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 acquiescence of the “railroad kings” in the refusal of the oil men
to recognise representatives of the South Improvement Company was
followed by an unwilling promise to break the contracts with the
company. Another strong effort was made to persuade the independents to
make the same contracts on condition that they shipped as much oil, but
they would not hear of it. They demanded open rates, with no rebates to
anyone. Horace Clark and W. H. Vanderbilt particularly stuck for this
arrangement. Their opposition to the oil men’s position was so strong
that the latter in reporting it to the Union said: “We feel it proper to
say that we are in no wise indebted to these gentlemen for any courtesy
or consideration received at their hands.” So well did the committee
fight its battle and so strongly were they supported by the New York
refiners that the railroads were finally obliged to consent to revoke
the contracts and to make a new one embodying the views of the Oil
Regions. The contract finally signed at this meeting by H. F. Clark for
the Lake Shore road, O. H. P. Archer for the Erie, W. H. Vanderbilt for
the Central, George B. McClellan for the Atlantic and Great Western, and
Thomas A. Scott for the Pennsylvania, agreed that all shipping of oil
should be made on “a basis of perfect equality to all shippers,
producers, and refiners, and that no rebates, drawbacks, or other
arrangements of any character shall be made or allowed that will give
any party the slightest difference in rates or discriminations of any
character whatever.”[24] It was also agreed that the rates should not be
liable to change either for increase or decrease without first giving
William Hasson, president of the Producers’ Union, at least ninety days’
notice.
The same rate was put on refined oil from Cleveland, Pittsburg and the
creek, to Eastern shipping points; that is, Mr. Rockefeller could send
his oil from Cleveland to New York at $1.50 per barrel; so could his
associates in Pittsburg; and this was what it cost the refiner on the
creek; but the latter had this advantage: he was at the wells. Mr.
Rockefeller and his Pittsburg allies were miles away, and it cost them,
by the new contract, fifty cents to get a barrel of crude to their
works. The Oil Regions meant that geographical position should count,
that the advantages Mr. Rockefeller had by his command of the Western
market and by his access to a cheap Eastward waterway should be
considered as well as their own position beside the raw product.
Public-domain text, read in full here on John Shaqi.
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