Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1906-05-17
STANDARD METHODS
Held UP TO LIGHT
AGENTS TELL HOW OIL SALES
ARE MANIPULATED BY BIG
CORPORATION.
Forced to Follow Up Shipments by
Competition and Report on DISPOSE
ton of Their Goods to Headquarters
in New York.

IN NE" I OK.
Chicago, May 11.-Startling revela.
tions of the Standard Oil company 8
alleged bribery Of railroad employees
in order to learn secrets of competi-
tors shipments were brought out
Thursday before the interstate com.
merce commission. 1t was the begin
ming of what threatens to be an ex-
pose that will dwarf the most SEN
Bational of magazine articles and will
fittingly supplement the recent Gar
field report. Fe add spice to the pro-
ceedings, the inquiry was branded at
the very outset by Attorney John S..
Miller, representing the Rockefeller
interests, as "mxck rake investiga.
tion."
4 ~ Points Brought Out.
! The following the salient points
brought out in the testimony:
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 sufi-
cient public indignation to bring
about action by congress and the state
legislatures.
That secret agents are employed to
watch oil shipments made by fnde-
pendents from the point Of shipment
until delivery and make complete re-
ports.
That agents in whose territory in
dependent oil is sold ARE held account
able for it and in many cases are com
PEELED to pay for it to the Standard.
That agents are compelled to draw
three brands" all of supposedly diff
and sell them at different prices.
That agents are instructed to keep
up stock" and to psint cat the meth
cd to be used reference is made in
letters to them of other agents who
shave been known to send out 200
205 to 208 gallons"
Watched Outside Product.
The first witness was E. M. Wilheit
who, until 1896, was agent for the
Standard Oil company at Topeka,
Kan. After saying that he had re-
signed from the employ of the COM
pany because he could ne longer main
tain his se1frezpect and perform the
"dirty'' work demanded Of him, he
said that during the entire time that
standard in Kansas one of the chief
parts of his work consisted in looking
after the shipments of independent oil
either to, from or through the city.
II was instructed to get the infor-
nation on these shipments, no matter
what l 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.
"This sum l divided among the ship
ping clerks and the checkers at the
railroad offices and the agents of the
Independent men working in the city
and in return for it was given the in
formation I wanted.
''These men were paid from one to
two dollars month, but the main part
of the bribery did not consist of money.
I was given power by G.: W. May
err the manager at Kansas City, to
promise employment to all men who
would furnish us information.
Perfect Spy System.
"The system of spies was so per-
fect,' said the witness, that even
though l missed a shipment that came
to Topeka it would be reported by Sc
cret agents who had been watching it
ever since it left the refinery of the
competing company.
I'm 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
everyone who in any way came in
touch with the shipment, checking or
handling of freight before, after or
while it was on the cars. could never
tell when l would need the services
of any of them.
"Once l received a letter from Mr.
Pratt in New York advising me of a
certain car of oil that was consigned
to Topeka. He said he wanted a sam.
pie of the oil, and told me that if
fo;~sld it necessary could get in touch
with Charles Kelly, who was then state
oil Inspector"
This statement by the witness was
Immediately followed up by Attorney
Marchand, who sought to use it as a
basis to prove that the oil inspectors
OF many states are really in the Stand
ard Oil employ"
did you make use of his services?"