Standard Oil Company; Trusts, Industrial -- United States
There was no end to the "mistakes" made by the railroads for the
"self-renunciation" of their business, though this was in favor of
those whose pipe line made them rivals. They charged more for kerosene
in barrels than for other articles of more value, contradicting
their own rule of charging what the traffic will bear. They let the
combination carry sixty-two gallons in every tank free on the theory
of leakage in transportation. "The practice," said the Commission, "is
so obvious and palpable a discrimination that no discussion of it is
necessary;" and they ordered it discontinued.[262]
Though the railroads brought back the tanks free, for the return of
the empty barrels they never forgot to charge. This charge was made so
high that at one time it prohibited the return from all points.[263]
"The monopoly uses a large number of barrels in New York City," the
independents said to the Commission; "it is to its interest that empty
second-hand barrels should not be returned to the inland refiner." When
this was brought out the Pennsylvania and other railroads promised to
make reparation, but had not done so years later when the case was
still "hung up" in the Interstate Commerce Commission.
It was not lack of capital or of diligence that made the independents
use barrels instead of tanks; tanks were useless to them. All the
oil terminal facilities of the railroads at the seaboard had been
surrendered to the combination for its exclusive use.[264] These were
the only places where tank-cars could be unloaded into steamers. "There
are no facilities to which we, as outside refiners, have access to load
bulk oil into vessels," and none where these refiners could send oil in
tank-cars to be barrelled for shipment abroad.[265] No matter how many
tank-cars and tank-vessels the independents might have provided, they
could not have got them together. Between the two were the docks in the
unrelenting grip which held solely for its private use the shipping
facilities of these public carriers. Not even oil in barrels could the
independents get through these oil docks.
The Weehawken oil docks of the Erie road on New York harbor are the
best in the world. The Erie Railroad has $920,760 invested in them, but
only one shipper can use them either for tanks or barrels.
The Western traffic manager of the Erie was asked:
"Would you take a shipment there over the Erie road of independent oil
consigned to the New York docks?"
"No, sir."[266]
Public-domain text, read in full here on John Shaqi.
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