Standard Oil Company; Trusts, Industrial -- United States
"Do you do that in any business except oil?" the most distinguished
railroad man of that day was asked. "Do you carry a raw product to
a place 150 miles distant and back again to another point like that
without charge, so as to put them on an equality?"
To which he replied--it was he who could not remember that he had ever
seen the South Improvement Company contract he signed in 1872--"I don't
know."[128]
"Could any more flagrant violation of every principle of railroad
economy and natural justice be imagined than this?" the report of the
New York Legislature asks.[129]
An expert introduced by the railroads defended this arrangement. He
insisted that all pipe lines had a chance to enter the pool and get the
same refund.[130] But a witness from the pipe-line country, who was
brought to New York to testify to the relations of the railroads and
the oil combination, let out the truth.
"Why didn't they go into the pool?" he was asked, in reference to one
of the most important pipe lines.
"Because they were not allowed to. They wanted to freeze them out. They
were shut out from the market practically."[131]
For these enterprises, as they failed one after the other, there was
but one buyer--the group of gentlemen who called themselves the South
Improvement Company in 1872, but now in the field of pipe-line activity
had taken the name of United Pipe Line, since known as the National
Transit Company, and then and now a part of the oil trust.
"The United Pipe Line bought up the pipes as they became bankrupt one
after another," testified the same friendly witness.[132]
Then came a great railroad war in 1877. A fierce onslaught was made on
the Pennsylvania Railroad by all the other trunk lines.
In this affair, as in all dynastic wars, the public knew really nothing
about what was being done or why. The newspapers were filled with the
smoke of the battles of the railroad kings; but the newspapers did not
tell, for they did not then know, that the railroads were but tools of
conquest in the hands of greater men.
The cause of the trouble was that the managers of the Pennsylvania
Railroad had begun to reach out for the control of the oil trade.
They had joined in the agreement in 1872 to give it to the oil
combination, but now they wanted it for themselves. Through a mistletoe
corporation--the Empire Transportation Company--they set to work
building up a great business in oil cars, pipe lines, refineries.
Public-domain text, read in full here on John Shaqi.
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