The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1908-03-12
OCTOPUS METHOD
Of KILLING OFF
COMPETITION
Sold Oil Under Price to Drive
Out Rivals
STANDARD PAID THE / OSSES
Tank Wagon Operator Bought kero-
some at Eight Cents and Sold
to Retailers for Same Price.

CLEVELAND, o., March 12.--Meth-
DDS of meeting competition and gain
Ing the oil trade of q locality were tes-
titled to by Charles T.. Farrell of Co
hoes, \. ", and John J. Shea of SYRIA.
cuse, Ind, before Special Examiner
Franklin Ferris here. The testimony
was. brought out by former District
Attorney c. b. Morrison of Chicago,
who is conducting the present hear
Ing for the government in It's custer
proceedings against the Standard Oil
company.
Attorney Moritz Rosenthal objected
to all of the testimony given on the
ground that the acts testified to were
committed within state and did not
enter into interstate commerce.
The suit of the government is based
upon the Sherman antitrust law and
was begun in the United States circuit
court at st. Louis. Nov. -, 1906. The
leading spirits of the Standard Oil
company and about seventy subsidiary
companies are defendants.
Charles T. Farrell was the first wit
ness. He said he worked for the
Standard Oil company several years
up to thirteen months ago. He said
he was taken from his regular duties
at Blnghamton, N. Y, and sent to
Oneonta, n. ". to operate tank
wagon. selling to the consumers direct.
There, he said, he entered into compe-
titlon with the Tyonda Oil company.
an Independent concern. First, he
said, he bought his oil Of the Tyonda
company. paying the regular whole
sale price. 8 cents gallon, and sold
Ii to the citizens at the same rate.
Then there were no profits for
yOu?" Mr.. Morrison asked.
MY wages and expenses were paid
by William Mason, the Standard Oil
agent at Binghamton," Mr.. Farrell
answered.
"What was the resultw
'"rhe merchants began cutting prices
and fighting among themselves for the
trade. My wagon bore the sign of the
Ty0nda company. The merchants be-
came angry at that company for al
lowing me to do that and they stopped
selling me OIL"
'"rhen what did you do?'
'Mr. Mason sent me oil, and ! con-
tinued to sell at the same price,
'Then what?"
"The competition became so keen
that some merchants gave oil away"
Ibid you finally gain trade?"
Eyes, but the wagon was stopped,
and / was called in TO Binghamton."
Mr.. Farrell was cross questioned
closely by Attorney Rosenthal upon let
tiers of instructions he said he had re-
csived from Mr.. Mason. Some of the
letters were unsigned. The letters re-
quested that match be put to them as
soon as they were read. Farrell said
he retained the letters, however
John j. Shea said he operated a
wagon business in Syracuse, selling to
the consumers and bought his oil from
the Standard OIL company until he
could purchase at lower figure from
an Independent dealer.
"Then rival retail wagons appeared
In Syracuse under the name Of the
Home Safety OIL company he said.
How long did this continuey' Attor.
ney Morrison asked.
Until Standard Oil agent con
tracted to sell me oil for cents under
the wholesale price, providing bought
all Of my oil from the Standard Oil
company. They also agreed to have
the rival wagons withdrawn. enter
ed into the contract, and the wagons
left The contract ran year. During
the year they allowed Inc only z cents
under the wholesale price, and | would
not enter into another contract. They
said they would allow me 3 cents. I
said wanted to buy where It was tho
cheapest. They said they wanted the
whole hog. replied that would fight
and be content with the tail If neces.
sary. The fight began. New rival
tank wagons appeared and stih are
there -