The World-Struggle for OilL'Espagnol de la Tramerye, Pierre Paul Ernest
History
The World-Struggle for Oil
L'Espagnol de la Tramerye, Pierre Paul Ernest
Petroleum; Petroleum industry and trade; War -- Economic aspects
The companies thus favoured by the _Standard_ made their competitors
pay double rates. One of these latter produced before the Inter-State
Commerce Commission the scandalous tariffs demanded of them:
On the _Louisville and Nashville Railroad_, increased rates to
competitors of 87 to 333 per cent.;
On the _Cincinnati, New Orleans, and Texas Pacific_, from 63 to 267
per cent.;
On the _St. Louis, Iron Mountain and Southern_, from 82 to 257 per
cent.
Systematic negligence in transport was proved with regard to
competitors. The _Union Tank Line Company_, which owns tank-wagons
as the _International Sleeping Car Company_ owns restaurant cars,
would only put them at the disposal of the _Standard_, and compelled
its adversaries to dispatch their oil in barrels, which is much more
costly. The Trust alone was entitled to lay its pipe-lines beside the
railway-lines or underneath the track. It possessed 35,000 miles of
such lines at the end of last century--or rather the _National Transit
Line_, which acts as its instrument, owned them. Such abuses could not
be allowed to continue. The inquiry by the Hepburn Committee revealed
a multitude of crying injustices. For example, it was enough for the
_Standard_ or the _South Improvement_ to telegraph "_Wilkinson and Co._
have received a truck which only paid $41.50; screw them up to $57.50,"
and the order was executed.
The Charter of the _South Improvement_, which had even succeeded
in acquiring the right of expropriation in order to construct
its pipe-lines, was withdrawn under the pressure of indignant
oil-producers. But the Federal Government of the United States will
never succeed in crushing the _Standard Oil_.
Its Two Dissolutions--Roosevelt's Fight against the Standard Oil
Twice over, in 1892 and 1911, its constitution was judged illegal, but
in vain.
In 1892 the system of nine trustees was declared illegal by the Supreme
Court of Ohio. The trustees voted the dissolution of the Trust, but
continued to administer all the corporations in the same way until
1899. The Trust was apparently divided into twenty distinct companies;
the nine old trustees distributed the shares in such a way as to
possess the majority in each one. Thus they made sure, as before, of
unity of direction. Rockefeller had reversed the judgment of the court.
Here is the legal formula, which is dignified in its simplicity:
"John Rockefeller has placed in the hands of the said attorney
256,854/292,500 of the total shares held by the said trustees on July
1, 1892, in each of the companies whose shares were deposited."
Public-domain text, read in full here on John Shaqi.
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