The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-11-24
STANDARD OIL
TRADE METHODS
Sc sational Testimony Given by For
mer Manager in Missouri.
FALSE GAUGES FURNISHED
ROCKEFELLER, ROGERS AND
OTHERS sUBPoENAED.
FALSE GAUGES FURNISHED

Q T. LOUIS. Mo-. Nov 25.-Inquiry
y into methods of the Standard, Re-
public and Waters-Pierce OH COM
panies in Missouri was resumed today
before Special Commissioner r. A. An
thony. This will be the last hearing
conducted in St. Louis until after the
supreme court has decided whether At
Iorney General Hadley has the right
10 compel the oil companies 20 produce
their books or make their officers tes-
tify.
William A Morgan, former manager
OF the Standard oil company at Sc
dalia, Mo, testifying, said that the
standard oil company issued orders TO
its agents 10 undersel competitors at
all hazards. He asserted that upon one
occasion he was supplied with false
SAUCES TO be used i'm the attempt TO
drive the enemy from the field"
Created a Sensation.
( Morgan's testimony created a sensa-
Ition, ana the Standard oil attorneys Of
fered frequent and vigorous objections.
? Morgan testified that he went into the
employ OF the Standard oil company
Jan. Is. 1898. as a salesman. Soon after
ne was made a resident manager Of
the company with headquarters AT Sc
dalia Ia his jurisdiction was included
Randolph. Sheridan, howard, Cooper
and Benton counties. lie was not per-
mitted 10 sell oil outside of this terri
tory.
His reports We're sent 10 C. ". May
er, who had chargc-of the Standard OH
interests i'm Missouri.
His Work Effective.
office" said the witness, the Standard
OH company controlled so or 90 per cent
of the business in that territory.
Inside of a short time / had taken
the business away from competitors
and the Standard, before l severed my
connection With it in 1901. controlled 80
per cent of the trade in the Sedalia ter
ritory.
Il was told to go into the field Of our
enemy and destroy our competitors,
continued Morgan. Il was ordered TO
sell ali goods possible-tO cut prices
wherever necessary. The Waters Pierce
company sold within eighteen miles of
Sedalia. and ] was not allowed TO go
INTO thelr territory
False Gauges Furnished.
Morgan was then asked to tell if he
knew of other methods resorted 10 by
the Standard besides cutting prices 10
get business or XIII off competition.
lie answered that the company fur
nished him with barrel gauges by
which he would be able 10 show a Gus
toner that Il competitor sold short
barrels.
Did you use those gauges?"
IL did not?"
''Why?"
Well. 1 did not think ii was proper
10 use them
''Who were your Instructors"
For Extreme Cases.
Il was told by Mr. Mayer to use
gauges only i'm extreme cases-that is.
where a competitor could not be driven
out by other methods or where other
arguments failed TO induce the mer-
chant 10 buy from US
ITO what extent would these gauges
indicate a barrel of oil was short when
Elppied to a barrel sold by a competi-
4 f8r9'
l From four 10 five gallons"
Why did you refuse to carry out in
Rtructions sent 70 you in regard TO
sRese gauges
I had personal reasons"
What were they?"
well, because ! thought these
gauges were being used with fraudu-
lent intent In the first place good
statesmen could show by sharp manipu-
latiOn that barrels We're short