Rensselaer Semi-Weekly Republican, Volume 39, Number 96, Rensselaer, Jasper County, 9 August 1907 — STANDARD OIL COMPANY FINED $29,240,000 [ARTICLE+ILLUSTRATION]

STANDARD OIL COMPANY FINED $29,240,000

- Judge Kenesaw M. Landis of the Federal District Oojnrt in Chicago on Saturday fined the Standard Oil Company $29,240,0001 for having violated the Elkins law pertaining to rebates, on 1,462 counts. It was the maximum penalty permitted by the statutes. And it is the largest assessment for an infraction of law that is recorded in all history, for all governments. This vast sum of money is not to be paid without protest, however. Attorneys for the oil corporation announced their intention of perfecting an appeal to the United States Court of Appeals. From there It is announced the case will go to the Federal Supreme Court. Judge Kenesaw M. Landis of the United States District Court, who inflicted the unprecedented penalty, did not stop with the imposition of the fine. He directed attention to the “studied insolence” of the legal representatives of the corporation to the court of which he was the representative and commented forcefully upon it. After denouncing the methods of the oil company, which lie declared imposed burdens ui>on every class of citizens and wounded society more deeply than open depredations of criminals, the jurist expressed regret that only a fine could be imposed for violations of the law under which the company was indicted. While this regret was being voiced it was recalled that there still are pending against the oil corporations seven Indictments like the one just disposed of, containing 4.422 counts. Should there be convictions on all these counts there would be possible additional fines *K)f $55.440.000. Sprtnira Second Senuntlon. While occupants of the crowded courtroom leaned forward in amazement at the drastic arraignment of the corporation and the gigantic penalty meted out to it. the jurist stirred them anew. Judge Landis had no sooner mentioned the amount of the $29,240,000 fine than he caused a second tremendous seusatton that he would call a grand jury to investigate the relations of the railroads to the big rebate conspiracy. In view of his remark that the penitentiary was the place for the and that Congress at the last session passed an act under which they may be sentenced to serve tfane*. the effect was electric. . “Rockefeller and his associates, together with the officials of the Chicago and Alton Railroad, might be want tn the penitentiary ns the result of this new Investigation,” admitted one of the attaches of the District Attorney’s office. "This could only be done If the offenses have been continued since Congress made conspiracy in restraint of trade a penitentiary offense.” It was a dramatic morning In court What Judge Landis had to say to John D. Rockefeller's trust will live as on* of the most remarkable utterances coming from, the bench. Twice Judge

Landis was applauded. But he halted the demonstration himself, rapping fiercely on the wooden desk in front of him with his bare knuckles. Backed by the cohesive forces of the United States authorities, it is expected that Judge Landis will proceed against the railroad companies that gave to Mr. Rockefeller's oil trust Illegal rebates. And he.will attack the individuals of both the oil and the railroad corporations instituting and permitting such preferential rates. The railroads are likely , to be indicted on lines identical with the procedure in the Standard Oil cases fined by Judgq Landis. The individuals will be prosecuted under the conspiracy act under wlilch, after conviction, there Is prescribed a penitentiary sentence. Thus John D. Rockefeller, William Rockefeller, John D. Arohbold, 11. H. Rogers, J. A. Moffett and other officers of the Standard Oil Company, together with the contracting freight officers, auditors and other executives of the offending railroad companies are to be Indicted with the end tn view’ of placing them In prison. The session was declared by many of the lawyers to be an epoch-making one In national history. From the Federal bench and with the co-opera-tion of the States Government prosecutors tlw Standard Oil Company had received commensurate with the vastness of its hold Inga If the parent body of New Jersey does not come to the assistance of its subsidiary branch It is considered likely the Indiana company will succumb. From the bench it has been denounced as lawless, Insolent and menacing to the nation. The accepting and granting of rebates has been declared to be the chief cause of Its wealth and the reason for the death of Its rivals. The Infliction of the maximum fines has established a precedent that Is taken to mean the elimination of rebating and the probable prosecution of railroad officials on charges of conspiracy to violate the Interstate commerce law, punishable Uy penal Imprisonment.