Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-01-20
Interested in Real Estate? Buying or
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Commissioners Sgg1itI, VS.. The STANDARD Oil Go.
From the Ra11oay IVoJAI /aunayy 3, 1905.

Mr. Herbert Knox Smith. whose zeal i'll the
cause OF economic reform la, been in wise
abattd By the panic which he ard his kind did
50 much to bring on, is ont with answer to
President Moitctt, OF the Standard Oil Company
OF Indiana The publication of this answer, it is
Officially given out, WAS delayed several weeks.
for business reasons" because il was not deemed
advisable To further excite the public mind,
which was profoundly disturbed by the crisis.
Now Tat tie storm clouds have rolled by how
ever, .he Commissioner rushes again into the
fray.
Or readers remember that tie chief points in
tie defence of the Standard Oil Company. as
presented BY President Alofett, were, (I) that
the rate Of SIX cents on oil from Whiting to East
ST. Louis had been issued to the Standard Oil
Company as the lawful rate by employees Of tie
Altoll, ~ that tie rS-ccnt rate file with the
Interstate Commerce Commission class
and moi commodity rate. never being intended
10 apply TO oil, 80 that oil was shipped in large
Quantities between Whiting and Fast ST! LOUIS
over the Chicago and Eastern Illinois at SIX AND
onc-fourth cents per hundred pounds. which
has been filed with the Interstate Commerce
Commission as the lawful rate, and ca that the
49, cent rate oil was entirely out OF proper
ton TO lawful rates on other commodities be
tween these points of a similar character, and OF
greater Na.uc such, tor example, as ilnSted OIL
the lawful rate OH which eight cents. Pres
ident Moffett also stated that thousands OF tons
of freight had been 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 cxerted
a powerful influence upon the public mind Sat
urally the Administration, which has staked the
success Of its campaign against the trusts upon
the result Of its attack upon this COMPANY. en-
deavors to offset this influence. and hence the
new dcliverance of Commissioner Smith
We need hardly to point out that his rebuttai
argument is extremely weak, although as strong.
no doubt, as the circumstances would warrant.
He answers the points made by President Moi
fet substantially as follows: Cd The Standard
Oil Company had traffic department, ard
should have known that the six-cent rate had
not been filed. {2) answer, CD the Chicago
and Eastern Illinois rate was a secret rate be-
cause it read, not from Whiting. but from Dol
ton which is described as "a village OF about
1900 population just outside OF Chicago Its
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 de-
scribing 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 reutation of what is evidently
recognized the strongest rebuttal argument
advanced by the Standard.
In fact, it is as weak and nconclusive as the
remainder OF his argument. The lines of the
Chicago and Eastsrn Illinois dotnot run into