Standard Oil Company; Trusts, Industrial -- United States
"We were threatened a great many times," the representative of the
steamboat company told Congress.[412] The steamboat men were put to
great expense and without proper cause. When the cases came to trial
they were completely cleared in every instance. But the prosecution had
done its work of harassing competition. The success of the campaign
of 1879 in Ohio was now repeated over a wider field. The attack of
1886, "in a period of five months," Rice said before Congress, "shut up
fourteen of my agencies out of twenty-four, and reduced the towns we
had been selling in from seventy-three to thirty-four."[413] This was a
loss in one year of 79 per cent., or about four-fifths of his business.
CHAPTER XVII
IN THE INTEREST OF ALL
The difference in freights against Rice was so great, as the Interstate
Commerce Commission found, after taking hundreds of pages of testimony,
that he had to pay $600 to $1200, "or more," on the same quantity his
opponent got through for $500. These discriminations were made, as the
commissioners say, "on no principle.... Neither greater risks, greater
expense, competition by water transportation, nor any other fact or
circumstance brought forward in defence, nor all combined, can account
for these differences."[414]
The railroads had, of course, to give some reason, and they put forward
the plea that it was much more expensive and dangerous to carry Rice's
shipments, which were in barrels, than those of the combination, which
were in tank-cars.[415] This excuse for charging him rates at which
he could not ship at all did not stand examination by the Interstate
Commerce Commission.
But he did not wait for that. When he found the railroads were so fond
of tank-cars, he set about getting them. He wrote the general freight
agent and the president of the road that he would build tank-cars, and
asked what his rate would be then; but he got no answer. He wrote other
roads, but got no answer. He asked the general manager of the Queen
City and Crescent Route the same question. After a correspondence of
five months with him and other officials, in which he was shuttlecocked
from one to another and back again, he had not only not succeeded in
getting any tank-car rates, but at the end of that protracted exchange
of letters the general manager wrote: "I was not aware that you had
asked for rates on oil in tank-cars."[416] Rice wrote the Louisville
and Nashville: "I will build immediately twenty tank-cars if you will
guarantee me ... as low a net rate as accorded any other shipper."
Commenting on his failure to get answers, the commissioners say:
"Complainant did not succeed in obtaining rates. The denial of his
right was plain, and stands unexcused.... What reason there may have
been for it"--the refusal of rates--"we do not know, but find that they
were not just or legal reasons."[417]
Public-domain text, read in full here on John Shaqi.
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