The Detroit times., 1908-01-18
Commissioner Smith VS.. The Standard Oil Co.
From the Raii-pay Wo,ld, January 3, 1908

Mr. Herbert Knox Smith, whose zeal in the
cause OF economic reform has been in no wise
abated by the panic which he and his kind did
so much 10 bring on, is out with au answer, TO
President Moffett. OF the Standard Oil Company
OF Indiana. The publication of this answer u Is
officially given out, was delayed several weeks.
TOR business reasons" because II 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, however. the Commits sioner rushes again
into the fray.
Our readers remember that the chief points
In the defense OF the Standard Oil Company,
as presented by President Moffett, were. %
that the rate of six cents on oil from Whiting
10 East ST. Louis has been issued to the
Standard Oil Company as the lawful rate by
employees OF the Alton. CD that the 1S-cent
rate on file with the Interstate Commerce Com
mission 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 fled with
the Interstate Commerce Commission as the
lawful rate, and ca that the 1S-cent rate on oil
was entirely out of proportion TO lawful rates
on other commodities between these points
or SIMILAR character. and of greater value,
for example, as linseed OIL the lawful rate on
which was eight cents. President Moffett also
stated that thousands OF tons OF freight had
been sent by other shippers between these
points under substantially the same conditions
as governed the shippers Of the Standard Oil
Company
This defense OF the Standard OIL Company
was widely quoted and has undoubtedly ex-
erted powerful influence upon the public
mind. Naturally the Administration which has
staked the success of its campaign against the
trusts" upon the result of its attack upon this
company, endeavors to offset this influence
and hence the new deliveranee of Commits
sioner Smith.
We need hardly to point out that his re-
buttal argument is extremely weak although
as strong, doubt, as the circumstances
would warrant He answers the points made
by President Mofett substantially as follows:
Cd The Standard Oil Company had traflc
department. and should have known that the
sx-cent rate had not been filed (2) no answer
cd the Chicago and Eastern Illinois rate was
secret rate because IL read not from Whiting
but from BOLTON, which is described as "a
village OF about 1900 population Just outside
OF Chicago Its only claim to note Is that IL
has been for many years the point of origin
Tor this and similar secret rates" The Com.
missioner admits in describing this rate that
there was 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 conclusive REPUTATION of what is evidently
recognized as the strongest rebuttal argument
advanced by the Standard
In fact. 1t is as weak and nconcusive as the
remainder of his argument. The lines OF the