This quote is a little confusing. It is from a published work by Luis Were and he is quoting from an unpublished work by Raymond Cottrell. The problem with it is that Louis Were intersperses his own comments into the quote from Cottrell, making it very confusing to figure out who actually said what.
The idea that Cottrell and Were are trying to get across is that even though Ellen White rebuked James for disagreeing with Smith, she didn’t identify who was correct in his views because Uriah Smith was wrong. Normally you would make the assumption that the one rebuked was wrong but they are trying to twist it the other way, making for a very confusing muddle of the history.