The Penn's Grove record., 1908-01-31
Commissioner Smith VS.. The Standard Oil Co.
From the R@ilway WorId, January g, 1908.

Mr.. Herbert Knox Smith, whose zeal in the
cause of economic reform has been in no wise
ahatsd by the panic which he and his kind
did 30 much to bring on, is out with an an
swer to President Moffett, of the Standard
OIL Company of Indiana. The publication of
this answer, it is officially given out, was de-
layed several weeks, "for business reasons"
because it 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
Commissions rushes again into the fray.
Our readers remember that the chief
points in the defence of the Standard Oil
Company, as presented by President Mofett,
were, III that the rate Of six cents on oil
from Whiting to East st. Louis has been is
sued to the Standard Oil Company as the
lawful rate by employees of the Alton, (2)
that the 1S-cent rate on file with the Inter-
state Commission was a class and
not a 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 and Eastern
Illinois at six and one-fourth cents per hun
dred pounds, which has been filed with the
Interstate Commerce Commission as the law
full rate, and "a that the 18-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 linseed oil, the lawful
rate on which was eight cents. President
MOu0IL dlSO SIdL6u that thousands Oh tons CT
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 ex-
erted a powerful influence upon the public
mind. Naturally the Administration, which
has staked the success of it's campaign
against the trusts" upon the result of it's at
tack upon this company, endeavors to offset
this influence, and hence the new deliverance
of Commissioner Smith.
We need hardly to point out that his re-
buttal 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:
% The Standard Oil Company had a traffic
department., and should have known that the
six-cent rate had not been filed, ca no an
swer, 60 the Chicago and Eastern Illinois
rate was a secret rate because it read, not
from Whiting, but from Dolton, which is
described as "a village of about 1900 popu-
lation just outside of Chicago. It's only
claim to note is that it has been for many
years the point of origin for this and similar
secret rates" The Commissioner admits in
describing this rate that there was a no,e
attached stating that the rate could also be
used from Whiting.
The press has quite generally hailed this
statement of the Commissioner of Corpora
lions 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 inconclusive as
the remainder of his argument. The lines Of
the Chicago and Eastern Illinois do not run