Standard Oil Company; Trusts, Industrial -- United States
Such is the superiority of a simple business organization, where
"evolution" has not carried the details of the industry out of sight
of the owner, and where the master and man, buyer and seller, are in
touch, that the independent refiners could overcome the tax imposed
on them by this pooling of the pipe line and the railroads, and not
only survive but prosper moderately. During the three years--from
1885 to 1888--following the first attack upon them under the contract
just described, they state, in their appeal to the Interstate
Commerce Commission in 1888, they were "enabled by their advantages
in the local markets to keep up, maintain, and even increase their
business."[227] These "outsiders" shipped their oil largely in barrels
because the trunk-lines had made it as nearly impossible as they
could for them to ship in tank-cars. They, like all in the trade,
could not live without access to the European market. Out of every
hundred barrels of various kinds of products from the distillation
of petroleum, forty are of an illuminating oil not good enough to be
burned in this country. It must be sold in Europe or not sold at all;
and a manufacturer who cannot get rid of 40 per cent. of his product
must give up manufacturing. To destroy the barrel method of shipment
would destroy those who could use no other; and to close their outlet
to Europe would make it impossible for them to continue to manufacture
for the home supply. The barrel was the only life-raft left to the
sinking independent.
They who had planned the secret pool of 1885 between the pipe line
and the railroads, and the further advance of rates by both in 1888,
now called upon the railroads to deliver a final stroke against the
independents.[228] The railroads, when directed in previous years to
say "no" to applications for transportation, and "no" to those who
wanted the right to put their own tank-cars on the road, had obeyed;
they obeyed again.
Public-domain text, read in full here on John Shaqi.
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