New-York tribune., 1908-09-15
TRICKS In OIL TRADE
STANDARD Employees Tell of Methods
Of Competitors.

The competitive methods of its rivals was IN.
SUBJECT yesterday OF the Standard Oh hearing in
! the government suit before Franklin Ferris ref
: cree Maryland and the District of Columbia
formed the territory covered and the Red ..t, the
National, the Columbia, the Crescent the Crown
the Pure Oil Company and other oil dispensing
companies were the Independent concerns men
toned Dalrympe Parron, a Standard salesman
said the competition in the Maryland district was
decidedly active. but that the Standard had cut
prices only to keep business after the independent
/. companies had done So
! henry W Sparks, a Standard tank wagon super
intendent In Washington. said the competition in
his district had confined chiefly TO the Column
| oia and National Oil companies. and he named
grocers IN the towns near Washington whose trade
the standard had lost through reductions by the
National Oil Company. In some instances Mr..
Sparks said, the National Oil Company made
presents Of OIL five gallons at a time TO get the
business away from the Standard. know CT in
stances where the National made offers to keep
cent and half below Standard rates matter
what they might be-" He said the Standard never
cut rates except in following the lead of the inde-
pendent companies
In cross-examination, Mr.. Morrison assistant of
Mr. kellogg, the government attorney, asked about
L. Q. Nfeolh, of Roslyn, ". Va, who had mads
cuts In the oil busine ss had failed prosper.
What became of hin? Mr.. Morrison asked
.Oh. he committed suicide all right was the
cheerful reply OF Mr. Sparks
All right" interrupted Mr.. Rosenthal, the Stand
ard attorney, he didn't do it with oil, did hep?
No. with oil
1t came out that in the SOS Ncoln had sold his
oil business to the Standard the condition that
he would not engage the same business again for
ten years After his ten years were up he started
selling oil again but falling to get any trade
nitred suicide
After the noon Mr.. Rosenthal asked George
z. Parsens superintendent of the Standards ware
houses in Washington, about cuts in prices by
petitors. The National Oil Company the witness
said started in with general slash in prices and
the Columbia company with occasional reductions.
He named score or more Of West Virginia towns
near Washington where the Columbia company had
cut into the business Of the Standard, which
on the ground long before any of the other con-
Oil supplied to these towns by tank
wagons from Washington, and some weeks after
the Courbias cuts. the witness said, the Standard
made a general reduction in prices 10 every one
throughout the territory. Mr.. Parsells had never
known Of a cut initiated by the Standard
Mr.. Kellogg asked Mr.. Parsels about the estab-
lishment Of the independent Oil Company by for
rner Standard employe named Boughman, which
Mr Persells recalled, but he did not know officially
that the Standard had bought the concern two
years later. The Business Of l. Q. Nicoli, of Ros-
yn. W. Va, again touched upon. and the wit
ress admitted that the Standard. after it had
bought it, operated it for two years ''NcoH
Brothers" The witness also recalled the Holmes
Safety Oil Company and the Dixie oil works, both
owned by the Standard starting up business in
his territory.
NOW, ism l II a Iact tnaC as soon as any IIoe-
pendent oil company started up in Washington one
Of these bogus independent companies OF the Stand
ard was started UP at the same time with a cut in
prices" denqa nded Mr.. Kellogg.
Mr. Roseuthal objected to the question, but the
witness said that, knowing nothing Of the inner
workings OF the Standard. he could not answer it
James R. LyIes, 4 Standard salesman Of Alex
andria. Va, said he had made cuts in prices,
having authority 10 90 although the Colun1
bia company had started in his district by making
cuts to practically all the buyers Charles G.
Purse manager of the Standards tank line service
in Baltimore. said he had formerly been the man
ager of the Holmes Safety Oil Company and the
Paragon Oil Company both owned by the defen-
dant and that at time had either company
been used to drive out smaller independent COM /
pauies by cutting rates
The case viii be continued to-day.