to disprove II and the jury found in
favor of the government
The trial judge ruled that ignorance
on the part Of shipper OF what ths
lawful rate was could be interposed as q
defense, but that IL would not constitute
q defense If ii appeared that the ignor-
ance was the result of neglect on the part
Of the shipper or of wilful failure on the
part of the shipper to resort 10 the
sources of information which were availa-
BILE The government contends that this
is the correct construction OF the statute
on this subject.
The court of appeals lays down the rule
that it is necessary for the government
CONTINUED ON Fifteenth Pagc.)