Daily capital journal. (Salem, Oregon) 1903-1919, 1908-01-24

u, Herbert Knox Smith, whose zeal in the
.',s. ~ economic reform has been in no wise
sha,ed bv the panic which he and his kind did
,,,,ch ,o hiring on. is out with an answer to
p,ss;dent Moffett, of the Standard Oil Company
- Indiana. The publication Of this answer, it is
,,Eciallv given out was delayed several weeks,
afor business reasons, because It was not deemed
advisable TO further excite the public mind,
,,h;cb was profoundly disturbed by the crisis.
NJ, that the storm clouds have rolled by, how
ever the Commissioner rushes again into the
fray. ,., :.
0,r readers remember that the chief points IN
,hs defence of the Standard Oil Company, as
oresented by President Moffett, were, () that
the rate of six cents on oil from Whiting to East
{, Louis had been issued to the Standard Oil
company as the lawful rate by employees of the
Alton. (2) that the T8-cent rate on file with the
In,erstate Commerce Commission was class
and not a commodity rate, never being intended
90 apply to OIL go 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
ts-cent rate on oil was entirely out of proper
tion TO lawful rates on other commodities be-
tween these points of a 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 eompany
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 its attack upon tins company, en-
deayors to offset this influence, and hence the
new deliyerance 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 Moi
iet substantially as follows: () The Standard
Oil Company had a traffic department, and
should have known that the siN-cent rate had
not been filed, (2) no answer, CD the Chicago
and Eastern Illinois rate was a secret rate be-
cause il 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 to note is that il has been for many
years the point OF origin for this and similar
secret rates" The Commissioner admits in de-
scribng 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 conclusive refutation OF what is evidently
recognized as the strongest rebuttal argument
advanced by the Standard
In fact, il is as weak and ineonclusive as the
remainder OF his argument. The lines of the
Chicago and Eastern Illinois do not run into