User blog comment:Blackendedsoul/Smoker's Bravery/@comment-3242083-20120319194521/@comment-3242083-20120319215636

His heritage was a secret to the world, the higher ups very well knew who he was (and they decide on the bounties).

But you are right on the other part, I had this page in mind http://www.mangareader.net/103-2265-5/one-piece/chapter-158.html

As to Smoker being a top dog or not, his powers clashed equally with the second division commander of Whitebeard - so yes, quite top dog in my book, even if a real fight didn't happen (would have made no sense anyway, I guess)