Chapter XXII: Section 1: Be it enacted by the Senate and House of Representatives (6)

NEW YORK
McCLURE, PHILLIPS & CO.
MCMV

_Copyright, 1904, by_
McCLURE, PHILLIPS & CO.

Published, November, 1904, N

SECOND IMPRESSION

Copyright, 1902, 1903, 1904, by The S. S. McClure Co.

CONTENTS

CHAPTER NINE

THE FIGHT FOR THE SEABOARD PIPE-LINE

PROJECT FOR SEABOARD PIPE-LINE PUSHED BY
INDEPENDENTS—TIDEWATER PIPE COMPANY FORMED—OIL PUMPED
OVER MOUNTAINS FOR THE FIRST TIME—INDEPENDENT
REFINERS READY TO UNITE WITH TIDEWATER BECAUSE IT
PROMISES TO FREE THEM FROM RAILROADS—THE STANDARD
FACE TO FACE WITH A NEW PROBLEM—DAY OF THE RAILROADS
OVER AS LONG-DISTANCE TRANSPORTERS OF OIL—NATIONAL
TRANSIT COMPANY FORMED—WAR ON THE TIDEWATER
BEGUN—PLAN TO WRECK ITS CREDIT AND BUY IT
IN—ROCKEFELLER BUYS A THIRD OF THE TIDEWATER’S
STOCK—THE STANDARD AND TIDEWATER BECOME
ALLIES—NATIONAL TRANSIT COMPANY NOW CONTROLS ALL
PIPE-LINES—AGREEMENT ENTERED INTO WITH PENNSYLVANIA
RAILROAD TO DIVIDE THE BUSINESS OF TRANSPORTING OIL Pages 2003–2030

CHAPTER TEN

CUTTING TO KILL

ROCKEFELLER NOW PLANS TO ORGANISE OIL MARKETING AS HE
HAD ALREADY ORGANISED OIL TRANSPORTING AND
REFINING—WONDERFULLY EFFICIENT AND ECONOMICAL SYSTEM
INSTALLED—CURIOUS PRACTICES INTRODUCED—REPORTS OF
COMPETITORS’ BUSINESS SECURED FROM RAILWAY
AGENTS—COMPETITORS’ CLERKS SOMETIMES SECURED AS
ALLIES—IN MANY INSTANCES FULL RECORDS OF ALL OIL
SHIPPED ARE GIVEN STANDARD BY RAILWAY AND STEAMSHIP
COMPANIES—THIS INFORMATION IS USED BY STANDARD TO
FIGHT COMPETITORS—COMPETITORS DRIVEN OUT BY
UNDERSELLING—EVIDENCE FROM ALL OVER THE
COUNTRY—PRETENDED INDEPENDENT OIL COMPANIES STARTED
BY THE STANDARD—STANDARD’S EXPLANATION OF THESE
PRACTICES IS NOT SATISFACTORY—PUBLIC DERIVES NO
BENEFIT FROM TEMPORARY LOWERING OF PRICES—PRICES MADE
ABNORMALLY HIGH WHEN COMPETITION IS DESTROYED Pages 2031–2062

CHAPTER ELEVEN

THE WAR ON THE REBATE

ROCKEFELLER’S SILENCE—BELIEF IN THE OIL REGIONS THAT
COMBINED OPPOSITION TO HIM WAS USELESS—INDIVIDUAL
OPPOSITION STILL CONSPICUOUS—THE STANDARD’S SUIT
AGAINST SCOFIELD, SHURMER AND TEAGLE—SEEKS TO ENFORCE
AN AGREEMENT WITH THAT FIRM TO LIMIT OUTPUT OF
REFINED OIL—SCOFIELD, SHURMER AND TEAGLE ATTEMPT TO
DO BUSINESS INDEPENDENTLY OF THE STANDARD AND ITS
REBATES—FIND THEIR LOT HARD—THEY SUE THE LAKE SHORE
AND MICHIGAN SOUTHERN RAILWAY FOR DISCRIMINATING
AGAINST THEM—A FAMOUS CASE AND ONE THE RAILWAY
LOSES—ANOTHER CASE IN THIS WAR OF INDIVIDUALS ON THE
REBATE SHOWS THE STANDARD STILL TO BE TAKING
DRAWBACKS—THE CASE OF GEORGE RICE AGAINST THE
RECEIVER OF THE CINCINNATI AND MARIETTA RAILROAD Pages 2063–2087

CHAPTER TWELVE

THE BUFFALO CASE

THE STANDARD BUYS THREE-FOURTHS OF THE VACUUM OIL WORKS
OF ROCHESTER—TWO VACUUM EMPLOYEES ESTABLISH BUFFALO
LUBRICATING OIL COMPANY AND TAKE WITH THEM AN
EXPERIENCED STILLMAN FROM THE VACUUM—THE BUFFALO
LUBRICATING OIL COMPANY HAS AN EXPLOSION AND THE
STILLMAN SUDDENLY LEAVES—THE BUFFALO LUBRICATING OIL
COMPANY IS SUED BY VACUUM FOR INFRINGEMENT OF
PATENTS—MATTHEWS SUES THE EVERESTS OF THE VACUUM FOR
DELIBERATELY TRYING TO RUIN HIS BUSINESS—MATTHEWS
WINS HIS FIRST CIVIL SUIT—HE FILES A SECOND SUIT FOR
DAMAGES, AND SECURES THE INDICTMENT OF SEVERAL
STANDARD OFFICIALS FOR CRIMINAL CONSPIRACY—ROGERS,
ARCHBOLD AND McGREGOR ACQUITTED—THE EVERESTS FINED Pages 2088–2110

CHAPTER THIRTEEN

THE STANDARD OIL COMPANY AND POLITICS

OIL MEN CHARGE STANDARD WITH INTRENCHING ITSELF IN
STATE AND NATIONAL POLITICS—ELECTION OF PAYNE TO
SENATE IN OHIO IN 1884 CLAIMED TO ESTABLISH CHARGE OF
BRIBERY—FULL INVESTIGATION OF PAYNE’S ELECTION DENIED
BY UNITED STATES SENATE COMMITTEE ON ELECTIONS—PAYNE
HIMSELF DOES NOT DEMAND INVESTIGATION—POPULAR FEELING
AGAINST STANDARD IS AGGRAVATED—THE BILLINGSLEY BILL
IN THE PENNSYLVANIA LEGISLATURE—A FORCE BILL DIRECTED
AGAINST THE STANDARD—OIL MEN FIGHT HARD FOR IT—THE
BILL IS DEFEATED—STANDARD CHARGED WITH USING MONEY
AGAINST IT—A GROWING DEMAND FOR FULL KNOWLEDGE OF THE
STANDARD A RESULT OF THESE SPECIFIC CASES Pages 2111–2128

CHAPTER FOURTEEN

THE BREAKING UP OF THE TRUST

EPIDEMIC OF TRUST INVESTIGATION IN 1888—STANDARD
INVESTIGATED BY NEW YORK STATE SENATE—ROCKEFELLER’S
REMARKABLE TESTIMONY—INQUIRY INTO THE NATURE OF THE
MYSTERIOUS STANDARD OIL TRUST—ORIGINAL STANDARD OIL
TRUST AGREEMENT REVEALED—INVESTIGATION OF THE
STANDARD BY CONGRESS IN 1888—AS A RESULT OF THE
UNCOVERING OF THE STANDARD OIL TRUST AGREEMENT
ATTORNEY-GENERAL WATSON OF OHIO BEGINS AN ACTION IN
QUO WARRANTO AGAINST THE TRUST—MARCUS A. HANNA AND
OTHERS TRY TO PERSUADE WATSON NOT TO PRESS THE
SUIT—WATSON PERSISTS—COURT FINALLY DECIDES AGAINST
STANDARD AND TRUST IS FORCED TO MAKE AN APPARENT
DISSOLUTION Pages 2129–2155

CHAPTER FIFTEEN

A MODERN WAR FOR INDEPENDENCE

PRODUCERS’ PROTECTIVE ASSOCIATION FORMED—A SECRET
INDEPENDENT ORGANIZATION INTENDED TO HANDLE ITS OWN
OIL—AGREEMENT MADE WITH STANDARD TO CUT DOWN
PRODUCTION—RESULTS OF AGREEMENT NOT AS BENEFICIAL TO
PRODUCERS AS EXPECTED—PRODUCERS PROCEED TO ORGANISE
PRODUCERS’ OIL COMPANY, LIMITED—INDEPENDENT REFINERS
AGREE TO SUPPORT MOVEMENT—PRODUCERS AND REFINERS’
COMPANY FORMED—LEWIS EMERY, JR.’S, FIGHT FOR SEABOARD
PIPE-LINE—THE UNITED STATES PIPE LINE—STANDARD’S
DESPERATE OPPOSITION—INDEPENDENT REFINERS ALMOST WORN
OUT—THEY ARE RELIEVED BY FORMATION OF PURE OIL
COMPANY—PURE OIL COMPANY FINALLY BECOMES HEAD OF
INDEPENDENT CONSOLIDATION—INDEPENDENCE POSSIBLE, BUT
COMPETITION NOT RESTORED Pages 2156–2191

CHAPTER SIXTEEN

THE PRICE OF OIL

EARLIEST DESIGNS FOR CONSOLIDATION INCLUDE PLANS TO
HOLD UP THE PRICE OF OIL—SOUTH IMPROVEMENT COMPANY SO
INTENDS—COMBINATION OF 1872–1873 MAKES OIL
DEAR—SCHEME FAILS AND PRICES DROP—THE STANDARD’S
GREAT PROFITS IN 1876–1877 THROUGH ITS SECOND
SUCCESSFUL CONSOLIDATION—RETURN OF COMPETITION AND
LOWER PRICES—STANDARD’S FUTILE ATTEMPT IN 1880 TO
REPEAT RAID OF 1876–1877—STANDARD IS CONVINCED THAT
MAKING OIL TOO DEAR WEAKENS MARKETS AND STIMULATES
COMPETITION—GREAT PROFITS OF 1879–1889—LOWERING OF
THE MARGIN ON EXPORT SINCE 1889 BY REASON OF
COMPETITION—MANIPULATION OF DOMESTIC PRICES EVEN MORE
MARKED—HOME CONSUMERS PAY COST OF STANDARD’S FIGHTS
IN FOREIGN LANDS—STANDARD’S VARIOUS PRICES FOR THE
SAME GOODS AT HOME—HIGH PRICES WHERE THERE IS NO
COMPETITION AND LOW PRICES WHERE THERE IS COMPETITION Pages 2192–2230

CHAPTER SEVENTEEN

THE LEGITIMATE GREATNESS OF THE STANDARD OIL COMPANY

CENTRALISATION OF AUTHORITY—ROCKEFELLER AND EIGHT OTHER
TRUSTEES MANAGING THINGS LIKE PARTNERS IN A
BUSINESS—NEWS-GATHERING ORGANIZATION FOR COLLECTING
ALL INFORMATION OF VALUE TO THE TRUSTEES—ROCKEFELLER
GETS PICKED MEN FOR EVERY POST AND CONTRIVES TO MAKE
THEM COMPETE WITH EACH OTHER—PLANTS WISELY
LOCATED—THE SMALLEST DETAILS IN EXPENSE LOOKED OUT
FOR—QUICK ADAPTABILITY TO NEW CONDITIONS AS THEY
ARISE—ECONOMY INTRODUCED BY THE MANUFACTURE OF
SUPPLIES—A PROFIT PAID TO NOBODY—PROFITABLE EXTENSION
OF PRODUCTS AND BY-PRODUCTS—A GENERAL CAPACITY FOR
SEEING BIG THINGS AND ENOUGH DARING TO LAY HOLD OF
THEM Pages 2231–2255

CHAPTER EIGHTEEN