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
The New York Central and the Erie sold their terminal facilities for
handling oil to the Standard Oil Co., thereby making it practically
impossible for the roads to transport oil for the competitors of the
Trust. The Pennsylvania Railroad also, under compulsion of a rate war,
made a deal with the Standard by which the latter acquired the oil cars,
pipe lines, and refineries of the Empire Company, a creature of the
Pennsylvania Railroad.[23]
Vanderbilt told the Hepburn Committee, August 27, 1879, that “if the
thing kept on the oil people would own the roads.”
After the Pennsylvania fought the Standard in 1877 and lost, the Combine
paid 11 cents net freight (after deducting rebate) on each barrel of oil
to New York, while its competitors paid $1.90 per barrel,[24]—a
discrimination of 1600 percent by means of exclusive tank cars and rate
arrangements. The trunk lines would not furnish competitors of the
Standard with tank cars nor give them rates and conditions that would
allow them to use their own tank cars.
The independents had to sell their tank cars or side-track them, because
the Oil Combine prevented the railroads from giving them practical
terms. At times when oil could have been shipped by the independents
they could not get cars, though hundreds were standing idle on the
switches.
So the independents had to ship their oil in barrels, paying a higher
rate than on tank oil, and paying not only on the oil, but on eighty
lbs. of wood in the barrel, making four hundred lbs. per barrel instead
of three hundred twenty lbs. per barrel by tank.
Josiah Lombard of New York, the largest independent refiner of oil at
the seaboard, testified as follows before the Hepburn Committee June 23,
1879:
“Tom Scott, President of the Pennsylvania Railroad Co., was questioned
whether we could have, if there was any means by which we could have,
the same rate of freight as other shippers got, and he said flatly,
‘No.’
“And we asked him then, if we shipped the same amount of oil as the
Standard, and he said, ‘No.’
“We said that ‘if they had not sufficient cars to do the business with
we would put on the cars.’
“Mr. Scott said that they would not allow that, and said that ‘the
Standard Oil Co. were the only parties that could keep peace among the
roads.’”
Cassatt, Vice-President, confirms the above and adds:
“The discrimination would be larger on a high rate of freight than a low
rate of freight;” also admits that the “Standard Oil Co. had some 500
cars full here and at Philadelphia and Baltimore; that he had not
discovered it until recently.”
Mr. Lombard further testified:
“Refineries were thus shut down for want of cars.
“Cassatt threatened, if the independents built the Equitable Pipe Line
or any other lines of pipe [as follows]:
“‘Well, you may lay all the pipe lines you like, and we will buy them up
for old iron.’
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account