The Birmingham age-herald., 1910-11-10
Fines of s30,0OO,O0O May Be Assessed Upon Conviction
COMPANY ASKS DISMISSAL
Is that the Pleading of Prosecut- ing Attorney Does Not Agree
 With the Indictment

Jackson, Tenn, November 9.--The suit
 of the United States against the Stan-
 dard Oil company of Indiana, charged with having illegally accepted freight
 rate concessions. progressed only so far as the presentation of the prosecution opening contentious today. The discus sion on a technicality began and con tinued until court was adjourned for the day. Judge John E. Mccall, before whom the case is being heard. finally over ruled for the time a motion of the de- fense seeking the dismissal of the suit be- cause of what they construed a fatal variance between the allegations of the indictments and the assertions of W. s. Gregg, special assistant to the attorney general, who argued for the government. In his argument MT Gregg referred to the transporting" of a car of petroleum products from Evansville, Ind. to Bir-
 mingham, Ala. The count of the indict-
 ment he was citing as Illustrative or others told of the shipment of the car | from Whiting Ind, to Grand Junction, Tenn, and it's reconsignment to Birming- | ham, The fact that it was transported l from Evansville, Mir. Gregg explained, was point the government would seek to prove in support of their contention that the proportionate portion of SS- cent per hundred rate, which holds with regard to shipments from Evansville to
 Birmingham, should have been charged from Evansville to Grand Junction. In- stead, he asserted, the proportionate of a i3-cent rate quoted on shipments blind billed from Whiting to Grand Junction for points beyond was charged. Dismissal Sought
 1 When he concluded, R. W. Stewart, counsel in chief for the oil company, en-
 tered a motion seeking the dismissal of
 the suit. He contended that the decla-
 ration of MT. Gregg was at wide variance with the indictment allegation, thereby nullifying the bill.
 Argument between opposing counsel
 followed at length, the discussion turn ing largely as to the construction to be given to the words shipment and
 transportation"
 | Judge Mccall ruled that the motion would not stand at this time, but might l be revived after the presentation of evil
 dence. That this point will be vigorously contested later was indicated by parties to the suit.
 The review of the governments case bv MT. Gregg was in detail The indlct-
 ment. which was returned by the federal grand jury four years ago. charges that in 1924 instances during the years 1903, 1904 and 19o5 the Standard oil company violated the "EllSins law
 Blind Billing
 If will be contended. MT. Gregg ex-
 plained. that shipments originating at
 Whiting were blind billed" to points be-
 yond Grand Junction to gain the advant-
 age of a 13-cent rate to the latter point;
 that while this tariff was formally filed with the interstate commerce commission the defendant company 'schemed and
 devised, to keep the rate secret and that when the shipments were given to the original carrier, the Chicago Terminal company, the rate was omitted and later filled in when the bills were returned by the agent of the Illinois Central railroad
 at Grand Junction to the auditor of his
 road at Chicago.
 The suit at issue will differ materially from the allegations of the so-called Chi cago case, which resulted in the $29,240,O0O fine being imposed by Judge K. M. Lam dis. 1t was announced by counsel for the prosecution this afternoon.
 It was also stated that a vigorous effort will be made by the defense to secure a court ruling, holding that settlement and not a shipment would constitute grounds for the allegation of a violation of the statute in question.
 At the conclusion of todays session the jury was excused until ton$c-sow after noon to permit the attorneys to check up a. total of 6960 documents which are to be offered as exhibits with the different counts of the indictment.
 Mass of Evidence
 The announcement of ready for trial today followed a month spent in the assembling of a mass of evidence which promises to carry the hearing we'll into next month During the trial the con tentions of the government will be ad- yised by United states DlStrlct Attor- ney Casey Todd; w. G. Gregg. special assistant to the Attorney General of the United States; former District At torney Randolph and Assistant District Attorney Yandell Haun.
 The defense will be represented by Chester G. Bond of Jackson and R. W. Stewart, c. w. Martin anu J. S. Miller of Chicago.
 The bill pending Is probably the most voluminous ever drawn In this state
 It includes 1924 counts and, in bulk
 makes volume of legal cap paper
 six Inches between covers. Specific
 ally it is charged that the oil company in question accepted Illegal concessions from several railroads of the south and west. made possible through the blind billing of petroleum and petroleum products from the companys refinery at Whiting. Ind. to Grand Junction, Tenn. and thence re-shipped to various cities and towns In the south and southwest. According to the indictment five transportation companies partici- pated in the haul. First the goods went over the lines of the Chicago Terminal company as far as Dalton