Standard Oil Company; Trusts, Industrial -- United States
A pretext for the suppression of the barrel was easily found. It was
a poor one, but poor pretexts are better than none. When the future
"trustees" of the "light of the world" were doing a small fraction
of the business, they got the contract of 1872 from the railroads to
"overcome" all their competitors, on the pretext of "increasing the
trade."[229] When by this contract and those that followed it they had
secured nine-tenths of the trade, they got the railroads to say "no"
to the remaining one-tenth, on the pretext that they could not ship as
much.[230] When the Interstate Commerce law declared it to be a crime
for railroads to forbid persons the road because they could not ship as
much as others, the combination had the railroads shut out its rivals,
on the pretext that they did not use tank-cars,[231] although tank-cars
"are worse than powder." When regular tank-cars were offered by its
competitors for shipment--as to the Pacific coast--the combination
introduced an inferior tank-car, of which it claimed, without warrant,
as the courts afterwards held, that it owned the patent, and so
obtained the sole right of way across the continent, on the pretext
that other shippers did not use this poor car.[232]
The pretext now used against the refiners of Pennsylvania was the
passing phrase, "He must pay freight on barrels," in a decision of
the Interstate Commerce Commission concerning Southern traffic. This
decision had no relevancy to the oil business of the North. Six months
went by after it was given with no intimation from any one that it
related in any way to the situation in Pennsylvania, and to be so
applied it had to be turned inside out and upside down. In the Rice
case the Commission had decided that freight rates must be reduced on
barrel shipments. This was, in the sharp language of the decision, to
put an end to "the most unjust and injurious discrimination against
barrel shippers in favor of tank shippers," a discrimination which the
Commission has elsewhere said "inured mostly to the benefit of one
powerful combination."
In ordering this reduction it said: "Even then the shipper in barrels
is at some disadvantage, for he must pay freight on barrels as well as
on oil."
By "must pay" the Commission meant "was paying." It was, as it
afterwards protested, "rather a statement of a prevailing practice
than a ruling."[233] And the remark furthermore concerned the trade in
the South and Southwest alone, where special circumstances existed not
found at the North.
Public-domain text, read in full here on John Shaqi.
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