Standard Oil Company; Trusts, Industrial -- United States
"Yes, sir; almost entirely.... I was selling in Chicago, and it cut
trade entirely off."[370]
"Before the rates were changed did you run to your full capacity?"
"Yes, sir; about that."[371]
At one stroke the independents lost the business which it had cost them
years of work to get. As the testimony of witness after witness showed,
the merchants who had been their customers in Chicago, Columbus, and
other places, now had to send their orders to those for whose benefit
the railroad men had raised the rates. This sweeping change was not due
to any change in their desire to sell, or of their old customers to
buy. They could still make oil which was still wanted. But they were
the victims of a competitor who had learned the secret of a more royal
road to business supremacy than making a better thing, or selling it
at a better price. Their better way was not to excel but to exclude.
When their "secretary" was called before the Ohio Legislature, after
this freight ambuscade had transferred the bulk of the business of
the independent refineries at Marietta to him and his associates, he
declared that the sole cause of their success was the "large mechanical
contrivances" of the combination, its "economy," and its production of
the "very best oil." "With an aggregation of capital, and a business
experience, and a hold upon the channels of trade such as we have, it
is idle to say that the small manufacturer can compete with us; and
although that is an offensive term, 'squeezing out,' yet it has never
been done by the conjunction of any railroads with us."[372]
The small manufacturer did compete and flourish until these railroad
men literally switched him out of the market. He competed and got his
share of the business, until the men who wanted monopoly, finding that
they had no monopoly of quality or price or business ability, resorted
to the "large mechanical contrivance" of inducing the managers of
the railroads to derail the independent, throwing him off the track
by piling impassable freight tariffs in his way. The successful men
secured their supremacy by preventing their competitors from entering
the market at all. Instead of winning by "better" and "cheaper," they
won by preventing any competitor from coming forward to test the
questions of "better" and "cheaper." Their method of demonstrating
superiority has been to prevent comparisons.
Public-domain text, read in full here on John Shaqi.
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