Standard Oil Company; Trusts, Industrial -- United States
"If by differences," he replied, "you mean competition in trade, I
answer the question, yes. That resulted in a written contract.... The
purpose of the contract was to settle the rivalry in business between
the two companies, each company to take a percentage of transportation
and gathering, and each to do with the oil as it saw fit."[198]
The treasurer of the Tidewater, who had been in its service since 1880,
corroborated its attorney. A contract had been made between the two;
the date of it was October 9, 1883. Copies of the contracts are in the
author's possession.
The Interstate Commerce Commission in 1892 judicially found the same
fact. It says: "About December, 1883, the pipe lines, with the view of
getting better rates, adjusted their differences, and the competition
between them ceased. The pipe-line business appears then to have passed
into the control of the National Transit Company."[199] All but 6
per cent. of the National Transit Company is owned by the oil trust.
It formed practically one-third the imposing bulk of the $70,000,000
of the trust of 1882.[200] If anything can be made certain by human
testimony this evidence proves that these pipe lines stopped competing
in 1883. The witnesses are the men who negotiated the contract,
and upon whose approval it depended. But when the president of the
trust was asked under oath, in 1888, if there were any pipe lines to
tide-water competing with it, he named, as "a competing company," "the
Tidewater Pipe Line."
"The Tidewater Company? Does that compete with your company?"
"It does."
"It is in opposition to it?"
"It is in opposition to it."[201]
In the same spirit he denied, in 1883, that he had anything to do with
the company which had represented the oil trust in this "swallowing or
something" of the Tidewater. This, the National Transit Company, was
the most important member of the trust. Under its cover, by means like
those described, from New York to West Virginia and Ohio, almost all
the pipes for gathering and distributing oil have been brought into one
ownership. Millions yearly of the earnings of this company were pooled
with all the others in the trust, and the president was receiving
his share of them four times a year. He was the sole attorney[202]
authorized to sign contracts for the trustees, who thus held all the
combined companies in a common control. These trustees, of whom he was
the chief, not only controlled but owned as their personal property
more than half the stock of every company represented. But these facts
were not then known to the public. It was not intended that they should
be known, as the struggle to conceal them from the New York Legislature
five years later--in 1888--showed.
"Have you any connection with the National Transit Company?" he was
asked, after taking the oath.
"I have not."[203]
Public-domain text, read in full here on John Shaqi.
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