Standard Oil Company; Trusts, Industrial -- United States
The sharpest legal struggle of the case was made on the demand that
this paper be produced. The Commission decided that it was "wholly
immaterial," although the chairman had previously said: "It seems to us
that we cannot exclude this evidence." It was a document establishing
interstate rates, and these are required by law to be published, and
the Commission had always before this been liberal in compelling the
production of papers which related to the making of rates.[217] The
Commission had shortly before been threatened in this case by the
counsel for the Pennsylvania Railroad with extinction if it insisted
upon evidence of the cost of piping oil which the oil combination
refused to give.
"It is possible that the powers of this Commission may be tested,"[218]
bullied the counsel of the railroad. The members of the Commission
laughed ostentatiously, but, for whatever reason, they gave the
powerful corporations on trial no cause thereafter to "test their
powers," which have slept while justice tarried, and the victims of
this "contract" were kept under its harrow for three long years more,
where they still lie.
The tax levied upon the consumers of oil by this agreement for high
freights amounts to millions a year. This agreement is at this writing
still in force. There is reason to believe that similar arrangements
exist with the other trunk-lines. The result is the surprising fact
that "oil rates are very much higher than they were twelve years ago,
and when there was no pipe-line competition!"[219] This is true also
in the field of local pipeage--the transportation of the oil from the
wells to refineries and railroads. Under the caption of "cheapening
transportation" the counsel of the oil trust said, before the New York
Legislature in 1888: "In 1872 the pipe-line system was in its infancy.
A number of local lines existed. Their service was inefficient and
expensive. There was no uniform rate. The united refiners undertook to
unite and systemize this business. They purchased and consolidated the
various little companies into what was long known as the United Pipe
Line System. The first effect of this combination was a reduction of
price of all local transportation to a uniform rate of at first 30, and
soon after 20 cents per barrel."[220]
Public-domain text, read in full here on John Shaqi.
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