After days of denials, The New York Times has finally admitted that a controversial MoveOn.org ad referring to General Petreus as “General Betray Us” was not handled according to the paper’s usual advertising guidelines. Public Editor Clark Hoyt writes:

For nearly two weeks, The New York Times has been defending a political advertisement that critics say was an unfair shot at the American commander in Iraq.

But I think the ad violated The Times’s own written standards, and the paper now says that the advertiser got a price break it was not entitled to.

On Monday, Sept. 10, the day that Gen. David H. Petraeus came before Congress to warn against a rapid withdrawal of troops, The Times carried a full-page ad attacking his truthfulness.

Under the provocative headline “General Petraeus or General Betray Us?” the ad, purchased by the liberal activist group MoveOn.org, charged that the highly decorated Petraeus was “constantly at war with the facts” in giving upbeat assessments of progress and refusing to acknowledge that Iraq is “mired in an unwinnable religious civil war.”

“Today, before Congress and before the American people, General Petraeus is likely to become General Betray Us,” MoveOn.org declared.

The ad infuriated conservatives, dismayed many Democrats and ignited charges that the liberal Times aided its friends at MoveOn.org with a steep discount in the price paid to publish its message, which might amount to an illegal contribution to a political action committee. In more than 4,000 e-mail messages, people around the country raged at The Times with words like “despicable,” “disgrace” and “treason.”

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Did MoveOn.org get favored treatment from The Times? And was the ad outside the bounds of acceptable political discourse?

The answer to the first question is that MoveOn.org paid what is known in the newspaper industry as a standby rate of $64,575 that it should not have received under Times policies. The group should have paid $142,083. The Times had maintained for a week that the standby rate was appropriate, but a company spokeswoman told me late Thursday afternoon that an advertising sales representative made a mistake.

The answer to the second question is that the ad appears to fly in the face of an internal advertising acceptability manual that says, “We do not accept opinion advertisements that are attacks of a personal nature.” Steph Jespersen, the executive who approved the ad, said that, while it was “rough,” he regarded it as a comment on a public official’s management of his office and therefore acceptable speech for The Times to print.

By the end of last week the ad appeared to have backfired on both MoveOn.org and fellow opponents of the war in Iraq — and on The Times. It gave the Bush administration and its allies an opportunity to change the subject from questions about an unpopular war to defense of a respected general with nine rows of ribbons on his chest, including a Bronze Star with a V for valor. And it gave fresh ammunition to a cottage industry that loves to bash The Times as a bastion of the “liberal media.”

For its part, MoveOn has decided to pay the Times an additional $77,083 for the ad, to make up the difference between what they paid and what they should have paid. This move shields the Times against accusations that it made an in-kind contribution to MoveOn, something that could be legally perilous for the paper.

But it strikes me that MoveOn giving more money to the Times after the paper gets caught doesn’t change the equation much. One high-profile wing of the Surrender Now movement gives some cash to another high-profile wing of the Surrender Now movement. Big deal.