Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-05-12
MANY RAILROADS REPRESENTED
AT INTERSTATE COMMERCE
COMMISSION INQUIRY
PASSES FOR AGEN rs
NJ. Maxon Of Decatur, Ill, Tells Com
mission Of Practices Of Standard Oil
in Crushing Out competitIon-For-
merly in Employ Of company-cross
Examined Today.

Chicago, May 11-Nearly every rail-
road running out Of Chicago was rep
resented today before the interstate
commerce commission when the inves-
tigation into the relations of the Stand
ard Oil company with the railroads
was resumed. Attorney LaForge, rep
resenting the Standard Oil company
Of Kentucky, opened the proceedings
by cross examination of haywood
Maxon, of Illinois, who was the last
witness yesterday.
Tells Of Standard.
From Mr.. Maxon, who resides
In Decatur, ILL.,, the commission learn
ed most regarding Standard Oil meth
DDS of crushing competition. Maxon
was employed by the Standard COM
pany from 1876 until 1908, and he rose
from the position Of porter to that
Of manager Of an entire district con-
trolled by the Standard Oil company
Of Kentucky. His headquarters were
originally at Davenport and later at
Decatur.
He first testified that 1t was custom
ary for him to receive between seven
ty and eighty annual passes from rail
roads in his territory to be given to
the sales agents Of the Union Tank
Line. Mr.. Maxon was not agent for
the company, but Alexander McDon.
aid, then president of the oil company
sent him certificate stating he was
an agent that he might use when ques
toned regarding his annual passes. He
stated to the commissioners that Com
missioner Garfield had most Of these
old ANIMALS and that 1t caused a saw
ing Of at least $500 monthly at the De
catur Office alone and corresponding
saving at other Offices.
Territory Is Divided.
In general he stated that the Stand.
ard OILS constituent companies had
certain territory assigned to them, and
into this, territory the agents of no
other Standard Oil company were per.
mitted to go. These assigned territor.
les were shown by the colored maps,
which were distributed among the man,
ayers. The company also restricted the
output For example, the witness had
large distributing plant at East
st. Louis. but was not permitted to use
it. Asked how the Standard Oil com.
pduy uTOVS lCS COuIpSCllOTS OUT Oh DuSl'
ness, the witness replied:
various methods were employed
but the main one was by means Of
dummy companies, which were organ.
lied to operate territory as indie
pendent concerns, and with instruc
tions to get certain business which
was being done by competitors"
How Competitors Fare.
The witness was asked what means
the Standard took to, drive competitors
out Of business and replied:
cat Paris, ILL.,. former employe OF
the company left and secured the ma
jor portion Of the business of the town
as an agent for an independent dealer
I received instructions from headquar
tevs to go there and take that business
away from him. l acted upon instruc
tions and sold in Paris. direct to the
consumer, at S cents a gallon when the
Standards price to wholesalers was
10 cents. This was accomplished
through an agent to whom rebated
j cent gallon at the end of the month
In addition we also paid this agents
advertising bills"