Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-07-23
OCTOPUS MAY
SAVE FINE OF
$29,24O,OOO
CIRCUIT COURT OF APPEALS
GRANTS NEW TRIAL
JUDGE GRosscUP DELIVERS THE
OPINION
Justices Unanimous In overruIinu
Landis' Assessment Against OIL
Trust-Taft Refuses to
Discuss Incident
BY Associated Press.

By Associated Fress.
CHICAGO, July 22.-The United
States circuit court of appeals today
reversed and remanded for retriaI the
case of the government against the
Standard Oil company of Indiana. in
which Judge Lands in the district
court had imposed a fine of $29, ,24O, 900.
The government has thirty days
within which to file a petition for a
rehearing. and it was announced this
afternoon that it will be filed within
the allotted period.
In his opinion, which was concurred
In by Judge Seaman and Judge Baker.
dealing with the intent" feature of the
case-a vital point-Judge Grosscup
says:
I'VE should take up the subjects in
the order stated, the first being
whether shipper can without error
be, convicted Of accepting concession
from the lawful published rate, even
though it is not shown as bearing on
the matter of intent, that the shipper
at the time of accepting such conces-
sion knew what the lawful published
rate was-Ta view of the law that is
embodied In the charge and carried out
in the ruling excluding certain prof.
fered testimony, including that of one
Edward Bogardus, who, being in abb
solute charge of traffic affairs of plain
tiff in error, offered to testify that DUR
ing that period he did not know any
thing about an 1S-cent rate over the
Chicago & Alton railroad; that his at
tention had never been called to any
such rate by any person or by the ex-
animation of any document, and that
it was his understanding and belief,
based on what he was told by one Hol-
land, tariff clerk for the Alton, that
the rate over the Alton road was
cents; and that such rate had been
filed with the interstate commerce COM
mission"
Maximum Fine $4,000
Judge Grosscup's opinion leaves little
of the contention that each carload
at the 6-cent rate constitutes a sepa-
rate offense. Even the shipments, OF
which there were about 500. could not
be so considered under the ruling OF
the court The fine should have been
based on settlements between the rail-
road and the oil company.
OF these there were thirty-six. The
maximum fine on this basis would
amount to but $720,000, and the mini
mum S36, ,O00-the latter figure being
considerably lower than the S223,O00
which the Standard is alleged to have
received as rebates on the shipments
in question.
In the event rehearing is denied the
government may go to trial on the
original indictment containing 1867
counts-an action which Mr.. Sims could
be ready to take within two weeks-or
upon any one of seven other indict-
ments containing 4442 counts. As
vast amount of work has been done on
the case just recorded 1t is unlikely
that an entirely new case will be in
al l,1 nV-d nf
case contains over million and a half
words and is estimated to have cost
the government 100000.
Another Move Contemplated
Another move which may be made
by the federal authorities is to transfer
the prosecution from this Jurisdiction
to the western New York district or the
eastern Tennessee district. In these
two districts the government investi-
cation led to indictments containing
about 1000 counts against the Standard
Oil company.
The most striking portion of the de-
cison epitomizing the attitude of tho
court was as follows:
Counsel for the government say in
concluding their brief that the EllSins
act was passed because the peace OF
society and the welfare of the people
demanded it; that railroad inequality
means business ruin to all except those
DOWGrIul enough
the benefciaries of the determinations:
means the wiping out of an industry
of a town, of city, at the command OF
officers of a private corporation; that
railroad inequality is the basis OF
monopoly and the wrongful concentra-
tion of wealth; that no law of more
vital Importance was ever passed by
congress, and that those guilty of vio-
lating it are guilty of serious crime
against the principles of industrial
freedom and equality.
Admits Arraisnment Is True
every sentence of this arraignment
is true That this court recognizes the
Importance of the enforcement of that
act is shown in its affirmance of penal
ties that under other circumstances
would be regarded as very severe. But
the Interstate commerce act, important
as that law is, is not the only law under
which we live. We live under a guar
anty that reaches back to the Begin
ming of our law and is securely planted
in every constitution of civilized gov
ernment, that no one shall be punished
| until he has been heard, and above this
fundamental guarantee there can be
set no higher prerogative; for let r.
| once come to pass that, under the
stress of enforcing equality. any power
! in the government may override the
fundamental rights of being judged
only after having been duly tried--a
right just as essential In the associated
relation of corporation as to men in the
relationship of copartnership, or to
men Observation-Disclosures will remain no
commerce worth the name to safe
| guard.
1.-THE beginning Of commerce is consti-
! tutional government, and the founda-
tion Of constitutional government Is
the faith that every guaranty Of our in
| stitutions, no matter what the provo
cation, viii be sacredly observed"
The courtroom was crowded with
| lawyers and newspaper men when
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