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
“R. C. Vilas, General Freight Agent of the Erie (and brother of Geo. H.
Vilas, Auditor of the Standard Oil Co.), absolutely refused us cars,
saying the Standard Oil Co. had engaged them all.
“J. H. Rutter, General Freight Agent, New York Central, would not
furnish any cars, and also said, ‘We have no terminal facilities now.’”
A. J. Cassatt testified before the New York Committee that in 18 months
the Standard Oil had received rebates amounting to $10,000,000.
In addition to many other advantages enjoyed by the Standard people the
Pennsylvania Railroad in 1878 gave the Combine, through the “American
Transfer Co.,” a “commission” of 20 cents a barrel on all shipments of
petroleum,—not only on their own shipments, but on shipments made by the
independents also. At the same time the New York Central and the Erie
were paying the Standard “commissions” of 20 to 35 cents a barrel on all
the oil shipped over those roads.
At one time the transcontinental lines charged $105 to return an empty
“cylinder” tank car from the Pacific Coast to the Missouri River, while
making no charge to the Standard for returning their “box” tank cars,
each of which contained a cylinder, which, however, was set upright
instead of being placed longitudinally; a distinction without a
difference, but it served to make a discrimination of over $100 a car in
favor of the Trust.
The railroads allowed the Oil Trust to stop its cars and divide up a
tank load at two or more stations, but denied this privilege to the
competitors of the Trust.
The Hepburn Committee reported (1879) that “the Standard Oil Co.
receives rebates from the trunk lines, ranging from 40 cents to $3.07 a
barrel on all oil shipments: That the trunk lines sell their oil-tank
car equipments to the Standard and agree to build no more: That the
Standard controls the terminal facilities for handling oil of the four
trunk lines by purchase or lease from the railroads: That it has frozen
out and gathered in refineries of oil all over the country: That it
dictates terms and rates to the railroads: That the trunk lines have
hauled its oil 300 miles for nothing to enable it to undersell seaboard
refineries not then under its control: That it has succeeded in
practically monopolizing the oil business: That the transactions of the
Standard are of such character that its officers have been indicted, and
that its members decline under oath to give details lest their testimony
should be used to convict them of crime.”[25]
The oily people were able in one way or another to gain ascendency over
all the railroads. “We made our first contract with the Standard Oil
Company,” said Mr. Cassatt, “for the reason that we found that they were
getting very strong, and they had the backing of the other roads, and,
if we wanted to retain our full share of the business and get fair rates
on it, it would be necessary to make arrangements to protect ourselves.”
Public-domain text, read in full here on John Shaqi.
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