The Lamar register., 1905-11-29
OIL TRUST FRAUD
USED FALSE GAUGES ON CON-
PETING OIL.
MANAGERS STORY

Says Standard Oil Supplied Gauges to
Discredit Measure of Other Com
panies-Desisned to Show Shortage
of Four or Five Gallons to the
Barrel.
st. Louis.-Inquiry into methods of
the Standard, Republic and Waters
Pierce Oil companies in Missouri was
resumed Thursday before Special Com
missioner Il. A. Anthony. This will be
the last hearing conducted in st. Louis
until aiter the Supreme Court has de-
cideu whether Attorney General Had
ley has the right to compel the oil
companies to produce their books or
make their officers testify.
William A. Morgan, former manager
of the Standard Oil Company at Seda-
liza, Missouri, testifying, said that the
Standard Oil Company issued orders
to its agents to undersell competitors
at all hazards. He asserted that upon
one occasion he was supplied with
false gauges TO be used in the attempt
to drive the enemy from the field"
Morgans testimony created a sensa-
tion and the Standard Oil attorneys of
fered frequent and vigorous objections.
Morgan testified that he went into
the employ of the Standard Oil Com
pany January 10, 1898, as salesman.
Soon after he was made resident man
ager of the company, with headquar-
ters at Sedalia. In his jurisdiction was
included Randolph, Sheridan, Howard
Cooper and Benton counties. He was
not permitted to sell oil outside of this
territory.
His reports were sent to G. w. Mayer
who had charge of the Standard Oil iC'
terests in Missouri.
when / took charge of the Sedalia
Office" said the witness, the Stand
ard Oil Company controlled fifty or
sixty per cent. of the business in that
territory. Inside of short time i had
taken the business away from competi-
tors and the Standard before l severed
my connection with it in 1901, con-
trolled ninety per cent. Of the trade in
the Sedalia territory.
Il was told to go into the field of
our enemy and destroy our competi-
tors" continued Morgan. II was or
dered to sell all goods possible-to cut
prices wherever necessary. The Wa
ters-Pierce company sold within eight
cen miles of Sedalia. and l was not al
lowed 20 go into their territory"
Mr.. Morgan was then asked to tell If
he knew of other methods resorted to
by the Standard besides cutting prices
to get business or kill off competition.
He said that the company supplied him
with barrel gauges by which he was
enabled to show that competitor
sold short" barrels.
Did you use this gauge?"
Il did not
"Why?"
"Weli. didn't think it was proper to
use them
what were your instructions?"
Il was told by Mr.. Mayer to use the
gauges only in extreme cases-that is,
where competitor could not be driven
out by other methods or where other
arguments failed to induce the mer-
chants to buy from us "
ITO what extent would these gauges
indicate barrel of oil was short when
applied to a barrel sold by competi-
tor?"
From four to five gallons?"
"Why did you refuse to carry out in
structions sent to you in regard to
these gauges?"
81 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 were short