The state herald., 1908-01-31

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 TO bring on, is out with an answer to
President Moffett, OF the Standard oil Com
pany OF Indiana. The publication of this an
swer, II is officially given out. was delayed sew
eral weeks. for business reasons because II
was not deemed advisable TO further excite
the public mind, which was profoundly dis
turbed by the crisis. Vow that the storm
clouds have rolled by, however the Commis-
sloner rushes again into the fray.
Our readers remember that the chief points
in the defence OF the Standard oil Company. as
presented by President Moifett, were % that
the date OF six cents on oil from Whiting to
East ST. Louis has been issued to the Standard
OIL Company as the lawful rate by employees
OF the Alton, (2) that the iS-cent rate on 1le
with thelnterstatc Commerce Commission was
class and not n commodity rate, never being
intended to apply to oil. 90 that oil was
shipped In large quantities between Whiting
and East st. Louis over the Chicago a East
ern Illinois at 6A cents per hundred pounds.
which has been filed with the Interstate Com.
merce Commission as the lawful rate. and 90
that the lS'cent rate on OIL was entirely out OF
proportion 10 lawful rates on other commodi,
ties between these points OF n similar char
actcr and OF greater value, such for example.
as llnBood oil. the lawful rate on which was
eight cents. President Mofett 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 shipments OF the Standard oil Company.
This defence OF the Standard oil Company
was widely quoted and has undoubtedly exort'
ed n powerful influence upon the public mind.
Naturally the Administration. which has
staked the success OF It's campaign against
tho trusts" upon the result OF It's attack upon
this company. endcayora 10 Offset this innu
encc, and hence the new dcllyerancc OF Com
missioner Smith,
We need hardly 10 point out that his robut
tai argument IN extremely weak. although NJ
strong. no doubt. M the circumstances would
warrant lie answers the points made by prcai
dent Mofrctt substantially M follows. tl) The
Standard OIL Company had n traific department
and should have known that the niXccnt rate
had not been filed. t2) no answer, t3l the Chi
caRo n Eastern Illinois rate was secret rate
because II read. not from Whiting, but from
Dolton, which In described aa "a village o
about 1900 population just outside Of Chicago
lta only claim 10 note n that Il has been foi
many years tho point of origin for this ant
similar secret rates" Tho Commissioner nd
mltH In describing this rate that there was I
note attached stating that the rate could alai
be used from whiting
The press has quito generally hailed thi
abatement Of the Commissioner of Corpora
tionH aH a conclusive fetulatlon Of what IN eyl
IDENTITY recognized na the strongest rebutta
argument advanced by tho Standard
In fact II II m weak and inconcualve ~ tn
remainder of his argument. Tho lines of th
Chicago Eastern Illinois do not run int