Standard Oil Company; Trusts, Industrial -- United States
They "are threatening," his Nashville agent, after the screw was
turned, wrote Rice, "to ruin us in our business."[391]
The head of the Louisville "bone-cutters," when a witness before
Congress during the trust investigation, stigmatized the action of his
Nashville victims as "black-mail." They were "black-mailers" because
they had sold a competitor's oil, and refused to continue to sell
his own unless it was made as cheap or cheaper. Competition, when he
practised it on others, was "sympathetical co-operation." Tried on
him, it was "black-mail." "That man wanted us to pay him more than we
paid the other jobbers"--_i.e._, he wanted them to meet the prices of
competitors "because he thought we had the market sustained, and he
could black-mail us into it. I bluffed him in language, and language is
cheap."[392] The "language" that could produce an advance of freights
of 50 per cent. in five days against a competitor was certainly "cheap"
for the man whose rates remained unchanged, and who thereby absorbed
his neighbor's vineyard. The inevitable result followed at last. Rice
fought out the fight at Nashville seven years, from 1880 to 1887; then,
defeated, he had to shut up his agency there. That was "evacuation day"
at Nashville. It was among his oldest agencies, he told Congress, "and
it was shut out entirely last year on account of the discriminations. I
cannot get in there."[393]
State inspection of oil and municipal ordinances about storage have
been other "screws" that have been turned to get rid of competition.
City councils passed ordinances forbidding oil in barrels to be stored,
while allowing oil in tanks, which is very much more dangerous, as
the records of oil fires and explosions show conclusively. His New
Orleans agent wrote Rice concerning the manoeuvres of his pursuer: "He
has been down here for some time, and has by his engineering, and in
consequence of the city ordinances, cut me out of storage. As matters
now stand, I would not be able to handle a single barrel of oil."[394]
In Georgia the law was made so that the charge to the oil combination
shipping in tank-cars was only half what it was to others who shipped
in barrels. The State inspector's charge for oil in tanks was made 25
cents a barrel; for oil in barrels it was 50 cents a barrel. But as if
that was not advantage enough, the inspector inspected the tanks at
about two-thirds of their actual capacity. If an independent refiner
sent 100 barrels of oil into the State, he would have to pay $50 for
inspection, while the oil combination sending in the same would pay
but 25 cents a barrel, and that on only 66-2/3 barrels, or $16 in all.
This difference is a large commercial profit of itself, and would
alone enable the one who received it to sell without loss at a price
that would cripple all others. In this State the chief inspector had
the power to appoint inspectors for the towns. He would name them only
for the larger places, where the combination had storage tanks. This
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account