A Record Fine.

Timaru Herald, Volume XIC, Issue 13397, 21 September 1907, Page 1 (Supplement)

A Record Fine.

• .. £5,848,000. A message to London from Chicago on August. 4th read as, follows : Judge Lauuio, of ihe Federal Court, has given his decision in the case .against tha Standard" Oil Company of Indiana. In giving judgment, he riiade some- scarifying comments as to the Standard Oil methods, and wound up by imposing '.a fine, which makes a record—£s,B4B,ooo. The case has been proceeding for some months, there being no fewer than 1,462 counts in the indictment, which charged the Standard Oil Company of Indiana with accepting rebates from the Chicago and Alton Railroad in contravention of the Elkins Law. There, is ..a Standard Oil plant at Whiting, Indiana, and' while the Government was informed that the railway rats from there to St. Louis was 18 cents, per 1001b., the Standard Oil were allowed rebates enabled them to send their produce at six cents. Judge Landis said he would inflict the maximum penalty under the law, and he only regretted that he could not add imprisonment. He commented upon the fact that the Standard Oil Company of New Jersey, with its capital of £20,000,000, was the real culprit, for it had absorbed thj concerns in other States, and admittedly was the parent of the nominal defendant in this case.

He spoke in unmeasured terms as to the rebate method of trading, describing it as 3, crime, and tha operators of it asi men who wounded society more seriously than the makers of bad money or the pilferers of letters from the mail.

He further intimated that the grand jury would immediately proceed to investigate the part taken by the Chicago and Alton Railroad in allowing the rebates. It is believed thai this is but part of the ground to be covered by the grand jury, for Standard Oil magnates aro nervous that action may be personally taken against them.

The rai'road officials are terrified' lest the investigation should lead to criminal prosecutions against them, for the penalties include the prospect of two years imprisonnu'iit. Officials of other companies are no less perturbed, for in scarcely a State, of the Union has there bem freedom from rehates in >.pite of tho Inter-State Commerce Laws against, the system. Mr John D. Rockefeller is in rttLiement at Ivg home at Cleveland, Ohio, and all inquirers have been refused .admission. There is a report that he is prostrated at the prospect of the dissipation of the huge commercial concern, which his energy lias built up. Whether or not the fortunes of the men who run the Standard Oil can be touched in case of non-payment of the fines—a matter on which there is a divergence of opinion in lf>gal circlets—the prospect for tlu> Standard Oil Company is not alluring, for there aro indications threatening it in other States which, if all resulted in maximum penalties, would result in additional fines giving a grand tolal of £17.688,000. Within ten days'an appeal to the Higher Court will filed by the Standard Oil. but if it fails, it is interesting to consider how the situation will develop, for the Indian;! concern cannot pay the money on its capital, and how far the limited liability will b.' held to avail, or whether the property of the company will be seized, remains to be seen.

In addition, there is a possibility under ths Elkins Law;, and other similar legal guards again-t unfair competition, that the great niillioiiairu. may find them>vh'es i.abject to ciiuiinal prosecutions, under which (lie courts will be empowered lo send them to piison for lengthy [icriodti if convicted. A great dval hangs upon th;< result of the appeal beyond the affairs of the Standard Oil for the Government have <|ititc a number of similar actions againvt tniils. including the Tobacco Truut and the l'ish Trust,