The History of the Standard Oil CompanyTarbell, Ida M. (Ida Minerva)
History
The History of the Standard Oil Company
Tarbell, Ida M. (Ida Minerva)
Petroleum industry and trade -- United States -- History; Standard Oil Company -- History
The extent of their (the Standard’s) business and control over
pipe-lines and refineries had enabled them to procure, and they had
procured from the railways, more favourable terms for transportation
than others could obtain. These advantages and facilities placed it
within their power to obtain, and they did obtain, far better and
more uniform prices for petroleum than could be obtained by the
plaintiffs. The said organisation and firms, by virtue of their
monopoly of the business of refining and transportation of oil, had
been at times almost the only buyers in the market, and at such
times had been enabled to dictate and establish a price for crude
oil far below its actual value, as determined by prices of refined
oil at same dates, and they thus obtained a large share of the
profits which should have fallen to the plaintiffs and other
purchasers. The sale was made, and in consideration of the foregoing
premises, and upon the promise and agreement on the part of the
defendants that the partnership thus formed should have the benefit
of the advantage and facilities of the said defendants, and the
organisations and firms managed and controlled by defendants, in
marketing its oil; that the firm should have to the extent of its
production the advantage of the sales of refined by the defendants
or said Standard Oil Company, either for present or future delivery,
so that there should be at no time any margin or difference between
the ruling price of refined oil, and the price which defendants
would pay the partnership for the crude by it produced, beyond the
necessary cost of refining. This thing formed the inducement and the
larger part of the consideration for the sale of said property to
defendants. The amount actually received for said interest was far
beneath its actual value, and without the agreement on the part of
the defendants to pay to the partnership for its product prices at
all times commensurate with the prices of refined oil, they would
not have sold the said interest nor entered into said partnership.
* * * * *
Public-domain text, read in full here on John Shaqi.
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