New-York tribune., 1907-10-16
WORK OF STANDARD SPY
His Job Requires Him to Find Ont
about Com petitors.

The thorough system Of surveillance which
the Standard OIL Company keeps over tbe do
,ugs Of IFS competitors and the methods of osri
onsge Of its rivals employed by the Standard.s
employees were again delved into yesterday by
Franz z. Kellogg at the hearing of The govern
ment's suit TO dissOvle the corporation TI7roupb
officials Of three CT the Standards subsidiary,
concerns he showed how closely the STANDARD
kept watch on all its rivals All this informa- =
ion when collected is sent on to New York
and finds lodging place in the office of ". T
Benis' the mead OF the Statistical department"
Of the Standard. The real reason of this do
partmenI Is The government attorneys believe
to keep record of what really independent com
pettors doing.
For. as was brought out at the hearing on
Monday, there are alleged ipdepepden+ com
panies. OF at least there were. until the govern
ment began the suit TO dissolve the tr,,st An
example Of these is the Republic Oil Companv.
which was organized five years ago bv Standard
interests 10 do an independent" business in
Michigan and start in 10 cut prices of the Stand
ards real rivals, but not the Standards own
prices. The headquarters of this company were
formerly at Cleveland, and were then changed
10 Kansas City, Mo, in which state 1t at
tracted few years ago the attention of Attor-
ney General Hadley. /. !. Drake. selling agent
for the Standard Oil Company of Indiana the
Aour!shing subsidiary OF the Standard of New
Jersey, which had profits of more than s1O.0Oo,-
zoe in single year capitalization Of only
100000. told about the organization of the
Republic company and the shifting OF its scene
Of competition" When Mr.. KeIlog pressed him
TO say whether II was not a regular Standard
Oil ruse TO form independent companies to
Join in the competition wherever the Standard
s-Tr.
SAID he did not think so.
Il from Mr.. Drake also that Mr. Kellogg
CLEANED some information as TO the methods the
Standard employs TO learn what its rivals ara
doing. The government prosecutor wanted TO
know how the Standard companies got all the
Information they were able TO send to No. 26
Broadway. Mr.. Kellogg has already shown that
the Standard of Kentucky, the Waters Pierce
Oil Company, the Continental Oil Company-all
Standard subsidiaries-send monthly reports
which give a list of all shipments of oil made
by their competitors. A similar practice is OBJ
served, Mr.. Kellogg learned yesterday in his
examination Of Mr.. Drake, by the STANDARD of
Indiana and the Standard of California
Asked how the information was obtained Mr
Drake said that the Standards agents and en-
ployes understood it was part of their job to
get it, They got It, he said. from the tags on
employees. Mr.. Drake could not say whether the
Standards agents were granted access to the
bills Of leding OF the railroads, but he was not
particular how the Standard OF Indiana's agents
got the required information so long they did
get il.
DO you think that II is honorable" asked Mr.
Kellogg, "to get this information by spying on
your competitors7"
Mr. Drake said he thought # was honorable TO
get all information they could "in a straightfor-
ward way"
Henry NJ Tilford. president of the Standard
oil Company of California and of the Cont
mental Oil Company OF Iowa and Hampton c.
Westcott, second vice president of the Standard
oil Company Of Kentucky. were also examined
IS TO the manipulation Of competition" in their
errftories and the watch kept on their rivals
Philip Harrison, sales manager Of the New
ork Lubricating Oil Company. under the cross
animation Of Moritz Rosenthai at the after
Don session, admitted that in the case of the
Georgia Railroad, which was formerly lub7tcated
by his company. the GaIena Signal Oil COMPANY
not obtaining an unreasonable price for its
product
The government attorneys want to put Will
tam G. Rockefeller, treasurer Of the Standard
on Company Of New York, on the stand before
the hearing is adjourned on Friday Mr. Rookie
feller Will be asked to explain several loans and
accounts in millions, ranging from one to more
'han thirty. which appear on the Standards
books He is out of town at present as John G.
Milburn told him he did not believe he would he
wanted just at present Mr.. Kellogg wants to
put Mr.. Rockefeller on the stand to-day. but IT
IS doubtful If he will be able to do so