Standard Oil Company; Trusts, Industrial -- United States
"The united refiners" and "to unite and systemize" are smooth phrases,
full of the unction of good-fellowship and political economy. When
the "united refiners" took possession of the pipe lines which had
been forced into bankruptcy or "co-operation," they did not reduce
rates--they advanced them. "The uniform rate of 20 cents," for
instance, is an advance of 300 per cent. on the rate of 5 cents made
by the trust's pipe-line system during the war with the Tidewater,
and over the similar rates made during the earlier pipe-line
competition.[221] The nominal rate, Congress learned from one of the
oil-country men, was 30 cents for that service, but by competition the
actual rate was down to 5 or 10 cents. "They consolidated and placed it
at 20 cents, and it has remained at 20 cents, I think, since the year
1876.... The whole process of transportation has been cheapened. Pipe
that cost 45 cents a foot has in that time been got for 10 cents. The
quality of the pipe was improved, so that there is not the leakage or
the wastage. There are all those improvements and inventions that have
cheapened it. We pay the same now as we did fifteen years ago. We have
reduced the cost of our wells at least 50 per cent. They have reduced
nothing."[222] From other sources, once in a while, facts have come to
light showing how much less than cheap the local charge of 20 cents
a barrel is. For instance, it was shown before Congress that a line
which, with its feeders, had fifty miles of pipe, and cost $70,000,
made a clear profit in its first six months of $40,000, charging
sometimes less than this rate of 20 cents a barrel.[223]
It is impossible to compute how much the defeat of legislation to
regulate charges, or to allow the construction of competing lines, has
cost the people. The Burdick Bill alone, to regulate prices of pipeage
and storage in Pennsylvania, it was calculated by conservative men,
would have saved at least $4,000,000 a year. The killing of it was in
the interest of keeping up the high prices of the pipe lines, which
finally rest in the price of oil.
Public-domain text, read in full here on John Shaqi.
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