Standard Oil Company; Trusts, Industrial -- United States
Of the thirteen members of the South Improvement Company which was to
be given this "complete monopoly," ten were found later to be active
members of the oil trust. They were then seeking that control of the
light of the world which it has obtained. Among these ten were the
president, vice-president, treasurer, secretary, and a majority of
the directors of the oil trust into which the improvement company
afterwards passed by transmigration. Any closer connection there could
not be. One was the other.
The ablest and most painstaking investigation which has ever been
had in this country into the management of the railroads found and
officially reported to the same effect:
"The controlling spirits of both organizations being the same."[67]
The freight rates were raised as agreed and without notice. Rumors had
been heard of what was coming. The public would not believe anything so
incredible. But the oil regions were electrified by the news, February
26, that telegrams had been sent from railroad headquarters to their
freight agents advising them of new rates, to take effect immediately,
making the cost of shipping oil as much again as it had been. The
popular excitement which broke out on the same day and "raged like a
violent fever" became a national sensation. The Titusville _Morning
Herald_ of March 20, 1872, announces that "the railroads to the oil
regions have already put up their New York freight from $1.25 to
$2.84, an advance of over one hundred per cent." Asked what reason
the railroads gave for increasing their rates, a shipper said, "They
gave no reason; they telegraphed the local roads to put up the rates
immediately." This advance, the superintendents of the railroads told
complaining shippers, had been made under the direction of the South
Improvement Company, and they had been instructed to make their monthly
collections of oil freights from that concern.
The evidence even seems to show that the South Improvement Company was
so anxious for the dance of death to begin that it got the freight
agents by personal influence to order the increased rates before the
time agreed upon with the higher officials. Strenuous efforts were
made to have the public believe that the contracts, though sealed,
signed, delivered, and put into effect, as the advance in rates most
practically demonstrated, had really not been put into effect. The
quibbles with which the president of the South Improvement Company
sought to give that impossible color to the affair before the committee
of Congress drew upon him more than one stinging rebuke from the
chairman of the committee.
"During your whole examination there has not been a direct answer given
to a question." "I wish to say to you," said the chairman, "that such
equivocation is unworthy of you."
Public-domain text, read in full here on John Shaqi.
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