Standard Oil Company; Trusts, Industrial -- United States
When the combination got possession of the pipe line to Buffalo, which
others had built in spite of every obstacle it could interpose, it
raised the rates of pipeage to 25 cents a barrel from 10 cents,[224]
and as happened in Pennsylvania in 1885, the railroads to Buffalo in
1882 raised their rates simultaneously with the pipe line. Pittsburg
had the same experience. When its independent pipe line was "united
and systemized" by being torn up and converted into "old iron," as the
Vice-President of the Pennsylvania Railroad had told its projectors
it would be, the rates of transportation for oil went up.[225] The
same thing happened at Cleveland. At the rate at which the Lake Shore
road carries oil from Cleveland to Chicago--357 miles for 38 cents a
barrel--it should charge less than 15 cents for the 140 miles between
Oil City and Cleveland; but as late as 1888 it charged 25 cents.
Why? The effect of the railroad charge is that little oil comes by
rail to Cleveland from the oil regions; it goes by the pipe line of
those whom the Lake Shore has been "protecting" ever since the South
Improvement contract of 1872. There have been 3,000,000 barrels of
this business yearly. The railroad officials exercise their powers to
drive traffic from the railroad to a competing line. Why? We can see
why the combination, which, by the possession of this pipe line, is a
competitor of the Lake Shore, should desire such an arrangement; but
it exists by the act of the Lake Shore Railroad. Why? The theories of
self-interest would lead one to expect that the stockholders of the
road would find out why.[226]
The pipe lines are the largest single item in the property of the oil
combination. Here its control has been the most complete; and here the
reduction of price has been least. This is a telltale fact, soon told
and soon understood.
CHAPTER XI
SONG OF THE BARREL
Genius could take so unspeakable a thing as a shirt and sing it
into an immortal song, but a barrel--and an oil-barrel, greasy and
ill-smelling--even genius could do nothing with that. But the barrel
plays a leading rôle in the drama of the great monopoly. Out of it
have flown shapes of evil that have infected private fortunes, the
prosperity of more than one industry, the fiduciary honor of great
men, the faithfulness of the Government to its citizens. Perhaps
a part of what genius could do for the shirt--force a hearing for
the wronged--may be done for this homely vessel of the struggling
independent by the kindly solicitude of the people to learn every
secret spring of the ruin of their brothers.
The market--the barrel that went to market--the freight rate that
stopped the barrel that went to market--the railway king who made the
rate that stopped the barrel that went to market--the greater king who
whispered behind to the railway king to make the rate that stopped the
barrel that went to market--this is the house that Jack unbuilt.
Public-domain text, read in full here on John Shaqi.
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