Standard Oil Company; Trusts, Industrial -- United States
When this arrangement was exposed to public view by the New York
legislative investigation, the "expert" who appeared to explain it away
in behalf of the railroads and their beneficiaries, paraded a false map
of the pipe-line system, drawn and colored to make it seem that the
American Transfer Company was a very important pipe-line.[167] This was
the same "expert" who, as we saw, defended the pipe-line holocaust of
1874 by asserting that "all were to be taken in alike."
There are three kinds of liars, an eminent judge of New York is fond of
saying--liars, damned liars, and experts.
When the assistant secretary of the oil combination was asked about
this "transfer" company, he replied, "I don't know anything about
the organization."[168] He had described himself to the committee as
"a clamorer for dividends"; but he declared he knew nothing about an
organization which was "transferring" him dividends at the rate of
$3,093,750 a year on $100,000 of capital. Almost at the very moment
of this denial, receipts were being produced in court in Pennsylvania
which had been given by the cashier of himself and his associates to
the railroads for this money.[169]
Even if the independents succeeded in saving their oil from wasting on
the ground, and got it into pipe lines, and had it refined, and were
lucky enough to be given cars to carry it to the seaboard, they found
that in leaving the oil regions they had not left behind the "no." Up
to the very edge of the sea were the nets spread for them.
Part of the bargain of 1872 had been that the brothers of the South
Improvement Company should provide the terminal facilities at the
seaboard.[170] Railroad companies are usually supposed to have their
own yards, storehouses, wharves, and the like, and, as a matter of
fact, the railroads had these. The agreement of 1872 that the South
Improvement Company should furnish the terminal facilities meant--it
was discovered by the New York Legislature in 1879--that such terminals
as the road already had should be turned over to that concern, and that
thereafter nobody should be allowed to build or use terminals except as
it permitted.
The New York Legislature found, in 1879, that the oil combination
thus owned and controlled the oil terminal facilities of the four
trunk-lines at New York, Philadelphia, and Baltimore.
"They can use the power here given, and have used it to crush out
opposition."[171]
Public-domain text, read in full here on John Shaqi.
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