Standard Oil Company; Trusts, Industrial -- United States
Such was the story told to the Interstate Commerce Commission, in many
hundred pages of testimony, by the refiners of Oil City and Titusville,
who appealed to it for the justice "without expense, without delay, and
without litigation" promised the people when the Interstate Commerce
Commission was created.[274] The game, of which you have perhaps
been able to get a dim idea from the printed page, the Commissioners
saw played before them like chess with living figures. For years
the principal subject of their official investigations had been the
manoeuvres of the oil ring. They had been compelled by the law and
the facts to condemn its relation with the railroads in language of
stinging severity, as every court has done before which it has been
brought. Better than any other men in the country, except the men in
the ring, the Commissioners knew what was being done. They comprehended
perfectly who the "seaboard refiners" were whose demand that their
competitors should be shut out of Europe and New England was better law
with the Pennsylvania Railroad than the decisions of the Commission.
They needed no enlightenment as to the purpose of the secret contract
between the members of the oil trust and the Pennsylvania, nor any
instruction that the "pool" between the pipe line and the railroad was
as hostile to the public interest as any pool between common carriers.
The chairman of the Commission had openly hinted that the relations of
the oil trust and the railroads were collusive, and that the spring
from which they flowed was a secret contract.[275] It was shown to the
Commission that at the same time the railroads advanced their rates the
oil combination bid up the price of the raw material of the Titusville
and Oil City refineries. This is called "advancing the premium."[276]
The raise of the freight rate added 14 cents a barrel to the cost of
production, and the increased price of oil put on 12 cents more, either
item large enough to embarrass competition. The Interstate Commerce
Commission in its decision recognized the practical simultaneity of
the three movements to the disadvantage of the independent refiners:
(1) the bidding up of the price of crude oil against them; (2) the new
rule of charging for the weight of the barrel; and (3) the abrogation
of the through rates to New England. These three things occurred in a
period of about two months. This, the Commission says, lends color to
the charge that there was concert of action between the combination and
the railroad.
Public-domain text, read in full here on John Shaqi.
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