Gilpin observer., 1906-05-17
STANDARD OIL GO. BIC POWER Deal
CHARGED WITH BRIBlNG EN-.
PLoYES OF RIVALS.
AND USING FALSE MEASURES

Former Agent On the Witness Stand
ALSO Former Railroad President
Who Tells of Efforts to Brlbe Off.
GERS and Clerks.
Chicago.-Corruption of railroad EN-
ployes and agents of independent oil
companies, dishonest methods of pro
curing land leases, the giving Of short
measure and the selling Of three differ
ent kinds Of oil out Of the same tank,
and Misrepresentation as to the quail
ity of the oil sold, were charged against
days hearing before the Interstate
Commerce Commission.
Incidentally it was charged that the
Frisco road gives rate Of 2 cents
a hundred to the Standard Oil Com
pany, when it 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 was along
the same lines as that held some time
ago in Kansas City.
An important witness was E. M.
Wilhoit of Springfield, Missouri, for
merly for ten years agent of the Stand
ard Oil Company at Topeka. 1t was he
who made the charge of bribery and
dishonesty against the company and
said that the Frisco road discrimi-
mated in favor of the Standard Oil
Company.
Other witnesses for the day were H.
c. Deran Of of Fremont, Ohio, and R.
P. Ripley, president Of the Santa Fe
railroad.
Mr.. Wilhoit said that while in the
employ of the Standard Oil Company
he had, in following out the instruc-
tiQns of his superior officers, bribed
clerks in the offices of railroads and
employees 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 Stand
ard Oil Company are held personally
responsible for all oil sold in their ter.
ritories by Independent companies.
He said that the drivers of tank
wagons are expected to keep up their
stock by selling 205 to 2OS gallons from
a wagon load of 200 gallons.
He said the actual tests of the prod.
ucts of the Standard Oil Company to
determine the quality are carefully
guarded and that when it was found
necessary to cut the price to meet the
figure of competitor, cheaper quail
ity of oil was substituted and guaran
teed to be of higher grade than it
really was.
Mr.. Wilhoit said that frequently
three grades of oil were sold from the
same tank by agents of the Standard
Oil Company.
Several letters were read by the wit.
T.. xr,I,s l,o i,,e.f .fv-,to Tod n
watch shipments in his territory and
report the name of every customer OF
the independent concerns and the
amount and quality of oil 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 also told Of bribing teamsters In
order to obtain information.
did you ever give short measure to
your customers?" asked Commissioner
Prouty.
well, we did not call 1t that" re.
piled the witness. 4 was frequently
advised by agents Of the company that
my stock was not showing up as 1t
should and was told that it was sim.
pie matter to sell 205 to 20S gallons
from 2OO-gallon load of oil. The com.
pany explained this by saying that 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 it was his understanding
that the power of the commission was
limited to an investigation OF the rela-
tions OF the company with common car
riers and that SO far not the slightest
evidence upon that point had been
given. He was opposed, he said. to tho
raking Of muck and scandal by going
back ten years in history.
For your information l will assure
you that the Standard Oil Company Is
doing the very same things to-day"
said Mr.. Wilhoit.
II object to that statement" shouted
Attorney Miller.
Commissioner Clements, in answer
to the inquiry OF Mr.. Miller, said that
1t was desired to obtain all the infor-
nation possible and report 1t for the
consideration of Congress.