Standard Oil Company; Trusts, Industrial -- United States
"Then they"--the pipe lines--"were anxious to get good paying
rates,"[206] so that they could make a good thing out of the business
of their own pipe and of the Tidewater which they had guaranteed
$500,000 a year. The advent of the independent Tidewater had brought
rates down. The restoration of exclusive control by its capture put
rates up. But it was not enough for the oil combination to advance
their own rates. It must induce the railroads to do the same. The
railroads had furnished the means for the acquisition of both pipes,
and they must now be got to drive business away from themselves to
these competing oil railways. This would seem to be a delicate matter
to achieve, but there was no trouble about it.
"It is our pleasure to try to make oil cheap,"[207] the president of
the oil trust told Congress, but it did not use its new facilities
to take in hand at reduced cost the carriage of all oil, and give
the industry the economic advantage of the pipe-line idea. Quite the
contrary. It united with the railroads to increase the cost. Under this
new blow the independent refiners and producers whom the Tidewater
had been built to keep afloat grounded again. Then the railroads--the
Pennsylvania especially--repented of what they had done to these their
oldest customers, and sent ambassadors to them to renew the broken
promises of 1872, that if they would rebuild they should forever
have equal rates and fair treatment. One of the highest officials of
the Pennsylvania was sent to them to say: We recognize our error in
permitting your refineries to be abandoned and the traffic destroyed.
We wish to build up and maintain independent refining in the oil
regions. We will give you every encouragement. We will insure you equal
rates, on which you can ship and live.[208]
These invitations and guarantees were repeated and pressed. They were
renewed by the officials of the Erie also: "You need have no hesitation
in building up your business," said the officials of the Erie; "You
shall have living rates."[209]
The independents listened and believed. They rebuilt their works and
prospered.[210] This meant the return of cheapness--cheapness of
transportation over the railroads, to enable the refiners they had
invited back to life to compete in the market--cheapness of light.
Thereupon, incredible as it seems, the Pennsylvania and the other
railroads were influenced to declare war again upon the men who had
reinvested their money and their life energy in response to these
solicitations. This new war began with a secret contract, in 1885, for
an advance in rates against the independent refiners, who, in trustful
reliance on the pledged faith of the railroads, had developed their
capacity to 2,000,000 barrels a year.[211]
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account