The news-democrat. (Providence, R.I.) 1906-1909, 1907-12-30
CORPORATIONS Chief
EXPLAINS RATE JUGGLING

washington. Dec. 30.--The fierce con-
troversy between tho government officials
and the Standard Oil company over the
Justice OF the oil companys conviction
Tor rebating in the so-called Alton case.
which resulted in the inflction of the
S29.24oooo fine, continues.
Commissioner Herbert Knox Smith OF
the bureau of corporations. in answer to
the pamphlet sent out by the STANDARD
Oil company early In October. has filed a
report. I'm which he says James A. Mof-
fett's assertion that there iS no question
OF discrimination or rebate In the case,
is only quibble.
The commissioner explains at length
and with much detail rate juggling by the
Alton on oil shipments from Whiting,
Ind. 10 East ST. Louis. Ill
Mr.. Smiths answer was called for by
Secretary Straus OF the department OF
commerce and labor. because the bu-
reau OF corporations discovered the dis
ordinations and reported on them TO the
president In May. 1906
Mr.. Smith makes Mr. Moffett his target
In the greater part OF his report He SAYS
the indictments of the Standard Oil
company were bsed upon his 1906 report
which set forth In detail the Deliberate
lcng-continued conduct on the part OF the
Standard in violating tho anti-rebate
laws"
The company's statements after the
trial and conviction. he says. make Il
necessary to show once more that the
trapsactions which caused the conviction
''were such as strike at the very life
End spirit OF the Elkins anti-rebate law
and OF the policy OF congress In forbid
dug unfairness as between shippers"
MIR. SMITHS REPORT.
Commissioner Smiths report is I'm part
rs follows:
"on Aug. ,. 1907. at Chicago, the
Standard OIL company of Indiana was
lined S2s.2f0oo0 for the violation OF the
ElKins anti-rebate law. This was tho
eo-called Alton case Various state
nients have since appeared. one in par
ucular signed by the president OF that
company, James A. Moffett, others I'm the
pubic press, and also a series OF con-
udential circular trade letters all en-
0eavoring TO throw doubt on the legality
and equity OF that conviction.
The report OF the commissioner OF
corporations on the transportation OF
petroleum. published I'm May. 1906. on
which this and all other pending rebate
indictments OF the Standard (exceut Snel
were based, set forth I'm detail the de-
lioerate, long-continued conduct on the
part or the Standard I'm violating the anti
rebate laws. But these recent state
ments have made Il necessary 90 show
once more that the transactions which
oorm the basis OF this conviction AZ
chicago were such as struck at the very
life and spirit of the Elkins anfl-robate
law and OF the policy of congress In for
bidding unfairness as between SINNERS
QUESTION OF SECRET RATE.
'The question in this case was ono of
. published 1s-ccnt rate 10 East ST Louis
as against n secret 6-cent rate. The oil
shipments involved IN this so-caliod
Alton conviction started from Whiting
Ind, the great refinery OF the Standard
near Chicago. and were delivered al s,
Louis. Mo-. or at East ST Louis. IN. ius,
across the river from ST Louis bv tho
Chicago and Alton railroad. They COW
cred a period from Sept. /. 1900. TO March
!. 1906
"The law requires that all interstate
railway rates be filed with tho inter-
state commerce commission. During this
entire time fhcre was on fie with the
Interstate commerce commission n Joint
'tarin' or rate sheet 20 which the Alton
road was a party, showing that tho rate
on nfth-class freight from whiting and
Chicago 90 East ST. Louis was Is cents
per 100 pounds. Fifth-cisss freight In
c1udts petroleum on This joint tariff
~as large printed document distributed
10 many shippers of all sorts of freight
"rjurine the time 80 stated 1862 cars
- oil were carried from Whiting. Ind.