Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1908-07-23
STANDARD OIL
WINS APPEAL
ON BIG FINE
JUDGE Lands REVERSED
CASE ORDERED RETIRED
Government Given Thirty Days
in Which to File Petition for
Rehearingi Constitutional
Grounds Basis of Decision.
lp, MornInr Journal ss.eIaI 1.a..a WIrs.l

IBy Morning journal snecInI IAaesd Wire.l
Chicago, July 22-The United States
circuit court of appeals today reversed
and remanded for re-trial the case Of
the government against the Standard
OIL company of Indiana. in which
Judge Lands of the district court had
imposed a fine of $29,240.000.
The government has thirty days
within which to file petition for a
rehearing, and 1t was announced this
afternoon that 1t 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:
we should take up these subjects
in the order stated the first being
whether a shipper cam without error
be convicted of accepting cOnces-
sion from. the lawful published rate
even though 1t is not shown, as bear
ing on the matter of intent, that tho
shipper at the time of accepting such
concession knew what the lawful pub
lished rate was--a view of the law
that is embodied In the charge and
carried out in the ruling, excluding
certain preferred testimony, including
that of one Edward Bogardus. who,
being in absolute charge of traffic af-
fairs of plaintiff in error, offered to
testify that during that period he did
not know about an 1S-cent rate over
the Chicago and Alton railway; that
his attention had never been called ~
any such rate by any person or by the
examination of any document, ana
that II was his understanding, belief,
based on what he was told by one
Holland, tariff clerk for the Alton
railroad, that the rate over the Alton
road was six cents. and that such
rate had been filed with the inter-
state commerce commission"
Judge Grosscup's opinion leaves lit
tie of the contention that each car
load at the six cent rate constituted
ia separate offense Even the ship
ments, OF which there are about 510,
should not be so considered under the
ruling of the court. The fine should
have been based on settlements be-
tween the railroad and the oil COM
pany. OF these th~re were Just Sc.
The maximum fine on this basis would
amount to but $72O,000 and the min
imum $36, 6,000-the latter figures be-
ing considerably less than the $223,-
600. which the Standard Is alleged to
have received as rebates on the ship
ments in question.
In the event a rehearing Is denied
the government may go to trial on
the original indictment containing
|, ,462 counts--an action which Mr..
Sims could be ready to take within
two weeks--or upon any one OF seven
other indictments containing 4422
counts. AS a vast amount Of work
has been done on the case just de-
cided 1t Is unlikely that an entire
new case will be instituted The rec
ord of the present case contains over
"a million and a half words and Is es-
timated to have cost the government
5000, 900.
Another move. which may be made
by the federal authorities, Is to trans
fer the prosecution from this juris-
dlctlon either to the western New
York district, or to the eastern rem
nessee distdlct.
In these two districts the govern
ment investigation led to indictments
containing about 1900 counts against
the Standard oil company.
The most striking portion of the
decision epitomizlng the attitude of
the court was as follows:
Counsel for the government say in
concluding their brief that the Elkins
act was passed because the peace of
society and the welfare of the people
demanded IT. that railroad inequal-
ity means business ruin to all except
those powerful enough to make tham-
selves the benefieiarIes Of the discrim-
nations; means the wiplng out of an
Industry, Of town, of city at the
command OF an officer OF d private
corporation: that railroad inequality
Is the basis Of monopoly and the
wrongful concentration OF wealth. that
no law Of more vital Importance was
ever passed by congress; and that those
guilty of violating 1t are guilty OF
a serious crime against the prlnci-
pies of the Industrial freedom and
equality
Every sentence of this arralgnment
is true. That this court recognizes
the Importance. OF the enforcement OF
that act Is shown In its affirmanee OF
penalties that under other circum-
stances would be regarded as very Sc
we're. buA NtiC iHttIoAilt commerce.
act important as that law is, is not
the only law under which we live
We live under a guaranty that reaches
back to the beginning OF our law and
Is securely planted in every constItu-
ton of civilized government that no
one shall be punished until ne has
been heard and above this fundamen-
tai guaranty there can be set no high
er prerogratlve: for let II once come
to pass that under the stress OF en-
forcing equality. any power In the
government may override the funda-
mental rights Of being judged only af-
ter having been duly tried--a right
Just as essential in the associated re-
latI0n OF corporation as to nnsn IN the
relationship Of partnership or 10
men individuaIly--there VIII remain
no commerce worth the name to Hale-
guard. The beginning OF c0mmefea Il
constitutional government and fhf
Foundation Of constitutional govern.
ment Is the faith that every auafHn-
Ity Of our institution. OF no matter
what the provocatlnon. VIII be aaered-
Is observed"
The court room was crowded wifi
lawyers and newspaper men when
Judges 0roHcup, Baker and Seaman
took their seats. Judge 0rosseun dif
mot read the document. merely refer.
ring 20 4 By number and stating Ihal
the case had been reversed and r.