Standard Oil Company; Trusts, Industrial -- United States
"We like competition; we like our competitors; we are neighbors and
friends, and have been all these years," the president of the oil
trust testified to the New York Legislature,[133] but he served notice
upon this competitor to abandon the field.[134] He and his associates
determined to do more than compel the great railroad to cease its
competition. They determined to possess themselves of its entire oil
outfit, though it was the greatest corporation then in America. This,
the boldest stroke yet attempted, could be done only with the help of
the other trunk lines, and that was got.
The ruling officials of the New York Central, the Erie, the Baltimore
and Ohio, the Lehigh Valley, the Reading, the Atlantic and Great
Western, the Lake Shore railroads, and their connections, were made to
believe, or pretended to believe, that it was their duty to make an
attack upon the Pennsylvania Railroad to force it to surrender.[135]
"A demand," says the New York Legislative Committee of 1879, "which
they"--the railroads--"joined hands with the Standard Oil Company and
proceeded to enforce by a war of rates, which terminated successfully
in October of that year" (1877).[136]
The war was very bitter. Oil was carried at eight cents a barrel less
than nothing by the Pennsylvania.[137] How low the rates were made by
the railroads on the other side is not known. The Pennsylvania was the
first to sue for peace. Twice its vice-president "went to Canossa,"
which was Cleveland. It got peace and absolution only by selling its
refineries and pipe lines and mortgaging its oil cars to the oil
combination. It "was left without the control of a foot of pipe line to
gather, a tank to receive, or a still to refine a barrel of petroleum,
and without the ability to secure the transportation of one, except
at the will of men who live and whose interests lie in Ohio and New
York."[138]
It was only seven years since the buyers had organized with a
capital of $1,000,000. Now they were able to give their check for
over $3,000,000 for this one purchase. "I was surprised," said Mr.
Vanderbilt to the New York Legislative Committee of 1878, speaking
of this transaction, "at the amount of ready cash they were able to
provide." They secured, in addition to the valuable pipe lines, oil
cars, and refineries in New York and Pennsylvania, the more valuable
pledge given by the Pennsylvania Railroad that it would never again
enter the field of competition in refining, and also a contract
giving the oil combination one-tenth of all the oil freights received
by the Pennsylvania Railroad, whether from the combination or its
competitors--an arrangement it succeeded in making as well with the New
York Central, Lake Shore, and other railroads.[139]
Public-domain text, read in full here on John Shaqi.
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