Standard Oil Company; Trusts, Industrial -- United States
The South Improvement Company was formed January 2d. The agreement
with the railroads was evidently already worked out in its principal
details, for the complicated contracts were formally signed, sealed,
and delivered January 18th. The agreed increase of freights went into
effect February 26th. The pacific insurrection of the people began
with an impromptu mass-meeting at Titusville the next day, February
27th. Influential delegations, or committees, on transportation,
legislation, conference with press, pipe lines, arresting of drilling,
etc., were set to work by the organization thus spontaneously formed
by the people. A complete embargo was placed on sales of oil at any
price to the men who had made the hateful bargain with the railroads.
The oil country was divided into sixteen districts, in each of which
the producers elected a local committee, and over all these was
an executive committee composed of representatives from the local
committees--one from each. No oil was sold to be used within any
district except to those buyers whom the local committee recommended;
no oil was sold to be exported or refined outside the district, except
to such buyers as the executive committee permitted. One cent a barrel
was paid by each producer into a general fund for the expenses of the
organization.
Steps were taken to form a company with a capital of $1,000,000,
subscribed by the producers, to advance money, on the security of their
oil, to those producers who did not want to sell.
Able lawyers were employed and sent with the committees to all the
important capitals--Harrisburg, Washington, the offices of the railway
companies. The flow of oil was checked, the activities of the oil world
brought near a stop.
Monday, March 15th, by the influence of the Washington committee,
a resolution was introduced into the House of Representatives by
Representative Scofield, ordering an investigation of the South
Improvement Company. Immediately upon this the frightened participants
cancelled the contracts. By the 26th of March the representatives
of the people had secured a pledge in writing from the five great
railroads concerned of "perfect equality," and "no rebates, drawbacks,
or other arrangements," in favor of any one thereafter. March 30th,
Congress began the investigation which brought to light the evidence
of the contracts, and meanwhile the committees on legislation and pipe
lines were securing from the Pennsylvania Legislature the repeal of
the South Improvement Company charter, and the passage of a "so-called"
Free Pipe Line law, discovered afterwards to be worthless on account of
amendments shrewdly inserted by the enemy.
Public-domain text, read in full here on John Shaqi.
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