Standard Oil Company; Trusts, Industrial -- United States
Rice was "got rid of" at Columbus just as effectually as if Ruskin's
"Money-bag Baron," successor of "the Crag Baron," stood across the road
with a blunderbuss. His successful rival had but to let its Marietta
refineries lie idle, and transfer to its refineries at Wheeling its
Marietta business--and Rice's too. By the pooling of the earnings
and of the control of all its refineries--the essential features of
the combination--its business could be transferred from one point
to another without loss. One locality or another could be subjected
to ruinous conditions for the extermination of competitors, and the
combination, no matter how large its works there, would prosper without
check. It gets the same profit as before, but the competitor by its
side is ruined. All its refineries along a given railroad can be closed
by high rates made to "overcome competition," but profits do not cease.
Their business is done elsewhere by its other refineries, and all the
profits go into a pool for the common benefit.
From Rice's point of view, Marietta was the storm-centre; but the
evidence before the Ohio Legislative Investigation of 1879, before the
Legislative Committee of New York of 1879, before Master in Chancery
Sweitzer in Pennsylvania, and in the suit against the Lake Shore
Railroad, showed that the low barometer there was part of a disturbance
covering a wide area. The demonstration against the independent
refiners of Marietta was only part of a wider web-spinning, in which
those at all points--New York, Boston, Philadelphia, Pittsburg, Oil
City, Titusville, Buffalo, Rochester,[363] and Cleveland--were to be
forced to "come in" as dependents, or sell out, as most of them did.
That rates were not raised from points controlled by the combination
is only part of the truth. At such places rates were lowered. This,
like the increase of rates, was done at a secret conference with the
oil combination and at its instance.[364] Where it had refineries the
rates were to be low; the high rates were for points where it had
competitors to be got rid of without the expense of buying them up. The
independents knew nothing of the increase of freights prepared for them
by the railroad managers and their great competitor until after, some
time after, it had gone into effect.
The railroad company gave notice to their rivals what the rates were
to be, but withheld that information from them.[365] That was not all.
Before the new rates were given all the old rates were cancelled. "For
a few days," said an independent, "we could not obtain any rates at
all. We had orders from our customers, but could not obtain any rates
of freight."
As to many places, the withholding of rates continued. "There's many
places we can't obtain any rates to. They just say we sha'n't ship to
these other places at any price."[366]
Public-domain text, read in full here on John Shaqi.
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