Standard Oil Company; Trusts, Industrial -- United States
There was only one important member in Pennsylvania of the oil
combination who could be caught with a subpoena. At his first
appearance in court, on the witness stand, he took lofty ground.
"I decline to answer."[154]
Put on the stand again, he was asked:
"Were you allowed a rebate amounting to 64-1/2 cents per barrel?"
"No, sir; not to my knowledge."[155]
Put on the third time and compelled to produce his books, he had to
read aloud in court the entries showing the payment he had thus denied
under oath.
"There was a total allowance of 64-1/2 cents per barrel."[156]
And then he shut up again--but too late; and to all other questions
about his rebates said, gloomily, "I decline to answer."
When the president of the oil trust was asked afterwards by the New
York Legislature if some company or companies embraced within it had
not enjoyed from railroads more favorable freight rates than outside
refineries, he replied:
"I do not recall anything of that kind."
"You have heard of such things?"
"I have heard much in the papers about it."[157]
But at the time these rates were being made, one of his principal
associates admitted that the president was the person who attended to
the freight rates.[158] This was also put beyond a doubt in the Ohio
investigation by the evidence of his first partner in the little oil
refinery at Cleveland which had grown so great, he who had furnished
the only mechanical and refining knowledge it had started with, and who
had, until within a year, been a fellow-stockholder and director.
"Do these contracts contain anything of the nature that would
discriminate against the small refiners of the State?"
"I think they did.... Up to the time I left the company the open rate
was $1.40 to the seaboard. They"--the oil combination--"ship for 80
cents.... The president told me it was the rate at that time."[159]
With every known avenue to the sea thus closed to them it certainly
looked as if all was up with the "outsiders." But the men, who had
too much American spunk to buy peace with dishonor by consenting to
a "fix-up" under compulsion, had the wit to find out a loop-hole
of temporary escape. They built tank boats for the canal, and thus
succeeded in getting 200,000 barrels of oil to New York that summer
before the canal closed.[160]
Since then all chance of escape by the canal has been cut off. The
railroads made a war of freight rates against it, and the only canal
that connected the oil regions with the Erie canal route to the sea was
dried up, and turned into a way for a railroad by a special act of the
New York Legislature. The railroad so built has ever since been managed
as one of the most diligent promoters of the policy of excluding the
common people from the oil business.
Public-domain text, read in full here on John Shaqi.
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