The news-democrat. (Providence, R.I.) 1906-1909, 1908-01-17

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 Company of Indiana.
The publication of this answer, it is Off
cially given out, was delayed several
weeks, "for business reasons" because it
was not deemed advisable to further ex-
cite the public mind, which was pro-
foundly disturbed by the crisis. Now
that the storm clouds have rolled by,
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, CD 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 en-
ployes of the Alton, (2) that the I8-cent
rate on file with the Interstate Com
merce Commission was a class and not
commodity rate, never being intended to
apply to oil, Cd 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 I8-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.
ali IA
ands of tons OF freight had been sent by
other shippers between these points un-
der substantially the same conditions as
governed the shipments of the Standard
Oil Company.
This defence OF the Standard Oil Com
pany was widely quoted and has un-
doubtedly exerted powerful influence
upon the public mind Naturally the Adj
ministration, which has staked the sue
cess of its campaign against the trusts"
upon the result Of its attack upon this
company, endeavors TO Offset its in
huence, and hence the new deliverance
Of Commissioner Smith.
We need hardly to point out that his
rebuttal argument is extremely weak, al
though as strong, no doubt, as the cir
cumstances would warrant He an
swers the points made by President
Moffett substantially as follows: ()
The Standard Oil Company had traffic
department and should have known that
the six-cent rate had not been filed, (2)
no answer, Cd 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 population just outside of Chicago.
Its only claim to note is that it had 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 a note attached stating
that the rate >could also be used from
Whiting.
The press had 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 inconclusive
as the remainder Of his argument. The
lines of the Chicago and Eastern Illinois