Standard Oil Company; Trusts, Industrial -- United States
Matthews turned to the railroads connecting Buffalo with the oil
country. They all put up their rates. At the increased rates they
would not bring him enough to keep him going; they would not give him
cars enough, and told him they would not let him put his own cars on
the road. Even the lake steamers raised their rates against him. The
farmer-refiner was taking his lesson in the course which had driven
his first employer to dig oil-wells because "there were restrictions
in the shipments." Cut off from a supply by either pipe or rail at
Buffalo, Matthews made an alliance with the Keystone Refinery in the
oil regions. War was now made upon the Keystone. It was finally ruined.
Packs of lawyers were set upon Matthews, and they finally brought
him down. An attorney appeared before a judge and made a motion that
the property of Matthews' company be taken out of Matthews' hands
and be placed in the charge of a receiver, as officer of the court,
to secure a debt due a Buffalo bank. This done, the lawyer appeared
before the judge who afterwards decided that $250 fine was punishment
enough for criminal conspiracy, with an offer from the monopoly to
pay $17,300 for the discontinuance of the suits for damages which
Matthews had instituted, and $63,700 for all the other assets. The
other creditors and all the stockholders opposed the motion, but the
judge granted it. There were two suits. One had produced a verdict of
$20,000, and the other one for $250,000 was brought on the new and
much stronger evidence secured in the criminal trial. As to the value
of the property, Matthews had brought his enterprise to the point
where it was worth $20,000 a year. It was capable of producing many
times that amount of profit. Had not Albert been enticed away, the new
works would have yielded a profit of over $100,000 the first year.
They had a capacity of 70 to 80 barrels a day of lubricating oil,
and the profit was $5 to $6 a barrel at the time Matthews and Albert
went into the business.[506] The judge, overruling a majority of the
creditors, ordered the receiver to accept the offer. He gave as his
reason for selling these damage suits that a criminal prosecution had
already taken place for the same offences, and a person could not be
punished twice for the same offence. As they had not yet been punished,
this meant, if it meant anything, that the suits were to be sold out
for this inconsiderable sum, and the guilty men were to get their
punishment in the sentence he was to pass upon them in the criminal
court.
Public-domain text, read in full here on John Shaqi.
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