Standard Oil Company; Trusts, Industrial -- United States
"One of the questions was, 'What was the result of last year's
business?' The other was, 'A transcript of the daily shipments, with
net prices received from the same; what is the cost for manufacturing
outside of the crude; the kind of gasoline and naphtha made, and
the net prices received for the same; what they do with tar and the
percentages of the same; what per cent. of water white and what per
cent. of Michigan water white; how much oil exported last year?' This
information, as fast as received, to be mailed to Box 164, Cleveland
post-office.... He (the book-keeper) made an affidavit of it, and I
took the money back myself personally."[95]
When orders came in for more oil than the limit put upon them, the
"reconcilees," asserting their commercial manhood, went on refining
to supply the demands of the public instead of the commands of the
clique. They contended that they were not bound by the limitation, and
in this were afterwards upheld by the court; but, meanwhile, they were
called to account and frightened into another "reconciliation." He was
present, the chief reconciler told the court, at the interview in which
they "agreed to diminish their manufacture ... to bring the entire
amount within the terms" of the contract.
But again they began to refine to supply the needs of the people
evidenced by the market demand. Then their supply of crude was shut
off. Their suzerain owned the pipe line to Cleveland. When its escaping
victims got around that difficulty, it took its "contract" to the
courts.
To shut these competitors down to half their capacity, and to reconcile
and equalize interests by taking half of all they made on that was
merely an incident, collateral to the grander plan, the vaster
"adventure," of getting all the profits of that greater field out
of which these competitors were barred altogether. Such contracts as
these, its counsel said, were made with refiners all over the country.
The chief profit of the adventure lay, not in the divided profits of
the picayune business it let the vassals do, but in the undivided
profits of the empire kept for itself. Why should the reconciler hurry
with expensive lawyers into court for a summary injunction to prevent a
"reconcilee" from making more oil, when the reconciler, who toiled not
nor spun, was to get half of the gain of $2.05 on every barrel of it?
Why, but that every "co-operative" barrel so made would displace in the
markets a barrel, all the profits of which went to it.
The "reconcilees" were called into court. A judge was asked to issue
an injunction forbidding them to depart from the strict letter of the
contract.
They have been refining more than 85,000 barrels of oil a year, was the
complaint.
They "threaten to distil crude petroleum without regard to
quantity."[96] They are "parties in rebellion," said the lawyers. The
judge said, No. This is a contract in restraint of trade, and released
those who were in its toils.
Public-domain text, read in full here on John Shaqi.
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