Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-09-11
STANDARD OIL FILES REPLY
Resists Effort of. Government to Sc
cure Rehesring.
QUOTES FROM WORDS OF lands
Insists He Was Imposing Penalty on
Parent Corporation and Not the
Standard Company of
Indiana.

CHICAGO, Sept. 1O-Coursel for the
Standard OIL company of Indiana. in an
answer filed today to the petition of the
government attorneys for a rehearing OF
the appeal from Judge Lands judgment
fining the company S29.240OOO for violation
of the anti-rebate laws, uphold the de-
clsion Of Judges Grosscup. Baker and Sea-
man of the United States circuit court Of
appeals, reversing the judgment and lift
ing the burden of the enormous fine, as
good law, amply justified by the record in
the case.
Point by point the answer, which was
formally placed on record at the opening
of the office of the clerk of the
court, by Colonel r. W. Stewart, general
attorney in Chicago for che Standard OIL
company takes up the arguments Of the
petition for rehearing, which set forth al
leged errors, and particularly suggested
that the upper court has erred in its un-
derstanding of what the trial Judge really
had said concerning the previous offenses
by the Standard, oil company of Indiana
or the Standard Oil company Of New Jer-
Fey.
which Company Was Fineds
In the petition for rehearing the review
ing judges are charged with assuming that
]
the Standard Oil company of New Jersey
in the original proceedings, which were
against the Standard oil company of In
diana. on this point the answer declares
1t to be a matter of no consequence
whether the trial court referred to the
New Jersey company or the Indiana com
pany as not virgin offender" 'The
real point is" says the answer, did the
trial court in imposing punishment, take
| into consideration the relation between the
Standard OIL company of New Jersey and
the Standard Oil company of Indiana, and
did 1t base its fine upon the wealth OF
the Standard Oil company of New Jersey,
and its ability to pay, instead of upon the
wealth of the Standard oil company of
Indiana, and its ability to pay7"
To determine this question the Standard
OIL attorneys assert that a few sentences
extracted gy the government counsel from
the words of Judge Lands are not suffl-
cient and quote at length from Judge
Landis' opinion to show that he referred
to the New Jersey corporation as the real
defendant" and to the Indiana company
as the nominal defendant"
The conclusion stated by the answer is
that the enormous fine inflicted upon the
defendant was because of the ownership
Of its stock by the Standard OIL company
OF New Jersey. and because the financial
standing of the latter corporation is beyond
dispute when the entire opinion of the
trial court is considered
Copies Of the answer of the Standard OIL
company were served later in the day on
the chief clerk In the office OF United
States District Attorney Sims.
Hearing May he I'm October.
Under the rules OF federal judicial pro-
| cedure. the government attorneys have the
right to file reply to the answer to their
petition II they discover in it new matter
which they consider needs a rejoinder.
The answer will be presented to Judges
! Grosscup, Baker and Seaman of the United
States circuit court of appeals and will
probably be considered at the October term
Of court, which opens October G.
1t is not usual for the court to hear
arguments on a petition for rehearins
cases being decided on petition and answer
without oral argument unless otherwise or
dered by the court.
request to hear argument from either
side could under the rules, be honored
| by the court First Assistant District At
torney James II. Wikerson said today:
Il am not in a position TO say what
course the government will pursue. Mr.
Sims has not returned from his vacation
and whether we reply to the answer or ask
,. for oral argument. will depend on his de-
cison after he reads the answer, which
have not seen myself as yet"