Free press., 1906-05-19
CHARGED.
Methods of Standard Oil Company
AsSailed Before Interstate Com
merce Commission.
FORMER EMPl DYES TESTIFY.
Witnesses at the Chicago Hearing Tell of
Corruption of Railroad Clerks and
Employees of Independent Com
panies by Agents of Combine.


Chicago, Startling revelations Of
| the Standard Oil company's alleged
bribery Of railroad employees IN order
TO learn secrets of competitors ship
ments were brought ont before the
interstate-commerce commission. 1t
was the beginning of what threatens
TO be an expose that will dwarf the
most sensational of magazine articles
and will fittingly supplement the re-
cent Garfield report. To add spice
to the proceedings, the inquiry was
branded at the very outset by Attorney
John s. Miller, representing the
Rockefeller interests, as a "muck
rake investigation" j. T. Marchand
and F. S. Monnett are acting as spec
ial counsel for the government for the
ultimate purpose of securing legisla-
ton in line with the recommendation
made by the president. Mr.. Monnett
as attorney general of Ohio dealt the
Standard some telling blows.
Commissioner Charles A. Prouty,
Francis NJ Cockren and Alexander
Clements are hearing the testimony
which is to be given, by Witnesses
subpoenaed by the government from
the central western states.
Railroad officials, Independent oil
men, agents and former agents of the
Standard Oil company have been sub
poenaed and the sessions of the COM
mission, which are being held in one
of the courtrooms of the federal build
ing, will continue for several days.
The following are salient points
brought out in the testimony of the
first day:
That the Standard Oil company for
years maintained a system of bribing
railroad employees in order to obtain
information about the shipments by
competitors.
That in this system money was
used, regular monthly allowance be-
ing provided agents, and agents were
authorized to promise employment
with the Standard Oil company in re-
turn for information.
That this system was continued un-
til the officials of the company feared
its publication might result in sufh-
.cient public Indignation to bring about
action by congress and the state legis-
latures.
That secret agents are employed to
watch oil shipments made by inde-
pendents from the point Of shipment
until delivery and make complete re-
ports.
That agents in whose territory in
dependent oil is sold dre held account
able for it and in many cases COM
PEELED to pay for it to the Standard.
That agents are compelled to draw
three brands all OF supposedly diff
ferent quality, from the same tank and
sell them at different prices.
That agents are instructed to keep
up stock and to point out the method
to be used reference is made in letters
to them of other agents who "have
been known to send out 200 gallons
and report the sale of from EOS to 208
gallons
The first witness of the morning was
E NJ WiIhoit, who, in 1896, was agent
for the Standard Oil company at To
peka, Kan. After saying that ne had
resigned from the employ Of the com
pany because he could no longer main
tain his self respect and perform the
"dirty" work demanded of him, he
said that during the entire time that
he looked after the interests of the
Standard in Karsas one of the chief
parts of his work consisted in looking
after the shipments of independent oil
either to, from or through the city.
Il was instructed to get the informa-
ton on these shipments. no matter
what ! had to do in order to get it.
For long time the division Office at
Kansas City sent me a check every
month for eight dollars.
The witness read several letters
from Mr.. Mayer in support of this
point and several letters from E. B.
Pratt in New York, in which INQUIRIES
were made concerning shipments of
Independent oil which he had failed
to report.
''The system of spies was so per-
feet" said the witness, that even
though missed shipment that came
to Topeka it would be reported by
secret agents who had been watching
it ever since-it left the refinery of the
competing company
In completing my spy system in !
Topeka l had to make friends with
every shipping clerk in the city, every
agent of the Independent companies. |
every expressman and drayman and
every one who in anyway came in |
touch with the shipment. checking Or
handling Of freight before. after or
while it was on the cars. could