The heart of the railroad problem: The history of railway discrimination in the United States, the chief efforts at control and the remedies proposed, with hints from other countriesParsons, Frank
History
The heart of the railroad problem: The history of railway discrimination in the United States, the chief efforts at control and the remedies proposed, with hints from other countries
Parsons, Frank
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
In the Kansas case there are other reasons more direct and powerful
perhaps than any traffic arrangement. The Standard people have acquired
a large interest in the Santa Fe. One of their strongest and most
unscrupulous men, H. H. Rogers, has taken a place on the board of
directors. John D. Rockefeller and Wm. Rockefeller are directors of the
Missouri, Kansas and Texas, and the Missouri Pacific is one of the
principal lines of the Gould-Rockefeller system. There are other
indications of the grip the Standard has upon the Kansas railroads. For
example, the Colorado Fuel Company that was so greatly favored by the
Santa Fe is largely owned and managed by the Standard Oil crowd, and the
Standard uses the Santa Fe’s right of way for its pipe lines in Kansas,
and for almost the entire distance from Kansas City to Whiting.
Kansas has risen in revolt against the Oil Trust, and the Legislature
last year (1905) lowered the freight rates on oil and passed a bill for
the establishment of a State refinery to compete with the Standard and
give the oil producers of the State a chance to escape from the
“commercial tyranny” they are now subjected to in consequence of the
fact that there is practically only one buyer in the market. The State
Supreme Court, however, has decided that the State refinery act is
unconstitutional. The independents might, however, establish a
co-operative refinery of their own and do a good business, if they could
get equal freight rates and sufficient support from public sentiment to
withstand the boycott to which the Standard would be likely to resort.
Only the Standard, it is said, can get rates that encourage the shipment
of oil from Kansas wells at present. And the Standard custom of putting
prices very low where there is competition, keeping prices high in other
regions where there is no competition, making the people in
non-competitive localities pay the cost of killing competition in other
places, is exceedingly effective, as is also its diabolical habit of
ruining merchants who buy independent oil, by establishing competing
houses close to them and underselling them on the whole line of goods
they handle, the Trust’s wide business enabling it to stand such losses
easily, as the total is only an insignificant fraction of the profits
made in regions where no such fight is in progress.
CHAPTER XXVII.
THE LONG-HAUL ANOMALY.
Public-domain text, read in full here on John Shaqi.
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