Watson's weekly Jeffersonian. (Atlanta, Ga.) 1907-1907, August 08, 1907, Page PAGE SIXTEEN, Image 16

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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