State ex inf. Hadley v. Standard Oil Co.

STATEMENT.

This is an original proceeding in the nature of quo warranto, instituted in this court on March 29, 1905, by the Attorney-General, to forfeit the charter of the Waters-Pierce Oil Company, which will hereafter be called the Waters-Pierce Company, and to revoke the licenses to do business in this State of the Standard Oil Company of Indiana, which will hereafter be called the Indiana Company, and that of the Republic Oil Company of New York, which will hereafter be styled the Republic Company; and to enjoin and prohibit all of them from doing business in this State, on the ground that they have forfeited their charters and licenses to do business in this State by the exercise and usurpation of powers not granted or authorized thereby, in that they have formed and entered into a pool, trust, combination or conspiracy in restraint of trade and against the laws of the State, known as the anti-trust statutes.

Respondents vigorously contend that the information does not state facts sufficient to constitute a cause of action against them; and that the evidence disclosed by the record fails to establish the charges contained in the information.

Those contentions necessarily call for a consideration of the pleadings, and ah extensive review of the *36 .evidence, which covers three thousand pages of printed matter.

Omitting the formal parts, the information, answers and reply are as follows:

“Comes now Herbert S. Hadley, Attorney-General of the State of Missouri, who prosecutes .this suit in behalf of the State of Missouri, and causes the court to understand and be informed that the Standard Oil Company, one of the respondents herein, is now, and at all times mentioned herein was, a corporation duly organized and existing under and by virtue of the laws of the State of Indiana, for the purpose of engaging in the business of refining petroleum and buying and selling the products thereof; that it is now, and at all times herein mentioned was, authorized to do business in the State of Missouri, having complied with the laws of this State authorizing and permitting foreign corporations to do business herein; and at all times herein mentioned was engaged in the business of selling naphtha, benzine, gasoline, kerosene, lubricating oil and other products of petroleum in the State of Missouri, and that recently it has established, and is now conducting, a refinery in this State, for the purpose of refining petroleum; that the Republic Oil Company is a corporation duly organized and existing under and by virtue of the laws of the State of New York, for the purpose of carrying on the business of refining petroleum and buying and selling the products thereof, and is now, and at all times herein mentioned was, authorized to do business in the State of Missouri, having complied with the laws of this State authorizing foreign corporations to do business in’ this State; and at all times herein mentioned was engaged in the business of buying and selling the products of petroleum in certain parts of the State of Missouri; that the Waters-Pierce Oil Company is now, and at all times herein mentioned was, a corporation duly organized *37 under and by virtue of the laws of the State of Missouri for the purpose of refining petroleum and buying and selling the products thereof, and at all times herein mentioned was engaged in the business of buying and selling the products of petroleum in certain parts of the State of Missouri.

“Tour informant further informs the court that the said Standard Oil Company, Republic Oil Company and the Waters-Pierce Oil Company, between the ---day of-- — , 1901, and the 29th day of March, 1905, created, entered into and became members of a pool, trust, agreement, confederation, combination and understanding among themselves, and each other, to regulate, fix and control the prices to be paid by retail dealers and others in the State .of Missouri for naphtha, benzine, gasoline, kerosene, lubricating oil and other products of petroleum offered for sale or sold in the State of Missouri, and to control and limit the trade in naphtha, benzine, gasoline, kerosene, lubricating oil and other products of petroleum in the State of Missouri; and to control, limit and prevent competition in said business of buying and selling naphtha, benzine, gasoline, kerosene, lubricating oil and other products of petroleum in the State of Missouri, between themselves and others engaged in like business, and to deceive and mislead the public into the belief that said respondents were separate and distinct corporations, each pursuing an independent business as legitimate competitors in the purchase and sale of said products of petroleum; and that said respondents have by said pool, trust, agreement, confederation, combination and understanding, fixed and maintained the price of naphtha, benzine, gasoline, kerosene, lubricating oil and other products of petroleum sold and offered for sale by them in this State, and have controlled and limited the trade in said products in this State, and have prevented and destroyed competition in the purchase and *38 sale of said products of petroleum in the State of Missouri, and have deceived and misled the public into the belief that they, the said respondents, were separate and distinct corporations, each pursuing an independ-' ent business as legitimate competitors, when, in fact, the said respondents, had entered into and were members of said pool, trust, agreement, confederation, combination and understanding, all to the great detriment and damage of the purchasing public and the people of Missouri.

“And your informant further states that in the pursuance of said pool, trust, agreement, confederation, combination and understanding so entered into by said respondents as aforesaid, for the accomplishment of the objects and purposes aforesaid, the territory of the State of Missouri has, by said respondents, been divided up between the Standard Oil Company and the Water s-Pierce Oil Company; and that the said Standard Oil Company, according to said agreement so entered into by said respondents, as aforesaid, has agreed not to sell, and does not sell, said products of petroleum in the State of Missouri in a territory therein lying for the most part south of the Missouri river, which said territory is, by said agreement, assigned to said Water s-Pierce Oil Company; and that said Waters-Pierce Oil Company, according to said combination, confederation, agreement and understanding as aforesaid, has agreed not to sell, and does not sell, any of said products of petroleum in certain territory in the State of Missouri lying mostly north of the Missouri river, which said territory is, by said agreement, assigned to Standard Oil Company; that the said Republic Oil Company, according to said combination, confederation, agreement and understanding, so had by respondents as aforesaid, sells oil in different parts of the State of Missouri, in territory in which, by said agreement, the Standard Oil Company does not sell, *39 and in which, by said agreement, the Waters-Pierce Oil Company does not sell, hut that the purpose and object accomplished under said agreement through the sale of oil by the said Republic Oil Company is to supply oil to such retail dealers therein, and others, who by reason of prejudice against said Waters-Pierce Oil Company or said Standard Oil Company, or from other reasons, refuse to trade with either of said respondents in their respective territories; and the further object accomplished by said Republic Oil Company, under said agreement, confederation, combination and understanding so had by respondents as aforesaid, in selling oil in each of said territories, is to enable said respondents, in the accomplishment of the purpose of said pool, trust, agreement,' confederation, combination and understanding, to crush out competitors in the sale of the products of petroleum by temporarily reducing the price thereof through sales made by said Republic Oil Company.

“But your informant further states that no actual competition exists in the sale of said products of petroleum, between said Republic Oil Company and the Standard Oil Company in that territory in the State of Missouri assigned to said Standard Oil Company, according to said agreement, confederation, and understanding, and that no actual competition exists in the sale of said products of petroleum between said Republic Oil Company and the Waters-Pierce Oil Company in that territory in the State of Missouri assigned to said Waters-Pierce Oil Company, according to said combination, confederation and agreement.

“Your informant further informs the court that each and all of said respondents appear to the public in this State as separate and distinct corporations, pretending to pursue an independent business as legitimate competitors in the purchase and sale of such products of petroleum, when, in fact, there exists said secret agreement, combination, pool, trust and under *40 standing by and between said respondents by which tbey control tbe price of said products of petroleum sold in the State of Missouri and prevent competition in the price thereof among themselves and crush out and destroy competition from others; and that said respondents, under and by virtue of said pool, trust, combination, agreement and understanding, so maintained and entered into by them, deceive and mislead the public, and are deceiving and misleading the public into the belief that they are separate and distinct corporations pursuing an independent business as legitimate competitors.

“Tour informant further causes the court to be informed and to understand that the said Standard Oil Company is engaged in the business of refining petroleum, and has, at Whiting, Indiana, and near Kansas City, Missouri, and at other points, large oil refineries wherein said products of petroleum hereinbefore mentioned are made and produced from the refining of petroleum; that by virtue of the understanding, combination, confederation and agreement so made and entered into by said respondents as aforesaid, and in addition to the other objects and purposes thereof, and in addition to the other acts of said respondents done in compliance therewith and in the enforcement thereof, said Standard Oil Company has agreed to sell, and sells said products of petroleum in the State of Missouri only to the Waters-Pierce Oil Company and the Republic Oil Company and through itself, and the said Waters-Pierce Oil Company and Republic Oil Company have, by said agreement, agreed to buy, and do buy, said products of petroleum only of the Standard Oil Company.

“Tour informant further states that said respondents herein, by reason of said combination, pool, trust and understanding, and the acts done in furtherance and in pursuance thereof, as herein stated, have been able to control and supply, and do control and supply, *41 to the retail dealers and to the general public in the State of Missouri, from eighty-five to ninety per cent of all the naphtha, benzine, gasoline, kerosene, lubricating oil and other products of petroleum offered for sale and sold for general consumption in the State of Missouri; and that by virtue of said pool, trust, agreement, combination, confederation and understanding so entered into by said respondents as aforesaid, and by reason of the acts herein before described, so done by said respondents in pursuance of and in the enforcement of said pool, trust, agreement and understanding, they have been able to control, and do control, the prices of the products of petroleum in the State of Missouri, and they do prevent, and have prevented competition among themselves in the purchase and sale of the products of petroleum in the State of Missouri; they have secured control of the oil business and of the purchase and sale of oil in the State of Missouri and have limited the trade therein and have driven out competition in said business, and that said combination, confederation, pool, trust and understanding' so entered into and maintained by said respondents as aforesaid, and said acts and methods done and performed by said respondents in pursuance and in furtherance thereof, have deprived, and do deprive, the public of free, full and wholesome competition in the sale of the products of petroleum, to the great damage and detriment of the purchasing public and the people of Missouri.

“Informant further states that by reason of the monopoly and control of the oil business in the State of Missouri so had and maintained by said respondents as aforesaid, and the prevention of competition in the purchase and sale of said products of petroleum as aforesaid, in the manner and by the means aforesaid, and by reason of the deception so accomplished by said respondents upon the general public whereby it is caused to believe that said respondents are independ *42 ent corporations engaged in a competitive business, and by reason of tbe acts of said respondents, as herein stated, said respondents are now wilfully and unlawfully maintaining an illegal agreement, combination, pool, trust and understanding, and are now unlawfully and illegally fixing and controlling tbe prices, in tbe manner aforesaid, for tbe products of petroleum sold in tbe State of Missouri ; and by reason of tbe premises, said respondents have since tbe — day of •-- — , 1901, and up to tbe present time, grossly offended against tbe laws of this State and wilfully and flagrantly abused and misused their rights, authority and franchises, and have wilfully and unlawfully assumed and unlawfully and wilfully usurped authorities and privileges not granted to said corporations by the laws of Missouri, by entering into and becoming a member of said trust, combination, confederation, agreement and understanding as aforesaidjandinpursuanceoftbeaforesaid agreement, combination, trust, confederation and understanding so made and maintained as aforesaid, respondents are now, in tbe State of Missouri, unlawfully and ■ wilfully, monopolizing, regulating, fixing, maintining and controlling tbe price to be paid by retail dealers and others in tbe State of Missouri for tbe said products of petroleum, and unlawfully limiting tbe trade and competition in tbe purchase and sale of said products of petroleum, and are now unlawfully and wilfully deceiving and misleading tbe retail dealers in said products of petroleum and tbe general public into tbe belief that said respondents are independent or competing corporations, and that tbe acts and agreements of *the respondent corporations, as herein set forth, constitute .a wilful and malicious perversion of tbe franchise granted to said corporations by the State of Missouri, and an illegal and wilful usurpation of privileges and authorities not granted to said *43 respondents by the State of Missouri, to the great and permanent injury of the public.

“Wherefore, your Informant, prosecuting in this' behalf for the State of Missouri, prays that the respondent corporations, and each of them severally, be excluded from all corporate rights and privileges under the laws of the State of Missouri, and that their franchises, rights, authority, license and certificate to do business under the laws of the State of Missouri be declared forfeited, and that each and all of them be ousted from their several corporate franchises, privileges, license and authority to do business under the laws of this State.”

Afterwards, to-wit, on the 11th of April, 1905, the respondent Standard Oil Company filed its separate answer and return to said order to show cause, which, omitting caption, is as follows:

“Now comes said respondent and, for answer and return to the information of the Attorney-General in the above entitled cause, avers:

“1. The Standard Oil Company of Indiana, one of the respondents herein, is now and was at all times herein, a corporation duly organized and existing under and by virtue of the laws of the State of Indiana, for the purpose, among others, of engaging in the business of refining petroleum, and buying and selling the products thereof; and is now, and at all times mentioned in the information was, authorized to do business in Missouri, having complied with the laws of the State authorizing and permitting foreign corporations to do business therein, and having a license from the State authorities so to do; it was at all the times mentioned in the information engaged in the business of selling naphtha, benzine, gasoline, kerosene, lubricating oil and other products of petroleum in the State of Missouri, and was, by its articles of incorporation and the license and authority aforesaid, authorized so to do; it recently established and is now conducting *44 a refinery in Jackson county, Missouri, for the purpose of refining petroleum, having expended many thousands of dollars in the construction thereof.

“The Republic Oil Company is a corporation duly organized and existing under and by virtue of the laws of the State of New York, for the purpose, among others, of carrying on the business of refining petroleum and buying and selling the products thereof, and is now, and at all times mentioned in the information was, authorized to do business in this State, having complied with its laws authorizing foreign corporations to do business therein, and having obtained and now holding a license from the proper authorities of the State for such purposes; at all times herein mentioned it was engaged in the business of buying and selling the products of petroleum in this State, as it was authorized to do by its articles of incorporation, by the laws of the State, and by the license aforesaid.

“The "Waters-Pierce Oil Company is now, and all the times mentioned in the information was, a corporation duly organized and existing under and by virtue of the laws of the State of Missouri, for the purpose, among others, of refining petroleum-, and buying and selling the products thereof; and at all the times herein mentioned was engaged in buying and selling the products of petroleum in Missouri.

“Each and every other allegation and averment in the information is denied.

“The respondent never made or entered into any agreement, confederation, combination, pool or understanding with the other respondents, or either of them, of any land or character. It did not at any time create, enter into or become a member of any pool, trust, agreement, confederation, combination, pool or understanding with the other respondents, or either of them, of any kind or character. It did not at any time create, enter into or become a member of any pool, trust, agreement, confederation, combination or understand *45 ing, with either or any of the other respondents to regulate, fix or control the price to he paid by retail dealers or others in Missouri for naphtha, benzine, gasoline, kerosene, lubricating oil or any or either of them or any other product of .petroleum in Missouri, or to control or limit the trade in naphtha, benzine, gasoline, kerosene, lubricating oil, or any or either of them, or any other product of petroleum in Missouri, or to control, limit or prevent competition in said business of buying or selling naphtha, benzine, gasoline, kerosene, lubricating oil, or any or either of them, or any other product of petroleum in Missouri between the respondents or others engaged in like business, or deceive or mislead the public into any false belief as to respondents being separate or distinct corporations; each pursuing an independent business as legitimate competitor in the purchase or sale of said products of petroleum. This respondent has not, by any pool, trust, agreement, confederation, combination or understanding with the other respondents, or either of them, fixed or maintained the prices of naphtha, benzine, gasoline, kerosene or lubricating oil, or any or either of them, or any other product of petroleum sold or. offered for sale by it, or either of them, in this State, nor controlled or limited the trade of said products in this State, nor prevented or destroyed competition in the purchase or sale of said products, or any or either of them, in this State, nor deceived or misled the public, into any false belief as to respondents being separate and distinct corporations, or pursuing an independent business as legitimate competitors ;. and never has this respondent, with either of the other respondents, entered into or become a member of any pool, trust, agreement, confederation, combination or understanding.

“This respondent has not, in pursuance of any pool, trust, agreement, confederation, combination or *46 understanding, entered into with either of the other respondents for the accomplishment of any object or purpose, divided the territory of the State of Missouri between the Standard Oil Company and the "Waters-Pierce Oil Company. The Standard Oil Company has not, according to any agreement entered into by respondents, agreed not to sell, or does not sell any of said products in this State in a territory therein lying for the most part south of the Missouri river, nor is such territory, by any agreement, assigned to respondent, the Waters-Pierce Oil Company; nor has the Waters-Pierce Oil Company, according to any combination, agreement, confederation or understanding, agreed not to sell, and does not sell any of said products in certain territory in Missouri, lying mostly north of the Missouri river, nor is any such territory, by any agreement, assigned to the Standard Oil Company. It is not true that the Republic Oil Company, according to any combination, confederation, agreement or understanding, had by the respondents, or any of them, sells oil in different parts of the State in territory in which, by any agreement, the Standard Oil Company does not sell and in which, by any agreement, the Waters-Pierce Oil Company does not sell.

“It is not true that the purpose or object accomplished by any agreement or otherwise through the sale of oil by the Republic Oil Company is to supply oil to such retail dealers in the State, or others who, by reason of prejudice or otherwise, against the Waters-Pierce Oil Company, or the Standard Oil Company, or for any other reason, refuse to trade with either of said respondents in said alleged territory or territories. It is not true that the Republic Oil Company accomplishes the object under any agreement, confederation, combination or understanding in selling oil in either of the alleged territories aforesaid so as to enable the other respondent in the accomplishment of the purposes of any pool, trust, agreement, confedera *47 tion or understanding, to crush, out competitors in the sale of petroleum, by temporarily reducing the price thereof through sales made by the said Republic Oil Company, or otherwise.

“It is not true that no actual competition exists in the sale of the products of petroleum between the Republic Oil Company and the Standard Oil Company in any territory in the State of Missouri, or according to any agreement, confederation or understanding; and it is not true that no actual competition exists in the sale of products of petroleum between the said Republic Oil Company and the Waters-Pierce Oil Company in any of said alleged territory, or according to any combination, confederation or agreement.

“It is true that each and all of said respondents are separate, and distinct corporations, but it is not true that either makes any false pretenses to pursuing an independent business as legitimate competitors in the purchase or sale of said products, nor that there in fact exists any secret agreement, combination, pool, trust or understanding by or between the said respondents, or either of them, by which they control the prices of the products of petroleum sold in Missouri, or prevent competition in the prices thereof among themselves, or crush out or destroy competition from others.

“It is not true that respondents, or either of them, under and by virtue of any pool, trust, combination, agreement or understanding, maintained or entered into by them, deceive and mislead the public, or are deceiving or misleading the public into the belief that they are separate and distinct corporations pursuing an independent business as legitimate competitors when they are not such in fact.

“It is true that said Standard Oil Company of Indiana is engaged in the business of refining petroleum, and has, at Whiting, Indiana, and near Kansas City, Missouri, large oil refineries wherein said pro *48 ducts of petroleum are made and produced from the refining of petroleum; hut it is not true that by virtue of any understanding, combination, confederation, or agreement made or entered into by respondents, or any of them, or in addition to other objects or purposes, or in addition to any other act of any respondent done in compliance with any such combination, understanding, confederation or agreement, or in the enforcement' thereof, that the Standard Oil Company has agreed to sell, or sells said products of petroleum in the State of Missouri, only to the Waters-Pierce Oil Company and to the Republic Oil Company and through itself, or that said Waters-Pierce Oil Company or the Republic Oil Company has, by any such agreement, agreed to buy, or does buy said products of petroleum only from the Standard Oil Company. e

“It is not true that respondents, or either of them, by reason of any combination, pool, trust, or understanding, or any acts done in furtherance or in pursuance of any combination, pool, trust or understanding, have been able to control the supply, or do control and supply to the retail dealers and to the general public in the State from eighty-five to ninety per cent, or any other per cent of all the naphtha, benzine, gasoline, kerosene, lubricating oil, or other products of petroleum offered for sale o,r sold for general consumption in the State.

“It is not true that by virtue of any pool, trust, agreement, combination, confederation or understanding entered into by respondents, or by reason of the acts done by them in pursuance or in the enforcement of any pool, trust, agreement or understanding, that respondents, or either of them, have been able to control, or do control the prices of the products of petroleum in the State, or that they do prevent or have prevented competition among themselves in the purchase or sale of the products of petroleum in Missouri, or that they have secured control of the oil business, or *49 of the purchase or sale of oil in the State, or have limited the trade therein, or have driven out competition in said business.

“It is not true that any combination, confederation, pool, trust or understanding has been entered into or maintained by respondents, or either of them, or that any acts or methods done or performed by them, or either of them, have deprived or do deprive the public of free, full or wholesome competition in the sale of the products of petroleum.

“It is not true that any damage or detriment has occurred or is occurring to the purchasing public or. the people of Missouri by any act of the respondents, or either of them. It is not true that by reason of any monopoly or control of the oil business in Missouri, or by the prevention of competition in the purchase or sale of the products of petroleum, or by reason of any deception accomplished by respondents or otherwise, the said respondents, or either of them, are now wilfully or unlawfully or otherwise maintaining any illegal agreement, combination, pool, trust or understanding, or are now unlawfully or illegally fixing or controlling the prices of the products of petroleum sold in the State. It is not true that respondents or either of them have, since the---day of---, 1901, and up to the present time, or at any time grossly or otherwise offended against the laws of this State, or wilfully or flagrantly or otherwise abused or misused their rights, authority or franchises, or have wilfully or unlawfully or otherwise assumed, or unlawfully, wilfully or otherwise usurped authorities or privileges not' granted to corporations by the laws of Missouri, by entering into or becoming a member of any trust, combination, confederation, agreement or understanding. It is not true that in pursuance of any agreement, combination, trust, confederation or understanding made or maintained, the respondents are *50 now in this State unlawfully, wilfully or otherwise monopolizing, regulating, fixing, maintaining or controlling the prices to he paid by retail dealers or others in the State of Missouri for the said products of petroleum, or unlawfully limiting the trade or competition in the purchase or sale of such products, or unlawfully, wilfully or otherwise deceiving or misleading the retail dealers in such products, or the general public into any false belief of any land. It is not true that any act or - agreement of the respondents constitutes a wilful, malicious or other perversion of the franchise granted to respondents by this State, or an illegal, wilful or other usurpation of privileges or authorities not granted to respondents by the State, and it is not true that there is or has been, by any act of respondents, .any injury to the public.

“Wherefore, respondent asks to be dismissed with costs.”

And on the same day, the respondent Republic Oil Company filed its' separate answer and return in response to said order to show cause which, omitting the caption, is as follows:'

“Now comes said respondent and, for answer and return to the information of the Attorney-G-eneral in the above entitled cause, avers:

“1. The Standard Oil Company of Indiana, one of the respondents herein, is now and was at all times herein, a corporation duly organized and existing under and by virtue of the laws of the State of Indiana, for the purpose, among others, of engaging in the business of refining petroleum, and buying and selling the products thereof; and is now, and at all the times mentioned in the information was authorized to do business in Missouri, having complied with the laws of the State authorizing and permitting foreign corporations to do business therein, and having a license from the State authorities so to do; it was at all the times mentioned in the information engaged in the business *51 of selling naphtha, benzine, gasoline, kerosene, lubricating oil and other products of petroleum in the State of Missouri, and was, by its articles of incorporation and the license and authority aforesaid, authorized so to do; it recently established and is now conducting a refinery in Jackson county, Missouri, for the purpose of refining petroleum, having expended many thousands of dollars in the construction thereof.

“The Bepublic Oil Company is a corporation duly organized and existing under and by virtue of the laws of the State of New York, for the purpose, among others, of carrying on the business of refining petroleum and buying and selling the products thereof, and is now, and at all times mentioned in the information was authorized to do business in this State, having complied with its laws authorizing foreign corporations to do business therein, and having obtained and now holding a license from the proper authorities of the State for such purposes; at all times herein mentioned it was engaged in tlie business of buying and selling the products of petroleum in this State, as it was authorized to do by its articles of incorporation, by the laws of the State, and by the license aforesaid.

“The Waters-Pierce Oil Company is now, auj at all times mentioned in the information, was a corporation duly organized and existing under and by virtue of the laws of the State of Missouri, for the purpose, among others, of refining petroleum, and buying and selling the products thereof; and at all the times therein mentioned was engaged in buying au<J selling the products of petroleum in Missouri.

“Each and every other allegation and averment in the information is denied.

‘ ‘ This respondent never made or entered into any agreement, confederation, combination, pool or understanding with the other respondents, or either of them, of any kind or character. It did not at any time create, enter into or become a member of any pool, trust, *52 agreement, confederation, combination or understanding with either or any of the other respondents to regulate, fix or control the price to be paid by retail dealers or others in Missouri for naphtha, benzine, gasoline, kerosene, lubricating oil, or any or either of them, or any 'Other product of petroleum in Missouri, or to control or limit the trade in naphtha, benzine, gasoline, kerosene, lubricating oil, or any or either of them, or any other product of petroleum in Missouri, or to' control, limit or prevent competition .in said business of buying and selling naphtha, benzine, gasoline, kerosene, lubricating oil, or any or either of them, or any other product of petroleum in Missouri between the respondents or others engaged in like business, or deceive or mislead the public into any false belief as to respondents being separate or distinct corporations; each pursuing an independent business as legitimate competitor in the purchase or sale of said products of petroleum. This respondent has not, by any pool, trust, agreement, confederation, combination or understanding with the other respondents, or either of them, fixed or maintained the prices of naptha, benzine, gasoline, kerosene or lubricating’ oil, or any or either of them, or any other product of petroleum, sold or offered for sale by it, or either of them, in this State, nor controlled or limited the trade of said products in this State; nor prevented or destroyed competition in the purchase or sale of said products, or any or either of them, in this State, nor deceived or misled the public into any false belief as to respondents being separate and distinct corporations, or pursuing an independent business as legitimate competitors; and never has this respondent, with either Of the other respondents, entered into or become a member of any pool, trust, agreement, confederation, combination or understanding.

“This respondent has not, in pursuance of any pool, trust, agreement, confederation, combination or *53 understanding, entered into •with either of the other respondents for the accomplishment of any object or purpose, divided the territory of the State of Missouri between the Standard Oil Company and the Waters-Pierce Oil Company. The Standard Oil Company has not, according to any agreement entered into by respondents, agreed not to sell, or does not sell, any of said products in this State, in a territory therein lying for the most part south of the Missouri river, nor is any such territory by any agreement assigned to respondent, the Waters-Pierce Oil Company; nor has the Waters-Pierce Oil Company, according to any combination, agreement, confederation or understanding, agreed not to sell, and does not sell, any of said products in certain territory in Missouri, lying mostly north of the Missouri river, nor is any such territory, by any agreement, assigned to the Standard Oil Company. It is not true that the Republic Oil Company, according to any combination, confederation, agreement or understanding, had by the respondents, or any of them, sells oil in different parts of the State in territory in which, by any agreement, the Standard Oil Company does not sell and in which, by any agreement, the Waters-Pierce Oil Company does not sell.

“It is not true that the purpose or object accomplished by any agreeement or otherwise through the sale of oil by the Republic Oil Company is to supply oil to such retail dealers in the State, or others who, by reason of prejudice or otherwise, against the Waters-Pierce Oil Company, or the Standard Oil Company, or for any other reason, refuse to trade with either of said respondents in said alleged territory or territories. It is not true that the Republic Oil Company accomplishes the object under any agreement, confederation, combination or understanding in selling oil in either of the alleged territories aforesaid so as to enable the other respondents in the accomplishment of the purposes of any pool, *54 trust, agreement, confederation or understanding, to crush out competitors in the sale of petroleum, by temporarily reducing the price thereof through sales made by the said Republic Oil Company or otherwise.

“It is not true that no actual competition exists in the sale of the products of petroleum between the Republic Oil Company and the Standard Oil Company in any territory in the State of Missouri, or according to any agreement, confederation or understanding; and it is not true that no actual competition exists in the sale of products of petroleum between the said Republic Oil Company and the Waters-Pierce Oil Company in any of said alleged territory, or according to any combination, confederation or agreement.

“It is true that each and all of said respondents are separate and distinct corporations, but it is not true that either makes any false pretenses to pursuing an independent business as legitimate competitors in the purchase or sale of said products, nor that there in fact exists any secret agreement, combination, pool, trust or understanding by or between the said respondents, or either of them, by which they control the prices of the products of petroleum sold in Missouri, or prevent competition in the prices thereof among themselves, or crush out or destroy competition from others.

“It is not true that respondents, or either of them, under and by virtue of any pool, trust, combination, agreement or understanding, maintained or entered into by them, deceive and mislead the public, or are deceiving or misleading the public into the belief that they are separate and distinct corporations pursuing ■an independent business as legitimate competitors, when they are not such in fact.

“It is true that said Standard Oil Company of Indiana is engaged in the business of refining petroleum, and has, at Whiting, Indiana, and near Kansas City, Missouri, large oil refineries wherein said products of *55 petroleum are made and produced from the refining of petroleum; hut it is not true that by virtue of any understanding, combination, confederation, or agreement made or entered into by respondents, or any of them, or in addition to other objects or purposes, or in addition to any other act of any respondent done in compliance with any such combination, understanding, confederation or agreement, or in the enforcement thereof, that the Standard Oil Company has agreed to sell, or sells said products of petroleum in the State of Missouri, only to the- Waters-Pierce Oil Company and to the Eepublic Oil Company and through itself, or that said Waters-Pierce Oil. Company or the Eepublic Oil Company has, by any such agreement, agreed to buy, or does buy said products of petroleum only from the Standard Oil Company.

“It is not true that respondents, or either of them, by reason of any combination, pool, trust or understanding, or any acts done in furtherance or in pursuance of any combination, pool, trust or understanding, have been able to control the supply, or do control and supply to the retail dealers and to the general public in the State from eighty-five to ninety per cent, or any other per cent, of all the naphtha, benzine, gasoline, kerosene, lubricating oil or other products of petroleum offered for sale or sold for general consumption in the State.

“It is not true that by virtue of any pool, trust, agreement, combination, confederation or understanding entered into by respondents, or by reason of any of the acts done by them in pursuance or in the enforcement of any pool, trust, agreement or understanding, that respondents, or either of them, have been able to control, or do control the prices of the products of petroleum in the State, or that they do prevent or have prevented competition among themselves in the purchase or sale of the products of petroleum in Missouri, or that they have secured control of the oil business, *56 or of the purchase or' sale of the oil in the State, or have limited the trade therein, or have driven out competition in said business.

“It is not true that any combination, confederation, pool, trust or understanding has been entered into or maintained by respondents, or either of them, or that any acts or methods done or performed by them, or either of them, have deprived or do deprive the public of free, full or wholesome competition in the sale of the products of petroleum.

“It is not true that any damage or detriment has occurred or is occurring to the purchasing public or the people of Missouri by any act of the respondents, or either of them. It is not true that by reason of any monopoly or control of the oil business in Missouri, or by the prevention of competition in the purchase or sale of the products of petroleum, or by reason of any deception accomplished by respondents or otherwise that said respondents, or either of them, áre now wilfully or unlawfully, or otherwise maintaining any illegal agreement, combination, pool, trust or understanding, or are now unlawfully or illegally fixing or controlling the prices of the products of petroleum sold in the State. It is not true that respondents, or either of them, have, since the — day of--, 1901, and up to the present time, or at any time grossly or flagrantly or otherwise abused or misused their rights, authority or franchises, or have wilfully or unlawfully or otherwise assumed, or unlawfully, wilfully or otherwise usurped authorities or privileges not granted to corporations by the laws of Missouri by entering into or becoming a member of any trust, combination, confederation, agreement or understanding. It is not true that in pursuance of any agreement, combination, trust, confederation or understanding, made or maintained, the respondents are now in, this State unlawfully, wilfully or otherwise monopolizing, regulating, fixing, maintaining or controlling the *57 prices to "be paid by retail dealers or others in the State of Missouri for the said products of petroleum, or unlawfully limiting the trade or competition in the purchase or sale of such products, or unlawfully, wilfully or otherwise deceiving or misleading the retail dealers in such products, or the general public into any false belief of any kind. It is not true that any act or agreement of the respondents constitutes a wilful, malicious or other perversion of the franchises granted to respondents by this State, or an illegal, wilful or other usurpation of privileges or authorities not granted to respondent by the State, and it is not true that there is or has been, by any act of respondents, any injury to the public.

“Wherefore, respondent asks to be dismissed with costs.”

After the conclusion of the testimony in this case, to-wit, on February 11, 1907, the respondents, the Standard Oil Company and the Republic Oil Company, filed a second amended answer, in which the following additional defenses were pleaded:

“2. The information herein is based upon the alleged violation of the provisions of each of sections 8965, 8966, 8967, 8968, 8971, 8972, 8978 of the Revised Statutes of Missouri of 1899, and seeks to enforce the provisions of each of said sections. Each of said sections is unconstitutional and void, for each of the following reasons:

“(a). It violates the fourteenth amendment to the Constitution of the United States, wherein it is-provided that no State shall deprive any person of life, liberty or property without due process of law, nor to deny to any person within its jurisdiction equal protection of the laws, nor make or enforce any law which shall abridge the privileges and immunities -of citizens of the United States.

“(b). It violates the provisions of section 8, article 1, of the Constitution of the United States, which *58 gives to Congress the power to regulate commerce with foreign nations and among the several States and Indian tribes, in which commerce respondent is engaged.

“(c). It violates section 10 of article 1 of the Constitution of the United States, which provides that no State shall pass any ex post facto law, or law impairing the obligations of contracts.

“(d). It violates section 4, article 2, of the Constitution of the State of Missouri, providing that all persons shall have a natural right to life, liberty and the enjoyment of the gains of their industry.

“(e). It'violates the provisions of section 30, • article 2, of the Constitution of the State of Missouri, providing that no person shall be deprived of life, liberty or property without due process of law.

“(f). It violates section 53 of article 4 of the Constitution of the State of Missouri, which forbids the Legislature from granting to any corporation, association or individual any special or exclusive right, privilege or immunity.

“(g). It prohibits all barter and commerce, by prohibiting any two or more persons from agreeing upon either the present or future price of any article of manufacture, mechanism, merchandise, commodity, convenience, repair, any product of mining or any article or thing whatsoever as between themselves, whether the same tends to the prejudice of the public interest or not, whether in restraint of trade, whether reasonable or unreasonable under the circumstances and limitations of such fixing of prices of said commodities, without regard’ to the relation of the parties to such agreement or their purposes, and in each of such respects violates each of the foregoing provisions of the State and Federal Constitutions.

“(h). It arbitrarily discriminates as between the vendors and purchasers of such articles, in that it prohibits two or more vendors from agreeing among *59 themselves to establish a reasonable price for snch articles of merchandise, bnt does not prohibit the purchasers from agreeing to fix a price at which they may purchase said articles, and tends to assure, and does assure, to purchasers such prices as may be established by unhealthy and ruinous competition, but does not assure to the vendors protection or the right to protect themselves, by agreement or otherwise, against ruinous rates established either by unwholesome or unhealthy competition or the combination of purchasers, and in each of such respects violates each of the foregoing provisions of the State and Federal Constitutions.

.“(i). It grants special privileges to the buyers of products of the character mentioned therein, by combination or otherwise, while denying to the manufacturers or vendors of the same right to protect themselves against such combination, or assuring themselves of the means of realizing a reasonable profit for their capital, labor and shill, and in each of such respects it violates each of the foregoing provisions of the State and Federal Constitutions.

“ (j). It arbitrarily discriminates between different classes of products and between labor and-capital, between different hinds of insurance companies, and between different hinds of insurance, and also between different classes of persons, and in each of such respects violates each of the foregoing provisions of the State and Federal Constitutions.

“ (h). It applies to commodities and not to labor and other matters which may be the subject of combination, and thereby discriminates arbitrarily.

“Wherefore this respondent ashs to be dismissed with costs.

“3. Respondent re-avers each and every allegation set forth in division 2 of this return, and further respectfully shows that the informant claims that under the laws of this State and the construction of the *60 statutes the respondent in a quo warranto proceeding cannot attack the constitutionality of ah act of the Legislature, the provisions of which are invoked and sought to be enforced in said quo warranto proceedings, without admitting a violation of the said statute. And the informant claims that this court has so decided in the case of State ex inf. Crow, Attorney-General, v. Firemen’s Fund Insurance Company, 152 Mo. 1. If any such contention be so maintained, or any such rule be so made, or any such statute be so construed, it will and does result in the State depriving this respondent of its property without due process of law, and will and does deny to respondent the equal protection of the laws, all contrary to the provisions of the fourteenth amendment to the Constitution of the United States, hereby and herein invoked.

“Wherefore respondent asks to be dismissed with costs.

“4. If this be or is intended to be an action to dissolve or annul an unlawful combination or conspiracy, as it appears to- be from the averments of informant, or to directly enforce the provisions of any of sections 8965, 8966, 8967, 8971, 8972 or 8978 of the Revised Statutes of Missouri of 1899, then this court has no jurisdiction of such action, for that no original jurisdiction is conferred upon it by the Constitution of this State, or by the statutes thereof, and'hence this proceeding does not constitute due process of law, and is in violation of the fourteenth amendment to the Constitution of the United States, the provisions of which are hereby invoked.

“Wherefore respondent asks to be dismissed with costs.

‘ ‘ 5. Among other things, the relief sought in this case and the penalties prescribed by chapter 143 of the Revised Statutes of Missouri of 1899, upon which this action is based and to enforce which statutory provision this action is instituted, is that none of the *61 property purchased, owned, held and used by the respondent within the State of Missouri can hereafter be used by any person, whether it be the respondent or a successor or assign thereof, for any purpose, without incurring the penalties prescribed in section 8972. Upon, the faith and in the reliance of the certificate granted to it by the State of Missouri, to do business in the said State, as. averred in the information, this respondent, long prior to the enactment of said chapter 143 or of those portions thereof sought to be enforced and which lie at the base of this proceeding, invested large sums of money in the acquisition of real estate at various points in said State, and expended still larger sums of money in erecting thereon structures and appliances suitable for the conduct of the business it was authorized to do in said State under the certificate aforesaid. Said property is peculiarly adapted to the business of this respondent, and is not valuable to any appreciable extent for any other business or purpose whatsoever, and if the same cannot be used by this respondent or its successors or assigns for the purpose for which it was bought and constructed, and for which it is valuable and suitable, as aforesaid, the value thereof would be almost wholly destroyed, to-wit: at least to the extent of 90 per cent thereof. Wherefore, the respondent says that the provisions of said section 8972, above mentioned, are in violation of sections 4 and 30 of article 2 and section 53 of article 4 of the Constitution of Missouri and of section 8 of article 1 of, and the fifth and fourteenth amendments to the Constitution of the United States, each and every provision of which this respondent now hereby expressly invokes in its behalf, for that the effect of said statutes and of the enforcement thereof by granting the relief prayed by the present cause will be to deprive the respondent of its said property and its use without due process of law, to deny to this respondent the equal protection of the law, and to *62 deprive it of life, liberty and property without due process of law, deprive respondent of the natural right of life, liberty and the enjoyment of the gains of its own industry, grant special and exclusive rights, privileges and immunities to others and interfere with respondent continuing to buy and sell products in and ship products as articles of commerce to and from foreign nations and different States. Said properties are used in the conduct of interstate commerce, so that the prohibition of the use thereof operates as a regulation of interstate commerce and as a restraint upon commerce among the several States and territories and with the District of Columbia, within the meaning of the act of Congress of July 2, 1890, which act of Congress, by the express terms of the Constitution of the United States, constitutes a part of the supreme law of the land, having been passed by Congress by virtue of the power granted by the Federal Constitution. Said section 8972 is a part and parcel of an entire and complete system and the unconstitutionality of the above mentioned'provision destroys the entire chapter, or at least the article on which this action is based.

“In complying with the laws of this State and in obtaining certificates and licenses to do business therein, as mentioned and set forth in the information, respondent paid money to the State of Missouri, which has been held and used by the. said State, and on the faith of the statutes authorizing it to do business and the licenses issued, as stated in the information, respondent invested large sums of money in the State of Missouri. The licenses and rights to do business so granted by and acquired under the laws of Missouri were without any right or reservation on the part of the State to amend, alter or repeal the same. Among other rights thereby granted by the State to the respondent was one to make any and all reasonable contracts and agreements. No other kind of a contract *63 was ever made by this respondent. Each of the provisions of sections. 8965, 8966, 8967, 8968, .8971, 8972 and 8978 of the Revised 'Statutes of Missouri of 1899 impaired the obligations of the contracts made as aforesaid with the State of Missouri, whereby the provisions of section 10 of article 1 of the Constitution of the United Statés are violated.

“ Wherefore respondent asks to be dismissed with costs.”

And on the léth day of April, 1905, the respondent, Waters-Pierce Oil Company, filed its separate answer, which, omitting caption, is as follows:

“Now comes Waters-Pierce Oil Company, one of the respondents herein, and for its separate answer and return to the information of the Attorney-General in the above entitled cause, and to the writ issued thereon, states that it is true, as alleged in said information, that said Waters-Pierce Oil Company is, and at all times in said information was, a corporation duly organized and existing under and by virtue of the laws of the State of Missouri, and that at all times in said information mentioned it was engaged in the business of buying and selling the products of petroleum; and that by warrant and authority of said laws of the State of Missouri, and its due organization thereunder, this respondent holds, uses and exercises its corporate rights, privileges and franchises in this State.

“And further answering, Waters-Pierce Oil Company denies that between the — day of ——, 1901, and the 29th day of March, 1905, or at any time, it created, entered into or became a member of a pool, trust, agreement, confederation, combination or understanding with the Standard Oil Company and the Republic Oil Company, or either of them, for any of the purposes which are in said information set forth; or that it, Waters-Pierce Oil Company, has in any manner *64 been gnilty of any of tbe things which are in said information alleged or charged against it.

“And further, said Waters-Pierce Oil Company denies each and every allegation and charge in said information which is directed against it, Waters-Pierce Oil Company, and which is not herein specifically admitted.

“Wherefore, this respondent asks to be dismissed with costs.”

And afterwards on the 3d day of May, 1905, the court made and entered in the cause an order appointing Robert A. Anthony special commissioner, to take testimony on the issues thus joined, said order being as follows:

“Now at this day, it appearing to the court from the pleadings in the above entitled cause, that the issues of fact are joined therein, therefore, upon motion and request of Herbert S. Hadley, Attorney-General, that a special commissioner be appointed by the court to take the testimony upon the issues joined in said case, it is ordered by the court that Robert A. Anthony, Esq., of Fredericktown, Missouri, be and he is hereby appointed special commissioner to take testimony upon the issues joined in said cause, with full power and authority to issue subpoenas, compelling the attendance of witnesses, the production of papers, books and other documents, to issue attachments therefor, and to hear and determine all objections to testimony and to admit or exclude the same in the same manner and to the same extent as this court might in the trial of the case before the court, and to report the testimony, with his findings of fact thereon, to this court with convenient speed, provided that such report shall be filed by the first day of the October term, 1905, unless further continued for good cause; exceptions to the findings of fact so made by said special commissioner to be filed by either party so desiring within ten days after the filing of the commissioner’s report and findings.”

*65 'While the main facts of the case are virtually undisputed, yet the deductions and inferences to be drawn therefrom are so numerous and vital to the final disposition of the cause; and the contentions of opposing counsel are so radically different regarding same, that, taken in connection with the large pecuniary interests involved and the great importance of the result, of the suit to the entire people of the State, in our judgment, they justify us in setting out the substance of the evidence.

The printed record in this cause fills three large volumes and covers about three thousand pages; the relator’s printed abstract thereof fills two large volumes of about five hundred pages each, and with commendable energy and industry, characterized by a spirit of justice and fairness, the Master has carefully prepared a terse yet a full abstract of the evidence in a printed volume of two hundred and twenty pages, which is conceded to be substantially correct and which is substantially as follows:

RELATOR’S EVIDENCE.

A. L. STOCKE testified in substance as follows: Lives in St. Louis and his business is that of secretary of St. Louis Oil Company, a corporation located in St. Louis and selling both refined and lubricating oils. Says he first began his connection with the oil business in 1878 and continued with same company up to present time. He classes illuminating oils into standard white, prime white, water white and headlight. . Says the quality varies by the fire and gravity tests. Lubricating oils are determined according to color and viciosity and gravity tests. Each company has its own name for different grades of oils. There is more illuminating oil sold than lubricating oil.

Says his company has three solicitors on the road selling oils besides himself. He does all kinds of work *66 connected with bis company. Says he sells in Missouri, Southern Illinois, Arkansas and sometimes in Indian Territory. He has personal charge of his trade and is familiar with the business.

Says he knows the Waters-Pierce Oil Company, knows Mr. Ackert, the local manager, and Mr. H. Clay Pierce. His understanding is that Pierce is the president of that company. The Waters-Pierce Oil Company was in business before his company was. The Standard Oil Company has had no plant in this city (St. Louis) since his company has been doing business. That company has done no business in St. Louis since he has been here. Some years ago that company had a plant in East St. Louis, and it may be there now. Says that some eight or nine years ago he tried to buy oil from the Standard plant in East St. Louis, but they refused to sell him.

Says his company purchases all its oil from independent refineries in Pennsylvania and Ohio, and that it is shipped in tank cars. This oil comes to his company from the East and is then distributed around through his territory.

The Waters-Pierce Oil Company has a tank station in East St. Louis and it sells oil there.

Says he sells in Hannibal, Missouri, and meets the Standard Oil Company there. Also sells in Jefferson City and meets the Waters-Pierce Oil Company there, but has never met the two companies selling oil in the same place.

Says the Union Tank Line Company cars are cars made for shipping oil in bulk.

Schofield, Shurmer & Teagle was a firm in the oil business here when he began business. It was a competing company with the Waters-Pierce Oil Company and with his company. As a competitor it was more friendly with his company than with Waters-Pierce Oil Company. In 1901 Schofield, Shurmer & Teagle was bought out by the Republic Oil Company, and then the *67 relations between bis company and the Republic were changed. Says the Republic was not friendly, but made "terrible drives” at his business, soliciting the business that the Waters-Pierce could not take away.

Witness says that neither the Republic Oil Company nor the Waters-Pierce Oil Company solicit the business of the other. When the Republic began business it began to get oil in Union Tank Line cars. The Waters-Pierce Oil Company got their oil in those cars and in their own cars. Says also that Water s-Pierce Oil Company has pipes across the river which gives them an advantage of from $15 to $20 a car.

Says' that his company never got oil in Union Tank Line ears.

His company sells oil in all States where the freight rates will permit. That his company is independent and has always been a competitor of the Waters-Pierce Oil Company.

He gets prices, or fixes prices, by cards sent out by the Waters-Pierce Oil Company. Says that in 1895 his company opened its plant which they maintain in the city. Oil was then selling for twelve cents per gallon and by reason of competition with the Waters-Pierce it got as low as three and a half cents. This was in 1896 or 1897. In 1896 or 1897 he had a talk with H. Clay Pierce, who was then president of the company. This was when the price was so low. He wanted to do something to better the conditions and had an agreement he wanted to make with me. He wanted us to sell exclusively in the Waters-Pierce territory, but witness refused to make any kind of agreement.

The Waters-Pierce and Republic do a majority of the business in St. Louis. The Waters-Pierce has its station at Thirteenth and Gratiot streets in this city, and there has been no change since 1895, except by way of improvement. They did business in 1897 under the same name they are doing business under now.

*68 In 1901 his company was running eight or nine wagons. His trade in the city is with -retail dealers, manufacturers and consumers of every description except to families. His illuminating oil and gasoline are delivered by tank wagons. The lubricating oils are sold in barrels and packages. His drivers for the last four years have also been solicitors and he does soliciting himself. He has supervision of the tank wagon deliveries. The Republic Oil Company, he thinks, runs four wagons.

Says the information that the Republic and Waters-Pierce Oil Companies did not solicit the trade of each other came from his drivers of tank wagons and from interviews with customers.

Since Republic began business he thinks the Waters-Pierce Oil Company operated about twenty-five tank wagons in the city.

Says his company is now running eleven wagons. Has.tankage capacity for three hundred thousand gallons of refined oil and about twenty thousand gallons of lubricating oil. In 1895 when he started in business his capacity was about one hundred thousand gallons.

Witness A. L. Stoeke identifies a number of postal cards sent out by the Waters-Pierce Oil Company, giving quotations on the prices of coal oil, gasoline and naphtha, on the following dates :• Feb. 6, 1905; Dec. 19, 1898; Jan. 9, 1905; Jan. 18, 1899; April 19, 1905; June 12, 1905; Sept. 28, 1903; Nov. 27, 1899; Sept. 8, 1899; Sept. 4, 1899; Nov. 28, 1898; Jan. 17, 1899; March 13, 1899; Feb. 6, 1905; Jan. 9, 1905, being exhibit “B” to “P” inclusive.

H. J. COHN testified in substance that he now works for George P. Jones & Co., an -independent dealer in illuminating and lubricating oils, located in the city of St. Louis. He is a traveling salesman for that firm and sells oils mostly in the territory in Missouri where the Waters-Pierce Oil Company sells. He has been connected in the oil business for the past thir *69 teen or fourteen years, and is now twenty-nine years old. He began work for the Waters-Pierce Oil Company as an office boy at Marshall,- Texas; afterwards he was assigned to keep records of iron barrels; then became utility man; then a relief agent; and was then made a salesman for by-products for about a year. He was brought to Missouri and connected with the Missouri division in February, 1900, and was made salesman' and auditor for the Missouri division. By the Missouri division he means the territory in Missouri in which the Waters-Pierce Oil Company sold oil. His duties were to check up stations and sell goods, to take stock of local agents, and to see that the stock and money was right. He worked for the Waters-Pierce Oil Company in Missouri until the fall of 1902, and says that as such salesman and auditor he became familiar with its business and manner of doing business in Missouri.

The witness explains a map of the State of Missouri offered in evidence, indicating thereon a line dividing a territory between the Waters-Pierce and Standard Oil Companies. The Waters-Pierce did not sell in the Standard Oil territory, nor did the Standard sell in the Waters-Pierce territory.

During the time he worked for the Waters-Pierce Oil Company it obtained its oil from the Standard Oil Company, from Whiting, Indiana, and which came in Union Tank Line cars. Says he did not get oil from any other oil company while he was with them. Schofield, Shurmer & Teagle were in business for about a year in the Waters-Pierce territory after he began to work for them. This firm was succeeded by the Republic Oil Company, and the tank station of Schofield, Shurmer & Teagle was removed from Springfield shortly after the Republic succeeded them.

During the time he worked for the Waters-Pierce Oil Company, C. M. Ackert was manager of the Missouri division, Finlay or Pierce was president, J. P. *70 Gruett was treasurer, and C. M. Adams was secretary. Says that Mr. Ackert, manager of the Missouri division, told him at one time that Stein, the. Standard Oil auditor, checked up the account of the Waters-Pierce Oil Company in St. Louis.

The Republic Oil Company was not very aggressive as a competitor and they quit doing business at Springfield. They were doing business in the Waters-Pierce territory out of St. Louis. The Republic sold oil in the name of palacine.

When he began working for the Waters-Pierce Oil Company he received instructions as to their territory and the Standard Oil territory, and was told not to sell oil in the Standard territory. Orders received from parties in the Standard Oil territory were not filled by the Waters-Pierce Oil Company. Says he heard of a break over the line at Linn Creek by a Standard agent, and Mr. Adams assured him it would not happen again.

At one time when he reported that the Republic was under-selling the Waters-Pierce Oil Company to Mr. Ackert, he was told that he need not fear further lower prices.

The Waters-Pierce Oil Company did not sell oil across the Mississippi in Illinois, but it did sell in Arkansas. The Waters-Pierce had a system by which they got information of shipments of oil into their territory by independent companies. This information was furnished to the witness while he was on the road as auditor and salesman.

Many of the agents of the Waters-Pierce Oil Company were also station agents. In the territory he now sells in for George P. Jones & Co., the Waters-Pierce Oil Company, the St. Louis Oil Company and J. D. Street & Company also sell. Street & Company, however, sell only lubricating oils. George P. Jones & Co. get their oils from independent refineries in Pennsylvania and Ohio. That he quit the service of the *71 Waters-Pierce Oil Company in the fall of 1902. He estimates that the Waters-Pierce Oil Company was selling in the Missouri territory covered by it, from eighty-five to ninety per cent of all the oils. The prices at which the Waters-Pierce Oil Company sold, varied at different points, caused by competition and different freight rates. These variations ranged from one to three cents per gallon. When he quit the service of the Waters-Pierce Oil Company competition was less than when he began, owing, he'says, to the fact that Schofield, Shurmer & Teagle had gone out of business. In order to get the business where there was competition, the Waters-Pierce Oil Company would reduce prices, and they got it in most instances.

Some merchants were prejudiced against the Waters-Pierce Oil Company, and would not buy from them at any price.

The only tank stations now maintained in the Waters-Pierce territory by other companies are at Springfield and Joplin, where Wilhoit has stations, and other companies maintain stations in St. Louis.

There have recently been large discoveries of oil wells, but this has not affected the prices.

Says the Waters-Pierce salesman tells his customers of goods he sells them before they reach the consumer.

He was instructed as to competitive shipments,- to go see the parties to whom they were shipped, get the prices and who made the shipment, and get the business back again. At one time he was instructed to tell the Desloge people at Desloge, Missouri, who had bought oil from independent companies, that the oil was Waters-Pierce oil, and that the Waters-Pierce Oil Company could sell it cheaper. He afterwards found out that the oil was not Waters-Pierce oil. It was his custom to tell customers every day such things as these.-

*72 The Standard Oil Company sometimes sold oil in the Waters-Pierce territory, but billed by the Waters-Pierce Company. A complete record of all the outside shipments into the Waters-Pierce territory was kept, and when such shipments were made, they were charged up against the agent who had charge of that place,'and his attention called to the shipment.

The trade products of petroleum are gasoline, naphtha, coal oil, paraffine wax and various other byproducts. Of the oil sold, illuminating oils amount to about 65 per cent and lubricating oils to about 35 per cent.

There is a great deal more competition in the sale of lubricating oils than in the sale of illuminating oils, because lubricating oils are usually sold direct to the consumer, while illuminating oils are sold to the merchant and retailers.

While he was with the Waters-Pierce Oil Company most of the oils came from the East, and while the Texas oil fields were in existence during that time, he does not know that any oils came from that field.

Says that he came to Missouri and began work with the Waters-Pierce Company, February 1, 1900, and worked for them continuously in that territory until October 1, 1902.

If this investigation is successful, that is, if the Waters-Pierce Oil Company should be ousted from Missouri, his company will suffer by it; for the reason that his company is the only competitor- of the Waters-Pierce that amounts to anything, and in case of ousting the Waters-Pierce there will be more competition.

He won’t tell how much oil George P. Jones & Co. sell, because he don’t want the Waters-Pierce Oil Company to know. He gave General Hadley a statement beforehand of what he knew.

Now says that the Waters-Pierce Oil Company *73 tried to injure Ms reputation since he quit them, and also states that the ousting of that company would enable him to make a very nice living. He places this statement on the ground that he could do so because he is the best salesman in St. Louis and could better hold his own among competitors.

In order to compete with the Waters-Pierce, a man must know their weaknesses before he can overcome the restrictions which they have placed around the independent dealers. Says that George P. Jones & Company have no tank stations in Missouri nor outside, and they receive their oil in wood barrels. This company buys from independent companies in Pennsylvania and Ohio. Occasionally his company got oil from the Republic Oil Company in St. Louis, and sometimes lubricating oils from the Waters-Pierce, in order to “fill in” when his company ran short.

Says that he expressed a wish that his company would not buy oil from the Standard Oil Company or Waters-Pierce Company or any of the allied companies of the Standard. Says that a tank station is a place where large tanks are prepared to receive oil out of tank cars, and from these tanks the oil is drawn out into tank wagons and distributed by the drivers to the customers.

Illuminating oils were usually distributed to merchants and other retail dealers, while lubricating oils were usually distributed to the consumer.

He says that a tank ear usually holds about 6,000 gallons. While he was with the Waters-Pierce Oil Company Ms work was not in the city of St. Louis, but outside in the State of Missouri.

He further explains that rural routes are sometimes established from tank stations, where a driver goes into the country, or adjacent country towns, and delivers oils. While he was working for the Waters-Pierce a man by the name of Wilhoit had á tank station at Joplin. That the Waters-Pierce had a great *74 many tank stations at various towns throughout the Missouri territory. There was a tank station at DeSoto, Piedmont, Poplar Bluff, Joplin, Springfield, Webb City, and many other places. He says that tank stations or warehouses were erected by the Waters-Pierce Oil Company wherever the town was large enough to justify, and customers were supplied from these sources.

Its largest sales of oil were made from tank stations. Says that as agent'and auditor of the Waters-Pierce Oil Company he audited the accounts of agent^ all over the Missouri territory and sometimes-sold oils. Especially was it his duty to visit customers who were dissatisfied and try to bring them back to the Waters-Pierce. He says that oils are higher when sold in good barrels than when sold in iron barrels.

He says that no other company except the Waters-Pierce, outside of St. Louis, Joplin and Springfield, have tank stations or own or operate tank wagons, or use milk cans or iron barrels, unless it be Mr. Lohman at Jefferson City.

Says thé Waters-Pierce Oil Company has no tank stations outside of its own territory.

There were two other men, Sutton and Chamberlain, who sold for the Waters-Pierce Oil Company at the same time he did, and in the same territory. They made the smaller towns, did some checking and auditing, and did more soliciting than he.

He gives the names of quite a number of companies competing with the Waters-Pierce Oil Company in the sale of lubricating oils. Says there was more or less competition in every town in lubricating oils, but very little competition in the sale of illuminating oils. The Waters-Pierce Oil Company did a very much larger business in the sale of illuminating oils than it did in the sale of lubricating oils. The only companies dealing in illuminating oils, outside of the city of St. Louis, were St. Louis Oil Company and Wilhoit, dur *75 ing the time he was with the Waters-Pierce Oil Company. The rule was, when he was with the Waters-Pierce Oil Company, that he found no ' competition along the line in the sale of illuminating oils.

Oils shipped in iron barrels were classed with fourth-class freight and wood barrels were classed third-class freight, which made the freight on the wood barrels higher.. Says that he thinks that if there was more competition in the oil business there would be a decline in prices. That prices are less in towns and cities where the Waters-Pierce has competition.

MAYWOOD MAXON testified in substance as follows:

He now lives at Decatur, Illinois, and is forty-nine years old. He has been in the oil business since he was eighteen. He began his connection with the oil business with Cochran-Lymans & Co., of Cincinnati, Ohio. This was an oil company. He was promoted shortly after going into this company, became shipping clerk, and afterwards traveling salesman. This company sold oils of the Standard Oil Company, and Alex McDonald was a partner in it. He, Alex McDonald, was also president of the Consolidated Tank Line Company, and later, president of the Standard Oil Company of Kentucky, and a member of the executive committee of the Standard Oil Company of New Jersey. This latter company has its offices at No. 26 Broadway, New York, and the Standard Oil Company of Kentucky had a representative at 26 Broadway, New York, a vice-president. He stayed with CochranLymans & Co. until the spring of 1880, then went with the, Peoria Tank Line Company at Peoria, Illinois. The firm of Alex McDonald & Company were owners of this company. He handled the Standard Oils and he was traveling salesman for it. Afterwards he became manager of the Iowa Tank Line Company, at Davenport, Iowa.. This company sold the oils of the Standard Oil Company solely. This was in 1883, and McDonald was one of the principal owners of this company. This company was absorbed and sold out to the Consoli *76 dated Tank Line Company in 1884, and lie became the manager of that company. It did business in Missouri, and had its general offices in this State at Hannibal, and a tank station at Kansas City. A man by the name of Swain was in charge of the business of this company at Kansas City, and a man by the name of Drake was also connected with it. Alex McDonald was president of the Consolidated Tank Line Company in 1884. This company continued to do business in Missouri until 1892, when it was succeeded by the Standard Oil Company of. Indiana. The Consolidated Tank Line Company in Illinois, Indiana and Ohio were taken over by the Standard Oil Company of Kentucky, and Alex McDonald became president of this company. At this time, the witness, in 1892, became connected with the Standard Oil Company of Kentucky.

Mr. L. J. Drake was the original owner of the Iowa Tank Line Company, and when later the company was taken over by the Consolidated Tank Line Company, Drake became general manager. "When the Consolidated Tank Line Company went out of business in 1892, Drake became the general manager of the Standard Oil Company of Indiana, and is still connected with that company.

When witness went with the Standard Oil Company of Kentucky, in 1892, he took a position in Illinois and there he came in contact with the Waters-Pierce Oil Company. The latter company sold in East St. Louis and Belleville. He ceased his connection with the Standard Oil Company in May, 1894.

He knew the firm of Schofield, Shurmer & Teagle, and also the Republic Oil Company.

During the year 1902, somewhere during the months of November or December, by direction of Mr. C. T. Collings, vice-president of the Standard Oil Company of Kentucky, the witness went to see Mr. Finlay at St. Louis, the president of the Waters-Pierce Oil Company, to talk over with him the territorial lines in Illinois between the Standard Oil Company of Ken *77 tueky and the Waters-Pierce Oil Company. The Republic Oil Company was also involved. Says the Republic Oil Company had been selling in his territory in Illinois.

During the course of his conversation with Mr. Finlay in the offices of the Waters-Pierce Oil Company in St. Louis, witness says: “I made a remark to Mr. Finlay, that I could not understand why the Republic Oil Company, a friendly interest to Standard Oil and Waters-Pierce, should name the prices they were naming in Illinois, after Mr. Codings had explained to me that they were in business and being operated for the purpose of securing trade that was antagonistic to the regular oil interests.” Mr. Finlay replied that I was certainly mistaken in regard to the prices that I named, for the manager of the Republic Oil Company reported to him regularly, and he fixed the prices that the Republic Oil Company made.

The Republic was selling oil in Illinois at this time, and getting its oils from St. Louis.

Says that his company, the Standard Oil Company of Kentucky, reported to No. 26 Broadway, New York.

Mr. Drake had office No. 1002 at 26 Broadway, . and he was president or vice-president of the Standard Oil Company of Indiana. During the years 1901 and 1902 Mr. Drake had offices at Chicago with the Standard Oil Company of Indiana.

The oils handled by the Standard Oil Company of Kentucky and Illinois came mostly from the Standard Oil Company at Whiting, Indiana, where a refinery was operated by the Standard Oil Company of Indiana.

Mr. Drake, at 26 Broadway, looked after the Standard Oil interests of Indiana and was a member of some committee. This was L. J. Drake.

The Standard Oil Company of Kentucky also had an office at 26 Broadway, New York.

*78 Sa.ys lie knew Mr. Stein, who was traveling auditor for the Standard Oil Company, under Wade Hampton, chief auditor of Standard Oil interests.

Cross-examination:

Witness says he is president of the Standard Oil Company of Illinois, which was organized and is operated as an exploration company; that is, it is doing no commercial business, but takes and holds leases and prospects for oil.

Says he has not a friendly feeling for the Standard Oil Company of Kentucky, because he considers that they did not treat him right.

The Peoria Tank Line Company got all its oil from Standard Oil Company of Ohio. Alex McDonald was president of this company.

Witness made reports to J. R. White, general manager, and some to Silas H. Payne of Cleveland, Ohio.

James McDonald is general manager of the European interests of the Standard Oil Company.

The Iowa Tank Line Company got its oils from the Standard Oil Company of Ohio.

Up to the year 1887 the Consolidated Tank Line Company got its oils mostly from the Standard Oil Company of Ohio.

Says he first went to Decatur, Illinois, with the Consolidated Tank Line Company, and then remained with the Standard Oil. Company of Kentucky when it bought out the former company in 1892.

Alex McDonald was the first president of the Standard Oil Company of Kentucky. He was after-wards succeeded by C. M. Pratt. Mr. Pratt was president of the Standard Oil Company as late as last year.

Says that upon his visit to St. Louis to see Mr. Finlay, and after a short talk with him, Mr. Ackert *79 and another gentleman came in and they talked over in a general way the territorial lines in Illinois between the Water s-Pierce Oil Company and the Standard Oil Company of Kentucky. They did not come to an understanding, and finally agreed that the matters would have to be referred to New York. Says Mr. Drake, vice-president of the Standard Oil Company of Indiana, was at one time general manager of the Consolidated Tank Line Company.

GEORGE U. HENDRICKS: Lives in St. Louis and is now clerk at the City Hall in the street department. Lived in St. Louis all his life. He is acquainted with Mr. Finlay and points him out in the courthouse.

He began work for the Water s-Pierce Oil Company in 1880 at the age of 12 years, began as a messenger, in which capacity he worked for about three and one-half years, and then he went into the sales department in St. Louis. William H. Waters was president when he first went to work for the company in 1880, afterwards H. Clay Pierce became president. He went into Mr. Pierce’s office when he was vice-president. He filled the various positions of. mail clerk, office boy, clerk in freight department, change of routing and checking freight bills. After Mr. Pierce became president he continued in that position until about 1900 or 1901. This company reincorporated in this State in 1900 on account of some Texas troubles. Says he continued to work for the company until October 31, 1904.

When new company was incorporated in 1900 there was no change in place of business. The same .officers were maintained, same stationery was used, same brands of oil were sold, and same tank stations were maintained. The property of the old company was taken over and used by the new company. With a few exceptions the same officers and same employees were retained.

The brands of the Waters-Pierce Oil Company were eupion, prime white and refined oil and they used *80 wood and iron barrels. (It is here admitted by counsel.)

The refined oils of the Waters-Pierce Oil Company came principally from Whiting, Indiana, both before and after the incorporation of the company of 1900.

Both before and after the new company was incorporated oils were shipped in Union Tank Line cars. W. P’. O. cars were also used. These were cars belonging to the company. The new company sold in the same territory as the old and there was no change in the traveling men. The stationery, letter-heads, bill heads, etc., were the same before and after May 29, 1900, except they were stamped, “Incorporated May 29, 1900. ’ ’ The banking was done at the same place and the same attorney was employed.

Prior to May, 1900, reports were made from the St. Louis office of the Waters-Pierce Oil Company to Howard Page at 26 Broadway of the outgoing business. After May 29', 1900, these reports were made to R. H. McNall, commercial agent of Waters-Pierce Oil Company, located at 26 Broadway.

In August, 1901, Mr. Andrew M. Finlay became vice-president.

The reports made to 26 Broadway were the same in form before and after May 29, 1900 ; 26 Broadway is a building in New York known as the Standard Oil Building.

He identifies map of State offered in evidence showing territory in which Waters-Pierce Oil Company sold oil and in which the Standard Oil Company of Indiana sold oil, and says that it is correct.

Says that orders received by Standard Oil Company from persons living in Waters-Pierce territory were sent to Waters-Pierce Oil Company and filled by it, and that orders received by it from Standard territory were sent to- the Standard Oil Company to be filled. This was of weekly occurrence,

*81 He often consulted the map kept in the office of the "Waters-Pierce Oil Company to find out in what territory a place 'was located in order to determine where to send the order. There was a division line drawn on this map with a blue pencil and the same map was used before and after May 29', 1900.

The Union Tank Line cars are made for transporting oil in bulk and contain on an average about 5,000 gallons.

A man by name of Stein, an auditor of the Standard Oil Company, checked up the books of the Waters-Pierce Oil Company and so did one Baccus, who was also a Standard Oil auditor, and who came with Waters-Pierce about the time Tinsley came.

The correspondence from 26 Broadway, New York, showed signatures of other men in the building, as coming from their departments. He saw such signatures on letters reláting to rates and tonnage. The initials “H. E. F.” were on some of the letters and stood for H. E. Felton who 'was with Mr. Page. Says he heard conversations between Felton and Finlay concerning freight arrangements and saw correspondence with 26 Broadway concerning the same matters.

Where there was no tank station, shipments of oils into the territory were made in barrels.

The Waters-Pierce Oil Company used its own cars mostly when distributing oils in its territory, but most of the oils shipped to it from the refineries came in Union Tank Line cars. Cars from the east were usually unloaded in East St. Louis and piped over.

The reports to Howard Page at 26 Broadway gave) a record of all car-loads shipped from St. Louis to Missouri territory and also included the package shipments.

When an auditor from the East came to audit the accounts, it was general talk in the office that he was a *82 Standard Oil auditor. Baccus, a Standard Oil auditor, audited the hooks early in 1904, and became connected with the Waters-Pierce Oil Company in the fall of 1904.

He knew before hand that Standard. Oil auditors were coming to audit the accounts by letters that came from 26 Broadway, and he also heard Pierce, Finlay and Ackert say they were coming. During the time he was with the company these auditors from 26 Broadway came once a year and audited the accounts of Waters-Pierce Oil Company.

CHARLES E. HATEIELD: Is now National Secretary of Woodmen’s Modern Protective Association. He lives in St. Louis.

. Prior to November, 1904, he worked for Waters-Pierce Oil Company as freight claim agent in the St. Louis office. He resigned his position with the company because he could make more money at something else. He was with the company in the same position since 1890.

He first met II. Clay Pierce in Cleveland, Ohio. He was then private secretary for Colonel Thompson, who was afterwards vice-president of Standard Oil Company of Ohio. He was afterwards with Colonel Thompson as his private secretary at 26 Broadway, New York. This place is usually known as Standard Oil Company headquarters. While there he learned that one Stein was a traveling auditor of the Standard Oil Company. Says he left New York in 1889.

Between 1886 and 1889 there was some correspondence between Colonel Thompson and Waters-Pierce Oil Company relative to trade territory. Says he saw a map at 26 Broadway showing division of trade territory in Missouri.

His work with Waters-Pierce Oil Company in St. Louis began June 1, 1890, and ended November 1, 1904.

*83 Says lie saw a similar map to the one at 26 Broadway in the Waters-Pierce offices in St. Louis, showing-division of trade territory. The map at 26 Broadway was sent there for Col. Thompson to decide a point in difference between the Waters-Pierce Oil Company and the Consolidated Tank Line Company. Thompson was a director in both companies and what he said about such questions settled the matter. The map he saw at 26 Broadway was sent to the Waters-Pierce Oil Company at St. Louis. The one he saw at St. Louis looked like the same one he saw in New York. It was a Rand-McNally map and had a zigzag line across it.

EDWARD VÓN HARTEN: Lives in St. Louis and has lived there since 1891. He is now with the Southwestern Oil Company, a company located in St. Louis, which was organized in March, 1905.- It is an independent company. H. C. Jungling and Charles M. Polk are associated with him.

He became connected with the Waters-Pierce Oil Company in 1883 at Houston, Texas, as local agent. In 1884 he went to Little Rock, Arkansas, as manager of the State and stayed there until 1891. Neither the Standard Oil Company of any place, nor the Consolidated Tank Line Company, sold oils in Texas or Arkansas while he was there.

In 1891 he went to St. Louis with Waters-Pierce Oil Company, and had charge of the city sales of refined oils, that is, naphtha and burning oils. He had three or four salesmen under him and looked after all the sales in the city. The company had a tank station in St. Louis, also one at Carondelet, East St. Louis, Granite City, and Webster. The Standard Oil Company, though he does not know which one, has a tank station in East St. Louis. He continued with Waters-Pierce Oil Company until December 31, 1904, in the same position. During- this time the Standard Oil Company did not sell oil in St. Louis to the trade. Some of the oils of Waters-Pierce came from Whiting, Indi *84 ana, but he does not know much about where the oils came from because he had nothing to do with the buying. During his time with the Waters-Pierce Oil Company illuminating oils were sold by Schofield, Shurmer & Teagle, International Oil Works, and St. Louis Oil Company, in tank wagons. These companies were all competitors. The International afterwards became passive so far as competition was concerned. After the Republic Oil Company succeeded Schofield, Shurmer & Teagle, the Waters-Pierce Oil Company still tried to get the business of the Republic. Says the International Oil Works made reports to the Waters-Pierce Oil Company.

The Waters-Pierce Oil Company and the International Oil Works together sold about 85 per cent of illuminating oils in the city of St. Louis. The St. Louis Oil Company and the Republic Oil Company did about the same amount of business, with a little advantage in favor of the Republic Oil Company.

H. C. JUNG-LING-: Lives in St. Louis. Began working for the International Oil Works in St. Louis in 1890 — worked for them about a month and a half and then began work for the Waters-Pierce Oil Company and worked for that company as city -salesman in St. Louis until April, 1905. During this time oil was also sold in the city by Schofield, Shurmer & Teagle, St. Louis Oil Company and International Oil Works. His business was to sell oil and to see customers, and to see that the tank-wagon drivers were doing their duty and properly serving the customers. He made reports to the city manager of the business. He sometimes gave rebates as against the other companies.

The Republic Oil Company succeeded to the business of Schofield, Shurmer & Teagle in 1901. Says he gave rebates to one customer of the Republic. When the Republic gave concessions to a customer they met them, but he says this happened only once. It was not a frequent practice to give rebates to customers of *85 Schofield,' Shurmer & Teagle, hut when they wanted their customers they went after them. Says he had instructions to get business of St. Louis Oil Company by giving rebates. Had some instructions as to Schofield, Shurmer & Teagle. These rebates were paid at the end of each month. Says he had no instructions to gives rebates to customers of Republic Oil Company.

Says, on cross-examination, that he gave rebates to one customer of the Republic Oil Company. This was a large dealer who was buying from three companies. Says he solicited the customers of Republic Oil Company the same as others, but was not told to make any concessions to get their business. Says he tried to get business away from all other companies, including the Republic.

Says he never gave rebates, or made concessions unless he was told to do so. When he gave rebates to customers he got their business.

L. C. LOHMAlí: Lives at Jefferson City, Missouri, has resided there for fifty-four years and is a merchant there doing a general business. As such merchant he handles kerosene and gasoline oils and bought and sold such oils as a jobber. For about two years past the Waters-Pierce Oil Company has been selling all the oils in Jefferson City. At different times during the last thirty years he has sold oils in opposition to the Waters-Pierce Oil Company in Jefferson City.

Says he knew the firm of Schofield, Shurmer & Teagle, and did some business with them and this firm did business in Jefferson City. -The Republic Oil Company has never done business in Jefferson City. The Standard Oil Company never did business in Jefferson City. He wrote to the Standard Oil Company once and they gave him quotations, but refused to sell him because that was Waters-Pierce territory. He wrote to them at Cleveland, Ohio. The replies to his letters are lost and he cannot find them. This was a long time ago — fully twelve years ago. The *86 Waters-Pierce was then selling in Jefferson City and has continued to sell ever since.

He at various times bought from the Waters-Pierce Oil Company and sometimes bought their oils from jobbers and druggists from whom he could get it cheaper. This oil he bought in this way he sold in opposition to the Waters-Pierce Oil Company. He also bought oils from other companies. Schofield, Shurmer & Teagle, St. Louis Oil Company and some companies in Ohio. His oils were shipped to him originally in wood barrels and when the rates were made less on iron barrels he had some of these made. Later he had oil shipped in tank cars and filled his barrels from them until the railroads refused to ship to him in tank cars unless he would build tanks to store the oil in.

When he was buying oils from the Waters-Pierce Oil Company, auditors came to check up his accounts, about once a year.

In about 1896 or 1897, when he was representing an independent company he sold oil as low as seven cents a gallon. When he would get a car of oil and it reached East St. Louis, the Waters-Pierce Oil Company would put the price down and keep it down until his car was sold out.

Sedalia is.sixty-four miles from Jefferson City.

Says he got the last oil from independent dealers or refineries in about 1896. Since that date no other company except the Waters-Pierce Oil Company has sold oil in Jefferson City.

Letter introduced from A. A. Lasar, manager of Waters-Pierce Oil Company at St. Louis, to Mr. Geo. S. Tyler, C. & A. Ry. Co., St. Louis, dated September 20, 1897, complaining that this road permitted a competitor at Jefferson City to receive shipments over this road and fill packages on switch at Cedar City, after he had been refused such shipments by M., K. \fc T. Ry. and Mo. Pac. Ry.

Also a letter from A. M. Finlay, vice-president of *87 Waters-Pierce Oil Company, to Geo. S. Tyler, A. G. P. A., C. & A. Ry., St. Louis, Mo., dated October 15,1897, complaining of shipments of tank ears of oil consigned to Cedar City and quoting a rule in “Tank Line Hand Gauge Book No. 3,” reading as follows: “Petroleum and its products in tank cars will be delivered only when consigned to parties at points at which they have proper unloading and storage facilities, and when shipments in tank cars are sent to parties who have not such facilities, the shipments will be returned to shippers at their risk and expense.”

Says he thinks Schofield, Shurmer & Teagle did no business in Jefferson City after 1897.

The rate war when oil went down to seven cents a gallon was between him and Waters-Pierce Oil Company and continued through 1896 and part of 1897.

When he wrote to the Standard Oil Company at-Cleveland, Ohio, about twelve years ago for quotations on prices, they quoted him oil at about two cents less on the gallon than he was getting it from the Waters-Pierce.

J.S. WILLIS: Resides at Jefferson City, and is rate clerk of the Missouri Railroad and Warehouse Commission. Has' held that position since Juñe 25, 1903. His business as such rate clerk is “to keep a record of the tariffs filed with the commission by the railroads and to check those tariffs to see that they do not exceed the statutory limitation.” The schedules of the different railroads are filed with the commission and he cheeks up such schedules to see that they comply with the law. Says he is familiar with the rate records and knows how to find the rate from one point to another. Also he knows the distances from one point to another from the printed distance tables filed with the commission. Says he has prepared and has with him a' memorandum or tabulated sheet made from the records in his office showing distances and freight rates from Kansas City and St. Joseph to various points. *88 Says that oils shipped in less than earload lots is fourth class and carload lots fifth class, when there is no special commodity rate published less than fifth class. Prior to April 1, 1905, oil shipped in wood barrels went as third class and paid a higher freight rate than oil in iron barrels, which was carried as fifth-class freight. On April 1, 1905, the commission placed oil in wood barrels in fourth class with oil in iron barrels. Tabulated statement prepared by witness showing freight rates on oils in carload lots and less than carload lots and miles from St. Louis to different points in Missouri in one column and from Kansas City to different points in Missouri in the other column.

The classification of oils in wooden barrels in third class and in iron barrels in fourth class prevailed for many years prior to April 1, 1905. Carload lots is oil in tank cars and has never been classified higher than fifth class freight. This is according to the Western Classification, which has been adopted by the Board of Commissioners. The schedules offered in evidence as applied to oils shipped in wooden or in iron barrels or in less than carload lots, places wooden barrels in fourth class, whereas, prior to April 1, 1905, wooden barrels were in third class and the rate was higher.

LETTER from A. M. Finlay, president of Waters-Pierce Oil Company, dated May 29th, 1900, “To Managers, Agents and Representatives of the Waters-Pierce Oil Company,” stating that the Waters-Pierce Oil Company organized May 7th, 1878, was dissolved on May 28, 1900, and notifying employees that their services would terminate on May 31, 1900. Also stating that the company had sold and would transfer all its property to the Waters-Pierce Oil Company, organized May 29, 1900, which said property the employee was directed to hold for the new company.

LETTER from H. C. Pierce, president of Waters-Pierce Oil Company, dated May 29, 1900, directed to *89 Mr.-, giving same information as contained in the foregoing letter and employing the person to whom the letter was directed as an employee of the new company at the same salary.

The foregoing letters were admitted to be copies of letters sent ont to all the representatives of the Waters-Pierce Oil Company.

GEORGE 3?. JONES: He is in the oil business and lives and does business in St. Louis. Sells both lubricating and illuminating oil. Been in the oil business for twenty-five years. He was formerly in the firm of Speer, Jones & Company, which did business in Kansas City. They ceased business in Kansas City about 1889. In Kansas City they met in competition Consolidated Tank Line Company, Schofield, Shurmer & Teagle and National Oil Company. Did not meet the Waters-Pierce Oil Company there. Their main business was here with a branch office in Kansas City. When in Kansas City they got their oils from Eastern independent refineries, the same as they did in St. Louis.

Prom 1883 to 1889 they met dozens of companies in competition in St. Louis, but most of them sold only lubricating oils. The only company selling illuminating oil then, and yet in business, is the Waters-Pierce Oil Company. The St. Louis Oil Company started since 1889.- Says he gets his oil from Pennsylvania and Ohio.

Says the Standard Oil Company succeeded the Consolidated Tank Line Company at Kansas City. The Republic Oil Company succeeded Schofield, Shurmer & Teagle in 1901. The last firm named was a competitor of his and of the Waters-Pierce Oil Company. Says he knows Schofield, Schumer & Teagle were more aggressive against everybody than the Republic in their line of doing business. The International Oil Works, located in St. Louis, was aggressive up to the time it was supposed to have sold out to the Waters-Pierce Oil Company.

*90 He sells illuminating oil only in Illinois and Missouri and only in sections of Missouri. Says he cannot compete at points near Kansas City because of freight rates.

JOSEPH A. BUSE: Lives in St. Louis and is vice-president of the George Henseler Oil Company. It is an independent company. Sells lubricating oil principally. Furnishes illuminating oil only on orders. Sells oil in a number of States. Has no dividing line of business and does not refuse to sell to any one. Gets oil from the East in carload lots and has no pipe lines. '

He formerly worked for the Waters-Pierce Oil Company. Was employed by them in their works in St. Louis at Thirteenth and Gratiot streets until about five years ago, when he became a city salesman in St. Louis. The company had about thirty storage tanks at Thirteenth and Gratiot running from fifty to four hundred barrel-capacity, fifty gallons to the barrél. The .oils came from the East and the company had a pipe line across the Mississippi river through which oil was received. Oil was shipped out to various points .from these storage tanks. Oils not received through the pipe line were received in Waters-Pierce tank line cars and Union Tank Line cars. When he became a city salesman there was quite a number of companies selling oil in the city, but most of them confined their sales to lubricating oils. The International and Schofield, Shurmer & Teagle sold illuminating oil.

Says he ceased work for the Waters-Pierce Oil Company the 1st day of March, 1905.

Said he made reports on every company he found selling their customers and he was told to keep on soliciting the trade. He was city salesman of lubricating oil and knew of customers who had made contracts for oils in the East which was furnished here by the Waters-Pierce Oil Company. Says he saw letters concerning contracts made in the' East for oils to be furnished by Waters-Pierce Oil Company in St. *91 Louis — these letters were written to Mr. McNall, commercial agent of Waters-Pierce Oil Company, at 26 Broadway, New York. As to customers who had contracts made in the East he was told to call on them and see that the goods the Waters-Pierce Oil Company was furnishing were giving satisfaction and deliveries were made promptly and see that they were; pleased and satisfied.

McNall of New York would write about these contracts made in the East; he would see the letters and would then be told to call on the person or firm having the contract. He says McNall was commercial agent of the Waters-Pierce Oil Company.

He was a salesman for lubricating oils only and sold principally to manufacturing establishments. He now does not remember whether letters received from McNall were on Waters-Pierce Oil Company or Standard Oil Company letter-heads.

GEORGE WACKERLIN: Lives in St. Louis and has been in the retail grocery business for sixteen years. Buys and sells coal oil. Buys from Waters-Pierce Oil Company. Schofield, Shurmer & Teagle tried to sell to him. The Republic Oil Company succeeded the last named firm. The Republic Oil Company never tried to sell him. He is also buying from St. Louis Oil Company and Southwestern Oil Company.

CHARLES W. RIPPE: Lives in St. Louis and has been in the general merchandise business there for twenty-five years. Buys and sells coal oil. Bought from Waters-Pierce Oil Company and International Oil Works up to a few weeks ago. Is now buying from Southwestern Oil Company and International. The firm of Schofield, Shurmer & Teagle tried to sell him, but the Republic Oil Company never did.

MANUEL CYTRON: Has been in the grocery business by himself for a year and a half. He buys from the Republic Oil Company; the Waters-Pierce Oil Company does not try to sell him.

*92 He is in business in St. Louis. Says there is a large number of grocery stores which handle oil. Pie has never been solicited by any other company except the Republic.

JACOB CYTRON: Is'in the grocery business in St. Louis and as such buys and sells coal oil and gasoline. He first dealt with Waters-Pierce.Oil Company, then with Schofield, Shurmer & Teagle, they having offered inducements, and since that firm went out he has been buying from the Republic Oil Company. Since he has been buying from the Republic Oil Company, the Waters-Pierce has not tried to sell him. No company has solicited his trade since he has been buying from the Republic.

Where he is now he sells about twenty gallons each of coal oil and gasoline a month. When he and his brother were together on Seventh street they sold about one hundred and fifty gallons of oil a week.

INCORPORATION WATERS-PIERCE OIL COMPANY: Copy of articles of incorporation of Waters-Pierce Oil Company, filed with Secretary of State May 7, 1878. Capital stock one hundred thousand dollars. Incorporators, William H. Waters, St. Louis, Mo.; Henry C. Pierce, St. Louis, Mo.; Horace A. Hutchins, Cleveland, Ohio; Prank D. Carley, Louisville, Ky.; and William P. Thompson, Parkersburg, West Virginia.

Statement of increase of capital stock from one hundred to four hundred thousand dollars. Shows a meeting of the stockholders of Waters-Pierce Oil Company, at St. Louis, Mo., on June 13, 1882, and present, in person or by proxy, William H. Waters, representing four hundred shares; P. D. Carley, representing two hundred shares; H. A. Hutchins, representing one share; W. P. Thompson, representing one share, and George H. Vilas, M. R. Keith and George P. Chester, trustees, representing three hundred and ninety-eight shares.

*93 The increased capital of $3,000,000 was subscribed as follows:

Chess-Carley Co., 600 shares........$60,000

Wm. H. Waters, 1,200 shares ......120,000

Trustees Standard Oil Trust, 1,200

shares ........................120,000

A. H. GARDNER: Lives in Kansas City, Missouri, and has resided there for nearly thirteen years. Prior to coming to Kansas City he lived near Cleveland, Ohio, and Denver, Colorado. He'was with the Excelsior Refining Company at Cleveland, Ohio, one year. Then he was with the Continental Oil Company at Denver, Colorado. Left Denver in November, 1892, and came to Kansas City, where he became connected with the National Oil Company.

The Continental Oil Company sold both lubricat: ing and illuminating oils, but did not sell in Missouri. It sold in Colorado, New Mexico and Montana. It was not a competing oil company of the Standard. Its reports were made to Mr. Tilford in New York.

National Company not connected with Standard Oil Company. This company gets its oil from Pennsylvania and Ohio, or from the National Refining Company. He came here in 1892 and has been at this place as manager of National Oil Company ever since. When he first came to Kansas City the companies doing a general oil business were Consolidated Tank Line Company, Schofield, Shurmer & Teagle, and National Oil Company; they were the only companies selling illuminating oil. There were other companies selling lubricating oils.

In 1901 Schofield, Shurmer & Teagle went out of business and transferred to Republic Oil Company. Harry Teagle was the representative of Schofield, Shurmer & Teagle when he first came to Kansas City. The Standard Oil Company at Kansas City has had several managers since he came — Pratt, Davis, Mayer and Crenshaw. Crenshaw was afterwards general *94 manager of Standard Oil Company, with headquarters at Chicago.

Schofield, Shurmer & Teagle and National Oil Company were independent companies. There was sharp competition between those companies and between each of them and the Standard Oil Company.

Shortly after he went to Kansas City the Consolidated Tank Line Company was changed to the Standard Oil Company. The only change was in the name of the company; the same office, same brands of oil, same tank wagons, same managers and same employees generally.

‘When the Republic Oil Company began business it went after customers of National Oil Company, but not after those of the Standard Oil Company.

In August, 1902, his company began a rate war with the Republic and the two companies began to cut prices against each other, during which time the Standard Oil Company maintained its prices. Says that when he found that Standard Oil Company was maintaining prices his company went after their customers and forced the Standard to sell cheaper or lose customers. This fight continued for about two months.

Then Mayer met him at the Baltimore Hotel and told him that Walter Teagle, president of the Republic, and Crenshaw, general manager of Standard Oil Company, would be at Kansas City on a certain date- and would see him and fix matters satisfactorily, and for him not to go out and reduce prices on outside trade. Crenshaw came, called him up and wanted him to go with him and meet Teagle. Crenshaw said he' expected Walter Teagle out there, but he could not come and that he (Crenshaw) would have to handle the matter himself. Crenshaw told him that Teagle felt that he was not being recognized, that Mayer seemed to be the only man who had a voice in the matter. Says Crenshaw told him he had everything fixed with Teagle and that there would be no more trouble. That those *95 rebate contracts made by tbe Republic Oil Company were very foolish and if he, Crensbaw, bad known of tbem tbey would not have been made. There were contracts made by Teagle, manager of tbe Republic Oil Company at Kansas City, with certain customers to furnish tbem for a certain time at a certain fixed price. Then Crensbaw asked bim to go up to tbe Coates House to meet and talk witb Henry Teagle, manager at Kansas City. He agreed to go. Tbey went and met Teagle and Crensbaw would not let Teagle talk business. Tbey talked awhile upstairs in tbe bouse, then witness and Crensbaw went downstairs and bad a private talk. In tbis conversation says Crensbaw told him be bad to sell ‘‘palacine” and get fourteen cents for it and Mayer will sell it under tbe name of eocene and only get eleven cents for it. Witness says be told Crensbaw that be never would give bim any rest as long as tbey bad tbe Republic in there to do their fighting, and Crensbaw told bim that be expected Walter Teagle to be there to handle Henry Teagle, but it was all thrown on bim, and that what tbey did that day and tbe conversation, etc., be didn’t want repeated or anything said about it. Tbis conversation witb Crensbaw was in August, 1902, at Kansas City, Missouri.

Schofield, Sburmer & Teagle bad a tank station at Springfield, Missouri, and be met tbem there; also met tbe Waters-Pierce Oil Company there, but did not meet tbe Republic Oil Company or Consolidated Tank Line Company.

Says bis company has a dividing line witb tbe Hannibal Company, because it is a company openly selling tbe products of the National Refining Co., which facts are advertised by letter-beads, cards and in other ways.

He never meets tbe Standard Oil Company and tbe Waters-Pierce Oil Company doing business in tbe same territory.

*96 Says that after the Bepublic Oil Company succeeded Schofield, Shurmer So Teagle at Springfield, Missouri, the tank section there was discontinued.

The company he is manager of, the National Oil Company, was incorporated May 6,1890.

The products of the National Befining Company are handled by several different companies and each of them are assigned separate and distinct territory. The National Oil Company at Kansas City has a prescribed territory, and the other companies do not sell in their territory. These facts are advertised in various ways.

Says his company had no arrangements with Schofield, Shurmer So Teagle, but that they were friendly and at the same time tried to get each other’s business.

Says after the Bepublic Oil Company was formed, his company objected to it principally because they cut and made prices and got business for the Standard Oil Company while the Standard maintained prices. Says the Bepublic Oil Company started a war on his company first in August, 1902, and they run the price down from thirteen to eight cents, which was not stopped until Crenshaw came there to settle it after about three months. Says it was settled by the manager of the Standard coming there and giving to the manager of the Bepublic instructions to do away with any further scrapping, with the understanding that the National Oil Company would let the contracts of the Bepublic alone until they expired.

Says he told Crenshaw that his company would not let up on them as long as they kept the Bepublic there and he has had that feeling’ ever since and has kept after them.

Says he gave Mr. Lake, who called to see him, what information he could prove that the Bepublic Oil Company was a Standard Oil interest and not an independent company.

*97 ■ Says he is friendly with Mayer and Cochran.

Says they look upon the Republic Oil Company as a harder competitor than the Standard because it goes out after business that the Standard doesn’t chase after, or such business as the Standard cannot get.

In regard to his conversation with Crenshaw in August, 1902, says Crenshaw told him he had seen Teagle of the Republic and arranged everything with him.

About six weeks after this rate war trouble, Henry Teagle, manager of the Republic, left and he was succeeded by Cochran.

W. N. DAVIS: Lives in Kansas City and has been connected with the Keystone Oil Company in that city for the past seven years. Prior thereto he was with the Interstate Oil Company in that city for about ten years. These companies sold lubricating oils mostly. They had no prescribed territory and sold anywhere they could. The Keystone handles various oils of independent refining companies wherever they can be bought. Such refineries are located in Pennsylvania, Ohio, West Virginia and various other centers. The Keystone comes in contact with all the companies doing business in the State. They never meet the Waters-Pierce Oil Company and Standard Oil Company selling in the same territory, either in Missouri or other places.

Says he was local manager in Kansas City- of the Consolidated Tank Line Company prior to about seventeen years ago. As such he made reports to the general offices, then located at Cincinnati. Also while with the Consolidated he made reports to Silas H. Payne, manager of the lubricating department of the Standard Oil Company, at 26 Broadway, New York.

Alexander McDonald was president of the Consolidated Tank Line Company.

*98 The consolidated got some of its oils from Whiting, Indiana, and from other points. This company-sold oil only in a prescribed territory. His description of that territory, or the line dividing its territory, corresponds with that given on the map introduced in evidence.

Says while he was with the Consolidated he built a station at Joplin, in Jasper county, which was after-wards turned over to the Waters-Pierce Oil Company. This was.about 1887.

Tanks at tank stations were built according to the conditions, .sometimes they were small horizontal tanks and where more storage capacity was required, they were vertical.

While with the Consolidated they got information of competitive shipments from receiving clerks of railways and through a man employed for that purpose. A special record of this information was kept and salesmen were notified and were expected to see that no more competitive oil was sold to a consumer.

The Consolidated had a forwarding station in East St. Louis, where various lines of goods were kept, and when they were needed in a hurry at any particular station they were forwarded in carloads from there— this was rather a small station. The company did not sell oil in East St. Louis at that time. We sold no oil in what was known as Waters-Pierce territory.

Alexander McDonald was afterwards located at 26 Broadway, New York, and was a member of the executive board of the Standard Oil interests.

There was much more competition in the sale of lubricating oil than in the sale of illuminating oils.

Says that in his opinion the Standard Oil Company and Republic Oil Company sell in what is known as Standard territory from ninety to ninety-five per cent of the illuminating oil sold and they do a much larger per cent of this business than in sales of lubricating *99 oils. These companies do from twenty-five to thirty per cent of the lubricating business.

As a reason for there being less competition in the sale of illuminating oil witness says: The facilities of the Standard Oil Company are such that very few independents could raise the money to successfully compete against them. In all towns from fifteen hundred inhabitants up they have got tank stations established and they furnish oil in bulk, while the independents would be forced to ship in barrels. Another advantage is by shipping in tank cars they save about thirty per cent on freight rates. - Then their system of dealing in tank wagons is such that the trade don’t want to buy in barrels when they can possibly buy in bulk, and in order to compete with the Standard it would require vast sums of money. And further, to compete successfully you couldn’t localize yourself. You would have to spread over’ the same territory and do business in the same manner, and it is a well-known fact that no combination of independents could raise that amount of capital. Lubricating oil is handled differently — it is handled in packages and is sold directly to the consumer.

There has been large discoveries of oils adjacent to Kansas City recently and a refinery has been established at Sugar Creek by the Standard Oil Company.

Never knew of any except Standard Oil Company using Union Tank Line cars for shipping oil.

EDWAED P. PEATT: Has lived in Kansas City, Missouri, since 1892. Is now engaged in real estate, fire insurance, loans and investment business in that city as a member of firm of Pratt & Thompson, and has been in that business for eight or nine years. About the year 1886 he was connected with the Des Moines Oil Tank Line at Des Moines, Iowa, which was an independent company. The firm of Schofield, Shurmer & Teagle were interested in that company. In 1890 it *100 sold out to Consolidated Tank Line Company. He then became manager of the Consolidated at that place. Then in 1892 be came to Kansas City as a manager of the Consolidated Tank Line Company, and bad charge of the regular territory allotted to the Kansas City station which consisted of a part of Missouri and a part of Kansas. The St. Joseph office of the Consolidated had charge of the northern parts of Missouri and Kansas, and their office had charge of the central portion of Missouri and southern portion of Kansas. The Waters-Pierce Oil Company had charge of the southern portion of Missouri. Says he remembers the line dividing the territory of the Consolidated and Waters-Pierce. His company did not sell in Waters-Pierce territory, nor did Waters-Pierce Oil Company sell in his territory, nor did they sell in the same place anywhere. Says there was a map in the office showing the territorial lines. Identifies the line on map introduced in evidence as ‘ Exhibit A ” as the dividing line between the two companies.' In April 1892, the Consolidated Tank Line Company was succeeded by the Standard Oil Company of Kentucky. Says he continued until the latter company was succeeded by the Standard Oil Company of Indiana in about 1896. The territory in which oil was sold remained just the same under all three of the companies. The business was carried on under all three companies in the same way and by the same officers and same brands of oil — there was some change in the officers when the change was made to the Standard Oil Company of Indiana.

As manager of the Kentucky Company he reported to Cincinnati, and as manager of the Indiana Company he reported to Chicago, Illinois. Mr. L. J. Drake was the general manager of all three of the companies during his connection with them. Says the Standard Oil Company of Indiana also took charge of the St. Joseph office and territory in 1896, and this company *101 has had charge of the business in both places ever since.

Consolidated Tank Liste Company handled in illuminating oils what was called perfection, eocene and caline, and these same brands were continued by the Standard of Kentucky and of Indiana.

When his company received an order from a customer in Waters-Pieree territory, the practice was, if it was urgent, to fill it and report simply the gallonage, and the billing would be done by the Waters-Pieree Oil Company. If it was not urgent, the order itself was referred to the general office. In such eases the collection would be made by the Waters-Pieree Oil Company. Says this same practice was followed by the Waters-Pieree Oil Company when it received orders from Standard territory. Says his traveling salesmen were given instructions as to the territorial line and were told not to go beyond it. Says his company had a tank station in East St. Louis and that oil was shipped from there into Standard territory.

The firm of Schofield, Shurmer & Teagle was competitor of his company and was an independent company.

Shipments of oil to his company came in Union Tank Line cars and reports of these cars were sent to 26 Broadway, New York, to Silas H. Payne. The reports were made the same by all three of the companies during his connection with them. His company got oil from Whiting, Indiana, and Cleveland, Ohio.

Under all three companies he had an arrangement. with clerks in railroad freight offices by which he got. information of shipments of oil to independent companies. This information was given to traveling salesmen and station agents so that they might see the person to whom the shipments were made and stop the shipments or get the business in some way even by making prices to secure it.

*102 The only competitors his company had in the sale of illuminating oil were Schofield, Shurmer & Teagle and National Oil Company, hut there were other competitors in the sale of lubricating oil.

Says his company did from ninety to ninety-five per cent of the illuminating oil business.

Annual report of Standard Oil Company filed in office of Secretary of State, November 29, 1892, reporting for both Consolidated Tank Line Company and Standard Oil Company for year preceding June 1, 1892.

Says they also had a map in the office at Kansas City showing division of territory between that office and the one at St. Joseph.

Also says that orders coming to his territory from St. Joseph territory were transferred to the St. Joseph office and that office would transfer to the Kansas City office to be filled an order coming to it from the Kansas City territory. The object was for the proper territorial agency to get credit for the sale.

The East St. Louis station was maintained because saving in freight could be made by making shipments from there to certain points in the territory.

The tanlr car reports that were sent to Silas H. Payne, 26 Broadway, showed receipts of ears, giving the number and when they were unloaded. Payne was manager of the Union Tank Line Company. These cars are regular railroad cars with immense tanks on them for receiving, oil.

What is meant by “charging” competitive shipments to agents is that each agent would have his territory, which he was expected to look after, and if it was found that these shipments went into his territory, his attention was called to the matter so that he could report to the company as to why those shipments went into his territory and as to how we would get rid of the competition.

*103 As to the system of getting information of competitive shipments through railroad employees he never heard of independent companies following the practice.

Never knew of oil being shipped in Union Tank Line cars to any other than Standard interests.

When he began with Consolidated Tank Line Com-. pany it had a plant at Armourdale consisting of about' a dozen tanks for receiving, storing and distributing oil and gasoline in bulk. The Standard of Kentucky took over this plant. When the Kentucky company began it had about a dozen wagons, by means of which it distributed oil to the retailers throughout the city, by filling the tank wagons at the tank station, driving the wagons to the place of business of the purchasers, the retailers, and transferring by means of open measures or buckets from the wagon into the storage tanks of the merchants. During his connection with the companies the tank station at Armourdale was increased and another station was built at Twentieth and Harrison streets in Kansas City. The tank capacity was very large. This increase took place under the Kentucky company and was a material increase. The Harrison Street station consisted of three tanks, about one thousand barrels to the tank. After this last station was built the number of tank wagons was reduced because the source of supply was shortened. The business had very largely increased in gallonage before he left, caused by increase in population and consumption. When he began in 1892 a large per cent of oils was handled in barrels and when he quit the large per cent was being handled by tank stations and wagons. The bulk business had very largely increased.

During the time he was with these companies Schofield, Shurmer & Teagle in Kansas City sometimes had two and sometimes three wagons, and the National Oil Company about the same number, but they never increased their wagons or tank stations. The independent companies from 1892 to 1896 did not have the *104 facilities to do the amount of business that was done by the Standard. They did the amount of business their facilities enabled them to -do.

When he first started in 1892 there were about twelve tank stations in the territory and when he quit there were about forty. There was a large increase in the tank stations. Says he ran tank wagons at all stations to distribute oil to dealers and to surrounding towns. The average tank wagons for the forty stations was about two, or something like eighty in all. This increase in stations and wagons did not necessarily represent increase in volume of business, because the same places were supplied before by barrel shipments. The tank wagon delivery is more economical to .the company and more satisfactory to the consumer. The trade prefers this kind of delivery.

During this time the independents also sold at these points where he had tank stations, but they shipped mostly in barrels, but at some of them they had tank stations. The National Oil Company had one wagon at Wichita and one at Topeka, and the Hannibal Oil Company had one at Hannibal, but they made no increase of their tank wagons. His company had two wagons at each of those places. These tank wagons were built from a motive of economy — there was more money in running tank stations. Profits were increased and trade held better and the trade was increased by such means.

Says that the brand of the'Waters-Pierce Oil Company called “eupion” corresponded to the brand of the Standard called “eocene.”

GEORGE W. MTJRRSER: He resided in Kansas City, Missouri, for twenty years and is now travelling salesman for the Interstate Oil Company, which sells only lubricating oil. It is located in Kansas City and sells oil there and elsewhere. He was with L. D. Mix Oil & Naphtha Company from 1889 to 1892 in said city, which only sold lubricating oil. Then the Standard. *105 Oil Company bought the latter company out and he went with the Standard and took charge of their specialty department. In 1895 he became a salesman for the Standard and sold illuminating oil and continued in that position until 1897, when he severed his connection with the company.

While with the specialty department of the Standard until the fall of 1892 he worked under Mr. Stanley of Cincinnati, who was manager of that department when it was wiped out, and he worked under and reported to Mr. Pratt, the local manager.

Said he sold specialties in Standard territory in Missouri and all of Kansas and Nebraska.

The Standard Oil territory in Missouri was that section of the State with an irregular line running from Plannibal in a southwest direction down, including Moberly, Boonville, Sedalia, Clinton, Nevada and striking the State of Kansas at the lower border of Barton county. That part of the State north and west of this line was Standard territory. After the specialty department was wiped out Nebraska and the St. Joseph part of the territory was taken away from the Kansas City territory.

The company at St. Joseph was the same and sold the same brands. He identifies the line on map introduced in evidence as the dividing line between the Standard Oil and the Waters-Piereé Oil Company. There was a map in the office showing the division line and maps were furnished traveling salesmen so they would not cross the boundary.

The standing of a salesman was determined by the amount of goods he sold monthly and competitive shipments into his territory were taken into consideration. They were informed as to competitive shipments and instructed to get that trade and prevent outside shipments. They were authorized to cut prices and give other kinds of inducements in order to prevent competitive sales.

*106 The information to the Kansas City office of these outside shipments came through the railroads.

In about 1896 he sold some oil in Jerico, Dade county, Missouri. This was Waters-Pierce territory. In about ten days afterwards he was called into the office at Kansas City and given a “jackin’ up” for crossing the line. Says he knew it was not Standard territory, but he took a chance to increase his sales. Says his company lost the amount of the gallonage sold there; that it went to the credit of the Waters-Pierce Oil Company.

In August, 1892, he sold a carload of candles to be shipped to Argentine, Mexico, which was Waters-Pierce territory. Says his company lost that sale because it was Waters-Pierce territory, and it got the profits of the sale.

These specialties came from Cleveland, Ohio, and were shipped sometimes by way of Hannibal — sometimes by way of St. Louis.

These goods were shipped to Kansas City and then sold to points in the eastern part of the State like Hannibal, forty miles from St. Louis.

As an employee of the Interstate Oil Company he sells in both Standard and Waters-Pierce territory, but has never found them selling in the same territory.

The brands of illuminating oil sold by Waters-Pierce Oil Company are eupion and brilliant, and those sold by the Standard are,perfection, eocene and ealine.

While he was with Standard Oil Company it sold about ninety per cent of the illuminating oil sold in its territory and about forty-five or fifty-five per cent of lubricating oil. The sales by the Standard Oil Company and the per cent have increased since he worked for it. At the time he was with the company its strongest competitors were the National Oil Company and Schofield, Shurmer & Teagle.

Says the Republic Oil Company when i-t came into *107 existence did not make the vigorous fight against the Standard that Schofield, Shurmer & Teagle had.

Says as salesman for the Interstate Oil Company he got along nicely with all competitors except the Standard Oil Company. Does not try to get the business of any competitor except in an honorable way with the exception of the Standard, and he says he goes after their business and tries to get it any way he can— by offering inducements that he will not to customers of the other competitors.

Says, on ' cross-examination, that the brand of eocene of the Standard Oil Company was eupion of the Waters-Pierce Oil Company, and brilliant of. the Waters-Pierce Oil Company was perfection of the Standard.

Says he is not familiar with the tests known as fire, flash and specific gravity.

GOTTLEIB KITEESTER: Lives at Maryville, Nodaway county, Missouri, is 68 years old, and has lived there since 1868.

Pie went into the oil business at Maryville in 1878 —shipped it in carload lots and sold it at different points around. At that time he bought from various places and persons.

In 1881 he made a contract with W. PI. Loomis of the Consolidated Tank Line Company at Hannibal, Missouri, and then he bought his oil from him. He continued to buy and sell this company’s oil until they sold out to the Standard. Then he continued with the Standard until 1902, when he bought from Hannibal; made no reports because he bought and paid Por the oils. Afterwards he had to report to St. Joseph. He made tank-car reports at 26 Broadway, New York— these were Hnion Tank Line cars — made these reports since 1896, when they built a station and tanks at Mary-ville ; before that he got oil in barrels.

Shortly after the Waters-Pierce Oil Company was organized in 1878 he went to St. Louis and wanted to *108 buy from them and they told Mm they could not sell him because it was not in their territory.

W. J. MERCER: Has lived in Kansas City, Missouri, for the past two years. Just prior to going to Kansas City he was at Dallas, Texas — there he was connected a part of the time with Atlantic Refining Company of Cleveland and part of the time with Glohe Oil Company. During the years 1892 to 1896 inclusive he worked for the Waters-Pierce Oil Company in Texas and Louisiana. He began as warehouseman and worked up to salesman for Waters-Pierce. Has not worked for Waters-Pierce Oil Company since-they were ousted in Texas, nor since May 29, 1900. The Standard Oil Company did not sell in Texas, but it did sell at certain points in Louisiana.

After he quit the Waters-Pierce Oil Company he came to Kansas City and went to work for Schofield, Shurmer & Teagle, and worked for them about two years. That company competed for the business of the Standard Oil Company and they operated tank wagons in the city. It had a tank station at Kansas City and Springfield — the latter place was a barreling station. He quit this company in 1898 and it ceased to do business later on.

Since 1898 he has worked for the Interstate Oil Company, Globe Oil Company, National Oil Company and Fidelity Oil Company, and while with them sold oil in both the Waters-Pierce and Standard territory, but never found them selling in competition in the same territory.

The waters-Pieree Oil Company sell as their leading brand of illuminating oil what is called eupion, and brilliant is its lower grade — one high class and the other low grade. The Standard Oil Company sells as their leading brands of illuminating oil what is called eocene, ealine and perfection.

Since Schofield, Shurmer & Teagle quit business *109 in 1901 he has been to Cleveland and saw that their tanks at that place were being removed.

Says he never worked for the Standard Oil Company'or the Waters-Pierce Oil Company in Missouri.

He is now selling oil for the Fidelity Oil Company and sells anywhere he can.

HENRY D. WHELAN: Has lived in Kansas City, Missouri, for the past five years. He formerly lived in Louisville, Kentucky. Has been connected with the oil business since 1900.

He was first employed as bookkeeper for Schofield, Shurmer & Teagle. Continued for three months in this position and was then made cashier.

Schofield, Shurmer & Teagle had a station at Springfield, Missouri, and it was one of their best paying stations. It was a tank station and also a shipping station or a distributing point. Also a tank station at Kansas City.

At Springfield they met in competition the Waters-Pierce Oil Company and at Kansas City the Standard Oil Company and National Oil Company.

They, Schofield, Shurmer & Teagle, sold oil in competition with all other companies, and it was an absolutely independent concern. Their oils came principally from Cleveland, Ohio, and some from Pennsylvania.

Says he continued as cashier until they sold out to the Standard Oil Company, about June, 1901, and the business was then continued by the Republic'Oil Company. He continued with the Republic Oil Company as cashier and chief clerk and acting manager at Kansas City in the manager’s absence. Mr. Cochran was manager for three or four months and was then, succeeded by Henry Teagle. Says he continued with the Republic Oil Company until May 1, 1902.

When the change took place from Schofield, Shurmer & Teagle to the Republic Oil Company, the old employees were continued. But as quickly as it could *110 be done there was a change in the bookkeeping, financial reports, gallonage reports, and all the reports were completely changed. The forms used by the Republic were similar to those used by the Standard. •

When with Schofield, Shurmer & Teagle they had a few tank cars of their own, in which oil was shipped to them. They did not use Union Tank Line cars. Soon after the Republic was organized shipments of oil to it came from Whiting, Indiana, and the oil was unloaded into its tanks. On the occasion when a car came and the tanks of the Republic were full a wire came from Cleveland to send it over to the Standard Oil Company, and it was taken by that company.

There were frequent communications between the office of the Republiq Oil Company and the office of the Standard Oil Company in Kansas City. Says- he talked with Mr. Mayer, manager of Standard Oil Company, himself — these communications related to the market price of tank-wagon oil and gasoline in Kansas City. Mayer would give to the Republic office the information that oil had gone down or up, as the case might be, and this information was followed and acted upon by the Republic. This information was usually given by Mayer over the ’phone.

Mr. Teagle’s instructions to salesmen were that he wanted them particularly to go after National Oil Company customers — he wanted the trade that bought National Light oil, White Rose gasoline brands — there were no instructions given to go after the business of the Standard. The National Oil Company was the only other company of any consequence outside the Standard Oil Company and Republic Oil Company selling illuminating oil.

Schofield, Shurmer & Teagle territory was a part of Kansas, a part of Missouri and a part of Oklahoma, and their brands were palacine, I.K.L. gasoline, red cross gasoline and some other grades.

Schofield, Shurmer & Teagle had no division lines, *111 but sold at points where it was profitable to do so. In Missouri they sold at St. Louis, Springfield, Kansas City, Sedalia, St. Joseph, Warrensburg, Pleasant Hill, Lamar, Garden City and other points in the State.

Schofield, Shurmer & Teagle never consulted any other company about the changes in prices. They either made the prices at Kansas City or they came from Cleveland, the head office.

When the Republic Oil Company began business the Springfield station was discontinued. At one time the Republic was out of gasoline and it got five hundred gallons from the Standard at Kansas City and paid for it.

He has been chief clerk of the National Oil Company since May, 1902, at Kansas City.

Refinery prices of oil fluctuate and as a general rule those prices control the jobbing trade.

While with the Republic he never saw any lists of refining prices. The only information the Republic has of retail prices came from the Standard.

A. G. SHIERS: Now lives at Marietta, Ohio, is with the Penn Refining Company of Oil City, Pennsylvania, as a traveling salesman. This is an independent company. He was with the Republic Oil Company as assistant manager at Kansas City from June, 1902, until December, 1902. Had been with .the same as manager at St. Joseph for- a while. While at St. Joseph the Republic Oil Company and Standard were the only competitors selling oil there. When he went to Kansas City he found the Standard Oil Company, Republic Oil Company and National Oil Company selling illuminating oil there.

Previous to going to St. Joseph he was with the Argan Refining Company at Marietta, Ohio. This was .at first an independent company, but in about 1899 it became connected with the Standard Oil Company, and it was this year that this company was compelled *112 to leave the State of Ohio and removed to West Virginia.

He got a position with the Republic Oil Company, through W. C. Teagle, vice-president and general manager, at Cleveland, Ohio.

Says he knew the firm of Schofield, Shurmer & Teagle and that it was an independent and competing company of the Standard Oil Company.

At Kansas City with the Republic Oil Company, Harry Teagle, manager, he had charge of the city business in the lubricating line. He had to look after the tankwagons and also to sée after the illuminating sales of oil and gasoline. The brands, sold were palacine and water-white gasoline. The Standard Oil Company was selling eocene, perfection and gasoline. Says he had instructions from the manager to make particular efforts on the trade of the National Oil Company. Says he was to get certain customers of the National named and to rebate one cent a gallon if necessary to get them. No instructions to rebate as against the Standard Oil Company. He gave rebates and got the National’s customers. Never gave rebates to Standard Oil customers.

Says he was informed that the Republic Oil Company was an independent company and was instructed to make such statements to the trade which he did in good faith.

The rebate system against the National continued, some of it for sis months and some for a year, and it precipitated a rate war between the National Oil Company and Republic Oil Company.

Says the Republic Oil Company got its prices, whether an advance or decline, from the Standard Oil Company by telephone there in Kansas City, and part of the oils came from Whiting, Indiana, where the Standard Oil works are located. He knows of no other refinery there.

Says he instructed the tank-wagon salesmen to *113 represent to the trade that the Republic Oil Company was a competitor of the(Standard Oil Company. Where he found prejudice against the Standard he represented that the Republic was an independent company and opposed to the Standard — that the Republic Oil Company was an independent concern handling Pennsylvania goods and had no connection with the Standard Oil Company whatever. Says he thought he was telling the truth.

Says he sold to Standard Oil customers whenever he could, but did not cut prices to get their trade. He was told directly not to rebate any Standard Oil trade by Henry Teagle, the manager.

Says he does not know of the National Oil Company giving rebates, but they came down in their prices to the basis of the rebate.

He says there never is a rate war in the sale of lubricating oils.

In 1901 whjle at St. Joseph says he got a car of oil that he could not unload because his storage tanks were full, and he was ordered by Mr. Teagle from Kansas City to set it over to the Standard Oil Company, which he did. This car came from Whiting. There was no competition between the Standard Oil Company and Republic Oil Company at St. Joseph. As to the business at Kansas City there was no competition between the two companies except in the sale of lubricating oil; says he went after their business in lubricating oil.

Says as cashier of the Republic Oil Company he found the same system of doing business used by the Standard Oil Company. He knows of Standard Oil Company getting gasoline from Republic tanks at St. Joseph when they ran out. This was not paid for, but a transfer invoice.was made.

W. H. HAWKINS: Lives in Kansas City and is now a manufacturer of paints. He was formerly connected with Consolidated Tank Line Company and Standard *114 Oil Company at Kansas City. He was under both Mr. Pratt and Mr. Mayer as managers. When the change took place to the Standard Oil Company there was no change in the manner of doing business.

Says he was superintendent of tank wagons in that city, and it was his business to see that the Standard got all the business. Most any method that seemed fit was resorted to — rebates were given, perfect tab was kept on other people as to the business they were doing. The object was to get the business away from others. Men were hired to follow other wagons and get a record of amounts sold and to whom.'

He began work in 1890 and quit in 1897.

When he found to whom other companies were selling they went around and in order to get the trhde away rebates of so much a gallon were given, payable monthly. Towards the end these rebates ran up to about $3,500 a month.

Says they solicited the business of all other companies, but they were especially after the National Oil Company and Schofield, Shurmer & Teagle. These two companies were the strongest competitors.

A complete record of every merchant in the city was kept., All traveling salesmen were fully instruct-' ed as to the dividing line between Waters-Pierce Oil Company and Standard Oil Company and to keep out of Waters-Pierce territory.

Says he was with Schofield, Shurmer & Teagle from 1887 to 1890, and that there was a constant war between that company and the Consolidated Tank Line Company. Schofield, Shurmer & Teagle could not do business like the Standard. Prices were made so low that they could not cut them. It was all they could do to meet the prices made by the Standard. The only way they could do business was by arguments, and there were some people who would trade with them anyway and pay them higher prices. Says he never gave rebates for them.

*115 The rebate system of the Consolidated and Standard continued from 1890 to about 1896, when he ceased to be superintendent 'of tank wagons.

It was the Consolidated Tank Line Company up to 1892 — from that date to about 1895 it was the Standard Oil Company of Kentucky, and from the latter date on the Standard Oil Company of Indiana.

Says they rebated some two hundred and fifty customers a month and the rebates amounted to about a quarter of a cent a gallon on the total gallonage. The rebates were large about the time he ceased to be superintendent.

Says that he worked for Schofield, Shurmer •& Teagle at St. Joseph prior to 1887 and that they very frequently got a countermand for a car of oil. He found that the Standard would learn when a shipment was made and head the car off and get the order countermanded when they could.

Says “everybody that has worked for the Standard Company were given to understand-that they must have the business; that that was the only thing their position or anything else depended on.”

Says the Standard Oil Company regularly got information from employees of the railroads about shipments of oil made by' competing companies.

Says he saw a map in the office at Kansas City showing the division line between the Waters-Pierce Oil Company and Standard Oil Company, and had heard this line discussed in the office by the managers and salesmen. He has seen the map in the Kansas City office within the last four years and it shows the same division of territory except that it is more complete.

Also, he says they got information of oil shipments to competitors through some employee of the competitor by subsidizing him.

W. It. STEWART: Lives at Des Moines, Iowa, and is a traveling man, but has no particular business at pres *116 ent. Says lie has been connected with the oil business pretty near all his life.

Alexander McDonald was president of the Con- • solidated Tank Line Company. He was also president of Standard Oil Company of Kentucky. Mr. Drake was connected with Consolidated Tank Line Company, also the Standard of Kentucky and of Indiana.

Says he went with Consolidated Tank Line Company in 1890 and remained with it and the Standard Oil Company of Kentucky and Indiana until 1898.

Chess-Carley Company was located at Louisville, Kentucky, and was an oil Company. This company was succeeded by Standard Oil Company of Kentucky. And about the same time the Consolidated Tank Line Company went out of business.

Prank D. Carley was connected with Chess-Carley Company. He afterwards went with the Standard.

The. last he heard of Alexander McDonald he was at 26 Broadway, New York City, the Standard Oil building.

Horace A. Hutchins was connected with the Stand-. ard Oil Company at 26 Broadway.

W. P. Thompson was one of the main men of the Standard Oil Company at 26 Broadway.

Says he was general manager of sales department when he was connected with the Standard Oil Company in Missouri. He looked after sales in the territory at Kansas City and St. Joseph. He gave instructions to salesmen.

Since 1898 he has been, in the news business, telegraph business, crude oil business, oil producer and telephone.

The only refinery of oil at Whiting, Indiana, is what is known as the Standard Oil Refinery.

BRUCE PHIPPS: Lives in Kansas City and has been in the grocery business there eighteen years. Along in 1902 he was buying of the National Oil Company when the Republic Oil Company came along and offered and *117 paid liim a rebate of about one cent a gallon and got his trade. The rebate was paid monthly in cash. The agent, Mr. Shiers, told him that the Republic Oil Company was an independent company. The Standard Oil Company and the Republic Oil Company never rebated to him as against each other. Says he got the rebate from the Republic for about a year.

W. A. GRACE: Is now in the grocery business in Kansas City and has been at the same corner for the past six years. He buys oils from the National Oil Company. Says an agent of the Republic Oil Company tried to sell him and when he charged that it was a Standard Oil Company, he (the agent) directly and positively said to him that it was an independent company from the Standard Oil Company. This salesman was Shiers. He wanted to make a contract for six months or a year and give rebate of one cent a gallon, but witness refused to make the contract. National did not give him rebate, but met price fixed by the Republic.

EERD WEYRICH: In the grocery business for fourteen years at Kansas City. For the last three years he has been buying oils — buys from Standard Oil Company. Republic has not solicited his trade — never heard of them.

ISAAC WEINBERGER: Has been in the grocery business in Kansas City for sixteen years. Bought oil from the Republic Oil Company about three years ago. Mr. Teagle came to him and when he told Teagle that conditions being equal he would not buy of the Republic because it was a Standard Oil Company, Teagle told him it was not so. But Teagle gave him a reasonable rebate and he traded with that Company. He was buying of the National Oil Company at that time. Standard Oil Company did not try to get him away from the Republic. Then the National offered him a better inducement and he went back to them. Says he also got rebates from National and Standard Oil Company, but *118 got rebates from Standard before Republic began business.

J. S. WILLIS: Additional schedule of rates prepared by J. S. Willis, Secretary of Board of Railroad and Warehouse Commissioners.

CHARLES B. COLLINS: Lives in St, Louis, Missouri, and has lived here since 1877. He began work for Waters-Pierce Oil Company in 1895 and quit about two years ago, as clerk and messenger in the president’s office. When Mr. Pierce would go to New York he would go with him. He, H. Clay Pierce, was president of Watérs-Pierce Oil Company. Mr. Pierce moved to New York in about 1901. Mr. Pierce was president until about 1900 and after the reincorporation he was again made president.

. Pierce had an office at 25 Broad Street, New York. He was with Pierce in' New York as his private secretary. Pierce received checks from the Waters-Pierce Oil Company in payment of dividends at least once a month. Usually immediately after these checks were received a remittance was made — on two occasions to Mr. H. M. Tilford at 26 Broadway, New York. These two remittances were delivered by witness personally. The amount he took to Tilford was about two-thirds of the dividend check received by Mr. Pierce.

Prior to 1900 Mr. Pierce had about one-third of the stock of the Waters-Pierce Oil Company.

When he did not take, checks to Tilford, he invariably made out a check amounting to two-thirds of the dividend check with which there was purchased a check made payable to the Seaboard National Bank. An account of these transactions was kept by witness on Mr. Pierce’s private book. These transactions continued for about two years. The Seaboard National Bank is in the Standard Oil Building. He received dividends on all the stock of Waters-Pierce Oil Company except five or six shares.

E. B. NORTHRTJP: Lives in St. Louis, Missouri, and *119 is now connected with the Northrop Lubricating Oil Company. Has been in the oil business for fifteen years. The principal business of his company is done in St. Louis.

The Standard Oil Company of Indiana has done no business in St. Louis in the last fifteen years. The Waters-Pierce Oil Company and the Republic Oil Company sell oils in St. Louis. His company competes with the Waters-Pierce Oil Company in that city.

WILLIAM H. BABCOCK: Lives in St. Louis and is engaged in the oil business in that city with the Crescent Oil & Supply Company. The companies selling oil in St. Louis in the last four years were Waters-Pierce Oil Company, J. D. Street Oil Company, George P.. Jones, George T. Mathews & Co., George W. Reid Oil Company, St. Louis Oil Company, Republic Oil Company, formerly Schofield, Shurmer & Teagle, Gregory Oil Company, Mound City Oil Company, his own company and others. These companies all sell more or less of both lubricating and illuminating oils.

Those having tank stations are Waters-Pierce Oil Company, St. Louis Oil Company, Republic Oil Company and International Oil Works. Tank stations are usually used for illuminating oils, gasoline and naphtha.

Standard Oil Company has never done business in St. Louis. Says he sells mostly south and west in Missouri, and meets the Waters-Pierce in competition. Never found the Standard Oil Company and Waters-Pierce Company competing for business in the same place.

Says the business -of his company is principally selling lubricating oils. 'Only sells illuminating oils to accommodate his customers.

A. S. CALE: Has been connected with the oil business in St. Louis for about four years and is now with the Mound City Oil & Supply Company. His company has no circumscribed territory, but sells oil anywhere. *120 Standard Oil Company of Indiana has sold no oil in St. Lonis since he has been in business there. Has sold in Missouri at points where the Standard sells and-at other points where Waters-Pierce sells, but has never found them both selling at the same place. He sells principally lubricating oils, and all other companies are his competitors.

Says he has bought oils from the Waters-Pierce Oil Company and Republic Oil Company and refineries in the East.

GEORGE T. MATHEWS: Is with George T. Mathews & Company, an oil firm that sells lubricating oils in St. Louis. Buns no tank wagons. . Does business in several States. Says he is in charge of the business of the firm. Sells in different parts of the State of Missouri. Meets both the Waters-Pierce Oil Company and the Standard Oil Company in competition with them, but has never met the two at the same place. Says his company did business awhile in St. Joseph, Missouri, and there he met the Standard Oil Company and Republic Oil Company. Standard Oil Company does not sell oil in St. Louis. Waters-Pierce Oil Company did not sell oil in St. Joseph.

C. M. ADAMS: Is secretary and treasurer of the Waters-Pierce Oil Company located at St. Louis, Missouri. He has resided in this city about twenty-eight years, and has been connected with the Waters-Pierce Oil Company since its first incorporation in 1878. He was book-keeper for the Standard Oil Company at St. Louis for four or five months after he first came to the city, and then it ceased to do business in St. Louis. William H. Cobb was manager for . Standard Oil Company while he did business there. It ceased to do business on the organization of the Waters-Pierce Oil Company. The Standard has not done business in a local way in St. Louis since 1878, nor through any company owned by them. It has, however, sold by wholesale to the Wa *121 ters-Pierce Oil Company. "Waters-Pierce has purchased the largest part of its oils from the Standard. Oil now comps from Whiting, Indiana; Franklin, Pennsylvania; Beaumont, Texas; Port Arthur, Texas; Neodesha, Kansas; Sugar Creek, Missouri — a great many places. Gets its oil in Union Tank Line cars.

In 1878 he was made secretary of Waters-Pierce Oil Company, served one year as secretary and was then made treasurer. Continued as treasurer two years. Then he was secretary and treasurer for several years. He has been secretary or treasurer or both since the company was organized on May 7,1878.

On May 29, 1900, there was a reincorporation of the company and the old company ceased to do business. The new company used the same offices and operated the same properties as the old company; did business in the same name; sold in the same territory as far as he knows; there was some change in the officers, but the subordinates and employees were practically the same; as far as he knows it was a continuation of the old business; got their oil from the same source. Mr. Grewett was the first secretary of the new company — he, witness, was treasurer. Grewett resigned during the winter of 1905, and witness became secretary and treasurer.

The Standard Oil Company doing business here in 1878 was a branch of the Standard Oil Company of Ohio. Horace A. Hutchins was connected with this company. W. P. Thompson was afterwards connected with the Standard Oil Company. Hutchins was in charge of the sales department of the Standard doing business here in 1878. W. P. Thompson in 1878 was connected with the Camden Consolidated Oil Company of Parkersburg, West Yirginia. The original incorporators of the Waters-Pierce Oil Company were, as far as he remembers, Mr. Waters, Mr. Pierce, Mr. Hutchins, Col. Thompson and Mr. Carley. Hutchins at one time had *122 an office at 26 Broadway, in connection with the Standard Oil business.

WILLIAM H. MORGAN: . His home is in Sedalia, Missouri. Began worldng for the Standard Oil Company in January, 1898. First began as traveling salesman and then had charge of tank station at Sedalia. He had six counties as his territory. At Sedalia he had' the local business and a few outside towns. Had two or three men working under him. He worked for about a year as salesman and two years in charge at Sedalia. Sedalia was under the jurisdiction of the Kansas City office. Mayer was manager at Kansas City most of the time, E. C. Conkling a part of the time.

When he was traveling salesman, Schofield, Shurmer So Teagle were his competitors. Did not meet the Waters-Pieree Oil Company in competition. Also had Schofield, Shurmer So Teagle as competitors at Sedalia and they were very active competitors. Says that when he went to Sedalia as local manager, Schofield, Shurmer So Teagle had fifty per cent of the business and when he left there he had at least ninety per cent of it. Says he worked under instructions from Gr. W. Mayer, manager at Kansas City, and his instructions were to go into the field and destroy all competition, not to allow competitors to sell a barrel of goods anywhere. The Waters-Pieree Oil Company never sold in the Sedalia Territory, nor did it try to do so, but they sold oil within eighteen miles of Sedalia. •

Says he had instructions not to sell in WatersPieree territory and he was informed as to the lines, but he did get over the line once down in Hickory county and sold oil in their territory, and was called down for it when he got to Kansas City. Says Mayer told him not to go over the line, — that if he sold stuff there he would get no credit for it. Says at this place where he got over the line his company could put oil there cheaper than the Waters-Pieree Oil Company and at less cost to the merchants.

*123 When oil was shipped into his territory by a competitor it was held against him and he was called on to account for it. •

He says the Waters-Pierce Oil Company was selling oil one cent a gallon higher just across the line than he was in his territory.

Schofield, Shurmer & Teagle went out of business shortly after he quit the Standard and was succeeded by the Republic Oil Company.

Says at Sedalia gauges were furnished him for the purpose of measuring the oils of his competitors, but he would not use them and they soon went out of use. He does not know whether they were correct or not.

In regard to these gauges he was instructed to use them in extreme cases when other arguments failed, to measure the oil packages of competitors in order to show the purchaser that his barrels were short.

Witness produces a blank report which he used at Sedalia. Reported on this blank monthly to Kansas City. It showed outside oils shipped into his territory by stating date shipped, name of shippers, from what place, name of consignee, destination, name of substation, number of car, number of barrels of refined oils, gasoline and lubricating oils, etc. Says it was his duty to get this information in any way he could. He got the information by going to the railroad stations and examining the packages and talking with the railroad agents.

When these outside shipments were made into his territory he did all he could to get them countermanded and at once began to do all he could to get the customers away from the independent company. He would give rebates and undersell the outsider in order to get the trade.

He produced a letter from Mayer, manager at Kansas City, urging him to begin at once getting orders for future delivery of refined oik Suggests that as *124 a good plan to cut off competitors. This letter dated August 11, 1898.

Also a letter from Mayer, dated June 2, 1898, informing him of outside shipments made into his territory, and adding, “I trust you are malting a vigorous effort to get this cut off.”

Says that following the suggestions contained in the last letter he went to see the people who were purchasers of independent oil, cut prices and got the business by any method he saw fit to pursue. Says he told purchasers the oil was not up to the standard and was short.

Also another letter dated May 20, 1898, to witness, from Gr. W. Mayer, Kansas City, relating to outside shipments of oil by competitors, especially the Brook Oil Company, and urging him to find out who purchased the oil and to go to work to get their trade.

At Sedalia he sold perfection, the popular oil, eocene, 175 head light and prime white brands of coal oil, and crown gasoline. Says there were five tanks at Sedalia. The hig’hest-priced brand was eocene, the nest 175 head light, the nest perfection and the cheapest the prime white.

Says he has marketed two and three grades out of the same tank. Says he had instructions to do so.

He did not sell at Tipton — a town twenty-five miles from Sedalia; the Waters-Pierce Oil Company sold there. Says he sold south of Sedalia for a distance of fifty miles. Says he had instructions not to sell at Tipton.

Prior to going with the Standard Oil Company he was a book-keeper for Kellogg Newspaper Company at Kansas City.

After he quit the Standard he went to work for Merchants Oil Tank Line Company at Leavenworth, Kansas, a branch of the National Refining Company. Was with them as traveling salesman for about three years. He had a certain territory that he worked in. *125 The National Oil Company marketed the same oil from Kansas City in a different territory — they didn’t go into the territory of his company nor did his company go into their territory.

After this last service he went into the newspaper business again in Kansas City. Has been with his present company about four months. After quitting the Merchants Company he took a vacation for a year on account of ill health. He is now with the National Refining Company at Hannibal, Missouri, or the Hannibal Oil Company, which is the name of the company doing business there selling the products of the National Refining Company. This company does not sell in territory where the National Oil Company of Kansas City or Merchants Oil Tank Line Company of Leavenworth sells.

Says he was called into the office at Kansas City when he worked for the Standard Oil Company about once a month and was given oral instructions by the manager. His general instructions were to go into the field and by any means crush out competition.

T. R. HOPKINS: Now lives in Lawrence County, Missouri, five miles east of Pierce City. He is now engaged in farming and has been for the past two years.

He has been local or station agent for Waters-Pierce Oil Company. He began at Seneca, Missouri, in 1885 or 1886, and at that time he was a barrel agent, selling on commission. Then he came to Joplin and stayed about sis months. Then went to Y^ebb City and established an agency there. Then he was sent to Pierce City, established the Pierce City agency there and remained in charge of it- for twelve or thirteen years, or up until about two years ago. At Pierce City he had about twenty towns in his territory that he took care of and furnished with oil. He had a tank station at Pierce City. He quit the company on November 15, 1903.

*126 Says lie reported and worked under managers of the Missouri division; located at St. Louis — they were Andrew M. Finlay, Mr. Lasar and Mr. Ackert.

When he first began work the name of the company was the same as when he quit. Says that about the time the company had trouble in Texas, agents were discharged, a new company was formed, and they were hired again. Says that he was discharged by the old company in one envelope and hired in the next.

The same business was continued under the new company as under the old company.

Never met the Standard Oil Company in competition. At Webb City he was seven or eight miles from the Kansas line where the Standard Oil Company sold, but it did not cross the line nor did he go into Kansas. Says he was told by the manager that he must not sell oil in Standard territory and that the Standard could not sell in his territory. Mr. Lasar, the manager, had a map which he showed witness, with lines showing the territory between the two companies.

Grot his prices at. which to sell oils from the St. Louis office.

Says Schofield, Shurmer & Teagle invaded his territory at Monett and Pierce City and they were active competitors of Waters-Pierce Oil Company. He went after the trade of Schofield, Shurmer & Teagle and gave rebates in order to get it. Schofield, Shurmer & Teagle invaded his territory only twice and Wilhoit once at Sarcoxie, but with that exception he had no opposition at Pierce City in the sale of illuminating oil.

Says Mr. Ackert, manager of the Missouri division, gave him to understand that he would have no opposition from the Republic Oil Company when it succeeded Schofield, Shurmer & Teagle.

During the last two or three years of his agency the price of oil in Joplin, Carthage, Webb City and Springfield was from one and a half to three cents less *127 than in his territory. There was little competition in his territory, but "Wilhoit was in the other territory. Says he took this matter up with Mr. Ackert, telling him it was not fair to charge his customers more, and he was told it was none of his business — that there was competition in Joplin and those other places.

Says he recéived orders for oil from persons in Standard Oil territory. He did not fill them, but sent them to St. Louis, because it was not in his territory. Says that he was told by manager that if he sold anything out of his territory his company would not receive the profit and to send such orders to St. Louis. Also says he received and filled one order which had been sent by a person in his territory to the Standard Oil Company. This order came to him from St. Louis.

Says that about the time Schofield, Shurmer & Teagle sold out to the Republic Oil Company, the general manager at the Harvey House in Monett told him “We will not be troubled; you need have no fears of the; Republic Oil Company.”

Says he had orders to get information of all ■ competitive shipments and report them — that he got no information from railroad agents.

While he was at Webb City he got a telegram from St. Louis to look out for a car-load of National Oil before the car got there, and by seeing all his customers beforehand he prevented the sale of the oil. This was about the year 1890.

He states that prior to 1900 he received his salary by checks drawn on the Chatham National Bank of New York. They were made payable to the manager and by him indorsed to witness. Says the checks were dated at New York City. After 1900 his checks for salary were dated at St. Louis and drawn on the Bank of Commerce, St. Louis.

T. C. EBEKLY: Lives in Joplin, Missouri, and is in the grocery business and has been for about seven years. Prior thereto he was located at Ausbury, about *128 fifteen miles from Joplin, in Missouri, but about three-quarters of a mile from the Kansas line. Pie was in the grocery business at Ausbury for about three years. While there he bought oil from the Waters-Pierce Oil Company agent at Webb City. In about 1895 while at Ausbury he bought some oil from the Standard Oil Company at Pittsburg, Kansas — bought because either it was cheaper or more satisfactory, he does not remember which. Says he got only a few times from Pitts-burg because he was in Waters-Pierce territory, and he was told that they could not sell him from Pittsburg; that he would have to buy of the Waters-Pierce Oil Company. Says he was a little nearer Pittsburg than Webb City. Says he got a letter from Standard Oil Company at Kansas City telling him he was in Waters-Pierce territory and they could not sell him.

E. M. WILHOIT: Has lived in Springfield for three years past. Just prior was at Joplin, Missouri, for about five years, and just prior to that lived at Topeka, Kansas, for about four years.

At Topeka, Kansas, he was agent for the Standard Oil Company of Indiana, he thinks, being the same one that did business in Missouri. Says he first began with the Consolidated Tank Line Company — Alexander McDonald, president. He was local agent at Topeka and had the city of Topeka.

Previous to going to Topeka, he traveled for the Standard Oil Company out of Wichita, Kansas. He was with the company in Kansas a fraction over eight years altogether. His company could not sell in Indian Territory only on orders — the Waters-Pierce Oil Company did business there. Says they kept Waters-Pierce Oil Company labels and when oils were shipped into the teriitory, these labels were placed on the barrels and their billing was on the Waters-Pierce Oil Company at St. Louis— this was while he was with the Consolidated Tank Line Company and Standard Oil Com *129 pany in Kansas, prior to 1900. The labels referred to designated the different brands of Waters-Pierce Oil— this oil was taken out of Standard tanks and such labels placed on the barrels.

When he came to Joplin he went into the independent oil business in his own name; that is, selling refined and lubricating oils in Southwest Missouri. He now has tank stations both in Joplin and Springfield. Says he has been a competitor of both the Standard Oil Company and Waters-Pierce Oil Company and in no instance has he met those two companies selling oils in the same territory. Says he does not know exactly the division line between those two companies, but knows that where one sells the other does not sell.

The oils sold by the Standard at Galena formerly came from Whiting, Indiana, but now come largely from Neodesha, Kansas. This is also true as to the Waters-Pierce Oil Company at Joplin.

Prom Joplin to the Kansas line or Galena is about six miles — Standard sells at Galena and Waters-Pierce in Joplin.

Since the action of the Kansas Legislature about a year ago oils have usually been lower in Galena than in Joplin — prior to the' action of the Legislature they were higher in Galena than in Joplin.

Says the only time he has seen the Standard tank wagons in Missouri was when they would run short of oil and come to Joplin and get oil from the Waters-Pierce Oil Company’s tanks located there — has seen that as many as two or three times.

Says his experience has been that the Waters-Pierce Oil Company or Standard Oil Company base their prices in a locality on their nearest competitor, or upon the presence or absence of competition. When there was competition prices would be. lower and increase with the distance from competition. Says that *130 the fact that the two companies, Standard and Waters-Pierce, were selling near each other did not' affect prices — has never known of these companies competing with each other.

When he began the oil business, Schofield, Shnrmer & Teagle were selling oils and had tank stations at Springfield, Kansas City, Sedalia and Clinton. He met this firm in competition and they were competitors of the Standard and Waters-Pierce. This firm ceased to do business about 1901 and were succeeded by Republic Oil Company. Soon after, he having heard that Schofield, Shnrmer & Teagle had sold out to Standard Oil Company, he went to Springfield with a view of opening-up an independent business there. He found that the plant there had been enlarged and painted with the usual Standard red on barns and warehouses. Shortly after his trip to Springfield the plant was dismantled — that is, the plant of Republic Oil Company— and they have had no tank station in this territory since. Shortly after the departure of the Republic, witness established a tank station at Springfield, but that company has sold some oil in this part of the State since, shipping from Kansas City, Sedalia or Clinton. Says the class of trade the Republic Oil Company sells largely is a class of trade that feels loyal to the independent dealer. The Republic made a specialty of looking after that class of trade which demanded a better grade of oil than was handled by Waters-Pierce Oil Company pr Standard Oil Company — they handled the old brand, palaeine, which was a high grade Pennsylvania oil sold by Schofield, Shurmer & Teagle. Says he finds more competition from the Republic than from Waters-Pierce or Standard, because the Republic is putting out better oil than the other two companies.

In relation to tank stations he says they are hard competitors. The tank competition is hard to overcome. From three to five cents more per gallon can be got at tank stations than by person who sells in barrels.

*131 In regard to the sales of an independent in this territory witness says: “It depends largely on the sales in hulk of the independent dealer as to what per cent of goods he can market at a profit.. If in operating against the Waters-Pierce Oil Company one attempts to get all the business that they might possibly secure they wouldn’t last very long in the business; in fact, the price would be made so extravagantly low there would be no profit.” Says his “experience has been while with the Standard Oil Company and since operating in opposition to the Waters-Pierce Oil Company, that the independent dealer can market a small percentage of goods in any territory at a profit, and possibly can market their goods at ten or fifteen per cent less than the Standard or Waters-Pierce regular price; but if he increased his volume of business above a certain percentage, say fifteen or twenty per cent, their prices will be cut so low that he will either lose his business or go broke on low prices. ’ ’ Says these same conditions existed both in Kansas and Missouri.

Says the Waters-Pierce employees got information of all his shipments out of Springfield except car-load shipments. He knows of no instance where Waters-Pierce employees got his order countermanded.

On Cross-Examination.

Started to work for Consolidated Tank Line Company in 1889 at Wichita. Stayed there five years and then went to Topeka and stayed there four years. Says he resigned voluntarily, but had had some trouble with the company. Says he left in 1897.

He first started in the independent business at Topeka, run there for about eight months and then went to Joplin. Says he has from three to five thousand dollars invested in his Joplin station and about the same at Springfield. His annual sales are about forty thousand dollars. The business has increased *132 yearly and grown into that amount. Having small means he could only do a limited business and not become antagonistic to the large companies. Says he sells under the regular market of the Standard Oil Company — they do not maintain their regular market price in this territory.

Says he sells regardless of the prices of the Waters-Pierce Oil Company — holds his market at what he can afford. "When prices get so low that he cannot sell except at a loss, he will not sell — two or three different times he has locked up his tanks and waited for prices to come back. When they get the business they raise the prices. To illustrate, he says they have sold in the Springfield market for nine cents all summer — they have now advanced to ten cents. At this point, Joplin, they have sold at nine cents and a half, and have now advanced to ten and a half. Says his price has been ten cents for several months and is still ten.

Says he sells some Kansas oil, but largely Pennsylvania oil, which is superior because better burning oil.

Palacine, of Schofield, Shurmer & Teagle, was a Pennsylvania oil and superior to the Western oil. Many customers want the Pennsylvania oil because of its superiority. The Republic got trade on the strength of this brand of oil because it was believed to be an independent company.

Says he will not say that the Republic Oil Company is dealing in high-gravity Pennsylvania oil now. They built up a reputation while in the name of Schofield, Shurmer & Teagle on high-gravity Pennsylvania, but he will not say they are selling that now.

Says his success is not due altogether to the fact that he handles Pennsylvania oil. In some places h cheaper grade of oil is demanded. There is greater demand for high-grade oil at Springfield than at Joplin.

He sells in a territory from Springfield southeast as far as Thayer, as far east as Richland, and west to *133 Fort Scott. George P. Jones and St. Lonis Oil Company sell the same oils and they come down into his' territory — they do little this far down because of the excessive freight rates.

As to railroad rates, he says that the roads in the past have granted a low commodity rate on tank cars which has enriched the Standard Oil Company. The rate to the local shipper or small shipper has been excessively high in Missouri, being third class, while the commodity rate is a great deal better than fifth class.

No one in his territory has tank stations except ■himself and Waters-Pierce Oil Company. There is competition by barrel.shipments from many companies but excessive freight rates will not allow them to do much in that way. So far as illuminating oils are concerned he practically has no opposition except from Waters-Pierce Oil Company.

Says that at Springfield, after Republic left there, Mr. Ackert, manager of Waters-Pierce Oil Company, proposed to him that the Waters-Pierce Oil Company buy out his business, let him work for the company and •continue to run the business in his nam'e and take care of the dissatisfied trade, but he did not accept the proposal.

Says he operates tank wagons. This system of tank wagons and stations is an advantage to either the operator or consumer. The advantage is, the oil comes on a low commodity rate in carloads, which no dealer can secure in local shipment lots. The rates were forty-five cents a hundred on local shipments from St. Louis to Springfield and sixteen cents a hundred in car-loads. His experience has been it has been to the consumers’ interest where there was an independent company operating, and was not to the advantage of the Waters-Pierce or Standard where the independent was operating. They measure the freight rate. For example, the commodity rate in tank cars may be as low to one *134 point as another, yet if the independent doesn’t have •a tank station at that point, their price may be from one, two, three or five cents a gallon more at that point where there is no competition than it is where the .competitor operates with the tank station. It is much the most’ convenient way of- doing business to the dealer. And says he- could not remain in business in the city without his station. Both the Standard Oil Company and the Waters-Pierce handle their oils in cities by means of the tank stations and wagons.

D. M. JOHN: Lives at Joplin and is now manager of the Interstate Oil Company at Joplin.

From February, 1890-, to April, 1898, he sold oil in Joplin under his own name. Says Mr. Lasar, manager for the Missouri division of Waters-Pierce Oil Company, asked him to start this business. The Waters-Pierce agent at this place, Mr. Lyon, furnished him the money to put up tanks, buy a team and wagons and all other necessary equipments and he sold oil in his own name in the city of Joplin. Managed and represented the business as his own. He was doing a retail business. After selling illuminating oil this way for about five years he took charge of a lubricating tank wagon and delivered to the mines — this was also for the Waters-Pierce Oil Company, but done in his name.

He did not go to Galena to sell because he was told by the agent that he was to sell only in Missouri. There are mines at Galena, but he did not get there to sell lubricating oil. When he quit he turned everything over to the Waters-Pierce Oil Company. Says he was handling Waters-Pierce oil and selling under their brands. Pie turned over to the Waters-Pierce a part of the proceeds of his sales after deducting his expenses and salary.

Since he has been working for the Interstate Oil Company he tried to buy oil from the Standard at Galena and they refused to sell to him.

*135 While he was selling for Waters-Pieree Oil Company he got his oils from their tank station and invoices were rendered him!

W. E. HARMON: Lives at Joplin and is now connected with the Missouri Pacific Railroad. Prom April 14, 1904, to November 1, 1904, he was cashier in the office of Waters-Pieree Oil Company at Joplin under J. H. Lawler, the local agent.

Their territory did not extend across the line into Kansas, but they sometimes shipped oil across and ran the risk of getting caught by the Standard Oil Company. When they were caught the matter was handled from St. Louis. He does not know whether WatersPieree Oil Company lost the sales or not.

Says orders came from Standard Oil territory to Waters-Pieree Oil Company for oils. In such cases the orders were generally sent to the nearest Standard agent in the territory from which they came. Says they sometimes got orders which had been sent to the Standard Oil Company by persons living in WatersPieree territory and filled them.

Says Waters-Pieree Oil Company got information of competitive shipments about twice a week, and this information was reported to St. Louis.

A. D. RADER: Lives at Cagle, in this State, five miles west of Joplin. Says that in 1895 or 1896 he tried to get the agent at Galena, Kansas, to deliver oil to him at Cagle, but he refused to do so, but sold him oil and he hauled it himself.

W. L. STEPHENS: Lives in Joplin, and was formerly a salesman of the Interstate Oil Company — that was about the year 1900, and he was with them fifteen months. He sold in Joplin, Webb City, Oronogo and Galena. He met the Standard in competition at Galena and the Waters-Pieree in Missouri, but did not meet them both in the same place.

G. J. STEIGERWALD: Lives in Cleveland, Ohio, and *136 is now with P. G. Clark Company, wholesale oils, as a traveling representative. Says he sells in middle, eastern, southern, and southeastern, practically everywhere except the extreme west, northwest and eastern sections, of the country. Names twelve states that he travels iri, including Missouri. This company has refineries located at Warren, Pennsylvania. He sells altogether to the jobbers.

Says he has been in the oil business since 1891 and began with Schofield, Shurmer & Teagle at Cleveland, Ohio.

He next had a position with the Scio Befining Company at Scio, Ohio. The members and employees of Schofield, Shurmer & Teagle were the principal owners of that company. Ben W. Brown was connected with the Scio Company. Witness had general management of the company. His connection ended with this company when it was sold to George B. Wilson on June 1, 1901. Within a few months thereafter this refinery was dismantled. Most of their products had been marketed through Schofield, Shurmer & Teagle.

Then he took a position with the Bepublic Oil Company at Cleveland, Ohio, as purchasing agent and traffic manager. His duties were chiefly to look after the order and supply department, make general purchasers, look after the movement of tank-car equipment, and incidentally some detail work for general manager. W. C. Teagle was general manager and vice-president. He had been a member of the firm of Schofield, Shurmer & Teagle. Witness went to Cleveland June 3,1901, with the Bepublic. It took property of Scio Befining Company also. George B. Wilson was the -first president of the Bepublic Oil Company; L. H. Turrell, secretary, and J. B. Taylor, assistant secretary. The Cleveland Befining Company was also turned over to the Bepublic Company. The Scio Be-fining Company’s properties were inspected before purchase by Mr. Van Dyke and Mr. Irish of Lima, *137 Ohio. Afterwards he learned that Yan Dyke was connected with the Solar Refining Company at Lima. The crude oil which was received under contract at the time the Scio plant was dismantled was turned over to the Ohio Oil Company, a Standard Oil interest. The unfinished products of the Cleveland Refining Company were loaded into cars and carded to the Standard Oil works at Cleveland.

He remained with the Republic Oil Company until April 15, 1904. He stayed at the Cleveland office practically all the time — took occasional trips to different parts of the country trying to sell goods or adjusting some matters at stations. He was familiar in a general way with the business.

W. C. Teagle stayed at Cleveland up to October, 1903, in the position of vice-president and general manager ; then he went to New York and became connected with the Standard Oil Company, at 26 Broadway, as member of the export trade committee.

Schofield, Shnrmer & Teagle were considered the largest marketers of oil in the country outside of the Standard Oil Company — the largest independent dealer. They were active and vigorous competitors of Standard Oil Company.

There was no immediate change in the business of the^ Republic Oil Company after they took over the properties of Schofield, Shurmer & Teagle, Scio Refining Company and Cleveland Refining Company, until a year or a year and a half afterwards; then there was a decided change noticeable. Instructions were given throughout the territory of the Republic Oil Company to represent it as an independent company — these instructions were given by W. C. Teagle, vice-president and general manager. They were to solicit the same trade that Schofield, Shurmer & Teagle had, and any other trade that conld be secured. There was what was known as “dissatisfied trade” or “prejudiced trade” that would not deal with the Standard Oil Com *138 pany because it was supposed to be a monopoly. Tbe verbal instructions given were to tbe effect that they were to canvass chiefly the high class trade demanding better oil in quality than the ordinary trade marketed and to represent themselves as active competitors of the Standard Oil Company, and to get trade handled chiefly by people outside of the Standard Oil Company.

Republic Oil Company made reports as to its business to 75 New street, New York City — -C. L. Nichols, president. He succeeded George B. Wilson as president. 75 New street is the back entrance to 26 Broadway, or the Standard Oil Building, New York City.

He was called to 26 Broadway in relation to a proposition offered by the Standard Oil Company. With reference to his proposition he saw W. C. Teagle and W. E. Beamas, who was a" member of the export trade committee. Says he met a Mr. Wilson and a Mr. Taylor there. Nichols became president in the early part or 1902.

Says he has seen letters written or signed by George B. Wilson on letterheads of Republic Oil Company, New York. At the time of his visit to New York, Wilson was in the office of L. J. Drake in Standard Oil building. Drake was a member of the domestic trade committee. He was once connected with the Standard Oil Company of Indiana, at Chicago.

Says his trip to New York about taking a position with Standard Oil Company was in 1903, and he went on a telegram.

When Teagle left Cleveland for New York, one W. E. Judd, of Winnipeg, Manitoba, became general manager.

When, in 1903, he wanted to quit the Republic Oil Company, it was getting its oil chiefly from Standard Oil Company’s refineries at Cleveland, Lima, Franklin and Whiting.

All orders for oil were placed directly from Cleveland — no orders were made through 75 New Street.

*139 All stations in Missouri taken over by the Republic were continued for a time and then the one at Springfield was dismantled.

In a general way says he is familiar with the territory of the Waters-Pierce Oil Company. He never found that company and the Standard Oil Company selling in the same territory.

The territory of the Republic Oil Company was practically co-extensive with that of the Standard Oil Company.

Louis H. Turrell was secretary and treasurer of the Republic Oil Company at Cleveland from June 1, 1901, to the end of the year.

One Mr. Hardcastle worked for Republic at Cleveland. He came from Standard Oil Company at Albany, New York. When he quit he went back to the same company.

A Mr. Hart, chief clerk of the accounting department of the Republic, was formerly connected with Standard Oil Company of Indiana.

The word “transfer” as used in the business meant being transferred from one office to another or from one position to another, and the same term is sometimes used between kindred interests or affiliated interests.

L. J. Drake, Jr., came from Standard Oil Company to the Republic while he was there. When Turrell left he went with Standard Oil Company at Sioux City, Iowa.

Cleveland Refining Company of Cleveland belong-to the Teagle family. It was a marketing field and sold to Schofield, Shurmer & Teagle. Cleveland Refining Company plant was dismantled in July and August, 1901, and the Scio plant in September and October, 1901.

When the Republic Oil Company first began business they went out after all business in sight regardless of whom it belonged to, and this continued for *140 about a year and a balf, or until restrictive instructions were issued, which meant that the agents were told that where the business belonged to Standard Oil Company no active effort was to be made to get it. Both the general manager and witness gave such instructions. Says the Waters-Pierce Oil Company’s business was treated just the same as the Standard’s business.

Says he left the Republic Oil Company without any feeling against anyone and there had been no trouble.

States that he would say the Republic Oil Company was more aggressive in competing with the Waters-Pierce than it was with the Standard Oil Company. The station at Spring-field was removed in order to remove competition from that territory.- Just before this station was moved Mr. Teagle had been to 26 Broadway and immediately on his return instructions were given to remove it.

The Republic Oil Company procured Pennsylvania refined oils from the independents for nearly two years. Then instructions were given to place practically all orders for Pennsylvania refined oil with the Atlantic Refining Company at Franklin, Pa., which is a well-known Standard Oil refinery.

Local agents or field managers were very often called to Cleveland and there they were instructed by the manager.

Says he thinks the Republic managers' at St. Louis were given more leeway than some other managers, so that they could get more business at that point, regardless of whom it belonged to.

He was present at field managers’ meeting at Cleveland when instructions were given by the general manager. Mr. Heyer was present at those meetings. General instructions were given and different questions were brought up for the good of the business. At the last meeting there were instructions given relative to respecting the business of the “largest competitors” *141 and following np the outside high class business, or dissatisfied trade.

Says there is more competition on the lower grades of oils. The independent refineries are chiefly located in the Pennsylvania oil regions and have to eater more to the trade demanding high grade goods. As the Standard Oil Company handles mostly'low grade goods, the independents are forced into the high class.

At the time the Republic started in business he received orders or instructions from New York to place orders for certain grades of refined oils with various Standard Oil refineries and in a general way gave the shipping directions by which they were to be routed. These orders came from the president of the company, who was located in the Standard Oil building, New York City.

The Pennsylvania oil. is superior to the western products.

At the beginning they bought practically all of their Pennsylvania oils from independent refineries. During the course of the year, after the expiration of six or eight months, they placed at least twenty per cent with the Atlantic works, a Standard interest, and before he left they bought their entire requirements of Pennsylvania oil from the Atlantic.

Low grades are manufactured largely by Standard Oil Company, and in order to retain gallonage and keep out competition, they will reduce the price on those particular grades so low as not to leave any profitable margin to independent jobbers; that is, over and above the cost to the independent jobbers from the independent refineries.

The refinery of his company is located at Warren, Pennsylvania, and sells as wholesale jobbers only. They sell at points in Missouri to the independent dealers only.

At a field managers’ meeting, held in February, 1904, at Cleveland, when Heyer of. St. Louis was pres *142 ent, the president instructed them, all that they were to canvass, make particular efforts in increasing trade on palacine oil and go particularly after the trade that would demand high-grade goods in preference to the ordinary oils on the market, and to make particular efforts against like jobbers in their territory. At this meeting the president stated that it was unnecessary to longer deny the identity of the Republic.

W. W. WATERS: Edits a newspaper at New Madrid, Missouri. In the spring of 1902 he ordered a gallon of oil for a gas engine he had in his office from the Standard Oil Company, and directed the letter to that company at St. Louis, Missouri. In due course of the mails he got a reply to his letter from "Waters-Pierce Oil Company at St. Louis, merely stating that they did not sell in quantities of less than ten gallons and that he could perhaps get it from their local agent. The Standard Oil Company does not do business in Southeast Missouri, but the Waters-Pierce Oil Company does business there.

H. R. K1T0LLENBERG: Lives in St. Louis and is a travelling salesman for Mound City Oil & Supply Company, and has been with that company for about seven years. He was traveling salesman for Waters-Pierce Oil Company from 1893 to 1898 in Missouri, Indian Territory and some points in Arkansas. His business principally was to look after the lubricating oil business, and he sold to anyone he could. He never met the Standard Oil Company selling in the territory he sold in, but met other companies in competition. He was told as to territory how far he could go and where not to go. Says Waters-Pierce Oil Company business was divided up into territories, such as Missouri division, Texas division, and Mexico division.

H. R. KNOLLENBERG — recalled: Prior to going with the Waters-Pierce Oil Company he worked for Vacuum Oil Company, Rochester, New York. He sold for this company in the southern part of Illinois and south *143 eastern part of Missouri. In Illinois he met in competition the Standard Oil Company and in Missouri the Waters-Pierce Oil Company. Vacuum Oil Company went into the Standard Oil Company about 1893. When this occurred he was working under an annual contract which had ten months to run. During that ten months he worked a portion of the time in Illinois and a portion of the time in Missouri, but his salary was paid by Waters-Pierce Oil Company to the amount of his contract. Reports of oil he sold in Illinois were made to Standard Oil Company, outside of Belleville, and oils sold there were reported to Waters-Pierce Oil Company. It had that territory. Reports of sales made in Missouri were made to Waters-Pierce Oil Company. All the papers and records of Vacuum Oil Company at its office in St. Louis were taken to the office of Waters-Pierce Oil Company. The business of Vacuum Oil Company in Illinois was transferred to Standard Oil Company and its business in Missouri was transferred to Waters-Pierce Oil Company, but the name of Vacuum Oil Company was discontinued. But says all his work during the ten months his contract had run was done under Mr. Lasar, manager of the Missouri division of Waters-Pierce Oil Company, both in Missouri and Illinois. Says that Vacuum oil was lubricating oil and the company handled no illuminating oil. Says Mr. Lasar instructed him when he sold in Illinois to make his report to the agent of Standard Oil Company aDEast St. Louis.

SAMUEL LEDERER: Now lives in St. Louis. In about 1897 he was in Dexter, Missouri, and was manager of the general store of Lederer & Richter. They bought and sold the oils of Waters-Pierce Oil Company. Waters-Pierce was the only company selling oil there then. A gentleman came there representing some other company and made up a car-load lot among the merchants and shipped it in there. Says he notified the Waters-Pierce agent, and he gaid his company would *144 stand by Ms firm if they would stand by tbe Waters-Pierce, and we agreed to do so. Says he was then paying fourteen cents for prime white, and this new oil was sold to the merchants for twelve cents. ITis firm dropped oil to ten cents and it kept on coming down until it sold at five cents. There was no more competitive shipments there after this car.

CERTIFIED COPY of annual report of Republic Oil Company, of 75 New street, New York City, to State of Michigan, showing its condition for the year 1901. Shareholders: George B. Wilson, 3,000 shares; Walter C. Teagle, 150 shares; James R. Taylor, 200 shares; Charles L. Nichols, 150 shares. Officers: C. L. Nichols, president; W. C. Teagle, vice-president; W. T. McKee, secretary and treasurer; J. R. Taylor, assistant secretary.

CERTIFIED COPY of annual report of Republic Oil Company, of 75 New street, New York City, to State of Michigan, showing its condition for year 1902. Same shareholders and officers.

CERTIFIED COPY of annual report of Republic Oil Company, of 75 New street, New York City, to State of Michigan, showing its condition for year 1903. Same shareholders and officers.'

CERTIFIED COPY of annual report of Republic Oil Company, of 75 New street, New York City, to State of Michigan, showing condition for year 1904. Same officers and stockholders, except that W. S. Judd takes the place of W: C. Teagle. ■

CERTIFIED COPY of annual report of Standard Oil Company, of Whiting, Indiana, to State of Michigan, showing its condition for year 1902: Stockholders: W. H. Tilford, H. H. Rogers, J. D. Archbold, C. M. Pratt, J. A. Moffett, P. R. Barstow, H. M. Flagler, William Rockefeller, G. W. Stahl and W. P. Cowan. Officers: W. H. Tilford, president; J. A. Moffett, vice-president; G. W. Stahl, secretary and treasurer. -All are directors except Stahl.

*145 CERTIFIED COPY of annual report of Standard Oil Company, of Whiting, Indiana, to State of Michigan, showing its condition for year 1903: Stockholders: E. T. Bedford and Walter Jennings are substituted for William Rockefeller and H. M. Flagler. Officers same as above.

CERTIFIED COPY of annual report of Standard Oil Company, of Whiting, Indiana, to State of Michigan, showing its condition for year 1904. Same stockholders. Same officers, except that J. A. Moffett became president and W. P. Cowan vice-president.

CERTIFIED COPY of Articles of Incorporation of Republic Oil Company as they appear on file in the office of Secretary of State of Missouri. Showing: Capital stock to be $350,000, and $60,000 of same invested in Missouri. Organized under laws of New York State on June 4, 1901. The capital stock was divided into 3,500 shares of $100 par value each. The shareholders were George B. Wilson, New York City, 3000 shares; F. A. Turrell, New York City, 300 shares; James R. Taylor, Mount Yernon, New York, 200 shares.

CERTIFIED COPY of Articles of Incorporation of the Standard Oil Company of Indiana as they appear in the office of the Secretary of State in Missouri. Filed in said office of Secretary of State of Missouri, January 21, 1897, and certificate to do business issued on that date. Shows that the company incorporated on June 11, 1889,. under the laws of Indiana. Signed by' A. M. McGregor, George H. Yilas, W. H. Tilford, F. R. Barstow and W. P. Cowan, and acknowledged in New York City, all except Cowan, who acknowledged in Illinois, and the same parties made directors. On September 7, 1899, James A. Moffett was vice-president.

*146 CERTIFIED COPIES of Articles of Incorporation of Waters-Pierce Oil Company, filed in the office of the Secretary of State of Missouri,'on May 29,1900. Showing that the company was organized on May 28, 1900, with a capital stock of $400,000, divided into four thousand shares of the par value of one hundred dollars each. Shareholders: Henry Clay Pierce, 3,996 shares; Andrew M. Finlay, one share; John P. Gruett, one share; Charles M. Adams, one share; John J. Johnson, one share, all of St. Louis, Missouri. The samé parties are named as the first hoard of directors.

CERTIFIED COPY of Charter of Consolidated Tank Line Company, as same appears in the office of the Secretary of State of Missouri, filed July 3, 1891. Organized and incorporated under the laws of Ohio on January 18, 1878; capital stock $200,000, each share of the par value of $100. Signed by Alex. McDonald, Eugene Zimmerman and James McDonald.

CERTIFIED COPY of Charter of Standard Oil Company of Kentucky as it appears on file in the office of the Secretary of State of Missouri. Filed May 10, 1892, and affidavit of retirement from the State filed January 21, 1897. Incorporated under the laws of Kentucky on October 7, 1886. Incorporators: W. H. Tilford, New York; W. T. Jordan, Louisville, Kentucky, and L. T. Rosengartner of Louisville. Capital stock, $600,000 — one hundred dollars par value of each share. Directors W. H. Tilford, Geo. H. Vilas, H. H. Rogers, J. D. Archhold and W. P. Thompson. Officers: W. H. Tilford, president; Geo. H. Vilas, vice-president; W. T. Jordan, secretary; L. T. Rosengartner, treasurer. Amendment thereto on April 1, 1902, increasing stock to one million dollars, and C. M. Pratt was president at that time.

STATE V. STANDARD OIL COMPANY, 49 Ohio State Reports, 137.

STATE V. STANDARD OIL COMPANY, 61 Ohio State Reports, 520.

*147 FKANK B,. NORTHRTJP: Now lives at Des Moines, Iowa. In 1892 he began the oil business with Schofield, Shurmer & Teagle in Iowa. Went to St. Louis in September, 1893, with same firm. Began in St. Louis as their chief clerk and then became their manager in .1896 and continued as manager up to 1901. Republic Oil Company succeeded Schofield, Shurmer & Teagle, and he became manager at St. Louis of the Republic and continued with them there until July, 1902; then he went to Chicago and became manager of Republic there.

In St. Louis, Waters-Pierce Oil Company had tank stations both in that city and East St. Louis. The firm of Schofield, Shurmer & Teagle were active competitors of Waters-Pierce. Met the Standard Oil Company in Illinois and at Hannibal, but did not meet that company in St. Louis. Schofield, Shurmer & Teagle had tank stations in Missouri at St. Louis, Kansas City, St. Joseph, Springfield and Clinton, and sold anywhere in Missouri that they could get customers. Never found the Standard Oil Company and Waters-Pierce Oil Company doing business in the same territory in Missouri. The firm of Schofield, Shurmer & Teagle was the principal competitor of the Standard and Waters-Pierce in Missouri — it was the largest and most aggressive. They sold to Republic Oil Company on June 1, 1901. A brother of R. P. Tinsley of Standard Oil Company came to inspect inventory. Walter Teagle, who had been with the old firm, continued with the Republic Oil Company.

Letter sent to witness at St. Louis, dated June 12, 1901, signed by Republic Oil Company, W. C. T., denying newspaper reports that Schofield, Shurmer & Teagle had sold to the Standard, and alleging that the business of Schofield, Shurmer & Teagle and Cleveland Refining Company had been consolidated and would be continued under the name of Republic Oil Company, and authorizing him as manager to con *148 vey such information to his customers along the line suggested as he thought proper.

When Republic Oil Company began business there were some changes made in methods of keeping books. Says this company was left an independent firm; they were to do no cutting as to the companies called their “competitors,” that is — Waters-Pierce Oil Company. He followed the prices made by Waters-Pierce Oil Company. Other companies were designated “independents” and he was to get right after them and get every bit of their business, and he could use his own discretion in dealing with them. Says he got the major portion of his oils from Whiting, Indiana, the Standard Oil Refinery, and the shipments of oil to his company were billed as gallonage only. Says after he got started in it all came from Whiting.

His instructions to salesmen were to show them Mr. Teagle’s letter stating that his company was not connected with the Standard Oil Company, in order that they might communicate the information to the trade.

While in St. Louis with the Republic he reported to Cleveland, but while with that company at Chicago he reported to W. C. Teagle at 75 New street.

L. H. Turrell, before he became connected with Republic Oil Company, was connected with Standard Oil Company at Des Moines. Then he was at St. Joseph, and afterwards became secretary of Republic. He was with the Republic only a short time and then went to Dubuque with the Standard Oil Company.

Knew Von Harten, who was manager of tank wagons in St. Louis, while he was with the Republic Oil Company there. His company (Republic) ran six tank wagons in St. Louis and had six tanks. Von Harten was in the habit of calling on him in a social way and would inform him a day or two ahead when there there would be a change in the price of oil. Witness would then follow their prices. This continued during *149 all the time he was manager of the Eepnhlic Oil Company in St. Lonis.

Says he established the business in Chicago for Eepublic Oil Company; the Standard was doing business there. At that place says he had instructions to get business from independents and he very careful about competitors’ business, and by “competitor” says he means the Standard Oil Company. But says they also had to get after the business “competitor” in order to make some showing.

Says about the time of sale of business of Schofield, Shurmer & Teagle to Eepublic Oil Company, Ed Shurmer and a Standard Oil man from Louisville came to St. Louis and looked over the property in order to see what it was.

Both the Standard Oil Company and Waters-Pierce Oil Company had tank stations in East St. Louis.

Says Schofield, Shurmer '& Teagle at St. Louis sold in certain towns and places — his traveling man would be instructed where to go. His traveling men’s territory was staked out on maps and reference would be made to that to find where they went. The major portion of the oils sold by this firm came from Cleveland — got some from Corn Planter Eefining Company and some from other places. Their leading brand was palacine.

The Waters-Pierce Oil Company in St. Louis sent out to the trade and dealers regularly cardlists of prices which were followed by all the oil dealers there. His information from Yon Harten was received in advance of sending out these cards. Says he had no agreement with Yon Harten — he would simply tell him what the prices were to be and he would follow them. When with Schofield, Shurmer & Teagle he would not he notified in advance, hut would have to find out the prices of Waters-Pierce. When with last named firm they were forced to follow price of Waters-Pierce and when *150 with the Republic he had instructions to follow their prices. These instructions came from Mr. Teagle.

F. E. LYMA1T: Worked for Consolidated Tank Line Company and Standard Oil Company of Kentucky from 1891 for two years. Reported to Kansas City office. While there he was instructed as to territory of Waters-Pierce Oil Company and told to forward orders received for oil from their territory to them at St. Louis, Missouri.

CERTIFIED COPY of annual report of Standard Oil Company of Indiana to State of Michigan for year 1905. Stockholders as follows: John D. Archbold, New York, 1801 shares; F. Q. Barstow, New York, 1,001 shares; W. P. Cowan, Chicago, one share; J. A. Moffett, New York, 1,489 shares; C. M. Pratt, New York, 1,701 shares; H. H. Rogers, New York, 2,001 shares; Geo. W. Stahl, Chicago, two shares; W. IT. Tilford, New York, 2,001 shares; E. T. Bedford, New York, one share; Walter Jennings, New York, one share. Officers: J. A. Moffett, president; W. P. Cowan, vice-president; Geo. H. Stahl, secretary and treasurer.

CERTIFIED COPY of annual report of Republic Oil Company, to State of Michigan, for year 1905. Stockholders: Frank Wilson, Orange, N. J., 3,000 shares; C. L. Nichols, Plainfield, N. J., 150 shares; W. E. Judd, Cleveland, Ohio, 150 shares; J. R. Taylor, Mt. Vernon, N. Y., 200 shares. Officers: C. L. Nichols, president; W. E. Judd, vice-president; W. T. McKee, secretary and treasurer; J. R. Taylor, assistant secretary.

W. T. McKEE: Lives at Cleveland, Ohio, and has lived there since 1902. Prior thereto he was an accountant, and traveling most of the time for Wade Hampton, who was general auditor of Standard Oil Company, with his offices at 26 Broadway, New York. He audited books of station agents and managers wherever he was sent. In January, 1902, he became secretary and treasurer of Republic Oil Company and *151 still holds that position. C. L. Nichols is the president of the company.

Cleveland, Ohio, is the distributing office of Republic Oil Company, but the home office is at the office of the president at 75 New street, New York.

While he was traveling auditor under Wade Hampton he audited the books of Standard Oil Company at Kansas City as well as those of Waters-Pieree Oil Company at St. Louis.

STOCK BOOK of Republic Oil Company produced and offered in evidence. This book has been kept at 75 New street, New York City, the home office.

Stock book shows :

No. Cert. Shares.

Originally Issued to:

1 3,000 George B. Wilson

2 300 Louis H. Turrell

3 200 James R. Taylor

Now Held by:

Prank Wilson

(150 — ) C. L. Nichols

(150 — ) W. E. Judd

James R. Taylor

Prank Wilson is assistant to W. G. Rockefeller, who is treasurer of Standard Oil Company of New Jersey.

C. L. Nichols became president of Republic Oil Company in 1902, and is still president. Prior thereto he was connected with Mr. Drake, who was in charge of some department at 26 Broadway. James R. Taylor is at 26 Broadway, but he does not know his connection there.

When he went to Cleveland, W. C. Teagle was vice-president and general manager of Republic Oil Company. He is not connected with Republic now, but is at 26 Broadway. W. E. Judd is located at Cleveland, *152 Ohio,, and gives his entire time to the Republic Oil Company.

It is here admitted by Mr. Eddy of counsel for Standard Oil Company and Republic Oil Company that the stock held in the Republic Oil Company by W. E. Judd, Frank Wilson and J. R. Taylor is held for the Standard Oil Company of New Jersey.

Says he audited the books of Waters-Pierce Oil Company eight or nine years ago. Audited them twice —once alone, and once he assisted C. W. White, who worked under Wade Hampton, and both times under the direction of Hampton. Has not audited the books of that company since.

LOUIS H. TURRELE: Lives at Detroit, Michigan; is a public accountant. He went there in October, 1903. Was at Dubuque, Iowa, from March, 1902, to October, 1903. Prior thereto he lived at Cleveland, Ohio, and he was there from June, 1901, to January, 1902. He was at St. Joseph, Missouri, from July, 1892, to 1901, when he went to Cleveland. And prior to that was at Des Moines, Iowa. At Des Moines he was with Standard Oil Company and became connected with that company in November, 1890. Alexander McDonald was president of that company. He was with Standard Oil Company at St. Joseph, also. The headquarters were changed while he was at St. Joseph from Cincinnati, Ohio, to Chicago, Illinois. L. J. Drake was the general manager at Chicago. He started in at St. Joseph as cashier and was chief clerk when he left. He left St. Joseph and went to New York City to become an incorporator in a new company. Went .at the request of his superiors. Went to 26 Broadway and met J. A. Moffett, who told him a deal was on foot for the purchase of Schofield, Shurmer & Teagle and Cleveland Refining Company by Standard Oil Company. If the deal went through he wanted him to go to Cleveland, and look after the accounting end of the business, and that he, witness, would be secretary and treasurer *153 of the new company and one of the directors. Then, after this conversation, he went to Cleveland. At Cleveland he was first informed that the Federal Oil Company had been formed and that he was one of the directors, and he commenced arrangements to install a system of accounting for the new company. Shortly after he was called back to New York City and saw Mr. Moffett, who told him the deal had been closed and asked him to go see Mr. Dodd, their attorney, and Mr. Bemis. Dodd showed him the articles of incorporation of Republic Oil Company, and asked him to sign his name to them in the name of P. A. Turrell, that having been written in the body of the paper, which he did. This was not his name, and he had never used these initials, but he was told that it would make no difference. James R. Taylor and George R. Wilson were seen by him at this time.

Mr. Dodd in a general way cautioned him to remember that he was an officer of Republic Oil Company, and that he was not supposed to know much outside of that. He was asked during this visit if any one at Cleveland, Ohio, knew him as a Standard Oil man, and he replied that he was a perfect stranger there.

Says he did not acknowledge the articles of incorporation before Doremus, notary public, as certified.

Says the allegation in the articles of incorporation that he resided in New York City is a mistake, as he never lived there — had lived at St. Joseph, Missouri, for nine years immediately prior thereto.

George B. Wilson, one of the incorporators, was chief clerk of the Standard Oil Company of New York, and he met him at 26 Broadway. James R. Taylor was private secretary to H. M. Tilford, who was connected with Standard Oil Company as a member of the domestic trade committee.

Shortly after Republic Oil Company was organized, the stockholders held a meeting at 26 Broadway in H. M. Tilford’s room. Says but little was done— *154 they did what Mr. Tilford directed to be done. They elected officers: Wilson, president; Taylor, assistant secretary, and himself secretary and treasurer. Held, another meeting of the directors — they were all directors. Mr. H. M. Tilford was always present and directed what was to be done. No outside person except Mr. Tilford was present.

Says he paid nothing for the three hundred shares of stock held by him. Does not know what salaries Wilson and Taylor got. As a member of the board of directors he never knew of any money being paid in by the original incorporators.

When he went to Cleveland the second time as secretary and treasurer of Republic Oil Company he made arrangements to install an accounting system.

The firm of Schofield, Shurmer & Teagle had been active competitors of Standard Oil Company at St. Joseph. He also learned that they had a tank station at Kansas City and Springfield.

When Republic Oil Company began business, two men were sent out by Wade Hampton from New York to make an inventory of the properties. Hampton was general auditor of Standard Oil Company. Their inventory was to be the basis on which a settlement was made with Schofield, Shurmer & Teagle.

The Republic purchased at the same time the properties of Schofield, Shurmer & Teagle, Cleveland Refining Company and Scio Refining Company.

When final settlements were made for those properties part was paid in cash and part by notes.

Says they were given to understand that they must not use the same forms of accounting as the Standard and were instructed to represent that the Republic Oil Company was an independent company. Such instructions were given him by James Moffett, H. M. Tilford and W. E. Bemis.

Mr. Bemis suggested that he get a Standard Oil man to help him install a system of accounting, and *155 he got Mr. Hart of the Standard Oil Company of Chicago. Also sent him H. C. Hardcaster from Standard at Albany to help install a system of keeping record of stock.

All communications to the president of the company were addressed to 75 New street, New York City —the back entrance to 26 Broadway.

C. L. Nichols was chief clerk of Walter Jennings, who was a member of the domestic trade committee at 26 Broadway.

R. P. Tinsley was at the head of the accounting department at 26 Broadway.

When he left Cleveland in January, 1902, he went to Sioux City, Iowa, with Standard Oil Company, and reported to Chicago. Mr. Nichols, president of Republic, wrote him a letter requesting him to go to Sioux City.

Says his certificate of stock in Republic Oil Company was not kept in his possession. It was at the home office, 75 New street. When he went to Sioux City he was requested to cancel his stock certificate.

Letter from C. L. Nichols to witness, dated February 14, 1902, requesting him to sign as secretary certain certificates of stock, and to sign an assignment in blank of one in his name. The certificates were inclosed in the letter and were returned by witness to Nichols after he had complied with Nichols’s request.

Says the general instructions to employees of Republic Oil Company were to go after the trade on high-class grades of oil and not to interfere with regular Standard Oil business. They were to push the sale of palacine over and above everything else. The hardest competition was on high-grade oil. Any trade the Standard was enjoying without trouble they were to let alone — they were to work for the class of trade the Standard could not get or had difficulty in getting. The Republic was to go after the independents as *156 hard as it could. Another object was to go after -a class of trade that was prejudiced against the Standard.

Shortly after the Republic Oil Company'was organized, the Cleveland Refinery and Scio Refinery were dismantled and were not operated any more.

During the time he was with the Republic, he got oils from Standard Oil Company at Cleveland, Standard Oil Company at Whiting, Atlantic Refining Company at Franklin, Pa., and some through a broker at Oil City. Oil would be ordered through the Cleveland office or through the president at 75 New street.

Whenever he went to 26 Broadway and wanted to see Mr. Tilford, he would always find Mr. Taylor in his office and through Taylor, he would get to see Tilford. Never met the president, Wilson, except when they held board meetings.

When Nichols became president a cash statement was reported to him at 75 New street. Saw Nichols when he would go to 26 Broadway, in Walter Jennings’s office, as-his chief clerk.

Mr. Tilford was at first the directing agency of the Republic and after Nichols became president then Jennings took his place — Tilford’s place.

While Wilson was president he would see Tilford .about the business of the company, and when Nichols became president he would see Jennings about its business.

As a general thing those in authority located at 26 Broadway had no title.

The domestic trade committee was located at 26 Broadway and had charge of the sale of oils in the United States. It was divided up and each member had a territory to look after and reports from that territory were made to him.

Concerning the accounting department of the Republic Oil Company, he consulted with the men at 26 Broadway.

*157 While at St. Joseph, working for the Standard Oil Company, the first head office was at Cincinnati, then it was changed to Chicago. The company with head office at Chicago was Standard Oil Company of Indiana. Prior to that he cannot say positively whether the company was of Kentucky or Ohio. There was nothing on letter-heads or vouchers to indicate what State the company was organized in — just “Standard Oil Company.”

Says P. C. Crenshaw, general manager at Chicago, requested his resignation. Gave no reason other than it had become necessary to let some one out of prom-inence. He had no trouble with the company. His feeling against the company was not real good in view of such treatment.

Says he communicated with General Hadley and offered his services to testify. The reason he did this, he says, was because he learned from the newspapers that there was a misunderstanding in regard to the incorporation of the Republic Oil Company. He considers also that it was a duty that he owed the public to testify.

Says that in May, 1901, at St. Joseph, he heard the manager there, Seth C. Drake, talking over the long-distance ’phone with L. J. Drake at Chicago. Seth Drake turned from the ’phone and wanted to know if he was willing to go to New York and become one of the incorporators and directors in a sub rosa company they were forming. He answered “yes, ’ ’ and shortly after went to New York and became an incorporator of Republic Oil Company.

At the time the articles of incorporation were signed, Moffett spoke of the address of witness being New York and remarked that it was all right, nobody would know the difference.

Says he does not know how or when Wilson became president of the Republic, nor did he know that *158 he had been made secretary and treasurer until he was notified of the fact by Mr. Moffett.

When he was with Standard Oil Company at St. Joseph it got its oils from Whiting, Indiana.

Yirgil P. Kline, an attorney at Cleveland, Ohio, was a Standard Oil attorney and transacted the legal business of the Republic. Witness says he was referred to him by Attorney Dodd at 26 Broadway.

CHARLES W. SCHOFIELD: Has lived in Cleveland, Ohio, for twenty-six years. He was a member of the firm of Schofield, Shurmer & Teagle, but not an active member. He was not interested in the Cleveland Refining Company nor Scio Refining Company. In the sale of the properties of the firm to Republic Oil Company, John Teagle represented the firm. He made one trip to New York during the negotiations with John Teagle. There they saw with reference to the sale Alexander McDonald — met him at the Waldorf. Says he had some talk with McDonald about the sale. A proposition was submitted to McDonald but he does not know whether that was the one accepted or not. Afterwards, he was advised that the properties were sold — that the trade was made.

DANIEL SHURMER: Lives in Cleveland, Ohio. He was formerly a member of the firm of Schofield, Shurmer & Teagle. The members were W. C. Schofield, Daniel Shurmer, Charles Schofield and John Teagle. Says he was an active member of the firm and was superintendent of works and looked after outside business. John Teagle was office man. They did business all through the West. Says his firm was not connected with Standard Oil Company — they sold oil in competition with that company and sold anywhere they could. They quit business in 1901. He and Teagle had control of Cleveland Refining Company and Scio Refining Company. In the sale of the properties of Schofield, Shurmer & Teagle, Cleveland Refining Company and Scio Refining Company, the firm was repre *159 sented by John Teagle, who went to New York and made the deal there.

ED. SHURMER: Lives at Cleveland, Ohio, and is a son of Daniel Shnrmer. He was connected with the firm of Schofield, Shurmer & Teagle. Sale of the properties of Schofield, Shurmer & Teagle took place in the spring of 1901. Prior to the sale he went to New York City with C. W. Schofield, and had a talk with Alexander McDonald at the Waldorf concerning the sale of the firm properties. Says sale was made before he heard of Republic Oil Company.

JOHN BURROWS: Had lived in Oklahoma City, Oklahoma, for the past twelve years. He is now engaged in the wholesale oil business and has been connected with the oil business for about twenty-five years. He began with Waters-Pierce Oil Company in St. Louis about twenty-four years ago. Then he was sent to Mississippi by that company to buy and inspect rosin and turpentine. Got pay part from Waters-Pierce Oil Company and part from Chess-Carley Company, and when that company went out of business got a part from Standard Oil Company. Went south in 1883 and was there eight years and these salary payments were made that way during those eight years. Then he was sent to Texarkana, Texas, as local agent for Waters-Pierce Oil Company. Then he was sent to Sulphur Springs, Texas, in same position, and then into Old Mexico, representing the same company. Next, in about 1893, he went to Oklahoma City and took charge of the business of Waters-Pierce Oil Company.

On two occasions tank stations were put up at Oklahoma City in opposition to Waters-Pierce, but they did not last long. Waters-Pierce Oil Company put the price of oil down so low that they could not stay — put it down below cost.

The Anti-Trust Oil Company came in prior to 1900, and he received instructions from Denison, Texas, the headquarters of his territory, to put oil *160 down from day to day. He received no instructions from St. Louis, Missouri and all Ms reports were made to Denison.

At Texarkana lie reported to Little Rock, Ark., the headquarters of that division.

At all points where he worked he was instructed to spot the oils of competitors and make reports to division headquarters of all outside oils shipped into his territory.

Since 1900 there has been no competition in Oklahoma territory except in lubricating oils. The Standard Oil Company has done no business in that territory that he knows of.

Says while in Texas his station business wa's audited by three different auditors, from Little Rock, Arkansas, from Waters-Pierce Oil Company, St. Louis,' and from Standard Oil Company, 26 Broadway, New York City.'

At Oklahoma City the same method was not pursued — most of the auditing was done by auditors from St. Louis, but there has never been a regular checking up of the office.

Republic Oil Company never sold oil in his territory.

Since 19001 has received letters at Oklahoma City addressed to Standard Oil Company. At first he forwarded them to Denison, Texas, headquarters. He was instructed to open such mail and fill orders for oil if any was wanted.

Says he received instructions that the International Harvester Company of Chicago would furnish him with labels to be put on certain oils and shipping instructions from them. He was to charge the gallonage of oils to home office account of Standard Oil Company. He was furnished by International Harvester Company with printed bills of lading, shipping tags, etc., and the oils were furnished and shipped accordingly by witness. The gallonage was charged to home office *161 at Denison, Texas, account Standard Oil Company.

Letters produced showing witness was discharged because of unsatisfactory services, although he claims he resigned. Also a letter produced written by him in which he asks to be reinstated. Denied that he had asked to be reinstated.

Says he wrote Hadley about his knowledge because Mr. Ebie, the local manager, had threatened to fight his business. Says he thought if he was going to fight him he would retaliate.

During' the time he was with Water s-Pierce Oil Company at Oklahoma he got the majority of his oils from Whiting, Indiana. It came in tank cars, either W. P. O. cars or U. T. L. cars. The oil was not paid for by his station. They sold prime white and crown gasoline.

[The testimony of this witness is largely hearsay and incompetent and is so colored by his feeling against the Standard Oil Company and Water s-Pierce Oil Company, as to greatly weaken it.]

J. A. BROWN: Now lives in Kansas City, Kansas. Says he was with Waters-Pierce Oil Company at New-kirk, Oklahoma, for about eleven years. He was agent then for them. This is about eight miles from Kansas line. His competition while there was from the National Oil Company, which sold some oil there. Had no competition with Standard Oil Company. He did not sell or solicit trade in the State of Kansas — he had been instructed to not sell there and these instructions were still in force when he quit on October 1, 1904. He received orders which had been sent to Standard Oil Company by persons living in his territory and filed them. Most of these were received in the early part of his agency. These letters would come to him direct from the point to which they were sent at times and at other times from the head office *162 at Denison. Denison was then the head office of his territory, and he reported there. About two years ago the head office was changed to Oklahoma City, and then he reported there. Most of his oils and gasoline came from Whiting, Indiana — in later years some came from Corsicana, Texas. Sold eupion and crown gasoline. Standard never came into his territory. They had a station twelve miles away from Arkansas City, Kansas.

E. T. HATHAWAY: Lived at Oklahoma City since 1904. He began service with Waters-Pierce Oil Company, June 1, 1878, at Denison, Texas. Prior thereto he had been with Chess-Carley Company at Louisville, Kentucky. Was at Denison until 1904, where the headquarters of Oklahoma Territory were moved to the latter place. The Standard Oil Company has not had any tank stations in Texas or the Oklahoma division since he has been with the Waters-Pierce, and he has done no business to any extent in those places. Standard Oil Company has stations at Arkansas City and Wichita, Kansas. Waters-Pierce Oil Company did not sell in Kansas where Standard sold.

When Waters-Pierce Oil Company was reorganized in May, 1900, he was discharged by the old company and at once re-employed by the new company. There were no changes made in the business methods, Says everything went along just the same. He, as manager at Denison, discharged all his employees and re-employed them. No loss in salaries or pay of employees.

As manager he gave agents instructions to sell in their territory and no further.

Says he knows they filled orders for the International Harvester Company, charging the goods to the St. Louis office.

His orders for oil all went to St. Louis, and the oil was shipped sometimes from Whiting, Indiana, and sometimes from Corsicana, Texas.

*163 In regard to International Harvester Company, says that he knew nothing’ about the arrangement of the St. Louis office. He simply filled the orders and charged the goods to Waters-Pierce Oil Company, St.Louis.

Says some orders from his territory to Standard Oil Company for oil were sent to his office and filled by the proper agent and collections made for same.

His division consisted of a part of Texas, Oklahoma and part of Indian Territory. The division was divided up into agencies and each agent was assigned a certain territory, and all got their oil through orders to the head office of the division, and all accounted and reported to him.

J. W. WAGDÍ0ÍT: Lives at Oklahoma City, and is in the real estate business. He quit the Waters-Pierce Oil Company in November, 1904, and had worked for that company twenty-five years prior to that time. For about ten years of the time he was assistant manager.

Never knew of Standard Oil company selling in Waters-Pierce territory. He was in the office at Denison, Texas, which was the division office, as assistant division manager. In August, 1904, the division office was moved to Oklahoma City, and he went to the latter place.

He says that Burrows was a hard worker and a faithful employee, and that his discharge was caused by Mr. Wheeler, who was investigating the division at that time and was temporarily the higher authority. He was assistant to general manager in St. Louis.

A. C. EBIE: Lives in Oklahoma City since October, 1904. He is manager of the Oklahoma division of Waters-Pierce Oil Company. Prior to coming here he was employed by Standard Oil Company at Newark, New Jersey.

A. Y. Jockel came to Oklahoma City in December, 1904 — he knew Jockel in Newark.

When witness was in Newark he was chief clerk *164 of Standard Oil Company a.t that place- — that was Standard Oil Company of New Jersey.

When he came here he made application for employment by Waters-Pierce Oil Company to Mr.'Mc-Nall, at 26 Broadway, New York City. He is commercial agent of Waters-Pierce Oil Company.

The Republic Oil Company does no business in Oklahoma Territory.

After seeing Mr. McNall he nest saw Mr. Finlay, president of Waters-Pierce Oil Company, in St. Louis. He also met Mr. R. P. Tinsley in St. Louis, whom he had seen in his office at Newark, and once at 26 Broadway, Tinsley had an office there but he does not know what his title was, but thinks he was connected with the accounting department. Jockel had been employed in the same office as witness at Newark.

Says he comes in competition with,. Standard goods in northern border of his territory, but they have no tank station in the territory. Says he recognizes that company as a competitor when it ships goods into his territory. Says there were some carloads shipped into his territory by Standard- — at least so reported to him as being Standard goods.

Gets his goods from Neodesha, Whiting and Chaison, but does not know what refineries are located at those points, but orders for goods are sent to St. Louis office.

Says they have confined their territory and agents and solicitors do not go outside, but they have not issued any instructions not to. Says it would not be advisable to ship Oklahoma test goods into Kansas; their goods seldom pass inspection here, and he sells a higher .grade- of goods, judging from shipments coming in and are rejected by the deputy inspector — the test is higher in Oklahoma than in Kansas.

Says Jockel worked about two- months here under witness and was, then relieved because he was generally unsatisfactory, found to be negligent, untruth *165 ful so far as his general report was concerned regarding his work, and he conld not give bond.

. Says his arrangements to go to Oklahoma City were made and agreed on with Mr. McNall, including salary.

When he saw R. P. Tinsley in St. Louis, on his way to Oklahoma, he was acting as vice-president of Waters-Pierce Oil- Company. C. P. Ackert is the general manager of Waters-Pierce Oil Company.

Says all his reports are made to the office in St. Louis.

Admitted that orders for oil from Standard Oil Company territory s-ent to Waters-Pierce agencies were transmitted to Standard Oil Company, and orders for oil from Waters-Pierce territory to Standard Oil Company agencies were transmitted to Waters-Pierce Oil Company, and when such orders were so received by Waters-Pierce Oil Company they were filled and that company collected for the oil.

It is admitted that reports on forms offered in evidence were made to R. H. McNall, commercial agent at Waters-Pierce Oil Company at 26 Broadway, New York City.

C. M. ADAMS: Stock book of Waters-Pierce Oil Company produced. Adams, as secretary, says it is his duty to issue stock whenever a transfer is made, sign it and attach the seal.

He is also treasurer of the company, and, as such, looks after its finances. As such secretary and treasurer he attended to remittances, payments of bills, signing cheeks and various things of that sort.

Says they purchased oils from Standard Oil Company of Indiana, G-alena Signal Oil Company of Franklin, Pennsylvania, Atlantic Refining Company of Philadelphia, and paid for all the oils so purchased. Says orders for oils were made direct to the refineries. The orders went out from his office.

*166 As to bills due the Atlantic Refining Company, a charge was made and the checks sent to Mr. Howe, at 26 Broadway, New York City, he being some officer of the company located there.

"When the question of salaries came up it was the custom for the vice-president, secretary and treasurer to get together, make recommendations and send them to the president, if he was not here.

Says he went to 26 Broadway about two years ago by request, but does not remember who requested him. Says he discussed various matters there concerning the Waters-Pierce Oil Company with Mr. Moffett and Mr. Tilford.

W. F. Taylor, an attorney at New York City, is a director of Waters-Pierce Oil Company. Has seen M. M. VanBuren, who is a stockholder. Of the four thousand shares of stock of Waters-Pierce Oil Company, 2,747 shares stood in the name of M. M. VanBuren in March, 1905.

STOCK BOOK of Waters-Pierce Oil Company offered in evidence. Capital stock $400,000. Cert. 1 for 1,000 shares, one hundred dollars each, dated June 1, 1900, to H. C. Pierce; assigned to M. M. VanBuren, June 24, 1904; on back two $10 U. S. stamps cancelled September 4, 1900. Cert. 2 for 1,000 shares, one hundred dollars each, dated June 1,1900, to H. O. Pierce; assigned to M. M. VanBuren, June 24, 1904; on back two $10 U. S. stamps cancelled September 4, 1900. Cert, 3, for 748 shares, one hundred dollars' each, dated June 1, 1900, to H. C. Pierce; assigned July 12, 1904, 746 shares to H. C. Pierce, one share to R. P. Tinsley, and one share to Walter F. Taylor. U. S. stamps cancelled June 1, 1900, and U. S. stamps cancelled September 4, 1900.

Says the assets of the old company were purchased from the stockholders by the new company and paid for out of the earnings of the new company.

Both Mr. McKee and Mr. Backus came out and *167 audited the hooks of Waters-Pierce Oil Company, but while they were doing so they were employees of that company. When they got through and were paid off they ceased to be employees of the company.

Stock of Waters-Pierce Oil Company March 29, 1905, was owned as follows:

Andrew M. Finlay, 1 share.

John D. Johnson, 1 share.

C. M. Adams, 1 share.

E. P. Tinsley, 1 share.

H. O. Pierce, 1,248 shares.

M. M. VanBuren, 2,748 shares.

Owned June 1, 1900:

Andrew M. Finlay, 1 share.

John D. Johnson, 1 share.

C. M. Adams, 1 share.

J. P. Gruett, 1 share.

H. C. Pierce, 3,996 shares.

Stock book of Waters-Pierce Oil Company prior to May 29, 1900, produced and witness Adams examined in regard to it.

Witness says that up to 1892 the trustees of Standard Oil Trust held 2,747 shares of stock of Waters-Pierce Oil Company, and then that amount was issued to Standard Oil Company of New Jersey — the old certificate to the trustees being cancelled.

When the old Waters-Pierce Oil Company was dissolved on May 29,1900, Standard Oil Company of New Jersey held 2,747 shares of its 4,000 shares of stock.

When the capital stock of old Waters-Pierce Oil Company was increased in 1882, from $100,000 to $400,-000, the Standard Oil Trust, for the first time, became owners of stock.

Letter from M. M. VanBuren to C. M. Adams, dated July 1, 1904, directing him to make. dividend checks on stock standing in his name payable to Seaboard National Bank, New York City, and since that time he has complied with Mr. VanBuren’s request.

*168 Receipt from H. C. Pierce for dividend on 3,994 shares of Waters-Pierce Oil Company stock, dated June 16,1904, amounting to $99,850.

Receipt No. 33, dated July 7, 1904, from M. M. VanBuren, by Seaboard National Bank for $68,650, being a dividend receipt on stock held by VanBuren.

Has been with Waters-Pierce Oil Company since its organization in May, 1878. It has been doing business in the same parts of Missouri since, but the volume of the business has been very greatly increased. The number of warehouses, tank stations and agencies have been very largely increased in this State and elsewhere. Its facilities have been greatly increased and ,'improved. The company operates no refineries in United States, but manufactures axle grease and lubricating oils in St. Louis. It has three petroleum refineries in the Republic of. Mexico. Company also deals in naval stores, such as turpentine, rosin and tar.

The company purchases the largest part of refined oils handled in this country from Standard oil Company at Whiting, Indiana. Lubricating oils also coiné from there and from Galena Signal Oil Company at Franklin, Pennsylvania. Also says they buy oils from points in Texas, Neodesha, Kansas, and Sugar Creek, Missouri, and Atlantic Refining Company, Philadelphia, and Eclipse Works, Franklin Pennsylvania. Says he orders supplies of crude oil for 'Mexico from Atlantic Refining’Company, Philadelphia, and they are shipped to Mexico by tank steamers. In Mexico they have a refinery at Tampico, one at Vera Cruz and one at the City of Mexico. For supplies for the various divisions in this country requisitions are made through the St. Louis office. For these oils invoices are sent to St. Louis and paid from there.

The company keeps its bank accounts with National City Bank, New York, and Bank of Commerce, St. Louis. Eastern bills for crude oil and supplies are generally paid through the New York bank. Gener *169 ally paid field agents by drawing a check for full amount of pay roll and have the bank draw checks in name of division manager who would indorse them to the parties entitled. This would be New York exchange. The agent at Joplin was paid in that way.

McNall was employed as commercial agent of Waters-Pierce Oil Company some three or four years ago. His duties are principally to buy crude oil and all kinds of supplies for Mexico, and to see to the shipping of them.

Says Sugar Creek refinery and Neodesha refinery are Standard Oil refineries. Doesn’t know that the Texas refineries belong to Standard Oil Company. As to Atlantic Refining Company does not know its ownership; but pays for oils bought from it to its agent at 26 Broadway, New York.

Orders that go to McNall are mostly for goods other than oil and gasoline.

Says there was no dividend declared or paid by the Waters-Pierce Oil Company in the year 1901.

ANDREW M. FINLAY: He is vice-president of Waters-Pierce Oil Company. His connection with this company began in May, 1878. He is a brother-in-law of H. O. Pierce. First began as manager at Marshall, Texas. For the last eighteen years he has been connected with the company in St. Louis. When he first came to St. Louis he became superintendent of divisions — next became vice-president. Became a stockholder in 1890. The company formed in 1878 was dissolved in May, 1900, and .a new company organized under the same name.. The business was conducted the same as before, except there was some change in the officers. He owned a share of stock in the old company and got one in the new company. As far as he knew the trouble in Texas was why the old company dissolved.

Says Mr. YanBuren, Mr. Adams, Mr. Pierce and himself became stockholders in the new company, but *170 does not .know the date on which VanBuren became a stockholder, bnt thinks it was about a year ago.

Up to 1904 he was vice-president and general manager of the company. Says he had correspondence with 75 New street. Says he may have been asked to come to 26 Broadway by Mr. Tilford and Mr. McNall. Pie went there, but cannot fix the time, and saw both those gentlemen — that was three years ago.

[It is clear from this witness’s evasive answers to questions that he, as vice-president and general manager of Water s-Pierce Oil Company, communicated with H. M. Tilford, at 26 Broadway, New York City, relative to salaries of officers and employees of said company.]

Says memorandums of changes in salaries were sent to Mr. McNall, commercial agent, at 75 New street, for his general information and because he asked for it.

Prior to 1900 the company had no representative at 26 Broadway, New York City. Mr. McNall’s duties were to purchase supplies for Water s-Pierce Oil Company.

Says they made accounting reports and sales which had to do with buying goods to Mr. 'McNall. That reports on forms offered in evidence were made to McNall in order to aid him in discharging his duties, but further on adds that he did not know the purpose of furnishing such reports. These reports related to sales of oils, profits, tank-wagon deliveries, cost of barreling and marketing, stable expenses, home office expenses, rents, taxes, special salaries — in short, every detail of the business, as will appear from the form of reports in evidence.

ANTHONY V. JOCKEL: Lives in Brooklyn, New York. In 1904 he was bookkeeper for Standard Oil Company at its office in Newark, New Jersey.

At that time R. P. Tinsley was located at 26 Broadway. He received reports and transfers between other companies and Newark branch of Standard Oil Com *171 pany. R. B. Backus was with R. P. Tinsley. They left soon after he went with Standard Oil for St. Lonis, and went with Waters-Pierce Oil Company.

He knew R. H. McNall at 26 Broadway, who represented Waters-Pierce Oil Company. Prior thereto he had been with Pratt Oil Company, located at that place. Says he changed from one company to the other > about the time Tinsley and Backus went to St. Louis.

A. C. Ebie was chief clerk of Standard Oil Company at Newark while he was there. One W. R. King was an officer of Standard Oil Company at 26 Broadway.

Mr. Ebie, during the year 1904, through E. E. Young, Mr. King and Mr. McNall, was transferred to the Waters-Pierce Oil Company. Mr. Young was manager of the Newark branch of Standard Oil Company. Mr. Ebie went to Oklahoma City, Oklahoma, and took charge of business of Waters-Pierce Oil Company.

Witness was also transferred to the same place as Mr. Ebie. In November, 1904, Mr. Young sent him to 26 Broadway, New York City, to consult Mr. King. Mr. King introduced him to Mr. McNall. He and Mr. McNall came to terms and agreed. Before he left he was instructed by both Mr. Young and Mr. McNall never to mention the fact that he had known of or had been employed by Standard Oil Company.

Says he stopped at the St. Louis office of Waters-Pierce Oil Company and was instructed by Mr. Tinsley to bring up the Oklahoma office to a level with the Newark office, and to put in force the forms of reports used in the East. Also gave him about the same instruction that he received before leaving Newark as to keeping close-mouthed.

Says he was at' Oklahoma about two months. Standard Oil Company did not sell in Oklahoma territory, but the Waters-Pierce Oil Company carried a stock of Standard lubricating oils, but the packages were changed to Waters-Pierce barrels.

*172 Says Waters-Pierce Oil Company, through its agents, claimed to he a competitor of the Standard Oil Company.

Says there were two other oil companies selling in that territory and that the Waters-Pierce Oil Company, at certain points, sold oils at a loss as against them.

H. C. HARDCASTLE: Now lives in New York City. Became connected with Standard Oil Company in the accounting department in 1891. Continued there for about eight years, and then went to Cleveland, Ohio, where he worked for Republic Oil Company.

He went to Republic Oil Company at Cleveland, through Walter Jennings, who was on the domestic trade committee of Standard Oil Company at 26 Broadway. Says he went to see Jennings at 26 Broadway, and he told him he wanted witness to take a position with a subsidiary company. Then Jennings took him up to the office of W. H. Tilford at same place and Tilford told him they had just absorbed Schofield, Shurmer & Teagle and reorganized it under the name of Republic Oil Company, and wanted to know if he would go to Cleveland to work for the latter company. Salary was agreed on and he was told by Tilford that when he went there it was not to he known that he was ever connected with the Standard Oil Company.

He found that C. L. Nichols was president, of Republic Oil Company, who had been secretary to Walter Jennings, Nichols kept an office at 26 Broadway. Walter O. Teagle was then vice-president of Republic Oil Company — he is now located at 26 Broadway, and is a member of the export trade committee of Standard Oil Company.

W. T. McKee was auditor for Republic Oil Company. He was, prior thereto, an auditor of Standard Oil Company.

Says field managers got general instructions from the Cleveland office to represent to the trade that the *173 company was independent and a competing company of the Standard Oil Company.

Says he made a trip through the States in which Republic Oil Company sold oils, including- Kansas City, and St. Louis, to install its stock system employed, in the State of New York and other States, by Standard Oil Company.

Reports of business of Republic Oil Company were made to C. L. Nichols, 75 New street, New York City, being the rear entrance to 26 Broadway.

He stayed with Republic Oil Company about four months. Says during that time business continued in the same way as above described and Nichols continued as clerk to Jennings.

Says he knew R. P. Tinsley, who was agent of domestic trade department of Standard Oil Company, before he went with Waters-Pierce Oil Company. Mr. Backus was a traveling auditor of Standard Oil Company before he went with Waters-Pierce Oil Company.

When he left Cleveland he went back to Albany, New York, with Standard Oil Company. Stayed there about a month and then with Atlantic Refining Company. Prom there, after a very short time, he went back to Albany. He finally resigned from Standard Oil Company — he was asked to do so.

L. J. Drake finally took the place of Walter Jennings as a member of the domestic trade committee.' Same Drake who was connected with Standard at Chicago.

Just before going with Republic Oil Company at Cleveland he also had a talk with R. P. Tinsley, agent of domestic trade committee, Wade Hampton, general auditor of Standard Oil Company, and George W. Wythe, all at 26 Broadway. Tinsley put him in charge of Mr. Warner, who had charge of books down there, to show him how to run home office end of bookkeeping; in other words, to conduct the bookkeeping department *174 of Republic Oil Company the same as that employed by Standard Oil Company. Hampton cautioned him not to mention the fact that he was connected with Standard Oil Company.

Says there were three traveling auditors of Standard Oil Company transferred to Republic Oil Company to get together the valuation of the stock of the latter company. After they got through they were reinstated by Standard Oil Company.

HOWARD PAGE: He has an office at 26 Broadway and is connected with foreign department of Standard Oil Company of New York. Was once connected with Union Tank Line Company, which owned cars for rent to other companies, and had an office at 26 Broadway. He was vice-president of that company. Says they rented cars to Waters-Pierce Oil Company, which had some cars of its own. Standard Oil Company of Indiana also used cars — U. T. L. cars. Says this company received reports from all companies using its cars as to their receipt, movements, etc.

Says he was formerly connected with Chess-Carley & Company. He was also connected with Standard Oil Company of Kentucky. Then he went with Standard Oil Company of New York.- He was connected with this latter company and Union Tank Line Company at the same time and both had offices at 26 Broadway.

A. V. JOCKEL: While passing through St. Louis on his way to Oklahoma City, as testified, he met at Waters-Pierce headquarters, Tinsley, Backus, Gruett, C. P. Ackert, Mr. King and Mr. McKee. Met Mr. McKee in office of Mr. King, who received reports from all Waters-Pierce branches or divisions. He was connected with the auditing of stock reports. McKee was instructing a new auditor whom they were about to send out to audit a division or station.

Says he had known Mr. Tinsley at 26 Broadway, when he was located there. Before Tinsley went out to *175 St. Louis and while he was at 26 Broadway, he was agent who received reports from all branches of Standard Oil Company divisions.

Says he wrote to General Hadley in October, 1905, that he had information. This was after he read about the case in the papers.

Says he worked at Newark, New Jersey, for six months as book-keeper and was at Oklahoma City ten weeks. This was the full time he worked for any of the respondents. Says at Newark he got $624 a year, and at Oklahoma City $1,200. Mr. McNall told him what his salary would be — no one else.

"Was charged at one time with appropriating $100 from a company, but he was not convicted. On account of this charge the American Surety Company would not bond him at Oklahoma City, and he had to resign; his position there.

WILLIAM H. D. READ: Lives at Whitehall, Maryland. Is a farmer. He was traveling auditor for Standard Oil Company from 1895 to 1902. He was employed by Wade Hampton and he was paid by him monthly, and reported to him at 26 Broadway, New York City.

While he was with Wade Hampton he audited the books of Waters-Pierce Oil Company at St. Louis, twice, at"the direction of Hampton, the present Wade Hampton. On these two occasions he reported to the auditor in charge of auditing at 26 Broadway; the first time it was W. T. McKee, and the second time Charles T. White.

During the time he was working for Hampton he made occasional trips to 26 Broadway. Audited books of Waters-Pierce Oil. Company in the years 1897, 1898, or 1899.

FRANCIS D. CARLEY: Lives in White Plains and has no business at present. He was in the oil business in Louisville, Kentucky, from 1866 to 1886. He was first with the firm of Chess, Carley & Co., and later *176 with Chess Carley Co., a corporation, and was engaged in the business of refining and selling the products of petroleum in all the southern states east of the Mississippi river.

He became a stockholder in Waters-Pierce . Oil Company in 1884 to 1886. The Chess-Carley Co. also became a stockholder in Waters-Pierce Oil Company in about 1883. All this stock he sold to some one at 26 Broadway in about 1887. The Chess-Carley Co. then went out of existence and Standard Oil Company of Kentucky succeeded it.

H. A. Hutchins, who was a director of Waters-Pierce Oil Company, was located at Cleveland and had something to do with the distribution of oils in the west''”’-' states for Standard Oil Company.

Col. Thompson, a director in Waters-Pierce Oil Company, at one time was connected with 26 Broadway.

Says after he became connected with Waters-Pierce Oil Company it got nearly all of its oil from Standard Oil Company.

Says sometime in the ’80’s he bought individually the M., K. & T. Tank Line, consisting of a few oil tank cars run over the M., K. & T. Ry. He sold this line and took pay in Waters-Pierce stock — this was an individual transaction.

Established facilities by a good merchant selling oil in a locality gives him almost complete control.

ALBERT A. SMITH: Says he is a stenographer. He worked as such in the department of W. E. Bemis at 26 Broadway from May, 1903, to June 30,1905. Bemis was at one time on the domestic trade committee and later on some committee with Howard Page. He was also head of the statistical department, and, as such, received reports from all over the world concerning the petroleum business. Says as stenographer he took dictations of many letters to Republic Oil Company and Waters-Pierce Oil Company concerning the gen *177 eral conduct of the business. Says he took these dictations while in the office of Mr. Bemis and this continued during the whole time he was there. The dictations were made by various persons and on different branches of the business. They were first turned over to Mr. Wilson and then sent in to be signed by Mr. Mc-Nall; that is, letters to Waters-Pierce Oil Company. Letters to Republic Oil Company were sent to the office of C. L. Nichols to be signed. Both McNall and Nichols had offices in the building. Nichols was in office with L. J. Drake and McNall in office with W. H. Tilford.

Up to a short time before he left when a letter would be written to Republic Oil Company or Waters-Pierce Oil Company a carbon was made and kept in the office of Bemis. The name of the company would appear on the carbon — one would be sent with the letter to be signed and one kept in the office, but the names of the company would not appear on the carbon.

He was discharged from his position with Standard Oil Company, but refuses to give the reasons. Says he became a witness in this case because he thought he could give some good valuable testimony against the Standard Oil Company.

Says letters written by him to Waters-Pierce Oil Company were on letter-heads of that company, and letters written to Republic Oil Company by him were on the letter-heads of that company.

HENRY H. ROGERS: He is a stockholder in Standard Oil Company of Indiana, but is not familiar with the details of the oil business in Missouri.

M. M. YanBuren is a son-in-law of John D. Arch-bold.

H. M. Tilford has an office at 26 Broadway, and is connected with the Continental Oil Company.

J. A. Moffett is president of Standard Oil Company of Indiana.

*178 Gives a list of officers and directors of-Standard Oil Company of indiana for years 1903, 1904, 1905.

' Walter C. Teagle is connected with the foreign business of Standard Oil Company at 26 Broadway.

Moffett has an office at 26 Broadway.

It is here admitted by counsel for respondents that a majority of the stock of the Republic Oil Company and Standard Oil Company of Indiana, and all the stock of Waters-Pierce Oil Company standing in the name of M. M. VanBuren, was held during the time laid in the information for Standard Oil Company of Few. Jersey.

Says he had had conversations in a general way about the business of Waters-Pierce Oil Company between January, 1901, and March, 1905, these conversations were with some of the oil people.

Says he heard of McNall in Mr. Tilford’s office at 26 Broadway.

WILLIAM G. ROCKEFELLER: Lives in New York and is assistant treasurer of Standard Oil Company of New Jersey, and has held that position for about five years. W. H. Tilford is treasurer. H. M. Tilford is a brother of W. H. Tilford, and he also has an office at 26 Broadway. ■

Has known R. H. McNall for past thirty years. He is at 26 Broadway, but does not know what position he holds. Has seen.him at 26 Broadway for a good many years, but never knew just what position he held.

Has known H. M. Tilford at 26 Broadway for ten years, but never knew what position he held there. Never heard of McNall until his name was mentioned in taking these depositions.

Witness has an office at 26 Broadway, and the Standard Oil Company of New Jersey does business there. Says he thinks his uncle, John D. Rockefeller, is one of the vice-presidents of that company.

*179 He lias met Mr. Moffett, who has an- office at 26 Broadway.

Says Frank Wilson is employed in the office of witness as bookkeeper of the Standard Oil Company of New Jersey.

Says he knew a George D. Wilson who was formerly a bookkeeper, and he was succeeded by Frank Wilson.

JOHN D. ARCHBOLD: Lives in New York City, and is one of the vice-presidents of Standard Oil Company of New Jersey. . He is also a director in the Standard Oil Company of Indiana.

John D. Eockefeller is president of Standard Oil Company of New Jersey, and has been since its organization. This company refines petroleum, but it does not operate wells. It has refineries at Bayonne, New Jersey, but has no others that he knows of.

M. M. YanBuren is the son-in-law of the witness. YanBuren has no active connection with the oil business and is not connected with any of the companies.

The offices of Standard Oil Company of New Jersey are at 26 Broadway. Also, the Standard Oil Company of Indiana has an office there.

While John D. Eockefeller is the nominal head of Standard Oil Company of New Jersey, for the past ten years he has had no active personal relationship with the business. And while he has an office at 26 Broadway, he is seldom there. He has not of late years attended the meetings of the company.

Witness says that he has, perhaps, in later years, been the most active man connected with Standard Oil interests. Others who have been actively connected with him are: Barstow, Moffett, Jennings, Bedford and many others.

H. M. Tilford is as familiar as any one else with the oil business in the Central West, including Missouri.

*180 There are committees at 26 Broadway composed of men actively connected with the oil business. With us, says witness, they are known as experts in their various lines. Says there are a number of people who are connected with the. domestic trade administration in the various companies but, not being a member, he cannot tell how they operate. And there is a committee which looks after the foreign trade.

The. Gralena Oil Company and Atlantic Refining Company both have offices at 26 Broadway.

Says he has been at 26 Broadway since the building was first built, some fifteen years ago.

From 1892 to 1900 the Standard Oil Company of New Jersey had 2750 shares of stock in Waters-Pierce Oil Company. Prior to that time the same stock had been held by Standard Oil Trust. And since May, 1900, this same stock has been held by Mr. VanBuren.

Says the total productions of petroleum in United States for January, 1906, was 345,000 barrels, of which the Standard Oil interests produced 45,000 barrels.

Of the production in Kansas and Indian Territory .Standard produces one:eighth or one-ninth of the crude.

Says there is a refinery capacity in this country competitive to the Standard Oil Company enough to do the entire business of the country. Standard Oil interests also have enough refining capacity to do the business and do get seventy-five per cent of the whole —that is, the sales.

Says there are competitive refineries at all points where oil is refined.

Heard about the dissolution of the old Waters-Pierce Oil Company and supposed it was because of the trouble in Texas.

Knew Horace A. Hutchins, W. P. Thompson and Frank B. Carley, who were directors in Waters-Pierce Oil Company down to 1885, and they wére at the same time connected with Standard Oil Company.

*181 In 1885 Carley was succeeded by W. H. Tilford, wbo was also connected with Standard Oil Company.

D. S. Coles, who appears as a director-of Waters-Pierce Oil Company in 1887, was formerly connected with Standard Oil Company.

Silas H. Payne, who appears as a director of Waters-Pierce Oil Company in 1889, was and is also a Standard Oil man.

G. F. Gregory, who appears as a director of Waters-Pierce Oil Company in 1890, was also connected with Standard Oil Company.

Witness says he does not personally know of the connection of the foregoing named persons with Waters-Pierce Oil Company, but is assuming that such facts are properly stated by counsel.

C. M. Pratt, in 1891, was also connected with Standard Oil interests.

The original Standard Oil trustees were John D. Rockefeller, William Rockefeller, H. F. Flagler, Charles Pratt, W. G. Warden, Ben J. Brewster, J. A. Bostick, O. M. Payne and John D. Archbold, in 1882.

R. P. Tinsley, prior to 1904, was connected with Standard Oil interests at 26 Broadway. Tinsley is still in the employ of the Standard Oil Company.

WADE HAMPTON: He is general auditor of Standard Oil Company of New Jersey and Indiana, and is located at 26 Broadway.

He has never been the general auditor of Waters-Pierce Oil Company, but some of his staff were employed by that company, but did not report to him. He directed auditors from his staff to go to St. Louis and audit for Waters-Pierce Oil Company under employment by that company, and report to its secretary. These auditors, while auditing the accounts of Waters-Pierce Oil Company, were on its pay rolls and not on his. When they had finished they, were again placed on his pay rolls.

*182 When- these auditors would go to St. Louis he would notify the secretary. That was the understanding he had with the directors that they should he employed because they preferred Standard Oil auditors.

He audited the books of the Standard Oil Company of Indiana because he was its general auditor. He had nothing to do with the Republic Oil Company.

Says he thinks a copy of auditor’s report of Waters-Pierce Oil Company was sent to 26 Broadway to some one.

Prior to June 1,1900, reports of the audit of books of Waters-Pierce Oil Company were sent to him at 26 Broadway, he passed on them and then submitted them to some one who represented "the Standard Oil Company’s ownership.

McNall was formerly connected with the Pratt Works office at 26 Broadway, and afterwards changed and went into the office of H. M. Triford, where he has been for several years past.

Letter dated February 8,1901, from Wade Hampton to J. 'P. G-ruett, vice-president Waters-Pierce Oil Company, saying to him that Mr. Oonrey would arrive on Monday to audit the books and general accounts of St. Louis office. This language occurs: “For reasons which you will undoubtedly appreciate, it is best that Mr. Oonrey be considered an employee of your company during’ his examination. Therefore, kindly enter his name- on your pay-roll from the date of his arrival at $191.67 per month.; also kindly pay what expense he is under from the time he left New York.”

Letter from Hampton to J. P. Gruett, dated November 7, 1902, marked “Personal,” notifying him that C. W. Norman would be there to audit the books and accounts of the general office of Waters-Pierce Oil Company, and that he would be assisted by Henderson and Higgs. Directions to place Norman on pay-roll at $2,500 per annum.

*183 Another personal letter from Hampton to Gruett, dated November 12, 1902, advising him to' place Henderson and Higgs on the pay-roll of the Waters-Pierce Oil Company at $1,800 per annum, as well as to pay their expenses from' the time they started to St. Louis.

Says that in all cases where auditors were sent to audit the accounts of Waters-Pierce Oil Company, it was done in the manner indicated in those letters — this was after May 29, 1900.

R. B. Backus was an auditor working under him.

Letter from Hampton to Gruett, dated November 10, 1903, notifying him that he was sending R. D. Backus to audit the books and accounts of the general office of W. P. O'. Co., and directing Gruett to place Backus on pay roll at $3,000 per annum and expenses.

Letter from Hampton to Gruett, dated December 10, 1903, notifying him that Wm. Waller would arrive to assist Mr. Backus in auditing books of Waters-Pierce Oil Company, and directing that he be placed on pay-rolls at $2,100 per annum, and to pay his expenses from Decatur, Illinois.

Says they ought to have had a plant record of Waters-Pierce Oil Company at 26 Broadway, because they were largely interested in that company, but he does not know what they had. Says construction reports of Waters-Pierce Oil Company were addressed to him, but he did not handle them. This was prior to 1900. One Mr. Barker had charge of plant records. He was in the office of witness, but afterwards moved to that of Clark.

Letter dated September 8, 1899, from Hampton to Gruett, relating to construction reports of Waters-Pierce Oil Company, which had been sent to Hampton at 26 Broadway.

Letter dated October 20, 1899, from Hampton to Gruett, relating to plants and construction matters in Mexico.

*184 Gr. A. Stein and H. H. Stein worked for Mm as traveling auditors. Says lie possibly directed them to audit the accounts of the old Waters-Pierce Oil Company. He had about fifty or sixty men working under him — traveling auditors. If they audited since 1900 they did so on communication from him to go to St. Louis, but they would not be under his direction after they got there — they did not report to him. Before 1900 the report of such auditing would be sent to witness. After 1900 such reports were made to Pierce, but some one at 26 Broadway had a copy.

Says he heard that both Backus and Tinsley went with Waters-Pierce Oil Company in 1904.

Prior to going with Waters-Pierce Oil Company, R. P. Tinsley had a position at 26 Broadway as agent of Standard Oil Company of New York, Atlantic Refining Company and Standard Oil Company of New Jersey. He was succeeded by H. C. Arnold, who is still agent.

Mr. Nichols of 26 Broadway is assistant to Mr. Drake, who is connected with Standard Oil Company of Indiana, and he is a member of domestic trade committee.

The import of Mr. Hampton’s testimony is that prior to May 29, 1900, he as general auditor had his traveling men audit the accounts and books of the general office of Waters-Pierce Oil Company, the result of their work was reported to him and he paid for the services of the auditors. After May 29, 1900, he directed his traveling auditors to audit the accounts and books of the general office of Waters-Pierce Oil Company, he further requested and directed that they be placed on the pay-rolls of that company at a salary fixed by Hampton, which was done, and while the result was not reported directly to him, yet a copy of such re.sult reached 26 Broadway, New York City. These audits were made in the way described by Hampton each year after May 29,1900.

*185 HARRY EGBERT PLATT: Lives in New York City. Went with Standard Oil Company at 26 Broadway about February, 1902, or 1903. Was first employed as clerk by Union Tank Line Company. W. H. Tilford was president of that company. First lie was under Mr. Cook and then was transferred to Mr: Tilford’s office. Worked for that company about six months.

When he went in Mr. Tilford’s office he was paid by Standard Oil Company of New Jersey.

Union Tank Line Company operated cars throughout the United States for several companies which had offices at 26 Broadway.

Says Waters-Pierce Oil Company had W. P. O. cars and Union Tank Line Company got reports of the movements of these cars. Republic Oil Company, Waters-Pierce Oil Company and Standard Oil Company of Indiana all reported as to cars.

R. H. McNall had a desk in same office with H. M. Tilford. C. L. Nichols was in office of Mr. Drake.

Says while he was in Tilford’s office cash reports were received from Waters-Pierce Oil Company. Such reports were received daily by Mr. McNall, and were sent to the comptroller’s office, in a different room. During the time he was in this office for over two years this system continued.

Also McNall in that - office, who was commercial agent, received marine reports from Waters-Pierce Oil Company and reports of “sales and deliveries of refined oils.” The last report mentioned was sent to Mr. Bemis’s office, who was statistical agent of Standard Oil Company. Reports of “marine sales” were sent down to Marine Oil department, which was in charge of Mr. Bedford.

Appropriations for construction and building of Waters-Pierce Oil Company were also sent to the office he was in and were passed on by a committee. The action of the committee would be communicated by Mr. McNall to the St. Louis office, with instructions.

*186 Also matters relating to advance in salaries of Waters-Pierce Oil Company were sent to that office and passed on by the same committee.

Letter from TI. M. Tilford to J. P. Gruett, dated August 20, 1900, acknowledging receipt of comparative statement of sale of refined oils, naphtha and gasoline, as well as tank-wagon sales of refined oils, by Waters-Pierce Oil Company.

Letter from L. D. Clarke, comptroller, to J. P. Gruett, St. Louis, enclosing notes and instructions relating to analysis of business.

Admitted that W. F. Taylor is the personal attorney of M. M. VanBuren, and became a stockholder and was elected and served as a director of Waters-Pierce Oil Company at request of Standard Oil Company of New Jersey.

H. M. TILFORD: Lives in New York and is connected with Continental Oil Company and Standard Oil Company that does business on the Pacific Coast. Continental Oil Company does business in Colorado, Wyoming, Utah and that section. He is president of Continental Oil Company and has his office at 26 Broadway. It is the Standard Oil Company of Iowa that does business on the Pacific Coast. He is not connected with Standard Oil Company of New Jersey.

Says he held a share of stock and was director in Waters-Pierce Oil Company- from 1892 to 1900, and knew something of the business and where it sold oil during that time.

Letter from A. M. Finlay, vice-president and general manager of Waters-Pierce Oil Company, to H. M. Tilford, dated June 22, 1903, advising Tilford why he could not make a trip to New York at that time to see him.

Says that at different times he met Finlay, Gruett and Adams at 26 Broadway, New York City.

Has known R. H. McNall for fifteen years — he was first connected with the Pratt works at 26 Broad *187 way, a Standard Oil interest. Then McNall went into witness’s office as his assistant. Then McNall became commercial agent for Waters-Pierce Oil Company and had a desk in witness’s office and is still there. McNall continued to assist him but not to the same extent.

Says he knew of the troubles the Waters-Pierce Oil Company had in Texas prior to 1900 and that there was a re-incorporation of Waters-Pierce Oil Company in 1900. Also knew that the same business previously done by that company and the same properties that were used by them were continued by the new company. Says he was paid for his stock on re-incorporation— over the sum of $900.

W. E, Bemis is located at 26 Broadway and is connected with the export business and keeps statistical reports of Standard Oil interests.

Says Room No. 1209 at 26 Broadway is the general entrance to his office, that of W. H. Tilford and R. H. McNall.

Letter from H. M. Tilford to J. P. G-ruett, vice-president Waters-Pierce Oil Company, dated August 20, 1900, acknowledging receipt of comparative statement of refined oils sold by that company. Witness thinks he saw the statement referred to in the above mentioned letter.'

Says McNall, although his desk is still in witness’s office, has not been there since last November, and he does not know where McNall is. Been no reports from Waters-Pierce Oil Company coming there since MeNall left that he knows of. Says McNall did submit some reports to him that he got from Waters-Pierce Oil Company. It was McNall’s duty to attend to ány business for Waters-Pierce Oil Company in New York.

Letter from J. P. Gruett to R. H. McNall, dated July 3, 1902, sending him a list of salaries of Waters-Pierce Oil Company.

*188 He knew R. P. Tinsley at 26 Broadway was simply an agent before lie went with Waters-Pierce Oil Company at St. Lonis.

Letter from R. H. McNall to J. P. Gruett, secretary Waters-Pierce Oil Company, dated July 9, 1902, notifying him that “account formerly handled by Walter Jennings, agent, will hereafter be handled by R. P. Tinsley,” agent, of same address.

Letter from R. H. McNall to J. P. Gruett, secretary W. P. O. Co., dated June 25, 1903, in relation to receiving a salary list of Waters-Pierce Company.

Admitted that cash statements (daily) sent to McNall by Waters-Pierce Oil Company, together with other reports, were shown to him.

Letter from R. H. McNall to J. P. Gruett, dated August 4,1903, relative to dividend notices of Waters-Pierce Oil Company, in which McNall remarks that he seldom sees the cash statements sent to him.

Letter from R. H. McNall to S. Johnson, St. Louis (who was connected with lubricating department of Waters-Pierce Oil Company), dated March 24, 1904, giving him the prices at which to sell crude scale wax.

Letter from R. H. McNall to J. P. Gruett, written by H. M. Tilford, dated February 15, 1902, criticising the report of profits made during the year 1901 by Waters-Pierce Oil Company on sales of “fuel oil” and rosin.

Letter from R. H. McNall to J. P. Gruett, written by H. M. Tilford, dated February 18, 1902, asking a statement showing the names of the banks where Waters-Pierce Oil Company had an account.

Letter from R. H. McNall to A. M. Finlay, dated December 12, 1904, advising him that hereafter in writing to him at 26 Broadway to furnish copies, with-, out date or signature, for purpose of distribution outside of McNall’s office.

*189 Letter from R. H. McNall to J. P. Gruett, dated August 4, 1902, telling him that the only code books he could find there of W. P. O. Co. were H. M. Tilford No. 415, which he was using, and H. W. Doremus No. 607.

HARRY G. ARNOLD: Lives in New York City and is an accountant for Standard Oil Company at 26 Broadway. Has been an accountant for about three years. Prior to that he was an assistant to R. P. Tinsley.

Tinsley was in the accounting department of both Standard Oil Company of New York and that of New Jersey and the Atlantic Refining Company.

C. L. Nichols is in Mr. Drake’s office and he knows that he was president of Republic Oil Company.

Knows McNall, who was first with the Pratt Works and then assistant to Mr. Tilford.

Letter from H. C. Arnold to R. P. Tinsley, dated October 11, 1904, referring to the services of Mr. Preston for Waters-Pierce Oil Company, Preston being regularly employed by witness at 26 Broadway. Also referring to tank-wagon sales record sent by witness to W. P. O. Co.

Says that while Preston was working for Waters-Pierce Oil Company he was paid by that company.

Letter from R. H. McNall to J. P. Gruett, secretary W. P. O. Co., St. Louis, dated December 2, 1902, asking him to make and send a statement showing total number of employees of Waters-Pierce Oil Company for a year, together with total amount paid them for one year.

Letter from McNall to Gruett, dated December 17, 1903, asking him to send a copy of by-laws of Waters-Pierce Oil Company.

H. CLAY PIERCE: Lives in St. Louis, Missouri, is fifty-seven years old, and is a stockholder in the Waters-Pierce Oil Company. He is not nor never has been a stockholder in Standard Oil Company of In *190 diana, nor Republic Oil Company, nor Standard Oil Company of New Jersey, nor in the so-called Standard Oil Trust. Never owned stock in any oil company other than Waters-Pierce Oil Company. Neither the Standard Oil Company of Indiana nor the Republic Oil Company own any stock in Waters-Pierce Oil Company.

Standard Oil Company of New Jersey owns 2747 shares of Waters-Pierce Oil Company stock, held for it by M. M. VanBuren.

He, witness, owns 1,250 shares of Waters-Pierce Oil Company stock.

Waters-Pierce Oil Company organized originally in 1878 with a capital of one hundred thousand dollars. Waters-Pierce & Company subscribed for forty per cent; Plorace A. Hutchins and William P. Thompson subscribed, for forty per cent, and Chess-Carley & Company for twenty per cent. First officers: William H. Waters, director and president; H. Clay Pierce, director and vice-president; Charles M. Adams, secretary and treasurer; Horace A. Hutchins and William P. Thompson and Francis D. Carley, directors. After-wards, the trustees of Standard Oil Trust purchased the forty per cent belonging to Hutchins and Thompson and the twenty per cent belonging to Chess-Carley Company. He, witness, purchased the interest of William H. Waters in the remaining forty per cent. “So that when on May 29', 1900, the first Waters-Pierce Oil Company was liquidated the assets were distributed in these proportions.”

He refused to place his stock in the Standard Trust.

Under agreement by all parties interested he controlled and directed the policy and operations of Waters-Pierce Oil Company until February, 1900', when on acount of ill health he elected Andrew M. Finlay, his brother-in-law, president.

Says the liquidation of the first Waters-Pierce Oil Company resulted because an . inexperienced agent, *191 located in Texas, had, without the knowledge of the officers of the company, entered into a contract of minor importance in violation of the laws of that State.

Following the trouble in Texas, he being told by a prominent citizen of that State that no corporation controlled by Standard Oil Company would be tolerated there, he explained the situation fully to the executive committee of the Standard Oil Company, and they agreed that he should organize a new company, the stock of which he should hold, and that he should manage and control the company absolutely free from any dictation or direction of the Standard Oil Company. Says this agreement was kept and the Standard Oil Company made no attempt to interfere with his management up to the spring of 1904.

But in the spring of 1904, they, Standard Oil Company, transferred the stock which had been in his name to M. M. YanBuren and began in other ways to assume a control over the affairs and operations of the company. Upon protest by him that this was a violation of the agreement, the control of the company was again committed to him; and his son, Clay Arthur Pierce, is now president of the company and- is conducting it as an independent business.

When Waters-Pierce Oil Company was organized in 1878 it was then agreed with the Standard Oil Company of Ohio, the only one then in existence, that Waters-Pierce Oil Company would continue to sell oil and confine its operations to the territory in which Waters-Pierce & Company sold, which embraces the territory in which the corporation now sells.

He says the map offered in evidence showing divisional line is not correct. Described the line in a general way as beginning at a point just south of Hannibal, on west bank of Mississippi river, and thence running according to county lines southwest. to the western border of Missouri, bordering upon Kansas, *192 a short distance south of Port Scott — that is, Waters-Pierce territory was south of this line in Missouri. The other territory was Arkansas, Indian Territory, Oklahoma, Texas, all of Louisiana west of Mississippi and Republic of Mexico. There has been no change in the territory since it was established.

Waters-Pierce Oil Company has obtained its refined oils almost exclusively from Standard Oil Company and its allied interests since its incorporation in 1878.

Waters-Pierce Oil Company has not manufactured refined oils in United States, but has manufactured lubricating oils. It was engaged as a merchant in United States almost exclusively. It manufactured refined and other oils in Mexico and obtained all its crude petroleum for such manufacturing purposes from Standard Oil Company.

The present company succeeded to an established business of the old Waters-Pierce Oil 'Company and it has confined itself exclusively to building up the business within the same territory.

The gross sales of Waters-Pierce Oil Company in United States and Mexico for year 1902 were 2,677,362 barrels of oil of fifty gallons a barrel. Says they could not have procured this oil from all other sources other than Standard Oil Company. Waters-Pierce Oil Company is not interested nor never has been in any oil wells or oil producing properties in the United States.

Says he personally has been engaged in the oil business in the territory in which his company sells for thirty-seven years.

Says he has managed the business of the various interests commencing with W. H. Cobb & Co. and followed by H. G. Pierce & Co., Waters-Pierce & Co., Waters-Pierce Oil Company organized in 1878, and Waters-Pierce Oil Company organized in 1900, down to the present time, with the exception of a short interval.

*193 All the first directors' selected in 1878 continued as such up to the annual meeting in 1885, when W. H. Tilford took the place of Carley. W. H. Tilford was succeeded by H. M. Tilford in 1888. In 1889 Silas H. Payne succeeded H. M. Tilford. A. M. Finlay succeeded Waters in 1890, in which year Pierce purchased Waters’s interest.

In the year 1890 he (witness) became president of Waters-Pierce Oil Company and Finlay vice-president.

G. F. Gregory succeeded W. H. Tilford as a director in 1890.

In 1891 the directory consisted of himself, Finlay, H. M. Tilford, Payne and C. M. Pratt; none of whom lived in St. Louis, except Pierce and Finlay, who alone were actively engaged in the management of the company.

In 1892 the ■ directory changed so as to include C. M. Adams -and J. P. Gruett, who both resided in St. Louis. This directory continued until the dissolution of the old Waters-Pierce Oil Company.

In the new company the first directors were: H. C. Pierce, Andrew M. Finlay, C. M. Adams, J. P. Gruett and J. D. Johnson, which directory continued without change until the spring of 1904, when W. F. Taylor and E. P. Tinsley took the places of J. D. Johnson and J. P. Gruett.

Since the organization of the new company its affairs and policies have been managed by the officers and directors and by the executive committee, composed of the heads of the departments of the company.

The Waters-Pierce Oil Company has never made or entered into any agreement or understanding with any of the respondents to fix or maintain the price at which any of the products of petroleum should be sold upon the market.

*194 Says lie is very sure that Waters-Pierce Oil Company could not have obtained more than a very small per cent of its total output from other sources than the Standard Oil Company of New Jersey and Indiana and their allied interests.

Mr. Pierce describes at length and in detail the equipments and facilities for transporting and marketing the products of petroleum in the territory of his company, and gives the origin, growth, and improvements in such equipments and facilities as established by him representing the Waters-Pierce Oil Company.

His company has never tried to extend its territorial limits since it was established in 1878.

Says he established tank station in East St: Louis and laid several pipe lines under the river connecting with it, through which the oil is conveyed to St. Louis, Missouri, in order to save the great expense of transporting same oil across in cars.

Says the equipments and plants of the company are worth in the neighborhood of five million dollars.

Says he has sold oil long ago at a dollar a gallon and in recent years as low as four and five cents.

Says the price of the refined product to the consumer depends on price of the crude, its proximity to place of manufacture, marketing point, etc.

The Waters-Pierce Oil Company in the United States occupies the position of merchandising the manufactured products of petroleum. In the Republic of Mexico from the crude petroleum purchased of Standard Oil Company it manufactures and sells practically all the products of petroleum sold in that country.

A refinery was erected by Standard Oil Company at Sugar Creek, Missouri, about three years ago, which is comparatively large. Says the oils produced in Kansas are much inferior to the oils from which the Whiting products are manufactured.

Says there are not nor has there ever been any *195 competitors of Waters-Pierce Oil Company equipped equal to it for handling and selling refined oils. •

Says Waters-Pierce Oil Company has sold from ninety to ninety-five per cent of all the oil in its territory, and that such large percentage of sales over its competitors was due entirely to the better facilities afforded by it to the consumer than the competitor could furnish, and its policy of close and prompt attention to business.

Says their best brand of oil, eupion, is manufactured for the company in this country by the Standard Oil Company.

Says he has not discussed the question of the division of territory with anyone since the present Waters-Pierce Oil Company was organized.

He says that a fair estimate of the value of the assets and good will of the company is forty-five to fifty million dollars.

There are four thousand shares of stock of the company and he owns thirty-one and a half per cent of the stock.

Says the tangible assets of the company, not including good will, are worth in the neighborhood of twelve million dollars.

They have trade marks for all kinds of oils, greases and other products that they handle.

Denies any combination, confederation, agreement, express or implied, as charged in the information, with any company.

Cross-Examination.

Standard Oil Company of Indiana has not to his knowledge competed with Waters-Pierce Oil Company in Missouri, nor has it sold oil in Waters-Pierce territory except in some few instances — one instance .he mentions at Lamar, Missouri.

Says he, as president, did not deem it expedient to go beyond the territory which had been established for twenty-eight years and do business in Kansas City, *196 and did not do so because tbe original Waters-Pierce Oil Company agreed it would confine its operations to the territory in which it and its predecessors had transacted its business — so agreed with Standard Oil Company of Ohio.

Three, four or five months after the incorporation of the new company he transferred to Mr. Garth, cashier Mechanics National Bank of New York, sixty-eight and one-half per cent of Waters-Pierce stock, and made the transfer because it was understood he would do so. This stock was transferred in blank, and in June, 1904, a formal assignment of it was made to M. M. VanBuren — on the books of the company. This was the first time he had known or heard of VanBuren.

Prior to June, 1904, he received the dividends on all the stock and transferred a part of them to Seaboard National Bank at the request of one of the Til-fords, who was connected with the Standard Oil Company. This was either W. H. Tilford, or H. M. Tilford, who had an office at 26 Broadway.

Says the shares assigned by him to Mr. Garth of the Seaboard National Bank were paid for by Mr. Garth — they were delivered to him shortly after the reincorporation of the new Waters-Pierce Oil Company. He did not know Garth, but was told he represented Charles Pratt of Standard Oil Company. Says he was told by his attorney, J. D. Johnson, that an arrangement was made with counsel for Standard Oil Company for him to transfer 2,748 shares of stock to Pratt —this was stock in the new company, and his understanding was it belonged to Standard Oil Company. In other words, the Standard Oil Company continued to hold in the new Waters-Pierce Oil Company the same interest it had held in the old company.

All dividends on the 2748 shares coming into his possession were immediately transferred to the Seaboard. National Bank of. New York City for Standard Oil Company.

*197 In 1890, when he purchased the interest of Waters for the first time, the proportion of ownership stood— Standard Oil Company 2,750 shares and Pierce 1,250 shares, and practically that same division has existed up to the present time.

Says that since the organization of the new company the stock of Standard Oil Company has stood in his name so that he might exercise absolute control of the company and that was the object of putting it in his name. Yet soon after the organization he signed blank transfer of stock amounting to 2,748 shares and delivered it to Mr. Garth.

Says he had absolute control and management of Waters-Pierce Oil Company from June 1, 1900, up to the spring of 1904.

When this stock was transferred to M. M. Yan-Buren in 1904, the Standard Oil Company began to assume control by ousting his directors and substituting those of its own selection, sending men here to manage the company, sending men into its territory, and did everything that would follow a changed condition of affairs.

Says all the Standard Oil interests from 1878 on had agreed with him that he should have absolute control of Waters-Pierce business in its territory.

Says the auditors of the Standard Oil Company audited the books of Waters-Pierce Oil Company as often as it saw fit to do so, but auditors of Standard did not audit such books between 1900 and 1904. Says Standard Oil auditors did audit books of Waters-Pierce Oil Company during the year 1904 and fore part of 1905.

Says old Waters-Pierce Oil Company employed several Standard Oil employees at 26 Broadway to render certain special services in New York, such as buying supplies for the Mexico business. The old company made regular reports to the various heads of *198 departments of Standard Oil Company at 26 Broadway.

After the organization of the new company the system was changed and all reports were sent to R. PI. McNall, 26 Broadway. The change was made in order to simplify the work. . It had grown to snch dimensions that it was found better to have a man at 26 Broadway through whom all the New York work could be done. Instead of this company reporting to various departments of Standard Oil Company all that was done through McNall. McNall had been chief clerk to PI. M. Tilford and continued in his office.

Says about the same reports were made and sent to McNall as had been formerly sent to Standard Oil Company, and these reports embraced results of transactions and operations of "Waters-Pierce Oil Company.

Says Mr. McNall was furnished by way of reports anything and everything that he asked for as the representative of the Standard Oil Company and its various heads. The different heads of the Standard Oil Company of New Jersey at 26 Broadway were in the habit of asking information of Waters-Pierce- Oil Company officers through McNall and as that company was a majority stockholder, he very readily instructed the various heads of the departments of the Waters-Pierce Oil Company to send such information as was asked for.

Dividends of Waters-Pierce Oil Company have run from six to seven hundred per cent per year.

Gives reasons in full why Waters-Pierce Oil Company has not engaged in the refining business in the United States.

Says he thinks Standard Oil Company has sold to others than his company in this territory — names Republic Oil Company and George P. Jones & Co., who bought as jobbers from Standard, but does not know of other companies.

*199 Says Standard has tank station in East St. Lonis and sells there in competition with Waters-Pierce Oil Company.

Says that Waters-Pierce Oil Company purchased the Schofield, Shurmer & Teagle plant at Springfield, Missouri, and absorbed it into its own business; that Republic Oil Company did not do business in Springfield. Waters-Pierce Oil Company had no dealings with Republic Oil Company at Springfield or elsewhere.

Waters-Pierce Oil Company owns what is known as International Oil Works in St. Louis, run by Mr. G-renner on a salary paid by his company. It runs as a separate company, has wagons of its own and runs them.

Gives an outline of where Waters-Pierce Oil Company first got its oil, the confined fields of production then and the discoveries in recent years, resulting in more refineries, etc.

Says that the St. Louis Oil Company nor any other oil company doing business in Waters-Pierce territory has equipments for doing business which will in any way compare with those of his company.

Says the new company has not done so large a per cent of the business as the old company because of the discovery of new oil fields adjacent to the territory and because of the increase in number of competing companies. The new company has done from eighty to eighty-five per cent of the business.

Says Schofield, Shurmer & Teagle did a very small business and had vpry insignificant equipments compared with Waters-Pierce Oil Company.

That he was in St. Louis nearly all the time during the years 1900, 1901, and 1902; that during most of the years 1903 and 1904 he was ill in the East and unable to be in St. Louis.

In February, 1904, A. M. Finlay was made president.

*200 Describes tbe constant attention he has given tbe business of Waters-Pierce Oil Company since 1878, whether be was in St. Louis or New York.

Says be knew all tbe time in a general way tbat reports were being made to 26 Broadway, but was not familiar with tbe details.

Says tbe fact tbat Standard Oil auditors while auditing tbe books of Waters-Pierce Oil Company were placed upon tbe pay-rolls of Waters-Pierce Oil Company was not known to him, and if be bad known it be would have protested against it, as be bad always understood that the Standard Oil Company was paying for services of its own auditors.

Daily cash statements have always been sent to Standard Oil Company, and he knew they bad been sent to McNall.

Proposed raises in salaries were not reported to either Standard Oil Company or McNall — after salaries were raised they may have been reported.

Says R. P. Tinsley came to St. Louis in April, 1904, and assumed charge of tbe accounting department as successor to Mr. Gruett. He remained until about June, 1905. Tinsley was elected vice-president of Waters-Pierce Oil Company in February, 1904.

Mr. Tinsley never came to St. Louis for tbe purpose of assuming tbe management of Waters-Pierce Oil Company. He came through tbe recommendation of W. H. Tilford, representing tbe Standard Oil Com; pany, to succeed Mr. Gruett in auditing and accounting department. Mr. Finlay was elected at same time as president to take Pierce s place on account of bis failing health. Tinsley at first made no objections to taking .charge of tbe books and accounts as originally intended, but finally be refused to do so, and soon after, Mr. Finlay having to go abroad in order to recuperate bis failing health, Tinsley assumed entire charge of tbe whole business and began to run this bis own way. H© discharged many experienced employees *201 and substituted Standard Oil men who were not so efficient and did many things to interfere with the management established by witness. To this witness protested and Tinsley was finally taken away. Says he did not protest against the transfer of 2,747 shares of stock to VanBuren, because there was no occasion to protest, but what protest he made was made to' Mr. Rogers, Mr. Archbold and W. H. Tilford, because they were the people responsible to him for the keeping of the agreement that was made when the company was organized.

Says when new company was organized he gave his check for four hundred thousand dollars, the par value of all the stock. When he delivered the 2,748 shares to Mr. Garth, about September, 1900, Garth paid him in money the face or par value of those shares.

Says there was an agreement between him and the executive committee of the Standard Oil Company that he should organize a new company, the stock of which he should hold. This had reference to the trouble in Texas, and the information given that no company controlled by Standard Oil Company would longer be permitted to do business in that State.

Says that it is quite likely that a dividend of one hundred per cent’ was paid by Old Waters Pierce Oil Company about May 21, 1900. Says he remembers that one hundred per cent dividends were paid on other occasions whenever the surplus would permit.

Says when the new company was organized notes were given by it, but he does not remember the details or amounts. He was given a note — does not remember that it was for $1,227,399 — which was afterwards paid by Waters-Pierce Oil Company.

Says the Waters-Pierce Oil Company was managed as an absolutely independent company by him, and any construction or improvement that he or the advisory board or executive committee of Waters-Pierce Oil Company saw fit to make was constructed *202 without any suggestion or interference from the Standard Oil Company up to the time that he was obliged to relinquish active control because of ill health.

Relator here rested his case.

RESPONDENTS INTRODUCED THE FOLLOWING TESTIMONY:

CHAKLES P. ACKERT: Age forty-three and lives in St. Louis. In June, 1902, he became general manager of Waters-Pierce Oil Company and has occupied that position since.

In the spring of 1884 he began work for Waters-Pierce Oil Company, as agent at Fort Smith, Arkansas, — remained there five years and then became traveling salesman out of Little Rock. Stayed there about six months and then came to St. Louis and started in as salesman. After being in St. Louis about six months he went to Louisiana division, where he stayed for one year and a half. Then he became manager of the Arkansas division, with headquarters at Little Rock. In June, 1894, he was again transferred to St. Louis as assistant manager of the lubricating department, in which position he remained for five years, or until 1890. Then he held two or three different positions with the company until the dissolution of the old company — he was in the secretary’s office at that time.

' He began as general manager of the new company when it was first organized. There were some changes affecting merely the title, when in 1902 his title of general manager was restored. He has practically been performing the duties of general manager since the incorporation of the new company.

As general manager he has been in charge of and employed and had the direction of men, conferred with other officers of the company relative to prices, and performed all such duties as generally pertained to such a position. Has general supervisory control over the whole business, receives reports from agents, etc.

*203 H. C. Pierce became the first president of the new company. He was succeeded by Andrew M. Finlay in February, 1904.

Waters-Pierce Oil Company did business in part of Missouri, Arkansas, Indian Territory, Oklahoma, -part of Louisiana, all of Texas and all of Republic of Mexico.

This territory has been divided into divisions. The Missouri division, headquarters at St. Louis, with jurisdiction over business in Missouri; Arkansas division, headquarters at Little Rock, comprising all of Arkansas and small portion of Indian Territory; Oklahoma division, comprising the balance of Indian Territory, Oklahoma Territory and Panhandle of Texas; Central Texas division, headquarters at Houston, and East Texas division, headquarters at Shreveport, embracing all of Texas and that part of Louisiana lying west of Mississippi river; Republic of Mexico division, headquarters in city of Mexico, including all the Republic. A manager is in charge of each division, who looks after the business of marketing oil in that division under the jurisdiction of the general office. All agents and employees of a division are under the direction and control of the division manager, who in turn is under the direction and control of the general manager. The home office of the company, headquarters of general manager, is in Bank of Commerce building, St. Louis, Missouri.

The company has numerous plants where stocks of oil are carried throughout its territory — the largest plant is at Thirteenth and Gratiot streets, St. Louis.

The plant at St. Louis is used for storage of oils, refined and lubricating, in bulk, and a warehouse for the manufacture of grease and the storage of all barrel oil. There are sixty storage tanks there for the storage of refined oils, gasoline, lubricating and linseed oil. Also carries therein stock of axle grease, castor oil and paraffin wax, and manufactures iron barrels and tank *204 wagons. This is the storage plant for the city of St. Lonis, as well as the distributing plant for all points in the Missouri division, and from which oils are shipped to other divisions.

The company has a pumping station in East St. Louis. Pipe lines connect with that station, .from which oil is pumped across the river into storage tanks in St. Louis.

. Says St. Louis and vicinity, including Granite City, has about sixty-five tanks, large and small, of capacities running from two hundred-and-fifty-barrel tank to five-thousand-barrel tank.

At tank stations oil is received in tank cars and pumped into storage tanks. Prom these storage tanks it is delivered to customers either by tank wagons or iron barrels or milk cans. Refined oils and gasoline are handled exclusively by means of storage tanks wherever the trade can be reached from 'the tanks, and they have tank stations in all towns of any importance. Lubricating oil is also handled from storage tanks to some extent. They have tank wagons at tank stations. There are fifty-four stations in Missouri division where tank wagons, are used for the purpose of delivering oil to merchants. This is outside of St. •Louis, and there are thirty-two tank wagons.

The Missouri division includes all places in Missouri except city of St. Louis, East St. Louis, St. Louis county, Granite City, Carondelet and Webster.

There are 419 tank stations in the United States and Mexico and two hundred and sixty-six wagons operated at them.

Quite a number of tank stations are operated where tank wagons are not used because the trade does not justify the expense. At these- points deliveries are made in cans. The oil is transported principally in tank ears. The Waters-Pierce Oil Company owns 104 tank cars and has 148 under lease from Union Tank Line Company.

*205 The cars above referred to are not used in the transportation of oil from the northern refineries. -Oils purchased from such refineries are transported in Union Tank Line cars. These cars come from Neodesha, Sugar Creek, Whiting, and Franklin (all Standard Oil refineries). The company keeps a record of these cars, of their arrival at and departure from the agency to which it is consigned. Reports of such movements are made to Union Tank Line Company — to H. R. Payne. This is done for the purpose of keeping trace of the cars. It also keeps such a record of its own cars in order to know at all times where they are, but its own cars are not reported to Payne or any one else.

In Missouri there are thirty-seven agencies where there are no tank stations, and in the whole territory, including Mexico, there are 251 agencies outside of tank station agencies. Wherever there is an agency or tank station it is sufficient to supply the trade at that point.

Witness explains fully how oils are distributed from a tank station by means of tank wagons. How the oil is delivered to the merchant just as he needs it, and measured to him at his place of business, thus saving the inconvenience, extra cost and loss from use of wooden barrels.

Tank wagon drivers are solicitors, and they have soliciting agents besides.

Explains can-wagon delivery from tank station.

Tank wagons usually run in the country in capacity from three hundred and fifty to five hundred and fifty gallons, and in the city of St. Louis larger, some running to a thousand gallons. They are usually made in three compartments.

Says they did forty-three per cent of their business during 1895 in Missouri by tank wagon and can delivery. By means of this kind of delivery there is *206 no loss by evaporation to the customer, because Ms oil is measured to Mm at the time he gets it.

They also distribute, oil to interior and small points by means of iron and wooden barrels and iron drums.

The percentage of leakage in iron barrels or iron drums is very small. There is always more or less leakage in wooden barrels. Customers don’t want oil in wooden barrels when they can get it in iron barrels or delivered from tank wagon or can. The customer loses when he buys in wooden barrels by leakage and evaporation, but he does not lose by the other modes of delivery. Says they charge from one and a half to two cents more per gallon for oil delivered in wooden barrels, to cover cost of barrel and barrelling.

Says their agents and tank wagon drivers are instructed to see that everything is entirely satisfactory to the customer; that wagons are going around often enough; that customers don’t run out of oil; if there are complaints of any nature to investigate them, and to go after any new trade..

Some twelve or fifteen salesmen outside of agénts and tank wagon drivers are employed in the Missouri division.

Says the same methods of selling oil and furnishing the trade were established twenty-two years ago. Their equipment has been enlarged according to the growth of the territory.

Says their tank stations, wagons and equipments for handling and selling their products have increased from fifteen to twenty per cent since 1900.

In St. Louis, the St. Louis Oil Company, Bell Oil Company and Republic Oil Company are competitors and operate tank wagons in the city of St. Louis. E. M. Wilhoit, a competitor, has a tank station at Springfield, Joplin and Aurora. There are other competitors operating tank stations in Missouri.' No other dealers distribute oil in cans in Missouri, nor in iron *207 barrels. Tbe only other company except Waters-Pierce Oil Company using iron barrels is Wilhoit.

Tanks for use by merchants in their stores are furnished by Waters-Pierce Oil Company practically at cost.

George P. Jones sells refined oils and lubricating oils, but most of the other companies doing business in Missouri, except as above mentioned, sell lubricating oils only.

Claims that the large percentage of the trade secured and held by Waters-Pierce Oil Company is due to their superior facilities for handling and delivering the products of petroleum.

Says of barrel deliveries in Missouri only about 15 per cent has been wood barrels.

The total monthly pay-roll of the company is about $83,000 a month, and for fhe Missouri division about $6,000 per month.

Waters-Pierce Oil Company handles and sells refined oils, gasolines, lubricating oils, turpentine, linseed oil, cottonseed oil, castor oil, animal oil, grease, parrafin wax, candles, grocers’ tanks, oil consuming devices and fuel oil.

Their refined oils, gasoline and lubricating oils, are purchased from Standard Oil Company. The other products handled are brought from various other sources.

Described the business in Republic of Mexico, how the crude petroleum is purchased from Standard Oil Company, shipped there by steamer, refined in that country, etc.

Says that of all the various products of petroleum sold by Waters-Pierce Oil Company in 1905‘, the total amount in gallonage was 70,842,846 gallons and that the gross receipts in dollars from such sales were $14,781,621. That of refined oils, gasoline and lubricating oils they sold during the year 1905, 61,439,000 gallons.

*208 Their tankage capacity in Missouri is one hundred and fifteen storage tanks with a capacity of 25,834 barrels, not including St. Louis. St. Louis city has ninety-seven tanks, holding 55,000 barrels. In all the divisions there are 1,040 storage tanks, holding 253,541 barrels.

Says on December 31, 1905, the company had in stock in its various storage places 10-,646,349 gallons of oils and 5,843,548 pounds of grease, parrafin wax, etc., representing the average stock carried by the company. They figure on carrying at all times from thirty to forty days’ supply.

That in the last twenty-two years, the time he has been with the company, there has been a gradual decrease in the price of the products of petroleum.

Claims that the company has gradually reduced the price, due to increased production to some extent, but largely to increase in their facilities for handling and selling oils. '

Outside the city of St. Louis in the Missouri division, he thinks they had 85 per cent of the sales of oils. Says they have secured that percentage of the sales by their tank wagons, tank stations, cans, iron barrels, agents and salesmen, the quality of oils they have furnished and by their superior facilities over competitors.

Says that Bell Oil Company, which has only been in operation seven or eight months in St. Louis, runs some five or six wagons; Republic Oil Company three, and St. Louis Oil Company some eight or ten. Republic Oil Company began five or six years ago with about the same number of wagons; St. Louis Oil Company some ten or eleven years ago with less, and have gradually increased their number of wagons. Waters-P'ierce Oil'Oompany since its organization in 1900 has operated from twenty-five to thirty wagons in St. Louis city, according to the season.

*209 The only tank wagons run by competitors in Missouri division are owned by Mr. Wilhoit — two at Springfield, one at Joplin and one at Aurora.

Says that since he has been general manager of the company the price at which products should be sold have been fixed by the officers of the company, based on cost, marketing expenses, freight, etc.

Standard Oil Company fixes the price of oils that his company buys, and as that price varies so the selling price must vary also, according as it may be an advance or decline.

Explains card quotation of prices of oils. Says these card quotations of prices were sent out regularly to all the trade.

Says the president, vice-president and himself fixed the price of oils and communicated these prices to all the division managers, who in turn communicated with all agents and salesmen and they with the trade and customers in the division.

Eepublic Oil Company began to do business in St. Louis three or four years ago. He never knew that it was owned by the Standard Oil Company of New Jersey, and he did not know but that it was an entirely independent company. Says Waters-Pierce Oil Company has been a very active competitor of the Eepublic Oil Company — in fact, just as much so as of the old firm of Schofield, Shurmer & Teagle. Claims that Eepublie Oil Company has done business all through the Missouri division. Says instructions to the salesmen of Waters-Pierce Oil Company have been to go after the business of the Eepublic Oil Company the same as any other competitor. Says he has not been acquainted with the officers of Eepublic Oil Company in St. Louis — only that he met Mr. Heyer, local manager of that company, just for a minute three or four years ago. He never bad any conversation with the officers of that company in relation to the prices at which oil *210 should be sold. Neither the Standard Oil Company of Indiana nor Republic Oil Company has ever had anything to do in fixing the prices at which Waters-Pierce Oil Company sold oils.

Waters-Pierce Oil Company has no relations with Standard Oil Company of Indiana except that of purchaser.

His instructions were that reports should be made wherever prices were being cut by competitors, and if it was considered that their business could not be otherwise held, instructions were given to meet the cuts in prices. Says his company never cut below the price of competitors, that with its facilities it could hold its own at equal prices., That they have in many instances been able on account of their facilities to maintain prices at from one-half to one cent higher than competitors. That they have, instead of lowering the price to meet a cut, in many instances given allowances or rebates in order to meet a cut.

In the Missouri division his company sells prime white and eupion. There are different grades of gasoline according to the purpose for which they are used.

Waters-Pierce Oil Company sells all the oil it can and has no understanding or agreement with anybody to restrict the quantity sold.

Says he met Maywood Maxon in his office in December, 1902. Denied the statements attributed by Maxon to Finlay — they were not made in the presence of witness.

Cross-Examination.

Says that he has always known that the Standard Oil Company of New Jersey owned stock in Waters-Pierce Oil Company — that is, for past twenty years. Says he is not quite sure whether he knew that Standard Oil Company owned a controlling interest or not. He knew that reports were being made by Waters- *211 Pierce Oil Company to Standard Oil Company. He knew reports were going, showing the extent and nature of the business of Waters-Pierce Oil Company, the amount of oil sold, profits, etc. These reports were made from the office of the secretary. There were also cash statements sent to 26 Broadway daily, made by the treasurer, Mr. Adams.

Referring to the visit of Maxon, says he knew he came over to see about territorial lines between Standard Oil Company of Kentucky and Waters-Pierce Oil Company.

He knew the same Standard Oil Company was doing business in Missouri from which they purchased oils at Whiting, Indiana. He knew what cities the Standard was selling in Missouri, and that they had tank stations. The Waters-Pierce Oil Company has no tank stations in this State where the Standard has them. The Standard Oil Company of Indiana does not sell in his territory in Missouri. Says, his agents and salesmen reported all competitive business or companies in the territory.

Says he has heard that reports were also made to his company of competitive business by employees and agents of railroad companies.

Says that when they heard of a carload shipment into their territory they would write their agent, ask him what was the matter and tell him to reduce prices. The agent would try to get the order countermanded.

The Waters-Pierce territory has not changed in Missouri, so far as he can remember, since he came to Missouri with the company.

Schofield, Shurmer & Teagle was an active competitor of his company and had no connection with the Standard Oil Company that he knows of. They, S. S. & T., had tank stations at St. Louis and Springfield and did business in the same way the Waters-Pierce Oil Company did, as far as he knows. Republic Oil Com- *212 party succeeded Schofield, Shurmer & Teagle, aud the tank station at Springfield was then removed.

Waters-Pierce Oil Company purchased the tank stations and equipments of International Oil Works at St. Louis, and continued to do business by that company and in that name. It has been a competitor of his company. After it was purchased it continued to do business just as before, and it continued to be a competitor' of Waters-Pierce Oil Company and tried to get its business.

Says he understood the Republic Oil Company was owned by Standard Oil Company of New Jersey, and that that company owned a majority of the stock of Waters-Pierce Oil Company, yet the Republic and Waters-Pierce companies were competitors and each trying to get the trade of the other.

International Oil Works gets its oil from the tanks of Waters-Pierce Oil Company in St. Louis.

Says McNall, as commercial agent, does not buy oils, but buys equipments, engines, boilers, etc.

Waters-Pierce Oil Company has never sold in Kansas City, but he cannot give the reason why. Standard Oil Company has not sold in St. Louis because the Waters-Pierce Oil Company sells there.

He cannot tell why his company did not sell oil at Sedalia or go over the territory lines in other places.

Says he knew the line dividing the territory of Waters-Pierce Oil Company and Standard Oil Company of Indiana, and that it was understood that his company would not sell beyond that line. He.understood that the Standard was prepared to take care of the business over the line — that it has established tank stations, wagon deliveries, etc., and that the field was already covered. He understood that a line in Missouri had been agreed on between Waters-Pierce Oil Company and Standard Oil Company. Says their agents and salesmen were advised as to the territorial *213 line and advised not to go beyond it, nor to sell any oils in Standard Oil territory.

Formerly, orders received by Ms company, or its agents, for oil from persons residing in Standard territory, were referred to Standard Oil Company to be filled.

Says he heard the Standard Oil Company was a stockholder in Waters-Pierce Oil Company before he became general manager.

Up to two or three years ago the question of fixing salaries was referred to 26 Broadway, but is not referred there now. Referred there for approval or disapproval.

He says that he knpws reports were made to 26 Broadway relative to construction matters — constructions completed and contemplated — that is, the expenditures for building tank stations, equipments, etc.

Now says the difference in price of oil in bulk and in wooden barrels was from two to three cents per gallon. This difference about covers the cost of wood barrels.

Says prices are fixed on basis of cost, freight and fixed expenses. Freight rates may be the same to given points, and yet oil higher at one of the points because of different conditions — more oil might be handled at one place than another. Does not seem to think that competition cuts a very great figure in fixing prices.

Says his company gets no quotations from independent refineries. No jobbers or other oil companies sell Standard Oil products in this territory except Waters-Pierce Oil Company.

Says they.handle no oils in-Texas in Union Tank Line cars. All the Texas refineries belong to Standard Oil Company.

Says they supply from eighty-five to ninety per cent of the population with oil in the Missouri terri *214 tory — the balance furnished by independent dealers— for past four years.

The price of crude oil is fixed by Standard Oil Company.

Says oil has been up and down in price in the last eight years, but the tendency has been to get lower.

During the last five or six years there have been large discoveries of petroleum in Texas, Kansas and Indian Territory, yet he says oil is higher now in St. Louis than it was five years ago. The price in the country would be the same, with expenses of marketing included. Says prices of Waters-Pierce Oil Company have been fixed on basis of price of oil as billed to it by Standard Oil Company.

Prices are fixed by his company to make a profit of from one to two cents a gallon.

During the last two or three years crude oil at Neodesha or Sugar Creek has ranged from fifty to seventy cents per barrel of forty-two gallons — says he knows nothing about the cost of refining.

Prime white oil quoted in 1899 at three cents less than in 1905 by Waters-Pierce Oil Company — witness says he cannot explain this.

Although his company manufactures axle grease, it sells none to Standard Oil Company in Missouri. His company does not sell same brand of axle grease as Standard Oil Company, because his company manufactures its own axle grease, but does handle considerable of the same lubricating oils, for the reason that most of this oil is purchased from Standard Oil Company, at least that sold in United States.

He admits that oils have increased in price in the last seven or eight years.

Claims that the facilities and conveniences of Waters-Pierce Oil Company enable them to get from one to two cents more per gallon than competitors, and that because of their facilities competitors had to *215 follow their prices. When a competitor cuts prices they may meet the cnt, but never go below — it is not necessary.

Admits that competition in Joplin has an influence in making prices lower there than in Jefferson- City, where there is no competition. ■

Says the reason oil was one and a half cents cheaper in Jasper, Missouri, than in Joplin, Missouri, in August, 1906, was because the Standard Oil Company went in there and cut their prices and they had to meet the cut. Says he knows of no other point in Missouri where these two companies have come in competition and caused a reduction in price.

Gasoline is quoted two cents higher in Jefferson City than Joplin, which, he says, may be due to the fact that there are a great many more people in Joplin and much more of that oil is sold there. The tankage capacity at Joplin is two or three times greater than at Jefferson City.

Tabulated Statement.

In the Missouri division the Waters-Pierce Oil Company has 116 tanks of 1,292,622 gallons capacity and run 32 tank wagons.

In the St. Louis division, including stations in East St. Louis and Illinois, the Waters-Pierce Oil Company has 93 tanks with a capacity of 2,951,170 gallons, and 51 tank wagons.

In all the divisions there are 431 tank stations, 1281 tanks, with a total capacity in gallons of 21,495,089.

In all the divisions there are 154 tank-wagon agencies, 266 tank wagons at tank-wagon stations, and 27 can-wagon agencies.

Says that coal oil is usually higher in winter than in summer and gasoline is usually higher in summer than in winter, but he cannot give the reason for this.

*216 Schedule of prices of prime white oil in St. Louis for month of January and August, 1901, to 1906, inclusive.

Also schedule of prices for stove gasoline in St. Louis for same months and years. Showing that each Of those products was from two to three cents higher in 1906 than in 1901 and that they both gradually increased in price during those years.

Says their commercial agent in New York, R. H. McNall, would send them quotations of Standard Oil Company prices, by which they know the price they were paying for oil.

Says he advises the St. Louis manager and Missouri division manager of the advance dr decline in the price of oil, and they prepare and have printed cards and send out to the trade.

Now says that there is more coal oil consumed in winter than in summer and more gasoline consumed in summer than in winter, and that this increased and decreased consumption has an influence on prices.

Says the principal business of the commercial agent of Waters-Pierce Oil Company' in New-York is to purchase crude oil and supplies for the business in Mexico.

The old Waters-Pierce Oil Company did business in the same territory that the present company has been doing business in since its organization. All the improvements and new stations have been established within those lines.

Says the St. Louis Oil Company, Republic Oil Company, Bell Oil Company, and Wilhoit ship in car-load lots; but, having no iron barrels, they distributed to the trade not reached by tank wagons, in wood barrels, which leak and” cause questions of adjustment to come up. After a customer buys a few times that way he goes back to his company, which ships to him in iron barrels.or cans, and there is no leakage.

*217 CYRUS L. ACKERT: He is the manager of the Missouri division of Waters-Pierce Oil Company with offices at St. Louis.

He began work for the old company January 15, 1890. He continued to work for that company until May 29, 1900, when he was employed by the new company, and has worked for it since. He began with the present company as assistant manager to A. A. Lasar, which position he held until April 15,1901, when he became manager, and has held that position since, with the exception of the time from December, 1904, to September 15, 1905, when he was in charge of the city business in St. Louis of Waters-Pierce Oil Company. Mr. Y. H. Crandall was manager of Missouri division while he was in charge of city sales, who had been his assistant and is still acting as such.

Been no change in the Missouri division lines inside the State of Missouri since the new company was organized.

His duties as manager of Missouri division have been looking after marketing goods, attending to correspondence and directing the agents and salesmen. Has full charge of all the business. Agents and salesmen made daily reports to him of sales and he in turn reported to the general manager and the accounting department. He has had from eighty-five to ninety-five agents under him at different times. He fixed no prices but got instructions as to such matters from the general manager. Says a schedule of prices is made out one each month and kept at his office. Any changes during the month were noted on these schedules and embraced in a new schedule next month. Identified monthly schedules beginning with April 1, 1901, to and including 1905. He does not know on what basis the selling prices were fixed, as only the selling price was furnished him and he knew nothing about the cost price.

*218 When it was reported to him that some competitor was cutting prices at a given point he would take the matter up with the general manager with recommendations as to what price should he made. If approved, he would notify the agent of the reduction and the current schedule would be altered accordingly. Changes of this kind occurred frequently.

Says his instructions have always been to get as much as he could, and he has held a large percentage of the business at higher prices than other people have quoted. Never gave instructions to cut prices below those of a competitor, because their facilities were such that they could hold the business at equal prices. In the city division the schedule of -prices was kept in the shape of cards, because it was only one agency. The city division included St. Louis, part of St. Louis county, East St. Louis, Granite City and Madison. All changes of prices' came from the general manager, and the trade was notified by postal cards.

Schofield, Shurmer & Teagle were succeeded by Republic Oil Company in 1901. Both companies had plants, storage tanks and warehouses at Springfield and St. Louis. There were also small agencies at Lockwood and Versailles — warehouses where they handled goods in wooden barrels only. Several months after Republic Oil Company began business its station at Springfield was moved away and that agency discontinued. The warehouse at Versailles has been discontinued for a year or more, and the one at Lockwood about thirty days ago.

•Says Republic Oil Company was the strongest competitor they had in the Missouri division and their methods were the same as Schofield, Shurmer & Teagle. Republic Oil Company also sold oil in St. Louis when he was in charge of city division. They were strong and aggressive competitors.

Says that St. Louis Oil Company, George P. Jones *219 & Company, E. M. Wilhoit, National Refining Company or Hannibal Oil Company were competitors in the Missouri division, and six or eight other companies selling mostly lubricating oils. There was no difference between the competition of these companies and Republic Oil Company.

Says the Waters-Pierce Oil Company pursued the same course against all companies in the territory as it did against the Republic Oil Company. Says Republic Oil Company cut their prices down the Mississippi in and tributary to St. Genevieve, St. Mary and Perryville. Says that company got most of that trade for two or three years by cutting prices from one to two cents a gallon. Down in that county, there then being no railroads reaching those points, winter supplies of oil were purchased and shipped by boat, and the. Republic got a good share of the business for three falls. He does not remember of any other specific instance where they cut prices in other places, but says they did do so. Says he had no positive information that the Standard Oil Company was back of the Republic Oil Company, but he surmised it and made inquiry of Mr. Heyer, the manager, and was turned down pretty cold. Says that he had no- agreement with any representative of the Republic Oil Company relative to the prices at which oils should be sold in Missouri, nor in relation to the quantity of oil that should be sold in Missouri. Says he had instructions from "his superior to go after the business of the Republic Oil Company just the same as any other company, and he repeated these instructions to his agent. Says Republic Oil Company, besides cutting prices, had two salesmen traveling out of St. Louis all the time, trying to get the trade, and that company had solicitors in St. Louis all the time, besides the tank wagon drivers, soliciting trade.

*220 Says T. R. Hopkins, their agent at Pierce City, and who testified at Joplin in this case, was discharged about two years ago by' V. IT. Crandall, his assistant. Hopkins and other agents were paid by New York exchange twice a month — that is, checks drawn by Bank of Commerce on New York Bank. They were' made payable to witness. This was done to save exchange charges to the agents. He never had any conversation with Hopkins at Harvey House, in Monett, and denies the statements made by Hopkins.

Says they always tried to get at the quantity of oil being sold by their competitors. This information was reported by their agents and salesmen. They had some railroad agents as their local agents in small places, but they were not employed to furnish information of competitive shipments. The information as to amount of oil sold was for statistical purposes and for general purposes of information as to the amount of business done by both Waters-Pierce Oil Company and its competitors. It was never used for the purpose of getting orders placed by competitors countermanded, or cutting prices.

H. C. Pierce is a first cousin of witness, and C. P. Ackert is a brother, and Andrew M. Finlay is a brother-in-law of H. C. Pierce — Pierce married Finlay’s sister.

Gross-Examination.

Referring to price schedules made up monthly, they were changed when conditions warranted. Sometimes there would be a general change in the market and at other times local conditions, such as cutting by competitors, would cause a change. Whenever a competitor made a cut in prices they made a reduction sufficient to get the business. Reductions at local agencies indicate competition. When competition came into an agency and reduced prices, they reduced them, but did not do so unless a reduction was first made by a competitor.

*221 Waters-Pierce Oil Company gets its oils from Whiting, Neodesha, Franklin, Cleveland and other places.

At Joplin, Wilhoit has a .tank station with a capacity of about fifty thousand gallons — not as large as Waters-Pierce. Wilhoit runs one tank wagon there. Waters-Pierce Oil Company runs two tank wagons and three dray wagons there. Wilhoit’s facilities there are practically the same as Waters-Pierce. Says they can hold the larger part of the trade there as against a man with equal facilities. Says he thinks the trade would ratber deal with Waters-Pierce Oil Company than an independent, even though the facilities are the same. Claims that their oil is better — more uniform in quality. Says oil for Joplin comes from Neodesha, at least the most of it. Formerly, up to two years ago, it was shipped there from St. Louis and Whiting.

At Jefferson City they got their oil from Kansas and Whiting. Formerly it was shipped there from St. Louis and Whiting.

Oil in iron barrels is quoted the same as in bulk, but it is more in wood barrels.because the barrel is sold to the customer while the iron barrel remains the property of the company.

Accounts for .lower prices in Joplin than Jefferson City, in 1901, because there was much more oil sold in Joplin, consequently it cost less a gallon to handle it. He cannot explain why it was that the following month in same year oil was eight and a half cents in Jefferson City and nine cents in Joplin.

When Republic Oil Company bought out Schofield, Shurmer & Teagle he heard it rumored that it belonged to the Standard Oil Company.

Admits that he sometimes made concessions or gave rebates.

Says he has always gone after the business of the International Oil Works just the same as any other company.

*222 Says that from what he saw he assumed that International Oil Works belonged to Waters-Pierce Oil Company.

As to the sales of oils by Republic Oil Company at St. Genevieve, Perryville and other river points in 1903 and for two years following, says he went to see Pleyer, the manager of that company, in relation to the matter, and Heyer would give him no satisfaction — intimated that it was none of Ackert’s business. Never tried to see the Republic people before or after about the sale of oil.

There were no fixed or quoted prices at St. Genevieve or Perryville. The prices at those points were based on the St. Louis price, whatever that might have been, and Republic cut under it.

Says they got some information from railroad clerks as to competitive shipments, but got no formal reports from them. But they had blanks which were filled out from such information by their own agents. This information was for statistical purposes.

Re-direct■ Examination.

Up to the time this suit was brought, he says, there was very little prejudice among the merchants and trades people against the Wates-Pierce Oil Company.

Says the policy of the company has been to please and satisfy its customers. They get the best local men for agents, and are very particular to see that merchants are supplied with a good quality of oil and that they get full measure. Ninety per cent of their sales being bulk deliveries or deliveries in iron barrels, the full amount in gallonage sold is always delivered.

Says, in his judgment, ninety per cent of the oils sold by his company in the Missouri division is delivered by tank wagons and in iron barrels and ten per cent in wood barrels.

*223 The Standard Oil Company did not compete with his company.

EDWARD VON HARTEN: Was originally employed by old Waters-Pierce Oil Company at Houston, Texas, in 1882, as agent. He now has charge of refined oil department of that company at St. Lonis, where he has been for a year and two months. After leaving Houston he became manager of Arkansas division, headquarters at Little Rock. From 1891 to 1904 he was manager at St. Louis of city department of sales of refined oils. In December, 1904, he went into business for himself.

Republic Oil Company succeeded Schofield, Shurmer & Teagle in June, 1901. F. B. Northup was first manager of Republic Oil Company in St. Louis and continued as such for about a year. That company first operated three or four wagons in St. Louis and increased to five.' There was active competition between Republic Oil Company and Waters-Pierce Oil Company. He had charge of city trade and sales by tank wagons and had charge of tank-wagon drivers and solicitors. There were about thirty tank wagons. Drivers of tank wagons were also solicitors. Each wagon would have its route and the driver was to solicit all the trade on that route.

Says their competitors in 1901 were St. Louis Oil Company, International and Republic. These companies have continued, and later the Bell Oil Company came in as a competitor in February, 1905. Tank-wagon drivers -and solicitors were instructed to solicit the trade of all those companies alike.

Says Republic Oil Company at one time cut prices by giving rebates. They did not meet the rebates, but tried in other ways to get the trade — he was instructed from the office to avoid making cuts and concessions in this instance. They went to other customers of the Republic and told them of the rebates to certain customers,- and by those means prevented them making *224 further cuts. They took no other steps,-but let the Republic take part of the trade.

Changes of prices were announced to the retail grocery trade by postal notifications and to the wholesale grocers and other jobbers cards giving prices in barrels. Tank-wagon prices went to all users of oil— the other cards to wholesale grocers and oil dealers, which included competitors.

The other oil companies usually followed the prices quoted by Waters-Pierce Oil Company.

Says he has always been on friendly terms with all the managers of oil companies in St. Louis. Sometimes sells them oil.

He' was in the habit of telling Northrup, or any other manager, that changes in the prices of oil were contemplated before the change took effect or before cards were printed, if he was asked about it. Such information has frequently been given by ’phone to Republic Oil Company, St. Louis Oil Company and other companies.

No company, other than the Waters-Pierce Oil Company, has issued quotations of prices since he has been in St. Louis, and are generally followed by the-other companies.

Had no agreement of any kind with any manager of Republic Oil Company or any one else to fix the . price of oil in St. Louis.

Says he knew nothing about the Republic being owned by Standard Oil Company — only that it was rumored that it belonged to the Standard.

After leaving the Waters-Pierce Oil Company, in December, 1904, he incorporated the Southwestern Oil Company. He did not confer with Mr. Pierce nor anyone connected with Waters-Pierce Oil Company relative to the organization of Ms company, nor did any person connected with that company have any interest in his company. His company began operations in June, 1905, and in August following he sold out to *225 Waters-Pierce Oil Company and went back to .their employ.

Says he was present when Maywood Maxon called at the office in St. Lonis. Denies that Finlay was present, and he heard no conversation between Maxon and Finlay, but says Maxon, as agent of Standard Oil Company at Decatur, Illinois, was there to adjust some difficulty about certain places in Illinois, where both companies had been selling.- Says they did not come to an understanding and both companies continued to sell as before. Says he was not present during the entire conversation, which was between Maxon and Ackert.

While he was-with the ’Southwestern Oil Company he bought all his oil from independent refineries. He handles oils of the National Refining Company. In the three months this company ran they built up a good trade, which was increasing when he sold out.

Says that before the institution of this suit he was constantly hearing that Republic Oil Company belonged to Standard Oil Company. Also says he heard the same of Waters-Pierce Oil Company. .

Says he knew the Waters-Pierce Oil Company did not sell in Standard Oil Company territory, and vice versa.

Waters-Pierce Oil Company bought out the International Oil Works in about 1895. From that time it has continued to do an independent competing business and was competing for the business of the Waters-Pierce Oil Company. It got its oil during all this time from Waters-Pierce Oil Company. Says he saw reports of sales made by this company to Waters-Pierce Oil Company. It is still a competitor of Waters-Pierce Oil Company. ' -

Says Republic Oil Company sells about the same grade of oils as his company, but under different brands, and that Doth companies claim to sell oils of *226 equal grades in every way, but at times, says bis company has claimed tbeir oil to be tbe better.

Says that bis competitors nearly always followed tbe prices of bis company up or down.

In 1894 or 1895 Waters-Pierce Oil Company bad quite a war with St. Louis Oil Company when oil sold as low down as three and a half cents per gallon..

Says he does not know how the prices of Waters-Pierce Oil Company are fixed. They are furnished by C. P. Ackert, the general manager.

Now says that he does not contradict Northrup as to his statement that Northrup got information from him before prices were printed and sent out to the trade. *

His company sells in St. Louis brands known as “eupion,” their high grade, and “150 prime white” coal oil, their low grade.

Republic sold what they called “palacine” as their high-grade, but he does not know the name of their low-grade oil.

International Oil Works sells “magic light” as high grade, and a lower grade oil.

Says his company has sold a great deal of oil at five cents.

VICTOR H. CRANDALL: He is assistant manager of the Missouri division of Waters-Pierce Oil Company. He began work for that company in March, 1889, as ledger clerk. After about a year he was made cashier at El Paso, Texas, for the company. He has held his present position since the new company was organized.

A. A. Lasar was first manager of Missouri division under new company. In 1901 he was succeeded by C. L. Ackert. Witness became manager of that division on December 1, 1904, and continued to act as such until December 15, 1905, when Mr. Ackert again became the manager and witness assistant.

He knew T. R. Hopkins, agent at Pierce City, and in November, 1903, witness discharged him, because he *227 was having blacksmith work for his farm done and charged to the company.

Says while he was manager, ITeyer, manager of Republic Oil Company, called him np over the ’phone and asked him about prices at two points, and he gave him the prices — never had any other conversation with him.

As assistant manager he visited the territory, looked after the sales, whom they were selling and whom they were not, the percentage of business they were getting, had charge of the salesmen, made contracts, and had general supervision of the field work.

His instructions to agents as to Republic Oil Company were the same as those given about any other competitor — that is, to go after the business. Says as to St. Louis territory, the Republic Oil Company was the most aggressive competitor they had — it had two salesmen working out of St. Louis. St. Louis Oil Company periodically sent out one man. Republic Oil Company sold much more oil in the Missouri division than St. Louis Oil Company. He remembers the Republic Oil Company cutting prices down the river at St. Genevieve or Perryville, but does not remember any other specific instance. Republic operated the Springfield plant a short time after Schofield, Shurmer & Teagle sold out, and then the plant was removed. Some of their traveling men from Kansas City sold oil in that territory afterwards by barrel shipments. They continued to maintain a barrel agency at Lockwood and Versailles and to supply points around from these agencies. These agencies were supplied from Kansas City or Sedalia: Knows of no instance in the southwestern part of the State where that company cut prices against the Waters-Pierce Oil Company.

When his office was notified of changes in prices, his agents throughout the territory were notified.

Says that both Lockwood and Versailles have been abandoned by the Republic Oil Company.

*228 Schofield, Shurmer & Teagle, before they sold out, had a tank station at Springfield, from which they distributed oil to points around as far as freight rates would permit.

Says he was familiar with the dividing line between the Waters-Pierce Oil Company and Standard Oil Company — the line was respected by each company.

Referring again to sales of oil at St. Genevieve, Perryville and that country, says it was customary for those people every fall to buy a large amount of oil to. last through the winter. This was done because the only way to get it shipped was by boat. Schofield, Shurmer & Teagle had also made sales in this territory.

Says his company has stations in that country now, and has got a large per cent of the business — nearly all of it.

Says no other company has an established agency in southeast Missouri except Waters-Pierce Oil Company, while there is a competitive agency in southwest Missouri.

EDWARD VON HARTEN (recalled): Says he gave to Northrup the same information as to changes in prices when he was manager for Schofield, Shurmer & Teagle as he did when he was manager for Republic'Oil Company, and that Northrup is mistaken when he says that it was different.

Form of construction application which was sent in to the company.

A. M. FINLAY; Says he is now vice-president of Waters-Pierce Oil Company and has been since June, 1905; and since that time Olay Arthur Pierce has been president of the company. He became president of the old company in February, 1900, and continued to be such until June 1, 1900; then H. Clay Pierce became president and witness vice-president. He continued as such and H. C. Pierce as president until February, 1901. H. Olay Pierce was elected chairman of board *229 of directors in February, 1904. R. P. Tinsley was elected vice-president in 1904 and served until June, 1905, and witness was again made vice-president.

Says about six months after Republic Oil Company was organized it was reported that it belonged to the Standard Oil Company, but he had no definite information as to the fact.

He did not know Heyer, manager of Republic Oil Company, nor did he know Northrup, who was also a manager of that company.

Never discussed with anyone connected with the Republic Oil Company or Standard Oil Company the prices at which oil should be sold in St. Louis, or the Missouri territory. The prices at which oil was sold in St. Louis and Missouri division were fixed by the officers of the company. The general manager would be advised and he in turn would advise the division managers, and so on down to the agents and salesmen.

No limitations were placed on any agent of the company designed to limit or reduce the quantity of oil sold by "Waters-Pierce Oil Company.

Denied that he told Maywood Maxon that the manager of Republic Oil Company reported regularly to him, as testified to by Maxon. Admits that Maxon came to his office and talked with him briefly, but says that nothing was said about the Republic Oil Company.

Says the competition between the Republic Oil Company and Waters-Pierce Oil Company was very active. His company went after the business of the Republic Oil Company the same as it did other companies.

He first began with Waters-Pierce Oil Company at Marshall, Texas, in 1878. Transferred from there to the City of Mexico. From there to G-alveston, and in 1888 to St. Louis, where he has been ever since.

About the time he was sent to St. Louis he became *230 vice-president of tlie company, and has held an executive office ever since.

Says the company has sold oil in the same territory ■ever since the time he came to St. Louis — there has been no extensions or cutting off of territory.

H. C. Pierce was the executive head of the company when he came and has remained such up to the present time, and his control during that time has been absolute.

Witness was told by Pierce to give Mr. McNall at 26 Broadway, New York, any information he might ask for concerning the business. Such reports were made and forwarded under the supervision of J. P. Gruett, who was at the head of the statistical department. McNall became commercial agent of the company at 26 Broadway by Pierce’s appointment in the latter part of 1900, and remained in that position until after this suit was brought, when he was succeeded by Walter Rundel!. McNall’s duties have'been buying and shipping goods. McNall was first addressed at 26 Broadway and then, at his request, he was addressed at 75 New street, New York City.

When construction was desired in a division “Exhibit B3” was used as an application blank and sent in to the home office at St, Louis. There it was passed on by the company and the division manager from where it came was advised as to whether it was approved or not. If approved, the construction was made; if not approved, it was not made. This blank was used whenever .anything was purchased or built which added to the value of a station or plant. Monthly statements of these applications were sent to McNall at 26 Broadway, at his request. In 1903 instead of sending a statement or abstract of these applications, a copy of the application was sent to him.

Says in June, 1904, R. P. Tinsley presented a certificate of stock for about 2,750 shares' and asked that these shares be transferred on the books to M. M. Yan *231 Burén. The transfer was made after consultation with Pierce and John D. Johnson, attorney for the company.

When the new company was first organized salaries were fixed by Mr. Pierce, and after the executive committee came into existence they were passed on by that body and finally by H. C. Pierce. They were then put into effect. Once a year a list of salaries was sent to McNall, commercial agent.

Says he knew of auditors coming from Standard Oil Company and auditing the books of the company; that they were paid by Waters-Pierce Oil Company, by authority of J. P. Gruett, but witness says he did not authorize it.

Company owns about one hundred cars and leases about one hundred and fifty cars from Union TankLine Company, which are lettered ‘ ‘ Waters-Pierce Oil Company.” A complete record of the movement of each car is kept so as to keep track of cars, mileage, etc. No report of these cars is made to 26 Broadway. The company gets its oil from the northern refineries in Union Tank Line cars. It has no interest in these cars. Says they make no reports of the movements of these cars.

He understood that prior to 1900 the Standard Oil Company of New Jersey by itself or through individuals owned a majority of the stock of Waters-Pierce Oil Company.

Prior to 1900, H. M. Tilford, at 26 Broadway, would take and place orders for Waters-Pierce Oil Company, andhe had considerable correspondence with Tilford. Supplies were purchased through him'. This was previous to 1900. Prior to the re-organization there was no commercial agent, so-called, at 26 Broadway, but the business transacted by McNall after the new company was formed was transacted by H. M. Til-ford prior to its organization.

Prior to 1900 Standard Oil Company auditors came to St. Louis to audit the books of the company.

*232 Says after the new company was incorporated and McNall, who had been a clerk in H. M. Tilford’s office, was appointed commercial agent for Waters-Pierce Oil Company, located at 26 Broadway or 75 New street, New York City, the company corresponded with him in regard to supplies, refined and lubricating oils, purchase of crude oil for Mexico, purchase of machinery, etc., and all statements concerning the business of Waters-Pierce Oil Company were sent to him that he asked for.

Says he went to New York City three or four times since McNall was appointed and saw him about the business of the company. He would also see H. M. Tilford, but did not have much talk with him. McNall had his desk in the office of H. M. Tilford.

Following the appointment of McNall up to the fall of 1903, reports were mailed to him at 26 Broadway, and then changed at his request and mailed to 75 New street since. Says 75 New street is one entrance to 26 Broadway.

His recollection is that in 1904 he received a letter from McNall requesting that thereafter copies of letters written to McNall be enclosed — these copies to be without address or signature — for distribution.

When Tinsley came in April, 1904, he was vice-president, witness became president. Backus, who came about the same time as Tinsley, took J. P. Gruett’s place. Says it was not agreeable to him for Tinsley to become vice-president, and witness protested to Mr. Pierce. Tinsley wanted to dictate and to run things his way. Says that while Tinsley was here running the Waters-Pierce Oil Company there was no change in the general course of the business. There was no change in the attitude of the company towards the Republic Oil Company.

Says his company first received quotations from refineries through McNall, and then when they made a *233 purchase from a refinery an invoice direct from the refinery would he sent them.

Says that the competition of his company with Republic Oil Company, St. Louis Oil Company, International Oil "Works and other companies has been the same. They have all been treated alike and they went after the business of all of them.

Waters-Pierce Oil Company has owned the International Oil Works since 1900, and have been paying G-renner a salary to run it.

Affidavit of dissolution of Waters-Pierce Oil Company, organized May 7,1878. Dissolved May 28, 1900.

Nineteenth Civil Appeal Reports (Tex.) from page 1 to 21 — report of case against Waters-Pierce Oil Company.

Certificate of Incorporation of Waters-Pierce Oil Company, date May 29, 1900.

Abstract of blank reports used in making reports to 26 Broadway, New York City, by Waters-Pierce Oil Company since 1900, which reports show in a general way the business transacted by that company. These reports were mailed to R. H. McNall, commercial agent.

JAMES A. MOFFETT: Resides in New York City. He has been president of Standard Oil Company of Indiana for past three years. Prior to becoming president he was vice-president and general manager of the company. The last position he had held for twelve years or thirteen.

Prior to going with the above named company he had been with Pratt Manufacturing Company of Brooklyn, New York, which was a manufacturer of oil. He first became connected with the oil business in Virginia in 1869, and has been continuously in the same business ever since. The Pratt Manufacturing Company was connected with the Standard Oil interests.

*234 When he became connected with the Standard Oil Company of Indiana in July, 1889, it was building a refinery at Whiting, Indiana, bnt did not begin operating it until about three months after that time. In the beginning it was only a manufacturing company. Its predecessor in marketing oils in Missouri was Consolidated Tank Line Company.

Says the Whiting refinery used.the crude of Ohio, was very large and supplied the trade largely of the West, Southwest and Northwest, until oil was discovered in Kansas in 1890 or 1891. In 1897 his company built a small refinery at Neodesha, Kansas. Two or three years ago his company built a refinery near Kansas City, at Sugar Creek. These refineries buy the crude petroleum and manufacture it into, naphtha, wax, gas oil, fuel oil, refined oil, lubricating oil and all the products of petroleum. Crude for Sugar Creek and Neodesha refineries comes from Kansas and Indian Territory fields. At this time the Whiting refinery gets its crude mostly from Kansas and Illinois fields, and they get none at all from Ohio. There is a pipe line extending from Kansas to Whiting. Says the business has been increasing every year since the refinery was built at Whiting.

Standard Oil Company always marketed oil as a wholesaler and in the fall of 1892 or spring of 1893 it began to market as a retailer or distributor. Prior to that time the distribution was done in Missouri by Standard Oil Company of Kentucky or Consolidated Tank Line Company. His company, however, did not begin to market in Missouri until about 1896, when it succeeded the Standard of Kentucky. He then found that company selling in one part of the State and Waters-Pierce Oil Company in another part. This condition was not changed but respected. He had no agreement whatever with Waters-Pierce Oil Company to maintain the division of territory. Says it was true and a general practice for orders to be transferred from one *235 company to the other. That is, orders received by one company from a merchant or buyer located in the territory of the other would be transferred to be filled by the company to whom the territory belonged. This was done because the Waters-Pieree Oil Company was a buyer and a marketer of the goods of Standard Oil Company of Indiana. There was never any agreement between Standard Oil Company of Indiana and Waters-Pieree Oil Company except to sell them oil from day to day.

Good equipments for doing business are tank stations established at intervals so that each station will supply a radius of twelve miles. Then goes on to describe the equipments of a tank station. Says it would cost about $200,000 to install a marketing station in Kansas City or St. Louis. In order to do business in Waters-Pieree Oil Company territory it would cost the Standard Oil Company of Indiana a very lai'ge amount of money, because it takes large expenditures to install stations, tanks, wagons, lands, leases, etc.

Their territory is divided up between agents and each agent is confined to certain limits within which he may do business. The dividing of a territory into sub-agencies, like Kansas City and St. Joseph, is a managerial question. While he was vice-president and general manager of Standard Oil Company of Indiana the general offices of the company were in Chicago.

In regard to the purchase of the stock of goods of Schofield, Shurmer & Teagle, says when he went to New York City in 1901, he assisted Mr. McDonald, John Teagle and Walter C. Teagle to agree upon a valuation of such stock. A company was formed to take over the business of Schofield, Shurmer & Teagle. Several names were suggested but finally “Republic Oil Company” was agreed upon. Says Mr. Drake recommended Turrell for secretary of the company, who came from Standard Oil Company of Indiana, at *236 St. Joseph, Missouri. Schofield, Shurmer & Teagle had a high-grade Pennsylvania oil called ‘ ‘ Palacine, ’ ’ which did not come from any Standard Oil Company. This was a higher priced oil than the ordinary grade of Standard Oil brands. Says he arranged with Walter C. Teagle, who had been connected with Schofield, Shurmer & Teagle, to take charge of the business of Republic Oil Company. Wanted him in order to run the business of the company as an independent business. Articles of incorporation of Republic Oil Company were signed by George B. Wilson, F. A. Turrell and J. R. Taylor. George B. Wilson was chief accountant at that time of Standard Oil Company of New York. James R. Taylor was stenographer for W. H. Tilford, who was one of the directors of the Standard Oil Company of New Jersey. F. A. Turrell, whose correct name is L. H. Turrell, was a clerk in Standard Oil Company’s office at St. Joseph, Missouri. Denies that he has any recollection of Turrell complaining to him that the initials “F. A.” in the articles of incorporation of the Republic Oil Company were wrong, but says that he may have cautioned him about the business of the Republic; to keep quiet or something of that kind.

Never was any agreement or understanding between Waters-Pierce Oil Company, Republic Oil Company and Standard Oil Company of Indiana about fixing or maintaining' prices.

Says he never gave any information to any one connected with Waters-Pierce Oil Company about the facts connected with the organization of Republic Oil Company.

There is a Standard Oil Company of Kansas, but it has never been a marketer of oil — its sole business has been that of refining. It operates the refinery at Neodesha. Witness was president of that company when first organized and remained such for several years. He ceased his connection with that company in *237 1901. In 1902 this refinery was enlarged very much and has extended its sales since — probably sells to Waters-Pierce Oil Company.

He came to New York City in 1901 and became president of Standard Oil Company of Indiana and a director in Standard Oil Company of New Jersey, with offices at 26 Broadway. Prior to that time he was located at Chicago.

When at Chicago the Standard Oil Company of Indiana made reports to 26 Broadway to some person, but he does not know whom. Pull reports of the business were made covering the whole business of the company. H. M. Tilford was the sales agent of the company at 26 Broadway. He had charge of the export business and outside sales. He communicated with Tilford in relation to the general business of the Indiana Company. Tilford’s title was “Sales Agent.” Tilford at one time was a member of a committee at 26 Broadway, known as Trades Committee.

Standard Oil Company of New Jersey is a refiner of oils and holds stock in other companies.

At the time of the organization of the Republic Oil Company he understood that it was Standard Oil property.

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