The Montgomery advertiser., 1906-05-11
CORRUPTION
 IS CHARGED Investigation of Standard
 Oil Company. RAILWAY AGENTS BREED First Day of Inquiry by Commerce
 Commission. Bribery of Employees, Dishonest Meth ods of Procuring Land Leases, Giving of short Measure and other Things Charged.

| road employees and agents of independ- | ent oil companies. dishonest methods oi procuring land leases, the giving oi short measure and the selling of three different kinds of oil out of the same tank and misrepresentations as to tn, quality of oil sold, were charged against the Standard oil Company a today's hearing before the Interstate Commerce Commission.
 Incidentally 1t was charged that thu Frisco gives a rate of cents per hun dred to the Standard oil Company wher 1t charges competitors of that corpora tfon ten times as much for the same haul.
 The inquiry was held under an order of Congress and the session held here today was along the same lines as that held some time ago in Kansas City.
 The principal witness of the day was F. l.. Wilholt of Springfield, Mo, formerly for ten years agent of the Standard oil Company at Topeka. Kas It was he who made the charges of bribery and dishonesty against the company and said that the Frisco road discriminated in favor of the Standard Oil Company.
 The inquiry by the Government through the Interstate Commerce Com mission into the relations between the Standard Oil Company and the rail- roads of the country commenced here today. Two of the points upon which 1t is said the investigation will cndeay- or to throw light are the matter of the pipe lines of the Standard oil Company. which are laid along the railroad rights of way and the purchase of Galena oil by the railroads for head light and signal purposes.
 The hearing was conducted by At- torneys J. r. Marchand and E. g. Mo- nett for the government, and Commis- sioners Clements, Cockrell and Prouty' heard the evidence, John S. Miller and A. c. Eddy appeared for the Standard oil Company. Commissioner Clements at the commencement Of the hearing announced that 1t was held in pursu- ance of a resolution passed by Con- gress and that the present session was a con ntinuance of the investigation con ducted sometime ago at Kansas City. The first witness was E. M Wilhoit of Topeka, Kas., now an independent oil operator. but ten years ago an agent of the Standard oil Company. He testified that while in the employ of the Standard Oil Company he had, in following out the instructions Of his superior officers bribed clerks In the offices of railroads and employees of independent oil concerns in order to 
 mess done by the rivals of the Stan dard oil Company.
 He declared that agents of the Stan dard oil Company are held personally responsible for all oil sold in their territory by independent companies and that drivers of tank wagons are evrected to keep up their stock by seiiinr 2O5 to POS gallons from wagon load of 200 gallons
 IJs sajd that the actual tests of the nroducts of the Standard oil Compa- nv to determine the quality are care s,y,,,', suarded and that when 1t was sannd necessary to cut the price to roeet the figure of competitor cheaper quality of oil was suos'''"- ted. . s-oo,on+lv tbree
 sos m of oIl were sold from the same eanLs hv agents of the Standard OH
 Tn sunnort of the statement he had MT wiihoit read a letter purporting to have been written Oct. 26. 1S96, by c w. Mayer, manager or the Stahd- oil Company at Kansas City.
 Several other letters were read by the witness. In which he was instructed to watch shipments In his territory and renort the name of every customer of amount and quality of coal received by him. He said that he had bribed clerks in the offices of the Rock Island. Santa Fe and Missouri Pacific to give him lists of shipments to the customers of independent companies He told also of bribing teamsters in order to obtain information.
 Substitute Inferior Grades.
 ''Cylinder oil is the most profitable sold" said the witness. "and the Stand ard oil Company dislikes to have any independent company sell any of this grade. Our instructions were that If we found a competitor selling this oil in our territory. to cut the price so ai to get the orders and then substitute an inferior grade of oil and guarantee II to be of superior quality"
 Did you ever give short measures to your customers?" asked Commissioner Prouty
 Well. we did not call it that" re- piled the witness. q was frequently advised by agents of the company that my stock was not showing up as 1t should, and was told that 1t was a simple matter to sell 2O5 to POS gallons for a 200 gallon load of oil. The com pany explained this by saying that the oil expanded in the wagon"
 Attorney Miller for the Standard oil Company, broke in at this point to in- quire the scope of the investigation He said that 1t was his understanding
 
 limited to an investigation of the rela- tions of the company with common carriers and that SO far not the slight est evidence upon that point had been given He was opposed. he said to the raking over of muck and scandal by going back ten years in history.
 For your information. I will assure you that the Standard oil Company Is doing the very same things today" said Mir Wilhoit
 'I object to that statement" shouted Attorney Miller.
 shouted Attorney Miller
 Commissioner Clements, In answer to the inquiry of MT. Miller. said that 1t was desired to obtain all the informa- tion possible and report 1t for the con- alteration of Congress.
 'oThen. as | understand it." said Mir. Miller. the commission takes it's po- aition that for the purpose of this in- ouiry. its power is equal to that of the bureau of commerce and that the commission will simply report the re- suits of its investigation to Congress. without attempting to exercise any of It's remedial powers?" ',