The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1909-02-26
BIG STANDARD OIL
FINEREDUCEO TO
THOUSANDS
Penalty Of S29,OOO,OOO May
Be Cut to $4,000
SETTLEMENTS NOT CARL DADS
Judge Anderson Rules that Each Ship
ment Cannot Constitute an
Offense

Chicago Feb 26.-From Judge Ian
dis fine of $29.24O,OOO to a possible
maximum fine of $4,000 is a far cry,
but that is admitted to be the mean
ing of ruling made by Judge Ander-
son in the retrial of the Standard Oil
Company of Indiana for alleged rebat.
ing yesterday. The ruling was infor.
NAL and made for the purpose of ex-
pediting the hearing, and although
the government has the privilege of
presenting further arguments 1t is
practically certain that there will be
no change in the ruling when it is for
mally entered
The decision of the Court of APP
peals which reversed Judge Lands
eliminated the view of that jurist that
each car lot of oil on which a rebate
was accepted constituted a separate
offense. There were l462 of these car
lots, and the freight charges were paid
in 36 different settlements. Judge
Anderson interpreted the decision of
the appellate court, which he said ser
we'd as his guide, to imply that these
alleged rebates accepted after each of
the thirtysix settlements constitute
the unit of otfense. The appellate
court did not so state explicitly, nor
did ii clear up the point whether the
alleged offence was continuous one,
the whole forming a single violation
of the Elkins law.
Judge Anderson's ruling was a sew
ere blow to United States District At
torney Sims and his associates in the
prosecution. He and his assistant,
James H. Wilkerson, had argued that
each shipment, of which there were
so, making possible a maximum fine
Of $l000O,000 constituted an offense
This view Judge Anderson declared he
could not understand He said that
it had not been made plain what COM
prised a shipment-a trainload, car
lot, or a gallon He saw no reason
why. if a trainload or a carlot were
regarded as separate offense the
matter might not be further divided,
making a hundredweight the unit, or
gallon, greatly increasing tn enum-
Der of offenses and magnifying the
punishment.
The division of alleged offenses, he
said seemed to fall naturally in thir
ty-siX parts or counts, each marked
off by money settlement 1t was in
these settlements that rebates, if any,
were made and received.
Mr. Wilkerson argued that the fine
which would be possible under the
courts ruling would serve merely as
a license to a great corporation On
this point Judge Anderson said, in eff
feet:
That is consideration which has
no weight with me whatever. | am
not concerned with the effectiveness
of the statutes but with their interpre.
tation and application If the view
that | have taken has the effect that
has been stated. that is a matter for
the lawmakers to consider. If their
laws are inadequate let them supply
a remedy"
The reversal of Judge Lands was a
telling blow, but yesterdays was
crushing, according to lawyers for the
defendant A fine of $10,0OO,O00 it
was believed would suffice to indicate
that the government had the power to
deal efficiently with alleged corporate
evils Judge Anderson's ruling. it is
said, removes even that chance. The
case will be prosecuted to the end
however.
The Elkins law is held by Mr.. Sims
to have failed in its greatest test. It
is said to be doubtful if any other case
against the Standard will be brought
under this act, although other indict.
ments notably in Tennessee, still
stand against It,