Standard Oil Company; Trusts, Industrial -- United States
It was before the Committee of Commerce of the National House of
Representatives in 1872 that the first authentic evidence was obtained
of the cause of the singular ruin which was overwhelming so fair a
field. This investigation in 1872 was suppressed after it had gone
a little way. Congress said, Investigate. Another power said, Don't
investigate. But it was not stopped until the people had found out that
they and the production, refining, and transportation of their oil--the
whole oil industry, not alone of the valleys where the petroleum was
found, but of the districts where it was manufactured, and the markets
where it was bought and sold, and the ports from which it was shipped
abroad--had been made the subject of a secret "contract"[53] between
certain citizens. The high contracting parties to this treaty for the
disposal of an industrial province were, on one side, all the great
railroad companies, without whose services the oil, crude or refined,
could not be moved to refineries, markets, or ports of shipment on
river, lake, or ocean. On the other side was a body of thirteen men,
"not one of whom lived in the oil regions, or was an owner of oil wells
or oil lands," who had associated themselves for the control of the oil
business under the winning name of the South Improvement Company.[54]
By this contract the railroads had agreed with this company of citizens
as follows:
1. To double freight rates.
2. Not to charge them the increase.
3. To give them the increase collected from all competitors.
4. To make any other changes of rates necessary to guarantee their
success in business.
5. To destroy their competitors by high freight rates.
6. To spy out the details of their competitors' business.
The increase in rates in some cases was to be more than double.[55]
These higher rates were to be ostensibly charged to all shippers,
including the thirteen members of the South Improvement Company; but
that fraternity only did not have to pay them really. All, or nearly
all, the increase it paid was to be paid back again--a "rebate."[56]
The increase paid by every one else--"on all transported by other
parties"--was not paid back. It was to be kept, but not by the
railroads. These were to hand that, too, over to the South Improvement
Company.
Public-domain text, read in full here on John Shaqi.
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