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 Combine used the railroads to ruin its rivals, and did it with a
definiteness and vigor of attack never before attempted, and with a
success that would have been impossible without the use of the railroad
power. An example or two will make the matter clear.
Mr. Corrigan, an oil refiner of Cleveland, became so prosperous in the
seventies that he attracted the attention of the Standard Oil, and in
1877 he began to have trouble. He could not get the crude oil he bought
shipped to Cleveland, nor his product shipped away, with reasonable
promptness. The railroads refused him cars, and delayed his shipments
after they were loaded. And he was driven to lease and finally sell his
works to the Standard, which had no difficulty in getting cars and
securing prompt service.
George Rice became a producer of oil in 1865. A little later he
established a refinery at Marietta, Ohio. In January, 1879, the freight
rates on oil were raised by the railroads leading out of Marietta, and
by their connections. In some cases the rates were doubled, while the
rates from Cleveland, Pittsburg, Wheeling, and other points where the
Combine had refineries, were lowered. The Baltimore & Ohio, the
Pennsylvania, the Lake Shore, and all the other railroads involved, made
the deal in unison, and after a secret conference of railway officials
with the Standard Oil people. The change hurt the railroads, cut off
their business in oil from Marietta entirely, but they obeyed the orders
of the Standard nevertheless.
“What would be the inducement?” the freight agent of the B. & O.
connection was asked.
“That is a matter I am not competent to answer,” he replied.[26]
Public-domain text, read in full here on John Shaqi.
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