Omaha daily bee., 1906-05-11
Drivers Expected to Sell 2O5 Gallons from
Wagon Containing 400 Gallons,
;LEWKS AND TRANSFERS ARE BRlsED
Former Agent Tells of Keeping Track Of
Business Of Competitors,
FRISCO RAILROAD PAID REBATES
Subsidiary Companies Of standard
Charged 2-Cent Rate and Others
Ten Times aa Much for
same Service.

road employees and agents OF independent
| oil companies. dishonest methods OF pro-
| curing land leases the giving Of short
measure and the selling Of three different
kinds Of oil out OF the same tank and mis-
| representations 20 the quality Of the
oil sold were charged against the stand
ard OIL company at today's hearing be-
fore the Interstate Commerce commission
Incidentally It was charged that the Frisco
road gives a rate Of cents a hundred to
the Standard oil company. when il charges
| competitors of that corporation 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 today was Il
NJ. Wilhoit Of Springfield. Mo-, formerly
for ten years agent of the Standard OIL
company at Topeka. II was he who made
the charges of bribery and dishonesty
against the company and said that tho
Frisco road Disseminated IN favor of the
Standard OIL company. Other witnesses
for the day were II. c. Deran OF Fremont,
o.; e. p. Ripley. president of the Atchi-
son. Topeka & Santa Fe road. and NJ
Maxon, a former agent of the Standard
OIL company in Illinois The last witness
gave testimony which in many instances
was the same as that given by Mr.. VIII
holt
The inquiry by the government through
the Interstate Commerce commission into
the relations between the Standard oil
company and the railroads of the country
commenced here today.
Two of the points upon which IL IL said
the investigation will endeavor to throw
light are the matter OF the pipe lines Of
the Standard OIL company which are laid
along the railroads right-of-way and the
purchase Of Galena oil by the railroads
for headlight and signal purposes.
The first witness was Z. NJ wilhoit Of
Springfield, Mo-, 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, brilaA
clerks in the offices Of railroads and en-
ployes OF Independent oil concerns In
order TO obtain Information OF the details
Of the business done by the rivals Of the
Standard OIL company. He declared that
agents OF the Standard oil company are
held personally responsible for all oil sold
in their territory by independent com
panies and that drivers Of tank wagons are
expected TO keep up their stock by selling
zoo to a9 gallons from a wagohload of 800
gallons He said that the actual tests of
the products of the Standard Oh company
to determine the quality are carefully
guarded and that when It was found neces-
sary to cut thep rice to meet the figure
of a competitor a cheaper quality OF oil
was substituted and guaranteed to be OF
a higher grade than IL really was.
Railway Clerks Bribed.
Several letters we're read by the witness
in which he was instructed to watch ship
ments in his territory and report the name
of every customer OF the independent COM
panies and the quality and quantity OF oil
received by him. He said he had bribed
clerks in the offiees of the Rock Island
Santa Fe and Missouri Pacific to sive him
lists of shipments to the customers Of in
dependent companies. He told also OF
bribing teamsters in order to obtain In
formation.
Cylinder oil is the most profitable sOlA."
said the witness, ''and the Standard Oh
company dislikes to have any independent
sell any Of this grade. Our instructions
were that If we found a competitor sellins
this oil in our territory to cut the price
so as to get the orders, and then substitute
an inferior grade of oil and guarantes 1t
to be OF superior quality"
As to short Measure.
Did you ever give short measure 70 your
customers?" asked Commissioner Prouty
"wer. we did not eau It that" replied
the witness. II was frequently advised
by agents Of the company that my stock
was not showing up as II should and was
told that 1t was simple matter 70 sell 2O5
! TO 2OS gallons from a 2Oo-gallon load OF oil
: The company explained this by saying thai
; tho oil expanded In the wagon"
Attorney Miller. attorney for the standard
OIL company. broke in at this point to In
quire the scope OF the investigation He
said that II was his understanding that the
power Of the commission was limited 70 an
investigation Of the relations Of the Oom-
, pany with common carriers and 30 far not
the slightest evidence upon the point had
{ been given. He was opposed he said. u
the raking over OF muck and scandal ~
going back ten years Ia history.
! For your information I viii assure you
that the Standard OIL company IL doing
the same things today" said Mr.. Wilhoit
Il object TO that statement" shouted At
torney Miller. Commissioner Clements, Ia
answer to the inquiry OF Mr. Miller. said
that it desired to obtain all the in
formation possible and report II for the
consideration Of congress.
Then, as / understand IT," said Mr.
! Miller. "the commission takes the posi-
: tion that for the purpose OF this inquiry
its power is equal 70 that OF the bureau
OF commerce and that the commission viii
simply report the results OF its investisa-
tion 20 congress without attempting 70 ex-
ercise any OF its remedial powers"
That is the position OF the commission.
as ! understand IT," replied Commissioned
Clements.
Mr.. wilhoit said that frequently three
grades of oil were sold from the same
tank by agents Of the Standard OH com
i pany
Ohio Record IntFOduced.
Mr.. Deran was asked for the Official rec
, ord Of the trus; agreement OF the stand
ard OH company. As contained IN case
tried in Ohio. and "A waA introdnoed into
: the record OF the hearing.