Omaha daily bee., 1908-03-14
MORE OFSTANDLRD METHODS
Government Resumes Taking Testi-
mony in Custer Suit.
OIL COMBINE HARNESSES RIVALS
Railroad EmpIoyes Brtbed 60 Tell of
Business of other Companies-
Many Dummy Competitors
Placed In Field.

CLEVELAND, o., March l3-The alb
sorption of rivals, dismantling OF compet-
ing plants. the gathering OF information re-
garding the customers Of opponents and the
methods in which some Information was
obtained from railways by the Standard
oil company were the features Of the hear
ing before Special Examiner Ferris here
yesterday IN the government custer suit
against the Standard Oil company.
Richard T. Cooke OF Indianapolis. Ind
secretary and treasurer of the National Re
filming company, testifying for the govern
ment. said he was an agent for the Stand
ard OH company at Columbus. Ind, in 1884,
1895. and later spent several years with the
company in an executive position In Indi-
annapolis and Cincinnati. He stated that
while at Columbus information was given
him by a man named Taylor, employed by
the Pennsylvania railroad. regarding ship
ments OF oil received by rivals. He said he
was informed Of all oil handled IN his ter
ritory and used the information for the
purpose of tracing the customers Of COM
petitors and attempting to line them up
for the Standard OIL company. Cooke said
he never offered to cut prices for their
trade but used regular methods. such as
saying his OIL was better and could be OBJ
tained easier.
Credit for RepOrtfng sales.
Cooke testified that he received as much
credit for reporting the sales Of rivals
If he had made the sale for the Standard
oil company. While in Indianapolis. he
said, reports were handed him by a boy
regarding the shipments of rivals in and
out Of Indianapolis. These reports were
somewhat of a mystery to him. but he was
Of the opinion they came from the office
of the state OIL inspector. Cooke also said
that for IS a month the Standard Oil COM
pany received report daily from freight
handler in Logsnsport Ind, as to the oil
received by one Fromeyer, an independent
dealer in Logansport. The witness related
the story of several competitors who were
eventually absorbed by the Standard OIL
company. He said the Capital oil company
Of Indianapolis a Standard agency, was
bought by one Kelley for the Standard
with cash furnished by the Standard, and
In this way became a part of the business
of the Kelleys, who we're supposed to be
operating an independent tank wagon busi-
ness. The Capitol company had made in
roads upon Kelley's business and he finally
entered into a contract with the Standard
OIL company.
Bogus Independent Companies.
Cooke told Of the starting of bogus"
independent companies for the purpose of
selling oil to those who were prejudiced
against the Standard Oil company and the
starting of several bonafide independent
companies, which later were purchased by
| the Standard and the plants closed. In one
instance concern at vincennes, Ind, was
purchased by one "Niets," which was
"Stein" spelled backward, and that Stein
was the assistant treasurer of the Standard
Oil company of Kentucky.
The testimony of John ]. Shea of Terre
| Haute, Ind, an independent dealer, was
concluded. Shea said his profits as a dealer
were usually between so and 100 per cent
and that he made a good living, although
he had been opposed by the Standard Oil
| company, but not effectually. He still is
in business.