What does this show? Simply that every day the reports received from railroad freight agents are entered in records kept for the purpose; that there is on file at the Standard Oil headquarters a detailed list of the daily shipments which each independent refiner sends out, even to the initials and number on the car in which the shipment goes. From this remarkable record the same set of documents shows that at least two sets of reports are made up. One is a report of the annual volume of business being done by each particular independent refiner or wholesale jobber, the other of the business of each individual local dealer, so far as the detectives of the Standard have been able to locate it. For instance, among the documents is the report on a well-known oil jobbing house in one of the big cities of the country—reproduced on the next page.
The figures, dates, consignees and destination on the above are fictitious. The names of shippers were copied from the original in possession of the writer.
A comparison of this report with the firm’s own accounts shows that the Standard came within a small per cent. of an accurate estimate of the X Y Z’s business.
The above is similar to the form compiled by the Standard Oil Company.
Another curious use made of these reports from the freight offices is forming a card catalogue of local dealers. (See form on page 55.) Oil is usually sold at retail by grocers. It is with them that the local agents deal. Now the daily reports from the freight offices show the oil they receive. The competition reports from local agents also give more or less information concerning their business. A card is made out for each of them, tabulating the date on which he received oil, the name and location of the dealer he got it from, the quality, and the price he sells at. In a space left for remarks on the card there is written in red ink any general information about the dealer the agent may have picked up. Often there is an explanation of why the man does not buy Standard oil—not infrequently this explanation reads: “Is opposed to monopolies.” It is impossible to say from documentary evidence how long such a card catalogue has been kept by the Standard; that it has been a practice for at least twenty-five years the following quotation from a letter written in 1903 by a prominent Standard official in the Southwest to one of his agents shows: “Where competition exists,” says the official, “it has been our custom to keep a record of each merchant’s daily purchase of bulk oil; and I know of one town at least in the Southern Texas Division where that record has been kept, whether there was competition or not, for the past fifteen years.”[[95]]
The names, figures, and locations on the above form are fictitious. The remarks are copied from cards in possession of the writer.
The inference from this system of “keeping the eyes open” is that the Standard Oil Company knows practically where every barrel shipped by every independent dealer goes; and where every barrel bought by every corner-grocer from Maine to California comes from. The documents from which the writer draws the inference do not, to be sure, cover the entire country, but they do cover in detail many different states, and enough is known of the Standard’s competitive methods in states outside this territory to justify one in believing that the system of gathering information is in use everywhere. That it is a perfect system is improbable. Bribery is not as dangerous business in this country as it deserves to be—of course nothing but a bribe would induce a clerk to give up such information as these daily reports contain—but, happily, such is the force of tradition that even those who have practised it for a long time shrink from discovery. It is one of those political and business practices which are only respectable when concealed. Naturally, then, the above system of gathering information must be handled with care, and can never have the same perfection as that Mr. Rockefeller expected when he signed the South Improvement Company charter.