Standard Oil Company; Trusts, Industrial -- United States
This Buffalo competitor was a very modest affair, insignificant in
capital and resources, but it cut down the price of oil as far away as
Boston. It established there an agent who "went around" and "cut the
prices down," and then the agent of the combination "went around and
cut the prices further," as its Boston employé described it. He was
instructed, he said, "to follow them down, ... only not to sell at a
loss." Before this competitor came he had been selling oil as high as
20 cents a gallon. "We got the price down to 18 cents, and got down
then, I believe, to 8 cents, so that I have been selling them since
then at 8 cents."[611] Eight cents, then, was not at a loss--since
he had been told "not to sell at a loss"--and yet these passionate
pilgrims of cheapness had been making the Boston buyer pay 20 cents!
"I have been selling since at 8 cents," he says. This testimony was
given in 1886; the reduction to 8 cents from 20 was made in 1882. Four
years' consumption of this oil had been given to the buyer in Boston at
8 cents a gallon instead of 20, in consequence of the entrance of so
insignificant a competitor.
When a member of the trust was testifying before the New York courts,
he referred to the competition of the independent of Marietta as "his
power for evil." Asked to define what he meant by his phrase "power
for evil," he said, "It was to make prices that would be vexatious
and harassing." He was asked if it harassed the oil trust, and the
corporations connected with it, to have prices in any part of the
country lower than they fixed.
"Lower than a reasonable basis."
"What they consider a reasonable basis?"
"Yes."[612]
That we can understand. But we cannot understand what the president of
the trust meant when he said, "We like competition," for that would
imply a natural proclivity for fellowship with the power of evil.
"Who fixes the price of oil in New York?" was asked of one of the
witnesses before the Interstate Commerce Commission at Washington. That
was done, he said, by the selling agent of the oil combination. He "has
the price marked in the New York Produce Exchange daily--the price at
which they will sell oil."[613] When the vice-president of the company
representing the trust in St. Louis and the Southwest was on the stand
before the Interstate Commerce Commission, he was asked what was the
price of oil in the territory in which he was operating. The price of
oil in tank-cars, in Arkansas, he said, "is now and has been during
about three years or more--since Mr. Rice commenced shipping by water
to Little Rock--10 cents per gallon. The average price, independent of
competition, which I suppose is what you want, in the State of Texas is
about 13 cents per gallon in bulk, covering the whole State of Texas.
The average price per barrel would be about 17 cents, and the average
price in cases about 20 cents."[614]
Public-domain text, read in full here on John Shaqi.
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