Standard Oil Company; Trusts, Industrial -- United States
The Toledo companies got from the city as a free gift a franchise
worth hundreds of thousands of dollars, on condition that they would
supply Toledo before a certain date. But in the midst of the work of
laying pipes they suspended operations, and declared that they would
do nothing more unless the City Council fixed, at rates dictated by
them, the prices the people were to pay. These rates were enough
to pay not only a fair dividend, but to return in a few years every
dollar of capital invested in lands, pipes, etc. Later they demanded
another increase which, according to the sworn statement by their
superintendent of the amount of gas supplied daily, would have
amounted to $351,362.50 a year. They made the charges regardless of
the ordinance, and used delay in furnishing gas as a means to make
people willing to pay these illegal rates. Consumers seeking to renew
their contracts were informed that the price would be doubled. The
companies had assured the people that they should get their heat at
half the price of coal; but when the bills were footed up, the gas in
many cases cost more than coal. The companies refused to supply fuel
to an oil refinery which had been built in Toledo in opposition to the
trust refineries. The companies discriminated against some customers,
and in favor of others. The power to say which manufacturer should
have cheaper fuel than his competitor was a power to enact prosperity
or ruin.[513] It was a power to force themselves into control of any
business they desired to enter.
Those who controlled these gas companies appeared in the Circuit Court
of the city in a proceeding which alone contained warning enough to
put any self-governing community on guard. The Court was asked to deny
the right of farmers in Wood County to give a way over their lands to
the Toledo, Findlay, and Springfield Railway, being built to give the
independent oil-refiners and producers of the Ohio oil-field a route to
market. The farmers in question had made leases to an oil corporation
of the trust, giving only the specific right to bore for and pipe and
store oil and gas. The farmers supposed that they had parted only with
what they had signed away in the leases. They supposed they still owned
their farms. When the new railroad sought the privilege of a right of
way the farmers granted it. Suit was at once brought for an injunction
to prevent this use of the land. According to the logic of the claim
in these cases a farmer who has made such a lease could not build a
road across his own farm without permission. "Most certainly not," was
the reply made by one of the lawyers to the judge who asked if the
farmer could do so.
Public-domain text, read in full here on John Shaqi.
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