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 press and people were making it plain enough, indeed, that they did
not trust the persuasive advocates of reform. On every street corner and
on every railroad train men reckoned the percentage of interest the
stockholders of the South Improvement Company would have in the new
combination. It was too great. But what stirred the Oil Region most
deeply was its conviction that the rebate system was regarded as the
keystone of the new plan. “What are you going to do with the men who
prefer to run their own business?” asked a representative of the Oil
City Derrick of one of the advocates of the plan. “Go through them,” was
reported to be his laconic reply. “But how?” “By the co-operation of
transportation”—that is, by rebates. Now the Oil Region had been too
recently convicted of the sin of the rebate, and had taken too firm a
determination to uproot the iniquitous practice to be willing to ally
itself with any combination which it suspected of accepting privileges
which its neighbours could not get or would not take.
At the very time the association of refiners was under consideration an
attempt was made to win over the producers by offering, through their
union, to buy all their oil at five dollars a barrel for five years. Oil
was four dollars at the time. The producers refused. Such an agreement
could only be kept, they said, by an association which was an absolute
monopoly, fixing prices of refined to satisfy its own greed. All they
wanted of the producer was to be a party to their conspiracy. When they
had destroyed his moral force and completed their monopoly they would
pay him what they pleased for oil, and the price would not be five
dollars! What could he do then? He would be their slave, there would be
no other buyer—could be none, since they would control the entire
transportation system.
Public-domain text, read in full here on John Shaqi.
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