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PAGE SIXTEEN
$29,240,000 Tine Imposed on Standard Oil Co.
Chicago, August 3. —Judge Landis
in the United States District Court
today imposed a fine on the Standard
Oil Company, of Indiana, of $29,-
249,000, the maximum amount on
each one of the 1,462 counts of the
indictment on which that company
was recently convicted of rebating.
The judge also recommended that
a call be issued for a special Grand
Jury, which is to consider the other
party to the rebating operations of
which the Standard Oil Company was
found guilty, and it is, therefore,
probable that within a short time pro'N
cecdmgs will be begun against the
Chicago offenses.
The reading of the opinion by
Judge Landis aroused almost as
much interest as the presence of
John D. Rockefeller and other offi
cials of the Standard Oil Company
upon the witness stand. The court
room was crowded to its utmost ca
pacity, and the United States Deputy
Marshals were finally compelled to
refuse admission to all late comers.
The government was represented
in the court-room by United States
District-Attorney Sims and by As
sistant District-Attorney Wilkerson.
The only attorneys of the Standard
Oil Company present in the court
room were Attorneys Eddy and Mar
tin, neither of whom bore a promi
nent part in the actual trial of the
case.
Attorney Miller, the leading coun
sel for the Standard Oil Company,
was in Europe and his chief assis
tant, Moritz Rosenthal, was in New
York. Only a few of the lesser offi
cials of the Standard Oil Company
were in the court-room.
Judge Landis began reading his
decision at 10 o’clock and consumed
approximately one hour before he
announced the penalty.
Judge Landis in his decision said
it was proved on the trial that the
defendant, a corporation of Indiana,
operates an oil refinery at Whiting,
Ind.; that the Chicago and Alton
Railway Company, a corporation of
Illinois, operates a line of railroad
from Chicago to East St. Louis, 111.,
and that the Chicago Terminal Trans
fer Railroad operates a switching
road from Whiting across the state
line into Illinois, intersecting the
Alton Road at a station called Chap
pell, a short distance from Chicago,
and that there are three companies
operating terminal roads from East
St. Louis, 111., across the Mississippi
River to St. Louis, Mo.
Prior to the occurrences upon
which the prosecution was based the
Chicago and Alton Company had filed
with the Interstate Commerce Com
mission, showing the rates for the
transportation of oil In car lots from
Whiting to East St. Louis to be 18
cents per hundred pounds, and the
rate for likfiT transportation from
Chappell to St. Louis to be 19 1-2
cents per hundred pounds.
The court says it appeared at the
hearing that the defendant shipped
its goods from Whiting to East St.
Louis for 6 cents and 7 1-2 cents to
St. Louis. The dealings of the Stan
dard Oil Company were exclusively
with the Chicago and Alton, which
rendered all bills for the through
service.
WATSON’S WEEKLY JEFFERSONIAN.
Each Shipment a Violation.
The defense argued that the Elkins
law authorized the prosecution for
but one offense, and maintained that
there could be a conviction on only
one count. The court held that the
law is violated every time any prop
erty is so transported, as the legal
rate was established by the railroad
company on a car lot basis. The
6-cent rate was granted and
accepted on that basis.
As to the defendants’ claim that
the representations by the Alton rate
had misled it into the sincere belief
that the Alton 6-cent rate had been
filed with the Interstate Commerce
Commission, the court held that as
the law required the carrier to keep
the schedule at its freight office for
public inspection, it was the defen
dants’ duty to ascertain at the rail-’
road’s office whether the rate was so
fixed, and it being for the jury to
determine whether testimony exhib
ited the truth of the transaction.
The jury having found a verdict of
guilty, it became the duty of the
court to fix the punishment.
The court then discussed the evi
dence offered by the defendants to
the effect that during the period cov
ered by the indictment, the Chi
cago and Eastern Illinois Railroad
published an open rate of 6 1-4 cents
from Whiting to East St. Louis, she
court held that this fact should be
considered in mitigation if true, al
though inadmissible before the jury
as to guilt or innocence, and the
court after the verdict had been
given directed the prosecution of all
schedules by that railroad. From
these it appeared that the Eastern
Illinois, in connection with Mher rail
way company, issued and filed with
the Commerce Commission a class
tariff and fixed the rate at 18 cents
from Chicago to East St. Louis.
On October 9, 1895, the Eastern
Illinois Company filed with the com
mission its commodity tariff fixing a
rate of 6 1-4 cents on oil from Dalton,
111., to East St. Louis, and providing
that out of this rate a switching
charge of not to exceed $3 per car
would be absorbed on shipments from
On July 1, 1903, sixty days prior
to the beginning of the period cov
ered by the indictment in this case,
the Eastern Illinois issued its joint
tariff No. 17,679. This general class
tariff provided that between Chicago
suburban stations, including Whiting,
Ind., and East St. Louis, 111., 1 ‘the
current rates in effect from Chicago,
111., should apply, except on coal,
coke, grain and grain products, lum
ber and articles taking the same rates
or arbitraries higher, live stock and
hay.”
Oil Not Excepted.
Oil was not included in the com
modities thus excepted from these
class rates. Among the tariffs spe
cifically named in connection with
which this schedule was to be effec
tive were tariff No. 7986, above men
tioned, which fixed a rate of 18 cents
per hundred pounds on oil from Chi
cago to East St. Louis, and the tariff
hereinbefore referred to, to which the
Eastern Illinois road was a party,
which is described as a tariff on
* * classes and commodities between
Chicago and East St. Louis,” and
which also showed the rate on oil
to be 18 cent!. The court held that
its effect was to exhibit to the gen
eral shipping public a rate of 18
cents on oil from Whiting to East
St. Louis.
The court then recites that on
July 7, 1903, one day after this
tariff became effective, the Eastern
Illinois Company, apparently recog
nizing that the effect of this tariff
was to nullify the six and a quarter
cent rate shown by its schedule No.
8,073, effective in October, 1895, is
sued what it denominated ‘‘amend
ment No. 1 to tariff No. 7,986,” that
being the Eastern Illinois class tariff
of September, 1895, which had fixed
a rate of 18 cents per hundred
pounds on oil from Chicago to East
St. Louis, and which was embraced
within the general class tariff re
ferred to.
This amendment purported to can
cel the six and one-half cent Whiting
and East St. Louis oil rate shown on
the tariff filed with the commission
in October, 1895, and named a com
modity rate on oil of 6 1-4 cents per
hundred pounds from Chicago and
Dalton Junction, 111., to E. St. Louis.
However, the amendment No. 1 was
not filed with the Interstate Com
merce Commission until March, 1906,
one year a tier the expiration of the
period covered by the indictment and
nearly three years after its. issue. In
view of these facts, the court held
that the Eastern Illinois situation
could not serve the purpose of excus
ing or palliating the accepting by the
defendant of the unlawful Alton six
cent rate. •
The court then reviews its action
in determining what, corporation held
the stock of the defendant Standard
Oil Company of Indiana. This de
monstrated that a very large pro
portion of the stock was held by in
dividuals for the stockholders of the
Standard Oil Company of New Jer
sey, which has outstanding stock of
approximately $100,000,900.
The court discusses at length the
various defenses offered by counsel,
and says the nominal defendant is
the Standard Oil Company of Indi
ana, a million dollar corporation.
The Standard Oil Company of New
Jersey, whose capital is one hundred
million dollars, is the real defendant.
This under the laws of one state foi
the purpose of carrying on business
throughout the United States and for
the accomplishment of that purpose
absorbs the stock of other corpora
tions, such corporations so absorbed
have thenceforward but a nominal ex
istence. They cannot initiate or ex
ecute any independent business
policy.
Fine of $29,240,000 Imposed.
The court then passed judgment as
follows:
“It is the judgment and sentence of
the confit that the defendant Stan
dard Oil Company pay a ffne of $29,-
240,000.
“One thing remains. It must not
be assumed that in this jurisdiction
these laws may be ignored. If they
are not obeyed, they will be enforced.
The plain demands of justice require
that the facts disclosed in this pro
ceeding be submitted to a grand jury
with a view to the consideration ot
the conduct of the other party to
these transactions. Let an order be
entered for a panel of sixty men re
turnable at 10 o’clock on the morn
ing of August 14. The United States
District-Attorney is directed to pro
ceed accordingly.”—New York World.
PROHIBITION WILL BE LAW IN
FIVE MONTHS.
The victory is won.
By a vote of 139 to 39, the house
of representatives has passed the
Hardman-Covington bill, putting ab
solute prohibition into effect on Jan
uary 1, 1908.
The bill must go to the senate for
concurrence in amendments which
have already been recommended by
the temperance committee of that
body, and which will certainly be
adopted. Then it goes to the gov
ernor for his signature, and will be
come a law. The governor has
pledged himself to sign the bill.
It was Seaborn Wright, of Floyd,
who opened the Tattle of oratory.
For twenty and one-half minutes he
spoke, and everybody in the house lis
tened. He reviewed the amendments
and substitutes which had been of
fered and his words showed that in
trying to change or alter the measure
decided upon after careful delibera
tion by the majority, the minority
was rushing against'a stone wall.
Adams, of Chatham, led the at
tack against this stone wall, in a
speech of seventeen minutes. It was
forceful. It was eloquent. But with
all its force and eloquence, it lacked
convincing power, and when it was
finished not a rent was there in the
stone wall. \
The vote on the Barrow amend
ment, to postpone making the bill ef
fective until January 1, 1909, and
making the state license SI,OOOTn the
meantime, was the first test vote as
to prohibition strength.
This vote of 128 to 49 filtered
through the doors into the corridors
and was eagerly received by the wait
ing throng. A mighty shout went up.
The final roll call on the bill —the
call that was to make Tuesday’s
session of the lower house one that
would be marked from any other in
many years—commenced at 6:45
o’clock. Each member was allowed
three minutes to explain his vote.
Eagerly were the Votes counted as
recorded. Reporters anxiously count
ed those voting in favor of the bill
until the majority of 92 was reached.
Dewberry’s Delight.
If you are not enjoying good health
it is your own fault, an "Dewberry's
Delight' Is within the reach of every
one, as those who are really not able
to buy a bottle can get a trial bottle
free of charge by calling er writing
to the office, 231-2 Whitehall street,
Atlanta, Ga.
“Dewberry’s Delight" is just what
you need at this season of the year
to remove that foul waste matter from
the system, so you oan sleep and
rest, which is the only way yeu can
restore the nerve force, by good sound
sleep. So you see how essential it
is to keep the liver, bowels sad M -
neyg right, to keep the system clear
of waste matter which obstructs the
nerve force and paves the way for all
diseases.
All druggists sell IL