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 defendants, although requested to do so, have not only failed,
neglected, and refused to comply with this agreement, but have, by
false and erroneous statements, misled the plaintiffs, and induced
them to consent to the sale to them and to the Standard Oil Company
of large quantities of crude petroleum, produced by the partnership
at prices far below its actual value, to the great loss and damage
of the orators. That on or about December 16, 1876, refined was
selling at a price equivalent to seven dollars for crude oil, at
which time plaintiffs called upon defendants for a compliance with
their agreement, and asked that they take or purchase 210,000
barrels of the production of the partnership at a price commensurate
with the price of refined at the time. This, defendants neglected
and refused to do, and the partnership was forced to sell the same
at prices varying from three to four dollars, making a loss to the
partnership upon this one transaction of from $600,000 to
$1,000,000, for which said defendants neglect and refuse to account.
* * * * *
That the said defendants for themselves, and for the said Standard
Oil Company, and other organisations and firms aforesaid, have since
the formation of the partnership received from the railways a rebate
or drawback in the shape of wheelage, or otherwise, at times as high
as one dollar per barrel upon all oil shipped by them to the
seaboard. That instead of using these advantages which they possess
for the benefit and profit of the partnership, as they covenanted to
do, they have used them against its interest by restraining trade,
preventing competition, and forcing plaintiffs to accept any price
which defendants, the said Standard Oil Company, or the other
organisations aforesaid, might offer for their production. That the
amount of oil produced and sold by the partnership for the three
years beginning with the date of its formation, and ending December
1, 1877, was 2,657,830 barrels. That the profits of defendants upon
oil refined by them during said period, taking into consideration
the rebates and drawbacks received from the railways, have averaged
at least one dollar per barrel over and above the cost of refining,
and at times as high as four and five dollars. That these profits,
under the partnership agreement that no margin should exist between
crude and refined prices, should to the extent of the production of
the partnership have been paid by defendants to the partnership.
That the amount lost by the partnership and realised by the
defendants, by reason of the failure and refusal of said defendants
to comply with their agreement, is not less than $2,500,000, for
one-half of which defendants should account to your orators, but
which they neglect and refuse to do.
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