Evening journal., 1908-01-18
Commissioner Smith VS.. The Standard Oil Co.
From tie Rat1tOay Woyld, January 3, 1905.

T Mr.. Herbert Knox Smith, whose zeal in the
cause of economic reform has been in no wise
sbated by the panic which he and his kind did
so much 70 bring on, is out with an answer TO
President Moffett, of the Standard Oil Company
of Indiana. The publication Of this answer, il is
officially given out was delayed several weeks.
"for business reasons, because il was not deemed
advisable to further excite the public mind,
which was profoundly disturbed by the crisis.
Now that the storm clouds have rolled by, how
ever, the Commissioner rushes again into the
fray.
Our readers remember that the chief points in
the defence Of the Standard Oil Company, as
presented by President Moffett, were (D that
the rate Of six cents on oil from Whiting to East
ST. Louis had been issued to the Standard Oil
Company as the lawful rate by employees Of the
Alton, (2) that the IS-cent rate on file with the
Interstate Commerce Commission was a class
and not commodity rate never being intended
to apply to oil. CD that oil was shipped in large
quantities between Whiting and East ST. Louis
over the Chicago and Eastern Illinois at SIX and
one-fourth cents per hundred pounds, which
has been filed with the Interstate Commerce
Commission as the lawful rate and (4) that the
IS-cent rate on oil was entirely out OF proper
ton to lawful rates on other commodities be-
tween these points of similar character, and OF
greater value, SUCH for example, as linseed oil
the lawful rate on which was eight cents. Pres
ident Moffett also stated that thousands of tons
of freight had been sent by other shippers be-
tween these points under substantially the same
conditions as governed the shipments of the
Standard Oil Company.
This defence Of the Standard Oil Company
was widely quoted and has undoubtedly eXerted
a powerful influence upon the public mind. Nat
urally the Administration, which has staked the
success Of its campaign against the trusts" upon
the result Of It's attack upon this company, en-
deavors TO offset this influence, and hence the
new deliverance OF Commissioner Smith.
We need hardly to point out that his rebuttal
argument is extremely weak although as strong
no doubt, as the circumstances would warrant
He answers the points made by President Mof-
fet substantially as follows: Cd The Standard
Oil Company had a traffic department and
should have known that the six-cent rate had
not been filed. (7) no answer. CD the Chicago
and Eastern Illinois rate was a secret rate be-
cause it read, not from Whiting but from Dol
ton, which is described as "a village Of about
1900 population just outside of Chicago. It's
only claim 10 note is that il has been for many
years the point OF origin for this and similar
secret rates" The Commissioner admits in de-
scribing this rate that there was a note attached
stating that the rate could also be used from
Whiting.
The press has quite generally hailed this
statement of the Commissioner Of Corporations
as a conclusive refutation of what is evidently
recognized as the strongest rebuttal argument
advanced by the Standard.
In fact, it is as weak and nccncusive as IN,
remainder of his argument The lines OF tn,
Chicago and Eastern Illinois do not run into