Standard Oil Company; Trusts, Industrial -- United States
Rice's welcome among the people would not verify his opponent's
estimate that his vassalage included all but one-tenth of one dealer
in every hundred. From all parts came word of the anxiety of the
merchants to escape from the power that held them fast. From Texas:
"Most of our people are anxious to get clear." From Arkansas: "The
merchants here would like to buy from some other." From Tennessee: "Can
we make any permanent arrangement with you by which we can baffle such
monopoly?" From Kentucky: "I dislike to submit to the unreasonable
and arbitrary commands." From Mississippi: "It has gouged the people
to such an extent that we wish to break it down and introduce some
other oils." From Georgia, from different dealers: "They have the
oil-dealers in this State so completely cooped in that they cannot
move." "We are afraid."[380] As Rice went about the South selling oil
the agents of the cutter "to the bone" would follow, and by threats,
like those revealed in the correspondence described below, would coerce
the dealers to repudiate their purchases. Telegrams would pour into
the discouraged office at Marietta: "Don't ship oil ordered from your
agent." "We hereby countermand orders given your agent yesterday." One
telegram would often be signed by all the dealers in a town, though
competitors, sometimes nearly a dozen of them, showing that they were
united by some outside influence they had to obey.[381]
Where the dealers were found too independent to accept dictation,
belligerent and tactical cuts in price were proclaimed, not to make
oil cheap, but to prevent its becoming permanently cheaper through
free competition and an open market. Rice submitted to Congress
letters covering pages of the Trust Report,[382] showing how he had
been tracked through Tennessee, Missouri, Nebraska, Georgia, Kansas,
Kentucky, Iowa, Mississippi, Louisiana, Texas, Arkansas, Alabama.
The railroads had been got to side-track and delay his cars, and the
dealers terrorized into refusing to buy his oils, although they were
cheaper. If the merchants in any place persisted in buying his oil
they were undersold until they surrendered. When Rice was driven out
prices were put back. So close was the watch kept of the battle by the
generals of "co-operation" that when one of his agents got out of oil
for a day or two, prices would be run up to bleed the public during
the temporary opportunity. "On the strength of my not having any oil
to-day," wrote one of Rice's dealers, "I am told they have popped up
the price 3-1/2 cents."[383]
The railroad officials did their best to make it true that "the poor ye
have with you always." By mistake some oil meant for the combination
was delivered to Rice's agent, and he discovered that it was paying
only 88 cents a barrel, while he was charged $1.68, a difference of 80
cents a barrel for a distance of sixty-eight miles.
"Could you stand such competition as that?"
Public-domain text, read in full here on John Shaqi.
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