Albuquerque citizen. [volume] (Albuquerque, N.M.) 1907-1909, 1907-10-17
STANDARD OILS SPY
SYSTEM HAS BEEN
UNCOVERED
Statistical Department Keeps
Record OF Every Barrel
Produced In All Parts
Of World.
RAILROADS GAVE
AID TO OIL TRUST
Transportation Companies Made
Possible Successful Outcome OF
Rate Wars---Blg Loans Still
Battle Prosecutor Kellogg
And His Assistants.

New York, Oct. 17.-While hunt
ing for some solution of the mys-
terious loans, aggregating many mill
lions of dollars, made by two of the
Standard Oil company's subsidiary
concerns, Frank b. Kellogg, the gov
ernment's counsel, in its suit against
the Standard, Unexpectedly uncov-
cred department of which little
has been known. This department Is
known as the statistical department
and includes one of the most perfect
spy systems in the world. Through
it the Standard Oil company has for
year kept tab on every gallon OF oil
sold In the world, has kept a record
or every can, barrel or tank car load
which has been taken from the oil
felds by competitors and has traced
the oil TO market, learning each
charge incurred and the final selling
price.
In perfecting this service, Mr..
Kellogg has learned that the rail-
roads of the United States have fur
nished valuable aid to the Standard,
and, in fact, have made possible the
successful outcome OF rate wars for
the Standard OIL company of New
Jersey and its many subconcerns
Loans Still q Puzzle.
While the governments counsel de-
veloped more than he expected con-
corning the operation of the spy sys-
tenn, he was wholly disappointed in
his effort to learn why enormous
loans were made to p. s. Trainor,
James Mcdonald and outside inter-
ests." Mr.. Kellogg has COME to be-
lieye that the officers and employees
of the Standard Oil company are
studiously concealing from him the
significance of those loans, for al
ways, when he questions concerning
them, the answer Is the same. No
one yet summoned to appear as a
witness in the suit has been able to
tell why the loans were made. They
have even disclaimed knowledge OF
the identity of those persons includ-
ed in outside interests to whom the
Standard oil of New York loaned
$32,000,000 least year.
To Adjourn Friday.
Mr.. Kellogg announced today that
there will be an adjournment of the
hearings in this city on Friday for a
month or more.
Hampton G.. Westcott vice presi-
dent of the Standard Oil company OF
Kentucky, was asked to give in de-
tail the transactions his company had
with Independent selling companies
In the southern territory, by which
the independents were secretly
bought up by the Standards subcom-
pany, yet allowed to continue doing
ents.
Mr.. Westcott mentioned dozen
companies in which his company
had acquired an interest, but which
had continued doing a professedly
Independent business for several
years after that arrangement. In no
instance, he said, did the Standard
of Kentucky advertise the fact that
1t had acquired the smaller COM
panies.
California Records Burned.
When II. NJ. Tilford. president of
the Continental Oil company,
Standard subsidiary company of
California, was asked for further
particulars about the selling of oil in
the Pacific coast field, he could not
remember whether or not the Stand
ard had contracts with the Union oil
company, an Independent producing
concern of California, by virtue OF
which the Independent was to give
up all manufacturing of oil products
in exchange for the purchase of it's
crude Oil. He was asked TO produce
the original contracts with the Union
oil company, but said that all the
records of the California branch OF
the Standard company were burned
In the San Francisco fire. An alleg-
ed copy OF one OF these contracts ap-
pear in the governments bill.