The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1907-12-31
Commissioner of Corporations
on Standard.
Makes Full Reply to Statement of
oil Trust Following Decision
of Judge lands.
COURTS POSITION

Wash ngton, Dec. 31.-Herbert
Knox Smith, commissioner of cor
porations, has come to the defense
and support of Judge Kenesaw NJ.
Lands, of Chicago, in his action in
Imposing a fine of $29,240, 900 on
the, Standard Oil company several
months ago with a detailed state
ment designed to meet statements
made BY Standard OIL people and the
Chicago and Alton railroad people
soon after the immense fine was I'M
posed for rebating. In the closing
paragraph of statement of several
thousand words Commissioner Smith
says:
THE Standard undersold competi-
tors in the great southwest by means
OF this 6-cent rate TO the st. Louis
gateway, and, having undersold them
and driven them out of that territory,
Il then raised prices to a monopoly
figure so that its marketing concern
there was making over go per cent
on its capital stock in 1904, and for
long series of years had been max
ing profits extortionately high. Thes,
profits were thus based on this secret
discrimination, which has been in
existence over fifteen years.
"The enjoyment of this discrimi-
natory rate was well worth many
millions of dollars to the Standard,
and most emphatically justified the
imposition of a great fine when thai
rate was finally discovered and con-
victiOn was secured thereon"
Answer TO Standard Pamphlet.
The statement is made in compli-
ance with a request from Mr.. Straus,
secretary of commerce and labor,
who directed Commissioner Smiths
attention in October to a certain
printed pamphlet which had been
sent to the department. entitled
"From the directors Of the Standard
lou company to its employees ana
stockholders" This pamphlet. par
lticularly the statement of James A.
Moffett. president of the Standard OF.
company of Indiana, attempted to
throw doubt on the merits of the
convention of the Standard Oil COM
pany of Indiana for accepting illegal
railway concessions.
other excerpts from the statement
of Commissioner Smith follow:
"Ihe question in THIS case was On.
of a published 1S-cent rate to East
st. Louis. as against a secret Scent
rate. The oil shipments involved in
lthisl so-called Alton convention
started from Whiting. md, the great
refinery of the Standard near Chi
cago, and were delivered at st. Louis,
No, or at East st. Louis, H.. by the
Chicago and Alton railroad. They
covered a period from September /,
1903, to March 1, 1905.
Alton Secret Rate OF q Cents.
The law requlFes that all inter
state railway rates be filed with the
During this entire time there was on
fie with the interstate commerce
commission a joint tariff or rate
sheet, 60 which the Alton road was a
party, showing that the rate on fifth
class freight from Whiting and Chi
cago to East st. Louis was Is cents
} per hundred pounds. Fifth-elass
freight includes petroleum Oil. This
joint tariff was a large printed docu-
ment, distributed to many shippers
Of all sorts of freight.
During the time so stated, 14G2
cars of oil We're carried from Whit
ing. Ind. to East St. Louis over the
Alton road for the Standard Oil com
pany at the rate of G cents per hun
dred pounds, one-third OF the pub
lished rate. This same secret 6-cent
rate had been used by the Standard
Oil company, and by no one else, fol-
many years prior TO this period. II
was not filed with the interstate com.
merce commission, and was absolute.
ly secret and unknown to independ
ent oil rehners or to shippers gen.
orally.
1.-THE said statement OF James A
Moffett uses the following remark
able language: IT must be borne II
mind that there is no question Of re
bate or discrimination in this case.
Discrimination OF Severe Type.
Whether it was rebate or no