Standard Oil Company; Trusts, Industrial -- United States
The agreement which was made with the producers was shown before
Congress.[287] The producers were bound for a year from November 1,
1887, "to produce at least 17,500 barrels of crude petroleum less per
day," and to make it, if possible, "30,000 barrels less per day." In
return for this the oil combination agreed to give the speculative
profits on 6,000,000 barrels of oil--the profits on 5,000,000 for
them, and on 1,000,000 for their laborers. This move of those who want
petroleum cheap to make it dear is one of the equivocations of policy
in which princes have always distinguished themselves. The need of
the hour was to stop the building of the competing pipe line. That
was accomplished by the scheme of the shut-down, which amused the
producers, and, as subsequent prices proved, did not hurt the buyer of
their oil; quite the contrary.
Drills and pumps at once ceased their operations throughout the oil
regions. Working-men were thrown out of employment, stores were closed,
hundreds of families had to subsist on charity. One of the Broadway
producers who made this bargain for the shut-down admitted to the
committee of the New York Legislature that "the oil-producing interest
was abnormally depressed," and "that there was great distress."[288]
The agreement itself recites that the price of petroleum had been
during the preceding year "largely below the cost at which it was
produced." The people of the oil country went to work with desperation
to enforce the policy of oil famine. Committees were formed among the
well-drillers in each district, "whose duty," the formal papers of
organization stated, "shall be to keep a lookout for and endeavor to
prevent the drilling of wells." "We have no way of stopping those who
want to drill wells," one of the officers of the organization said,
"only by good, reasonable talk." The Well-drillers' Union appointed
and paid one of their members to reason with people who insisted upon
digging wells. It is not necessary to question the good faith of the
assurance their officials gave Congress that his duties did not require
the use of nitro-glycerine. But, "unofficially," nitro-glycerine was
freely used to enforce the shut-down. Men who failed to feel the
influence of the "good talk," and went on putting up machinery, and
drilling wells, would find their derricks blown into kindling-wood.
Referring to one of these occurrences, a member of the Well-drillers'
Union told Congress it was a case where no permission had been granted
by the union to drill.
"Was the rig destroyed?" he was asked.
"The derrick was blowed up by some kind of compound."
The quantity of the "compound" was enough to shake windows six miles
distant. The derrick and the machinery were "cheapened" into junk.
"Did you ever know of a case of any man's derrick and apparatus being
blown up in the oil region before the formation of this association?"
one of the shut-downers was asked.
"I could not say that I do."[289]
Public-domain text, read in full here on John Shaqi.
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