Bad relationship with PhD supervisor
I was in a similar situation with my dissertation director. After trying to resolve things with him (he became increasingly hostile and abusive with each attempt), I got other professors involved, including the graduate ombudsperson. One professor - the department chair - did nothing and sided with my director - but the other faculty (the graduate director and my other committee members) stepped in and separated us, and one of them took over as my new dissertation director. After that, I went straight to Human Resources and filed a complaint against that professor, since no one in my department made any attempt to hold him accountable for his actions. I also reached out to the Dean's office when HR was initially unresponsive, which I think helped because they may have leaned on HR to pay attention to my case. The investigation was recently concluded and apparently they "took actions against him," (a slap on the wrist, I'm assuming. But at least he has a record now). 

Personally, as horrible as my experience was and as painful of a battle it was (from which I still haven't recovered), I have no regrets about standing up to that professor, making as much noise as possible in my department and to outside administration. At the end of the day, I stood up for myself, made it clear to everyone in my department that I could not be bullied into silence, and that I was leaving with a PhD no matter what. 

One caveat to this experience before recommending you go down the same path: I realize that my situation could have been so much worse had I not lucked out in a few ways. I was lucky that the graduate director + my other committee members were willing to support me and not abandon me, even if they couldn't bring themselves to confront their colleague about his behavior. I was lucky that my contact in HR was extremely nice and sympathetic to my situation, and I genuinely believe he made every effort to investigate my situation fairly. Unfortunately, having people like that on your side is not always the reality, and all too often, faculty/staff turn against graduate students who won't "stay in their place."

My suggestion would be to not take this professor's horrible treatment, stand up for yourself, and expose his inappropriate behavior. But do so very cautiously. In light of my own experiences that I shared, my question for you is, do you have allies? Other students who can and are willing to echo your complaints? There is power in numbers. Are there professors (including your secondary supervisor) that you can talk to? And keep in mind, there are (or should be) resources outside your department that you might consult, though I think I would only do so if you can't resolve things within your own department: 


the graduate ombudsperson: if your university has one, absolutely try talking to them. They're usually very senior, experienced professors, and they're meant to be available for confidential consultation. This is typically a very safe place to discuss your issues.
Human Resources 
Dean's Office of your college
Dean's Office of the graduate college
the graduate student association might have resources


Ultimately, his behavior towards you - all of this telling you to not tell so-and-so about his actions and his insistence on controlling you and other students - is incredibly inappropriate and abusive, and none of you deserve to be treated that way. I hope that the dynamics in your department/university allow for a safe place for you to voice your complaints. There's nothing worse than silently suffering.