Standard Oil Company; Trusts, Industrial -- United States
All the arrangements had been concluded to the mutual satisfaction
of Rice and the Baltimore and Ohio Railroad. After this thorough
discussion of four months, in which every point had been examined,
Rice sends forward his first shipment December 1st. He is not a little
elated to have blazed his way out of the trackless swamp in which he
had been left by the other roads. His satisfaction is short enough. In
about a fortnight--on December 15th--the then general freight agent of
the Baltimore and Ohio telegraphed him that he could not be allowed
to ship any more. "We will have to withdraw rates on oil to Southern
points, as the various lines in interest"--the connections to which the
Baltimore and Ohio delivered the oil for points beyond its own line,
and which shared in the rates--"will not carry them out."
This was stunning. It nullified the labor of months which had been
spent in opening a way out of this blockade. It put the cup of ruin
again to the lips of the family at Marietta, innocent of all offence
but that of trying to make a living out of the industry of their
choice, and asking no favors, only the right to travel the public
highway on equal terms, and to stand in the open markets. The excuse
given was heavy-laden with inaccuracy. Rice immediately found out by
wire that the Piedmont Air Line, one of the most important of the
connections, had not refused to carry at the agreed rate. Its traffic
manager telegraphed the Baltimore and Ohio people to reconsider their
action, and continue taking Rice's oil. When asked first by Rice,
and afterwards by Congress, to name the lines which refused, as he
alleged, to carry out the rates he had agreed upon, the general freight
agent of the Baltimore and Ohio could not give one. He escaped from
Congress by promising to send its committee, "within a day or two,"
all the correspondence with these other companies. Once out of the
committee-room, he never sent a scrap of paper to redeem his promise,
and the whole matter was lost sight of by the committee.[406]
Rice, badly shattered, still sought and managed to find a few
long-way-around routes. He presented to Congress in 1888 a table
showing how he still managed to get to some of his markets. To
Birmingham, Alabama--the direct route of 685 miles, as well as the
Baltimore and Ohio, being closed to him--he shipped over seven
different railroads forward and backward 1155 miles. The rates of all
these roads added together made only $2.10 a barrel instead of $2.66,
to which the shorter line had raised its price, for the purpose, as
this comparison shows, not of getting revenue, but of cutting it off.
To get into Nashville he had to go around 805 miles over five different
lines instead of 502 miles, as usual, and still had a rate of $1.28
instead of $1.60.
Public-domain text, read in full here on John Shaqi.
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