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
_A._ If I were allowed to say what I think, I should reply in the
affirmative and to say that one great reason why we went into this
arrangement was to stop that Erie combination, which was a great
source of difficulty; we could not get hold of the matter; we would
ship a cargo of oil at a fair price to-day, and would be compelled
to sell it to-morrow at a much less price; this arrangement did
break up that combination entirely, so that there is no combination
of that sort to-day.
By the Chairman.
_Q._ I understand that your larger combinations swallowed up the
Erie combination.
_A._ It destroyed it at the time.
_Q._ Yours was somewhat in the direction of the Erie combination,
but larger?
_A._ No, sir; it was not; the Erie was with some merchants, ours
embraces the whole refining interest in the country; that was
different; I will state that since I came into this Capitol I have
been told that the very men engaged in prosecuting this
investigation have a combination by which they intend to run up the
price of their oil; I hope they will; I do not care what means are
used, so that we can carry on our business, and pay just what others
have to pay.
* * * * *
_Q._ I understand you to say that under your arrangement the cost of
crude oil might be increased $1.25 a barrel, and that there is
produced about 18,000 barrels daily in the Oil Regions of
Pennsylvania, but not that on an average; can you state from memory
about the amount of annual production?
_A._ I have a circular here which gives the statement as 5,775,000
barrels.
_Q._ So that the production in round numbers for last year was
6,000,000 barrels; now, of this $1.25, how much were you to get as
your drawback if you had carried out your arrangement?
_A._ The maximum we would have been entitled to receive is one
dollar a barrel.
_Q._ Then on this production you would have received $6,000,000 a
year, and the railroad companies an additional sum of $1,500,000; in
other words, under your arrangement the public would have been put
to an additional expense of $7,500,000 a year.
_A._ What public do you refer to? They would have had to pay it in
Europe.
By Mr. Negley.
_Q._ Were there not at the same time combinations upon the part of
producers to affect the price of oil in the market?
Public-domain text, read in full here on John Shaqi.
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