Standard Oil Company; Trusts, Industrial -- United States
"Since Mr. Rice commenced shipping by water to Little Rock;" "the
average price independent of competition in Texas"--these are telltale
phrases. Where the combination was "independent of competition" the
price was one-third greater.
The committee of Congress which investigated trusts in 1889 gathered
a great deal of sworn evidence--the details of which remained
uncontradicted, and which were met only by general statements like
those quoted at the head of this chapter--showing how extortionate
prices had been charged until competition appeared, that in all cases
a war of extermination had been made upon those competitors, and that
when their business was destroyed prices were put up again. Losses in
competitive wars were merely investments from which to draw dividends
in perpetuity. The "cheapness" of the combination followed the
cheapness of competitors, and was merely a feint, one of the approaches
in a siege to overcome the inner citadel of cheapness, a strategic
cheapness to-day on which to build dearness forever. This battle of
prices is shown in a table covering fifty towns in Texas, Mississippi,
Louisiana, Alabama, Tennessee, Georgia, Kentucky, for three to five
years. The appearance of competitive oil, for instance, cut the prices
of oil from 15 cents a gallon down to 10 in Paris, Texas; from 25 to
15 in Calvert, Texas; from 22 cents to 10 in Austin, Texas; from 16 to
5 in Little Rock, Arkansas--evidently a war price; from 16 to 8-1/2
in Huntsville, Alabama; from 16 to 8 in Memphis, Tennessee, and so
on.[615] The committee of Congress submit pages of evidence of the
reimposition of high prices the moment competition was killed off.
If the combination found a rival dealer out of oil for only a day it
"popped the prices up 3-1/2 cents."[616] "One day," wrote one of the
dealers, "oil is up to 20 cents and over, and when any person attempts
to import here, other than the vassals 'of the oil combination,' it is
put down to 7 cents a gallon."[617]
Public-domain text, read in full here on John Shaqi.
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