Standard Oil Company; Trusts, Industrial -- United States
How history is made! One of the reasons given by the solicitor of the
oil trust[418] for its success is its use of the tank-car, with the
obvious inference that its would-be competitors had no such enterprise.
And Peckham, in his valuable and usually correct "Census Report on
Petroleum," in 1885, says that the railroads require shippers to use
tank-cars![419]
Determined to keep in the field and to have tank-cars, if tank-cars
were so popular with the railroad officials, Rice went to the leading
manufacturers to have some built. He found they were glad to get his
contract. After making arrangements at considerable trouble and expense
to build him the cars, they telegraphed him that they had to give it
up. Bankers, who had promised to advance them money on the security of
the cars, backed out "on account of some supposed controversy which
they claim you have had with the Standard Oil Company and various
railroads in the West. They feared you could not use these cars to
advantage if the railroads should be hostile to your interests."[420]
Through the all-pervading system of espionage, to which cities[421]
as well as individuals were subject, his plans had been discovered
and thwarted. The espionage over shipments provided for by the
South Improvement scheme has now extended to business between
manufacturer and manufacturer. Why should it stop at unsealing private
correspondence in the post-office in the European style, and making its
contents known to those who need the information for the protection of
their rights to the control of the markets?
Rice, who was nothing if not indomitable, finally got ten cars from the
Harrisburg works. But this supply was entirely inadequate, and he had
to continue doing the bulk of his business in barrels. What a devil's
tattoo the railroad men beat on these barrels of his! They made him pay
full tariff rates on every pound weight of the oil and of the barrel,
but they hauled free the iron tanks, which were the barrels of his
rivals, and also gave them free the use of the flat-cars on which the
tanks were carried.[422] Hauling the tanks free, on trucks furnished
free, was not enough. The railroads hauled free of all charge a large
part, often more than half, of the oil put into the tanks. In the exact
phrase of the Interstate Commerce Commission, they made out their bills
for freight to the oil combination "regardless of quantity." This is
called "blind-billing."
Public-domain text, read in full here on John Shaqi.
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