Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-11-24
=IoII WQUIRY IN MISSOURI
re O. hiOnsr Investigating Methods OF
d "s. hdArd and Subsidiary Companies.
gstO or USING FALSE GAUGES
INNER Salesman for Rockefeller
concern says he Was Instructed
to Decline Customers of
other Merchants.

other Merchants.
ST. LOUIS. Nov. g8.-1nquiry into the
Standard, ROublic and waters-Pierce Oil
companies in Missouri was resumed today
before Special Commissioner A. r. An
thony This will be the last hearing con-
Quoted in st. Louis until after the supreme
court has decided whether Attorney Cen
eral Hadley has the right to compel the
oil companies to produce their books or
make the officers testify.
William A. Morgan. former manager of
the Standard OIL company at sedalia. Mo.
testifying, said that the Standard Oil com
pany issued orders to its agents to under
sell competitors at all hazards He as
serted that upon one occasion he was sup
piled with false gauges to be used in the
attempt to drive the enemy from the
field"
Morgan's testimony created a sensation
and the Standard OIL attorneys offered fire.
quent and vigorous objections.
Morgan testified that he went into the
| employ OF the Standard on company Janu-
airy Is, 1898. a salesman. Soon afterwHrd
he was made a resident manager for the
company, with headquarters at Sedalia. In
his jurisdiction was included Randolph.
| OutIludns IAOWdIus NbOpfl anu DSh'oii
counties He was not permitted to sell
oil outside of his territory
Gets Business of Competitors.
His reports were sent to G. w. Mayer.
who had charge Of the Standard Oil inter-
ests in Missouri.
| when | took charge of the Sedalia Of
| fee" said the witness, 1.-The Standard oil
| company controlled 30 or 20 per cent of
| the business in that territory.
| Inside of short period | had taken
the business away from competitors and
the Standard, before l severed my connec-
ton with it in 1901, controlled 30 per cent
Of the trade in the sedalis territory.
Il was told to go into the field of our
enemy and destroy our competitors" con-
tnued Morgan. II ordered to sell all
the goods possible-to cut prices wherever
| necessary. The Waters Pierce company
sold within eighteen miles of Sedalia and
was not allowed to go into their terri
tory"
Morgan was then asked to tell II he knew
Of other methods resorted to by the Stand
ard besides cutting prices to get business
or kill of competition
He answered that the company furnished
him with barrel gauges from which he
would be able to show a customer that a
competitor sold short barrels
Did you use those gauges?"
81 did not"
"Why?"
well, I did not think It proper to use
them"
What were your instructions?"
Refuse 20 Use 6auEes.
II was told by Mr.. Mayer to Use the
gauges only in extreme cases; that is,
where a competitor could not be driven out
by other methods or where other argu-
ments failed to induce the merchant to bly,
from u.s." 7'
ITO what extent would these gauges
indicate a barrel Of oil was short when
! ! applied to a barrel sold by competitor"
,, From four to five gallons"
/ 'Why did you refuse to carry out in
structions sent to you in regard to these
! gauges?"
/ II had personal reasons"
{ What were they?"
well, because 1 thought these gauges
J were being used with fraudulent intent
: In the first place good statesmen could show
: by sharp manipulation that barrels were
5 short"
4 George s. Schultz Of st. Louis. editor
/, OF a trade paper. testified in regard tc
statistics offered by him on oil prices in
Missouri towns showing that the price OF
2 oil was manipulated in arbitrary man.
ner
! Commissioner Anthony then announced
> ! that the hearing would he resumed to-
A morrow at Joplin, Mo, and the session
L adjourned.
I SubpOenRs for OIL MREnates.
a NEW YORK, Nov. 23-Subpoenas wer,
= issued today for John d. Rockefeller, Henry
& II. Rogers, Henry NJ. F1agler and othe
q.
e two suits pending in Missouri to Dust thu
0 Standard Oil company and two other OF
a companies from doing business in the state
r The subpoenas directed the witnesses Il
l. appear on December before Frederick Fl
e Sanborn OF this city, who was appointed
by Governor Folk to act as commissions
d, for the state OF Missouri The others sum
| | moned to appear are John d. Archbold
Wade Hampton, Walter e. Teagle, Jane
A. Moffett, w. f. Cowan, George b. VII
son, James r. Taylor. Charles l.. Nichols
- Edward r. Bedford, Walter Jennings
{ Wesley II. Tilford, Charles Nj. Plat Franz
;. Q. Barstow, II. Clay Pierce. Silas II. Paine
e Richard r. Tinsey, Robert McNan an,
y Howard Page. The suits were filed Il
: Missouri on March 29. 1905, and incud
e besides the STANDARD Oil company the Re
= public Oil company and the Waters Pierre
|
3 The first suit was brought by Attone
e General Hadley OF Missouri to exclude tn
d three defendant corporations from all cor
d poTate rights and privileges OF the stat
&c Of Missouri ana that their franchises
l. rights, authority. licenses ana certificate
= To do business under the laws of the stat
> of Missouri be declared forfeited. Tn
q ground for this action WAS an alleged poe
e or trust agreement among the three com
e panies to regulate the prices paid by reta
! dealers In Missouri 1t was charged ais
= that the companies misled the public int
the belief that they were three separat
:. and distinct corporations, but that the
Il: divided up the territory OF the state, eac
y agreeing not to sell on the others ground
q This suit is In the supreme court OF Mis-
i souri, The second suit Is very similar I
= the first, but is brought in the circuit cour
OF Jackson county, Missouri.
q BELASC0 DENIES AUTHORSHIP