Standard Oil Company; Trusts, Industrial -- United States
The superiority of its barrels was specially mentioned by the head
of the oil combination to explain why all competitors failed. "All
its advantages," he said in court in Cleveland, "are legitimate
business advantages, due to the very large volume of supplies which
it purchases, its long continuance in the business, the experience it
has thereby acquired, the knowledge of all the avenues of trade, the
skill of experienced employés, the possession and use of all the latest
and most valuable mechanical improvements, appliances, and processes
for the distillation of crude oil, and in the manufacture of its own
barrels, glue, etc., by reason of which it is enabled to put the oil on
the market at a cost of manufacture much less than by others not having
equal advantages." But the Bremen congress made a special attack on the
"barrels" and "glue." It complained that "the continental petroleum
trade has suffered heavy losses on account of inferior barrels,"
and demanded that the oil combination should "only use barrels of
well-seasoned, air-dried, split (not sawed) white oak staves and
heads." It even particularized that the barrels should be "painted with
blue linseed-oil paint, and supplied with double, strong head-hoops,"
and "more carefully glued, and not filled until the glue is thoroughly
dry."
"They were substantially without competition," was said in explanation
of the poor quality of the product sent to Europe, and also "to all
parts of this country. The quality of the oil which they sent was not
a matter of first-class importance for them to retain their business."
It was "a negligence which came in a great measure from the absence of
competition." This witness was asked by the lawyer of the combination
if he meant the committee to understand that it "was committing suicide
by furnishing a continuously deteriorating article of oil to the
consumer."
"They were not committing suicide, because they had the business in
their own hands almost exclusively at that time."[594]
This was in 1879, and the complaints of the quality of American oil
sent abroad continue to this day. Export oil, the Interstate Commerce
Commission say, in 1892, "is an inferior oil."[595]
Public-domain text, read in full here on John Shaqi.
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