Scientific American, Vol. XXXIX.—No. 24. [New Series.], December 14, 1878: A Weekly Journal of Practical Information, Art, Science, Mechanics, Chemistry, and ManufacturesVarious
Science
Scientific American, Vol. XXXIX.—No. 24. [New Series.], December 14, 1878: A Weekly Journal of Practical Information, Art, Science, Mechanics, Chemistry, and Manufactures
Various
Science -- Periodicals; Technology -- Periodicals
We would here explain that the Standard Oil Company originated in
Cleveland, Ohio, about twelve years ago, and was incorporated under
the laws of Ohio, with a nominal capital now, we are informed, of
$3,000,000, which, however, very inadequately represents the financial
strength of its members. It is now a combination of the most
prominent refiners in the country, and has before been credited with
manipulating the transportation lines to its own special advantage.
We can recall no instance of such serious hostility between parties
whose interests are at the same time of such magnitude and so nearly
identical; nor can we see what substantial, enduring benefit would
accrue to the producers in the event of their victory in the struggle.
They charge that the Standard Oil Company has become the controlling
power to fix prices and to determine the avenues by which the oil
shall be transported eastward for home consumption and for foreign
exportation; that the railway companies have given this company lower
rates than other parties for transporting the oil; and that through
the rates given to it by the railways the value of their property is
destroyed.
The reply, in effect, is, Granting all this to be true, what does
it amount to? Neither more nor less than that the managers of the
Standard Oil Company, by combination of capital, by intelligence and
shrewdness in the management of their operations, have built up a
successful business, and that they have so extended it by the use of
all practicable appliances, and by the purchase of the property of
competitors, that they do practically control the prices of oil, both
crude and refined, and that the uncombined capital of the other oil
producers, lacking the power, the intelligence, and the business skill
which combined capital can secure, cannot compete with the Standard
Oil Company. Now, is there any great wrong or injustice in this?
When brains can command capital it is always more successful in
business matters than any amount of brains without capital or capital
without brains. This result is the natural working out of the same
principle that is everywhere to be seen--some men are successful and
others are not.
It is the essence of communism to drag down those who succeed to the
level of the unsuccessful.
If men cannot compete with others in any business they must accept the
fact, and try some other employment.
If, through superior intelligence and capital, the Standard Oil
Company can control the oil business of Pennsylvania, then, according
to the principles of common sense, it must be permitted to do so.
Public-domain text, read in full here on John Shaqi.
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