Standard Oil Company; Trusts, Industrial -- United States
In defence of the discrimination against the barrel shippers, a great
deal has been made of danger from fire, damage to cars from leakage,
and trouble of handling in the case of barrel shipments, but the best
expert opinion which the Interstate Commerce Commission could get
went against all these plausible pretences.[431] The manager of the
tank line on the Pennsylvania roads showed that the risks were least
when the transportation was in barrels. Another reason given for the
lower rates on tanks was that they returned loaded with turpentine
and cotton-seed oil from the South; but, as the Interstate Commerce
Commission shows, this traffic was taken at rates so astonishingly low
that it was of little profit;[432] and the commissioner of the Southern
Railway and Steamship Association informed the Commission that the
return freight business in cotton alone, brought back by the box-cars,
to say nothing of other freight, was worth more than these back-loads
of turpentine in the tank-cars.[433] It was, consequently, the box-car
in which barrel shipments were made, and not the tanks, on which the
railroad men should have given a better rate, according to their own
reasoning. Turpentine and cotton-seed oil are worth three or four times
more than kerosene, and it costs no more, no less, to haul one than the
other; but the railroads would carry the cotton-seed oil and turpentine
for one-third or one-fourth the rate they charged for kerosene. The
Commission could not understand why the rates given by the roads on
these back-loads of turpentine and cotton-seed oil were so low. "This
charge, for some reason not satisfactorily explained to the Commission,
is made astonishingly low when compared with the charge made upon
petroleum, although the cotton-seed oil is much the more valuable
article."[434]
The newspapers of the South have contained many items of news
indicating that the men who have made the oil markets theirs have
similarly appropriated the best of the turpentine trade, but nothing is
known through adjudicated testimony. The trustees of oil have always
denied that there was any connection between them and the Cotton-seed
Oil Trust, although the latter shipped its product in the oil trust's
cars. The reasons, therefore, for the "extraordinarily low" rates made
on the turpentine and cotton-seed oil shipped North in its tank-cars
must remain, until further developments, where the Commission leaves
it--"not satisfactorily explained." The railroads said they made
the rates low for tanks because of the enticing prospects of these
back-loads, in which there was no profit to speak of; but they
extended these special rates to points from which there was no such
back-loading.[435] Rice saw how the cost of sending his oil South could
be reduced by bringing back-loads of turpentine at these "astonishingly
low" rates. He found there was still turpentine in the South he could
buy; but the railroads would not so much as answer his application for
rates.
Public-domain text, read in full here on John Shaqi.
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