Standard Oil Company; Trusts, Industrial -- United States
Between May and December, Sherman made his march from Lookout Mountain
to the sea, cutting the Confederacy in two. For thirty years the people
of Pennsylvania have been trying to break a free way to the ocean
through the Alleghanies and the oil combination, and in vain. For ten
years the hope of independent outlet to the sea from the oil-fields
of Pennsylvania lay prostrate under the blow of the surrender of the
Tidewater. Twice the people have tried again, only each time to be
headed off. The first of these two rallies collapsed in the shut-down
of 1887; the second was stopped at the cannon's mouth by an armed force
at Hancock, New York, in the year of peace, 1892.
By 1887 the people of the oil regions had recovered from the shock of
losing the independent Tidewater Pipe Line,[285] and began to make new
plans for getting to the sea. By some means the committee to whom they
had intrusted the management of the new enterprise was persuaded to go
to New York to confer with the officers of the oil combination, who had
measures of conciliation to propose that would make it unnecessary to
build the new pipe lines. This committee, and finally the constituency
it represented, were made to believe that the cause of the woes of the
oil country was simply and only that there was too much oil--not that
there were too many empty or half-filled lamps. They agreed to cut
down their business one-half, and were lured away from the project of
getting full prices on a full product. The outcome was the "shut-down"
of 1887. The producers were persuaded it would bring back oil to a
dollar a barrel--to stay there; but after a brief and unremunerative
spurt in values, a reaction, lasting to the present, carried prices to
a lower level than ever, and the producers found that the last state of
those who let such spirits enter them is always worse than the first.
Several times before this the oil producers had tried to imitate the
policy of scarcity, which the most brilliant business successes are
teaching to be the royal road to wealth. It is stated by the report of
the General Council of the Petroleum Producers' Union[286] that the
producers had twice entered into arrangements with the oil combination
to lessen the product and regulate the price of crude petroleum, and
that in each case the arrangement had been violated by the latter
when it seemed about to become profitable to the producer. Hence,
when invited to confer for a third venture of this sort, the Council
declined to do so. But in 1887 the invitation, extended for the fourth
time, was a third time accepted. The producers succeeded in the
restriction, but they did not better their condition. These men gave
the world the spectacle of the producers flirting with the solitary and
supreme buyer of their product, in the belief that he would help them
to raise their price against himself.
Public-domain text, read in full here on John Shaqi.
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