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 railroads tried in various ways to appease the oil men. They did not
enforce the new rates. They had signed the contracts, they declared,
only after the South Improvement Company had assured them that all the
refineries and producers were to be taken in. Indeed, they seem to have
realised within a fortnight that the scheme was doomed, and to have been
quite ready to meet cordially a committee of oil men which went East to
demand that the railroads revoke their contracts with the South
Improvement Company. This committee, which was composed of twelve
persons, three of them being the New York representatives already
mentioned, began its work by an interview with Colonel Scott at the
Colonial Hotel in Philadelphia. With evident pride the committee wrote
back to the Producers’ Union: “Mr. Scott, differing in this respect from
the railroad representatives whom we afterwards met, notified us that he
would call upon us at our hotel.” An interesting account of their
interview was given to the Hepburn Committee in 1879 by W. T. Scheide,
one of the number:
We saw Mr. Scott on the 18th of March, 1872, in Philadelphia, and he
said to us that he was very much surprised to hear of this agitation
in the Oil Regions; that the object of the railroads in making this
contract with the South Improvement Company was to obtain an evener
to pool the freight—pool the oil freights among the different roads;
that they had been cutting each other on oil freights for a number
of years, and had not made any money out of it, although it was a
freight they should have made money from; that they had endeavoured
to make an arrangement among themselves, but had always failed; he
said that they supposed that the gentlemen representing the South
Improvement Company represented the petroleum trade, but as he was
now convinced they did not, he would be very glad to make an
arrangement with this committee, who undoubtedly did represent the
petroleum trade; the committee told him that they could not make any
such contract; that they had no legal authority to do so; he said
that could be easily fixed, because the Legislature was then in
session, and by going to Harrisburg a charter could be obtained in a
very few days; the committee still said that they would not agree to
any such arrangement, that they did not think the South Improvement
Company’s contract was a good one, and they were instructed to have
it broken, and so they did not feel that they could accept a similar
one, even if they had the power.
Public-domain text, read in full here on John Shaqi.
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