New-York tribune., 1908-01-17

Mr. Herbert Knox Smith, whose zeal IN the
cause of economic reform has been III no wise
abated by the panic which he and his kind dld
so much to bring on. Is out with an answer u
President Moffett, of the Standard Oil Com
panv of Indiana The publication OF this an
swer, it is officially given out, was delayed sew
eral 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 bv. however. 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. ID
that the rate of six cents on oil from Whiting
to East St Louis had been issued to the Stand
ard Oil Company as the lawful rate by en-
ployes of the Alton, (2) that the 1S-cent rate
on file with the Interstate Commerce Commis-
sion was a class and not commodity rate,
never being intended to apply to oil, (3) 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 az that the 1S-cent rate on
oil was entirely out of proportion TO lawful
rates on other commodities between these
points of a similar character, and of greater
value, such. for example, as Enseed OIL the
lawful rate on which was eight cents Presl-
dent 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
powerful influence upon the public mind.
Naturally the Administrations which has Staked
the success of its campaign against the
trusts upon the result of its attack upon
this company, endeavors to offset this infiu-
ence. and hence the new deliverance of Com
missioner 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 MOffett substantially as follows: a.
The Standard Oil Company had a traffic de-
partment, and should have known that the six
cent rate had not been filed, (2) no answer,
(3) the Chicago and Eastern Illinois rate
a secret rate because it read, not from Whit
ing but from Dolton which is described as ga
village of about 500 population just outside
of Chicago. It's only claim to note Is that 1t
has been for many years the point OF origin
for 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 refutation of what is evidently
recognized as the strongest rebuttal argument
advanced by the Standard.
In fact. it is as weak and lnconclusIve as the
remainder of his argument. The lines of the
Chicago and Eastern Illinois do not run into