The Plymouth tribune. (Plymouth, Ind.) 1901-1911, 1909-03-18
ANDERSON FINDS
FOR OIL TRUST
TAKES SUIT FROM JURY DE.
CLARING GOVERNMENT HAS
NOT PROVED CASE.
Verdict Kills the Elkins Statute At
torney Sims Feels Defeat in Big
Case.

Standard Oil administered another
crushing defeat to the United States
government forces IN the federal
court Wedne day when Judge Ander,
son took the famous rebating cases
from the hands of the jury and in
structed them to return a verdict OF
mot guilty In instructing the jury
regarding the verdict Judge Ander-
son handed down a decision which is
she most far reaching ever delivered
regarding criminal prosecution oil
shippers who secure rebates from rail
roads, and according to the United
States district attorney, practically
wipes the Ell1ins law off the statute
books.
The decision of the court in favor
of the Standard Oil company came as
severe blow to United States Dis
riot Attorney and Special Counsel
James H. Wilkerson, and they had
difficulty in hiding the keen disap-
pointment which oppressed them. At
torneys John S. Miller and Moritz
Rosenthal for the defendant, while
not expressing any outward exulta-
tion, were elated over the sweeping
decision of the court, and after court
1ad adjourned, in interviews, declar-
II +t,a oa.d NJ
ter the shipper-in this case and
others prepared by the government
me shipper is the oil trust-.n the
ace of the fact that fhe Elkins law
was framed for the purpose OF pro-
noting trade and that it was a sell
evident fact that had the carrier, the
Chicago and Alton railroad been in
dicted, a conviction would have been
secured
Lands Ruling Reversed.
Judge Anderson, in his ruling COM
pletely reversed the rulings made by
Judge Kenesaw NJ Lands in the first
rial OF the case, which resulted in
the Standard Oil company receiving
a fine OF $29,24O,000, this fine alter
wards set aside when the United
States circuit court of appeals re-
versed the case, Judge Grosscup writ
ing the opinion.
Judge Anderson, in his talk to the
jury, declared that the government
had attempted TO prove the legal tar
If rate on oil between Whiting, Ind.
and East ST. Louis was 10 cents and
that the Chicago and Alton road had
hauled oil between these points for
The Standard Oil company OF Indiana
for cents, but that the government
had not proven the IS cent rate or
any rate to be the legal rate, because
Tariff sheet No. "a, filed by the rail
road, placed oil under the Illinois
classification in the freight rate
schedule was subject TO change and
therefore was not standard
Besides this, the courts statement
to the jury pointed out that the Chi
cago and Alton road had to make its
own tariff rates and the Illinois clas-
si6catbon of commodities is prepared
by the railroad and warehouse com
mission of Illinois. The 1s-cent rate
arrived at by the government, ac-
cording to the court, comes through a
process of cincumIocution which
raises a reasonable doubt regarding
The 1s-cent rate being the legal rate
of the railroad
Ruling Destroys Elkins Law.
The entire case is so surrounded
with technicalities that the govern
nent attorneys declare that under
Judge Anderson's ruling no railroad
mas established legal tariff rate as
required by law. although apparent
ly doing so, and that, therefore, it is
impossible for the government to
prove legal rate in any case. This
destroys the efficacy, according TO
United States District Attorney Sims
and his assistants, OF the Ell1ins law
so far as it relates to prosecuting
trusts" which secure railroad re-
oates This is also the opinion of At
.orney John S. Miller, who states that
HE government could have proceeded
only against the Chicago and Alton
Dad because it did not file its legal
ariff rate with the interstate COM
merce commits sion.
Decision is Far Reaching.
Judge Anderson's ruling is a mat
ter of legal Interpretation and the
opinion he has given covers a large
amount of ground. In fact, it is one
of the most far reaching opinions
ever handed down in this district We
believe that it means that If the gov
eminent can ever hope to prosecute
a shipper for rebating that either the
entire procedure of criminal practice
will have to be changed or that the
entire system of rate making now
used by the railroads will have TO be
changed by law.
THE provisions OF the Elkins law
under which indictments were secur-
ed against the Standard Oil COM
pany, coupled with the way tariff
rates are fixed by the different rail-
roads, make IT impossible for convic-
tions to be secured against shippers
railroad rebating cases under Judge
Anderson ruEnQ"