The History Of Standard Oil, Ch 03 - The Oil War Of 1872

Chapter 3, The Oil War of 1872. Chapter 3, The Oil War of 1872. It was not until after the middle of It was not until after the middle of It was not until after the middle of February 1872 February 1872 February 1872 that the people of the oil regions heard that the people of the oil regions heard that the people of the oil regions heard anything of the plan which was being anything of the plan which was being anything of the plan which was being worked out for their good. worked out for their good. worked out for their good. Then an uneasy rumor began running up Then an uneasy rumor began running up Then an uneasy rumor began running up and down the creek. Freight rates were and down the creek. Freight rates were and down the creek. Freight rates were going up. going up. going up. Now an advance in the man's freight bill Now an advance in the man's freight bill Now an advance in the man's freight bill may ruin his business. More, it may mean may ruin his business. More, it may mean may ruin his business. More, it may mean the ruin of a region. the ruin of a region. the ruin of a region. Rumor said it that the new rate meant Rumor said it that the new rate meant Rumor said it that the new rate meant just this. just this. just this. That is, it more than covered the margin That is, it more than covered the margin That is, it more than covered the margin of profit in any branch of the oil of profit in any branch of the oil of profit in any branch of the oil business. business. business. The railroads were not going to apply The railroads were not going to apply The railroads were not going to apply the proposed tariffs to everybody. the proposed tariffs to everybody. the proposed tariffs to everybody. They had agreed to give a company They had agreed to give a company They had agreed to give a company unheard of until now, the South unheard of until now, the South unheard of until now, the South Improvement Company, a special rate Improvement Company, a special rate Improvement Company, a special rate considerably lower than the new open considerably lower than the new open considerably lower than the new open rate. rate. rate. It was only a rumor and many people It was only a rumor and many people It was only a rumor and many people discredited it. discredited it. discredited it. Why should the railroads ruin the oil Why should the railroads ruin the oil Why should the railroads ruin the oil regions to build up a company of regions to build up a company of regions to build up a company of outsiders? outsiders? outsiders? But facts began to be reported.

But facts began to be reported. But facts began to be reported. Mr. Downe, the Cleveland shipper already Mr. Downe, the Cleveland shipper already Mr. Downe, the Cleveland shipper already quoted, told how suddenly on the 22nd of quoted, told how suddenly on the 22nd of quoted, told how suddenly on the 22nd of February, without notice, his rate from February, without notice, his rate from February, without notice, his rate from the oil regions to Cleveland was put up the oil regions to Cleveland was put up the oil regions to Cleveland was put up from 35 cents a barrel from 35 cents a barrel from 35 cents a barrel to 65 cents, an advance of $24 on a to 65 cents, an advance of $24 on a to 65 cents, an advance of $24 on a carload. carload. carload. Mr. Josiah Lombard of the New York Mr. Josiah Lombard of the New York Mr. Josiah Lombard of the New York Refining Firm of Ayers, Lombard & Refining Firm of Ayers, Lombard & Refining Firm of Ayers, Lombard & Company was buying oil for his company Company was buying oil for his company Company was buying oil for his company at Oil City. at Oil City. at Oil City. Their refinery was running about 12,000 Their refinery was running about 12,000 Their refinery was running about 12,000 barrels a month. barrels a month. barrels a month. On the 19th of February, the rate from On the 19th of February, the rate from On the 19th of February, the rate from Oil City to Buffalo, which had been 40 Oil City to Buffalo, which had been 40 Oil City to Buffalo, which had been 40 cents a barrel, was raised to 65 cents. cents a barrel, was raised to 65 cents. cents a barrel, was raised to 65 cents. And a few days later, the rate from And a few days later, the rate from And a few days later, the rate from Warren to New York was raised from 87 Warren to New York was raised from 87 Warren to New York was raised from 87 cents to $2.14. Mr. Lombard was not aware of this change Mr. Lombard was not aware of this change until his house in New York reported to until his house in New York reported to until his house in New York reported to him that the bills for freight were so him that the bills for freight were so him that the bills for freight were so heavy that they could not afford to ship heavy that they could not afford to ship heavy that they could not afford to ship and wanted to know what was the matter. and wanted to know what was the matter. and wanted to know what was the matter. On the morning of February 26th, 1872, On the morning of February 26th, 1872, On the morning of February 26th, 1872, the oil men read in their morning papers the oil men read in their morning papers the oil men read in their morning papers that the rise which had been threatening that the rise which had been threatening that the rise which had been threatening had come.

had come. had come. Moreover, that all members of the South Moreover, that all members of the South Moreover, that all members of the South Improvement Company were exempt from the Improvement Company were exempt from the Improvement Company were exempt from the advance. advance. advance. At the news, all oildom rushed into the At the news, all oildom rushed into the At the news, all oildom rushed into the streets. Nobody waited to find out his streets. Nobody waited to find out his streets. Nobody waited to find out his neighbor's opinion. neighbor's opinion. neighbor's opinion. On every lip there was but one word, and On every lip there was but one word, and On every lip there was but one word, and that was conspiracy. that was conspiracy. that was conspiracy. In the vernacular of the region, it was In the vernacular of the region, it was In the vernacular of the region, it was evident that a torpedo was filling for evident that a torpedo was filling for evident that a torpedo was filling for that scheme. that scheme. that scheme. In 24 hours after the announcement of In 24 hours after the announcement of In 24 hours after the announcement of the increase in freight rates, a mass the increase in freight rates, a mass the increase in freight rates, a mass meeting of 3,000 excited, gesticulating meeting of 3,000 excited, gesticulating meeting of 3,000 excited, gesticulating oil men was gathered in the opera house oil men was gathered in the opera house oil men was gathered in the opera house at Titusville. at Titusville. at Titusville. Producers, brokers, refiners, drillers, Producers, brokers, refiners, drillers, Producers, brokers, refiners, drillers, pumpers were in the crowd. Their temper pumpers were in the crowd. Their temper pumpers were in the crowd. Their temper was shown by the mottoes on the banners was shown by the mottoes on the banners was shown by the mottoes on the banners which they carried. Down with the which they carried. Down with the which they carried. Down with the conspirators. No compromise. Don't give conspirators. No compromise. Don't give conspirators. No compromise. Don't give up the ship. Three days later, as large up the ship. Three days later, as large up the ship. Three days later, as large a meeting was held at Oil City, its a meeting was held at Oil City, its a meeting was held at Oil City, its temper more warlike if possible, and so temper more warlike if possible, and so temper more warlike if possible, and so it went. it went. it went. They organized a Petroleum Producers They organized a Petroleum Producers They organized a Petroleum Producers Union, pledged themselves to reduce Union, pledged themselves to reduce Union, pledged themselves to reduce their production by starting no new their production by starting no new their production by starting no new wells for 60 days, and by shutting down wells for 60 days, and by shutting down wells for 60 days, and by shutting down on Sundays to sell no oil to any person on Sundays to sell no oil to any person on Sundays to sell no oil to any person known to be in the South Improvement known to be in the South Improvement known to be in the South Improvement Company, but to support the Creek Company, but to support the Creek Company, but to support the Creek refiners and those elsewhere who had refiners and those elsewhere who had refiners and those elsewhere who had refused to go into the combination, to refused to go into the combination, to refused to go into the combination, to boycott the offending railroads, and to boycott the offending railroads, and to boycott the offending railroads, and to build lines which they would own and build lines which they would own and build lines which they would own and control themselves.

control themselves. control themselves. They sent a committee to the legislature They sent a committee to the legislature They sent a committee to the legislature asking that the charter of the South asking that the charter of the South asking that the charter of the South Improvement Company be repealed, and Improvement Company be repealed, and Improvement Company be repealed, and another to Congress demanding an another to Congress demanding an another to Congress demanding an investigation of the whole business on investigation of the whole business on investigation of the whole business on the ground that it was an interference the ground that it was an interference the ground that it was an interference with trade. with trade. with trade. They ordered that a history of the They ordered that a history of the They ordered that a history of the conspiracy giving the names of the conspiracy giving the names of the conspiracy giving the names of the conspirators and the designs of the conspirators and the designs of the conspirators and the designs of the company should be prepared, and 30,000 company should be prepared, and 30,000 company should be prepared, and 30,000 copies sent to judges of all courts, copies sent to judges of all courts, copies sent to judges of all courts, senators of the United States, senators of the United States, senators of the United States, members of Congress and of state members of Congress and of state members of Congress and of state legislatures, and to all railroad men legislatures, and to all railroad men legislatures, and to all railroad men and prominent businessmen of the and prominent businessmen of the and prominent businessmen of the country, to the end that enemies of the country, to the end that enemies of the country, to the end that enemies of the freedom of trade may be known and freedom of trade may be known and freedom of trade may be known and shunned by all honest men. shunned by all honest men. shunned by all honest men. They prepared a petition 93 feet long They prepared a petition 93 feet long They prepared a petition 93 feet long praying for a free pipeline bill, praying for a free pipeline bill, praying for a free pipeline bill, something which they had long wanted, something which they had long wanted, something which they had long wanted, but which so far the Pennsylvania but which so far the Pennsylvania but which so far the Pennsylvania Railroad had prevented their getting, Railroad had prevented their getting, Railroad had prevented their getting, and sent it by a committee to the and sent it by a committee to the and sent it by a committee to the legislature. legislature. legislature. And for days they kept 1,000 men ready And for days they kept 1,000 men ready And for days they kept 1,000 men ready to march on Harrisburg at a moment's to march on Harrisburg at a moment's to march on Harrisburg at a moment's notice if the legislature showed signs notice if the legislature showed signs notice if the legislature showed signs of refusing their demands.

of refusing their demands. of refusing their demands. In short, for weeks the whole body of In short, for weeks the whole body of In short, for weeks the whole body of oil men abandoned regular business and oil men abandoned regular business and oil men abandoned regular business and surged from town to town intent on surged from town to town intent on surged from town to town intent on destroying the monster, the 40 thieves, destroying the monster, the 40 thieves, destroying the monster, the 40 thieves, the great anaconda, as they called the the great anaconda, as they called the the great anaconda, as they called the mysterious South Improvement Company. mysterious South Improvement Company. mysterious South Improvement Company. Curiously enough, it was chiefly against Curiously enough, it was chiefly against Curiously enough, it was chiefly against the combination which had secured the the combination which had secured the the combination which had secured the discrimination from the railroads, not discrimination from the railroads, not discrimination from the railroads, not the railroads which had granted it, that the railroads which had granted it, that the railroads which had granted it, that their fury was directed. their fury was directed. their fury was directed. They expected nothing but robbery from They expected nothing but robbery from They expected nothing but robbery from the railroads, they said. the railroads, they said. the railroads, they said. They were used to that, but they would They were used to that, but they would They were used to that, but they would not endure it from men in their own not endure it from men in their own not endure it from men in their own business. business. business. When they began the fight, the mass of When they began the fight, the mass of When they began the fight, the mass of the oil men knew nothing more of the the oil men knew nothing more of the the oil men knew nothing more of the South Improvement Company than its name South Improvement Company than its name South Improvement Company than its name and the fact that it had secured from and the fact that it had secured from and the fact that it had secured from the railroads advantages in rates which the railroads advantages in rates which the railroads advantages in rates which were bound to ruin all independent were bound to ruin all independent were bound to ruin all independent refiners of oil and to put all producers refiners of oil and to put all producers refiners of oil and to put all producers at its mercy. at its mercy. at its mercy. Their tempers were not improved by the Their tempers were not improved by the Their tempers were not improved by the discovery that it was a secret discovery that it was a secret discovery that it was a secret organization, organization, organization, and that it had been at work under their and that it had been at work under their and that it had been at work under their very eyes for some weeks without their very eyes for some weeks without their very eyes for some weeks without their knowing it.

knowing it. knowing it. At the first public meeting, this fact At the first public meeting, this fact At the first public meeting, this fact came out. came out. came out. Leading refiners of the region relating Leading refiners of the region relating Leading refiners of the region relating their experience with the anaconda. their experience with the anaconda. their experience with the anaconda. According to one of these gentlemen, J. According to one of these gentlemen, J. According to one of these gentlemen, J. D. Archbold, the same who afterward D. Archbold, the same who afterward D. Archbold, the same who afterward became vice president of the Standard became vice president of the Standard became vice president of the Standard Oil Company, which office he now holds, Oil Company, which office he now holds, Oil Company, which office he now holds, he and his partners had heard of the he and his partners had heard of the he and his partners had heard of the scheme some months before. scheme some months before. scheme some months before. Alarmed by the rumor, a committee of Alarmed by the rumor, a committee of Alarmed by the rumor, a committee of independent refiners had attempted to independent refiners had attempted to independent refiners had attempted to investigate, but could learn nothing investigate, but could learn nothing investigate, but could learn nothing until they had been given a promise not until they had been given a promise not until they had been given a promise not to reveal what was told them. When to reveal what was told them. When to reveal what was told them. When convinced that a company had been formed convinced that a company had been formed convinced that a company had been formed actually strong enough to force or actually strong enough to force or actually strong enough to force or persuade the railroads to give it persuade the railroads to give it persuade the railroads to give it special rates and refuse them to all special rates and refuse them to all special rates and refuse them to all persons outside, Mr. Archbold said that persons outside, Mr. Archbold said that persons outside, Mr. Archbold said that he and his colleagues had gone to the he and his colleagues had gone to the he and his colleagues had gone to the railway kings to remonstrate, but all to railway kings to remonstrate, but all to railway kings to remonstrate, but all to no effect. no effect. no effect. The South Improvement Company by some The South Improvement Company by some The South Improvement Company by some means had convinced the railroads that means had convinced the railroads that means had convinced the railroads that they owned the oil regions, producers they owned the oil regions, producers they owned the oil regions, producers and refiners both, and that hereafter no and refiners both, and that hereafter no and refiners both, and that hereafter no oil of any account would be shipped oil of any account would be shipped oil of any account would be shipped except as they shipped it.

except as they shipped it. except as they shipped it. Mr. Archbold and his partners had been Mr. Archbold and his partners had been Mr. Archbold and his partners had been asked to join the company, but had asked to join the company, but had asked to join the company, but had refused, declaring that the whole refused, declaring that the whole refused, declaring that the whole business was iniquitous, that they would business was iniquitous, that they would business was iniquitous, that they would fight it to the end, and that in their fight it to the end, and that in their fight it to the end, and that in their fight they would have the backing of the fight they would have the backing of the fight they would have the backing of the oil men as a whole. oil men as a whole. oil men as a whole. They excused their silence up to this They excused their silence up to this They excused their silence up to this time by citing the pledge extracted from time by citing the pledge extracted from time by citing the pledge extracted from them before they were informed of the them before they were informed of the them before they were informed of the extent and nature of the South extent and nature of the South extent and nature of the South Improvement Company. Improvement Company. Improvement Company. Naturally, the burning question Naturally, the burning question Naturally, the burning question throughout the oil regions, convinced as throughout the oil regions, convinced as throughout the oil regions, convinced as it was of the iniquity of the scheme, it was of the iniquity of the scheme, it was of the iniquity of the scheme, was, "Who are the conspirators?" was, "Who are the conspirators?" was, "Who are the conspirators?" Whether the gentlemen concerned regarded Whether the gentlemen concerned regarded Whether the gentlemen concerned regarded themselves in the light of conspirators themselves in the light of conspirators themselves in the light of conspirators or not, they seemed from the first to or not, they seemed from the first to or not, they seemed from the first to have realized that it would be discreet have realized that it would be discreet have realized that it would be discreet not to be identified publicly with the not to be identified publicly with the not to be identified publicly with the scheme and to have allowed one name scheme and to have allowed one name scheme and to have allowed one name alone to appear in all sign alone to appear in all sign alone to appear in all sign negotiations. negotiations. negotiations. This was the name of the president, This was the name of the president, This was the name of the president, Peter H. Watson. Peter H. Watson. Peter H. Watson. However anxious the members of the South However anxious the members of the South However anxious the members of the South Improvement Company were that Mr. Watson Improvement Company were that Mr. Watson Improvement Company were that Mr. Watson should combine the honors of president should combine the honors of president should combine the honors of president with the trials of scapegoat, it was with the trials of scapegoat, it was with the trials of scapegoat, it was impossible to keep their names impossible to keep their names impossible to keep their names concealed.

concealed. concealed. The Oil City Derrick, at that time one The Oil City Derrick, at that time one The Oil City Derrick, at that time one of the most vigorous, witty, and daring of the most vigorous, witty, and daring of the most vigorous, witty, and daring newspapers in the country, began a newspapers in the country, began a newspapers in the country, began a blacklist at the head of its editorial blacklist at the head of its editorial blacklist at the head of its editorial columns the day after the raise in columns the day after the raise in columns the day after the raise in freight was announced, freight was announced, freight was announced, and it kept it there until it was and it kept it there until it was and it kept it there until it was believed complete. believed complete. believed complete. It stood finally, as it appears on the It stood finally, as it appears on the It stood finally, as it appears on the opposite page. opposite page. opposite page. This list was not exact, but it was This list was not exact, but it was This list was not exact, but it was enough to go on, and the oil blockade to enough to go on, and the oil blockade to enough to go on, and the oil blockade to which the Petroleum Producers Union had which the Petroleum Producers Union had which the Petroleum Producers Union had pledged itself was now in force against pledged itself was now in force against pledged itself was now in force against the firms listed, and as far as possible the firms listed, and as far as possible the firms listed, and as far as possible against the railroads. against the railroads. against the railroads. All of these refineries had their buyers All of these refineries had their buyers All of these refineries had their buyers on the creek, and although several of on the creek, and although several of on the creek, and although several of them were young men generally liked for them were young men generally liked for them were young men generally liked for their personal and business qualities, their personal and business qualities, their personal and business qualities, no mercy was shown them. no mercy was shown them. no mercy was shown them. They were refused oil by everybody, They were refused oil by everybody, They were refused oil by everybody, though they offered from 75 cents to a though they offered from 75 cents to a though they offered from 75 cents to a dollar more than the market price. dollar more than the market price. dollar more than the market price. They were ordered at one meeting to They were ordered at one meeting to They were ordered at one meeting to desist from their nefarious business or desist from their nefarious business or desist from their nefarious business or leave the oil region, leave the oil region, leave the oil region, and when they declined, they were and when they declined, they were and when they declined, they were invited to resign from the oil exchanges invited to resign from the oil exchanges invited to resign from the oil exchanges of which they were members.

of which they were members. of which they were members. So strictly indeed was the blockade So strictly indeed was the blockade So strictly indeed was the blockade enforced that in Cleveland the enforced that in Cleveland the enforced that in Cleveland the refineries were closed, and meetings for refineries were closed, and meetings for refineries were closed, and meetings for the relief of the workmen were held. the relief of the workmen were held. the relief of the workmen were held. In spite of the excitement, there was In spite of the excitement, there was In spite of the excitement, there was little vandalism. The only violence at little vandalism. The only violence at little vandalism. The only violence at the opening of the war being at the opening of the war being at the opening of the war being at Franklin, where a quantity of the oil Franklin, where a quantity of the oil Franklin, where a quantity of the oil belonging to Mr. Watson was run on the belonging to Mr. Watson was run on the belonging to Mr. Watson was run on the ground. ground. ground. The sudden uprising of the oil regions The sudden uprising of the oil regions The sudden uprising of the oil regions against the South Improvement Company against the South Improvement Company against the South Improvement Company did not alarm its members at first. did not alarm its members at first. did not alarm its members at first. The excitement would die out, they told The excitement would die out, they told The excitement would die out, they told one another. one another. one another. All that they needed to do was to keep All that they needed to do was to keep All that they needed to do was to keep quiet and stay out of the oil country. quiet and stay out of the oil country. quiet and stay out of the oil country. But the excitement did not die out. But the excitement did not die out. But the excitement did not die out. Indeed, with every day it became more Indeed, with every day it became more Indeed, with every day it became more intense and more widespread. intense and more widespread. intense and more widespread. When Mr. Watson's tanks were tapped, he When Mr. Watson's tanks were tapped, he When Mr. Watson's tanks were tapped, he began to protest in letters to a friend, began to protest in letters to a friend, began to protest in letters to a friend, F. W. Mitchell, a prominent banker and F. W. Mitchell, a prominent banker and F. W. Mitchell, a prominent banker and oilman of Franklin. oilman of Franklin. oilman of Franklin. "The company was misunderstood," he "The company was misunderstood," he "The company was misunderstood," he complained. complained. complained. "Have a committee of leading producers "Have a committee of leading producers "Have a committee of leading producers appointed," he wrote, "and we will show appointed," he wrote, "and we will show appointed," he wrote, "and we will show that the contracts with the railroads that the contracts with the railroads that the contracts with the railroads are as favorable to the producing as to are as favorable to the producing as to are as favorable to the producing as to other interests, that the much-denounced other interests, that the much-denounced other interests, that the much-denounced rebate will enhance the price of oil at rebate will enhance the price of oil at rebate will enhance the price of oil at the wells, and that our entire plan in the wells, and that our entire plan in the wells, and that our entire plan in operation and effect will promote every operation and effect will promote every operation and effect will promote every legitimate American interest in the oil legitimate American interest in the oil legitimate American interest in the oil trade."

trade." trade." Mr. Mitchell urged Mr. Watson to come Mr. Mitchell urged Mr. Watson to come Mr. Mitchell urged Mr. Watson to come openly to the oil regions and meet the openly to the oil regions and meet the openly to the oil regions and meet the producers as a body. producers as a body. producers as a body. "A mass meeting was never a deliberative "A mass meeting was never a deliberative "A mass meeting was never a deliberative body," Mr. Watson replied, body," Mr. Watson replied, body," Mr. Watson replied, "but if a few of the leading oilmen "but if a few of the leading oilmen "but if a few of the leading oilmen would go to Albany or New York, or any would go to Albany or New York, or any would go to Albany or New York, or any place favorable to calm investigation place favorable to calm investigation place favorable to calm investigation and deliberation, and therefore outside and deliberation, and therefore outside and deliberation, and therefore outside of the atmosphere of excitement which of the atmosphere of excitement which of the atmosphere of excitement which enveloped the oil country, he would see enveloped the oil country, he would see enveloped the oil country, he would see them." them." them." These letters were read to the These letters were read to the These letters were read to the producers, and a motion to appoint a producers, and a motion to appoint a producers, and a motion to appoint a committee was made. committee was made. committee was made. It was received with protest and cheers. It was received with protest and cheers. It was received with protest and cheers. "Mr. Watson was afraid to come to the "Mr. Watson was afraid to come to the "Mr. Watson was afraid to come to the oil regions," they said. oil regions," they said. oil regions," they said. "The letters were not addressed to the "The letters were not addressed to the "The letters were not addressed to the association. They were private, an association. They were private, an association. They were private, an insult to the body. insult to the body. insult to the body. We are lowering our dignity to treat We are lowering our dignity to treat We are lowering our dignity to treat with this man, Watson," declared one with this man, Watson," declared one with this man, Watson," declared one man. man. man. "He is free to come to these meetings if "He is free to come to these meetings if "He is free to come to these meetings if he wants to. he wants to. he wants to. What is there to negotiate about?" asked What is there to negotiate about?" asked What is there to negotiate about?" asked another. another. another. "To open a negotiation is to concede "To open a negotiation is to concede "To open a negotiation is to concede that we are wrong.

that we are wrong. that we are wrong. Can we go halves with these middlemen in Can we go halves with these middlemen in Can we go halves with these middlemen in their swindle?" their swindle?" their swindle?" "He has set a trap for us," declared "He has set a trap for us," declared "He has set a trap for us," declared another. another. another. "We cannot treat him without guilt." "We cannot treat him without guilt." "We cannot treat him without guilt." And the motion was voted down. And the motion was voted down. And the motion was voted down. The stopping of the oil supply finally The stopping of the oil supply finally The stopping of the oil supply finally forced the South Improvement Company to forced the South Improvement Company to forced the South Improvement Company to recognize the Producers Union officially recognize the Producers Union officially recognize the Producers Union officially by asking that a committee of the body by asking that a committee of the body by asking that a committee of the body be appointed to confer with them on a be appointed to confer with them on a be appointed to confer with them on a compromise. compromise. compromise. The producers sent back a pertinent The producers sent back a pertinent The producers sent back a pertinent answer. answer. answer. They believed the South Improvement They believed the South Improvement They believed the South Improvement Company meant to monopolize the oil Company meant to monopolize the oil Company meant to monopolize the oil business. business. business. If that was so, they could not consider If that was so, they could not consider If that was so, they could not consider a compromise with it. a compromise with it. a compromise with it. If they were wrong, they would be glad If they were wrong, they would be glad If they were wrong, they would be glad to be enlightened, and they asked for to be enlightened, and they asked for to be enlightened, and they asked for information. information. information. First, the charter under which the South First, the charter under which the South First, the charter under which the South Improvement Company was organized. Improvement Company was organized. Improvement Company was organized. Second, the articles of association. Second, the articles of association. Second, the articles of association. Third, the officers' names. Fourth, the Third, the officers' names. Fourth, the Third, the officers' names. Fourth, the contracts with the railroads, which contracts with the railroads, which contracts with the railroads, which signed them. signed them. signed them. Fifth, the general plan of management.

Fifth, the general plan of management. Fifth, the general plan of management. "Until we know these things," the oilmen "Until we know these things," the oilmen "Until we know these things," the oilmen declared, "we can no more negotiate with declared, "we can no more negotiate with declared, "we can no more negotiate with you than we could sit down to negotiate you than we could sit down to negotiate you than we could sit down to negotiate with a burglar as to his privileges in with a burglar as to his privileges in with a burglar as to his privileges in our house." our house." our house." The Producers Union did not get the The Producers Union did not get the The Producers Union did not get the information they asked from the company information they asked from the company information they asked from the company at that time, but it was not long before at that time, but it was not long before at that time, but it was not long before they had it, and much more. they had it, and much more. they had it, and much more. The committee which they had appointed The committee which they had appointed The committee which they had appointed to write a history of the South to write a history of the South to write a history of the South Improvement Company reported on March Improvement Company reported on March Improvement Company reported on March 20, and in April the congressional 20, and in April the congressional 20, and in April the congressional committee appointed at the insistence of committee appointed at the insistence of committee appointed at the insistence of the oilmen made its investigation. the oilmen made its investigation. the oilmen made its investigation. The former report was published The former report was published The former report was published broadcast, and is readily accessible broadcast, and is readily accessible broadcast, and is readily accessible today. today. today. The congressional investigation was not The congressional investigation was not The congressional investigation was not published officially, and no trace of published officially, and no trace of published officially, and no trace of its work can now be found in Washington, its work can now be found in Washington, its work can now be found in Washington, but while it was going on, reports were but while it was going on, reports were but while it was going on, reports were made in the newspapers of the oil made in the newspapers of the oil made in the newspapers of the oil regions, and at its close the Producers regions, and at its close the Producers regions, and at its close the Producers Union published in Lancaster, Union published in Lancaster, Union published in Lancaster, Pennsylvania, a pamphlet called A Pennsylvania, a pamphlet called A Pennsylvania, a pamphlet called A History of the Rise and Fall of the History of the Rise and Fall of the History of the Rise and Fall of the South Improvement Company, which South Improvement Company, which South Improvement Company, which contains the full testimony taken by the contains the full testimony taken by the contains the full testimony taken by the committee.

committee. committee. This pamphlet is rare, the writer never This pamphlet is rare, the writer never This pamphlet is rare, the writer never having been able to find a copy save in having been able to find a copy save in having been able to find a copy save in three or four private collections. three or four private collections. three or four private collections. The most important part of it is the The most important part of it is the The most important part of it is the testimony of Peter H. Watson, the testimony of Peter H. Watson, the testimony of Peter H. Watson, the president, and W. G. Warden, the president, and W. G. Warden, the president, and W. G. Warden, the secretary of the South Improvement secretary of the South Improvement secretary of the South Improvement Company. Company. Company. It was in these documents that the It was in these documents that the It was in these documents that the oilmen found full justification for the oilmen found full justification for the oilmen found full justification for the war they were carrying on, and for the war they were carrying on, and for the war they were carrying on, and for the losses they had caused themselves and losses they had caused themselves and losses they had caused themselves and others. others. others. Nothing indeed could have been more Nothing indeed could have been more Nothing indeed could have been more damaging to a corporation than the damaging to a corporation than the damaging to a corporation than the publication of the charter of the South publication of the charter of the South publication of the charter of the South Improvement Company, as its president Improvement Company, as its president Improvement Company, as its president told the congressional investigating told the congressional investigating told the congressional investigating committee when he was under examination. committee when he was under examination. committee when he was under examination. "This charter was a sort of clothes "This charter was a sort of clothes "This charter was a sort of clothes horse to hang a scheme upon. horse to hang a scheme upon. horse to hang a scheme upon. As a matter of fact, it was a clothes As a matter of fact, it was a clothes As a matter of fact, it was a clothes horse big enough to hang the earth upon. horse big enough to hang the earth upon. horse big enough to hang the earth upon. It granted powers practically unlimited. It granted powers practically unlimited. It granted powers practically unlimited. There really was no exaggeration in the There really was no exaggeration in the There really was no exaggeration in the summary of its powers made and scattered summary of its powers made and scattered summary of its powers made and scattered broadcast by the irate oilmen in their broadcast by the irate oilmen in their broadcast by the irate oilmen in their history of the rise and fall of the history of the rise and fall of the history of the rise and fall of the South Improvement Company.

South Improvement Company. South Improvement Company. The South Improvement Company can own, The South Improvement Company can own, The South Improvement Company can own, contract, or operate any work, business, contract, or operate any work, business, contract, or operate any work, business, or traffic save only banking. May hold or traffic save only banking. May hold or traffic save only banking. May hold and transfer any kind of property, real and transfer any kind of property, real and transfer any kind of property, real or personal. Hold and operate on any or personal. Hold and operate on any or personal. Hold and operate on any leased property, oil territory, for leased property, oil territory, for leased property, oil territory, for instance. Make any kind of contract. instance. Make any kind of contract. instance. Make any kind of contract. Deal in stock, securities, and funds. Deal in stock, securities, and funds. Deal in stock, securities, and funds. Loan its credit. Guarantee anyone's Loan its credit. Guarantee anyone's Loan its credit. Guarantee anyone's paper. Manipulate any industry. May paper. Manipulate any industry. May paper. Manipulate any industry. May seize upon the lands of other parties seize upon the lands of other parties seize upon the lands of other parties for railroading or any other purpose. for railroading or any other purpose. for railroading or any other purpose. May absorb the improvements, property, May absorb the improvements, property, May absorb the improvements, property, or franchises of another company ad or franchises of another company ad or franchises of another company ad infinitum. May fix the fares, tolls, or infinitum. May fix the fares, tolls, or infinitum. May fix the fares, tolls, or freights to be charged on lines of freights to be charged on lines of freights to be charged on lines of transit operated by it, or on any transit operated by it, or on any transit operated by it, or on any business it gives to any other company business it gives to any other company business it gives to any other company or line without limit. or line without limit. or line without limit. Its capital stock can be expanded or Its capital stock can be expanded or Its capital stock can be expanded or watered at liberty. It can change its watered at liberty. It can change its watered at liberty. It can change its name and location at pleasure. Can go name and location at pleasure. Can go name and location at pleasure. Can go anywhere and do almost anything. anywhere and do almost anything. anywhere and do almost anything. It is not a Pennsylvania corporation It is not a Pennsylvania corporation It is not a Pennsylvania corporation only.

only. only. It can, so far as these enactments are It can, so far as these enactments are It can, so far as these enactments are valid, or are confirmed by other valid, or are confirmed by other valid, or are confirmed by other legislatures, operate in any state or legislatures, operate in any state or legislatures, operate in any state or territory. territory. territory. Its directors must only be citizens of Its directors must only be citizens of Its directors must only be citizens of the United States, not necessarily of the United States, not necessarily of the United States, not necessarily of Pennsylvania. Pennsylvania. Pennsylvania. It is responsible to no one. Its It is responsible to no one. Its It is responsible to no one. Its stockholders are only liable to the stockholders are only liable to the stockholders are only liable to the amount of their stock in it. Its amount of their stock in it. Its amount of their stock in it. Its directors, when wielding all the directors, when wielding all the directors, when wielding all the princely powers of the corporation, are princely powers of the corporation, are princely powers of the corporation, are also responsible only to the amount of also responsible only to the amount of also responsible only to the amount of their stock in it. their stock in it. their stock in it. It may control the business of the It may control the business of the It may control the business of the continent and hold and transfer millions continent and hold and transfer millions continent and hold and transfer millions of property, and yet be rotten to the of property, and yet be rotten to the of property, and yet be rotten to the core. core. core. It is responsible to no one. Makes no It is responsible to no one. Makes no It is responsible to no one. Makes no reports of its acts or financial reports of its acts or financial reports of its acts or financial condition. condition. condition. Its records and deliberations are Its records and deliberations are Its records and deliberations are secret. Its capital illimitable. Its secret. Its capital illimitable. Its secret. Its capital illimitable. Its object unknown. object unknown. object unknown. It can be here today, tomorrow away. Its It can be here today, tomorrow away. Its It can be here today, tomorrow away. Its domain is the whole country. Its domain is the whole country. Its domain is the whole country. Its business everything. business everything. business everything. Now it is petroleum it grasps and Now it is petroleum it grasps and Now it is petroleum it grasps and monopolizes. Next year it may be iron, monopolizes. Next year it may be iron, monopolizes. Next year it may be iron, coal, cotton, or foodstuffs.

coal, cotton, or foodstuffs. coal, cotton, or foodstuffs. They are land men granted perpetual They are land men granted perpetual They are land men granted perpetual letters of marque to prey upon all letters of marque to prey upon all letters of marque to prey upon all commerce everywhere." commerce everywhere." commerce everywhere." When the course of this charter through When the course of this charter through When the course of this charter through the Pennsylvania legislature came to be the Pennsylvania legislature came to be the Pennsylvania legislature came to be traced, traced, traced, it was found to be devious and it was found to be devious and it was found to be devious and uncertain. uncertain. uncertain. The company had been incorporated in The company had been incorporated in The company had been incorporated in 1871, 1871, 1871, and vested with all the powers, and vested with all the powers, and vested with all the powers, privileges, duties, and obligations of privileges, duties, and obligations of privileges, duties, and obligations of an earlier company incorporated in 1870, an earlier company incorporated in 1870, an earlier company incorporated in 1870, the Pennsylvania Company. the Pennsylvania Company. the Pennsylvania Company. Both of them were children of that Both of them were children of that Both of them were children of that interesting body known as the Tom Scott interesting body known as the Tom Scott interesting body known as the Tom Scott legislature. legislature. legislature. The act incorporating the company was The act incorporating the company was The act incorporating the company was not published until after the oil war. not published until after the oil war. not published until after the oil war. Its sponsor was never known, and no Its sponsor was never known, and no Its sponsor was never known, and no votes on it are recorded. votes on it are recorded. votes on it are recorded. The origin of the South Improvement The origin of the South Improvement The origin of the South Improvement Company has always remained in darkness. Company has always remained in darkness. Company has always remained in darkness. It was one of several improvement It was one of several improvement It was one of several improvement companies chartered in Pennsylvania at companies chartered in Pennsylvania at companies chartered in Pennsylvania at about the same time, and enjoying the about the same time, and enjoying the about the same time, and enjoying the same commercial carte blanche. same commercial carte blanche. same commercial carte blanche. Bad as the charter was in appearance, Bad as the charter was in appearance, Bad as the charter was in appearance, the oilmen found that the contracts the oilmen found that the contracts the oilmen found that the contracts which the new company had made with the which the new company had made with the which the new company had made with the railroads were worse.

railroads were worse. railroads were worse. These contracts advanced the rates of These contracts advanced the rates of These contracts advanced the rates of freight from the oil regions over 100%. freight from the oil regions over 100%. freight from the oil regions over 100%. An advance which more than covered the An advance which more than covered the An advance which more than covered the margin of profit on their business. margin of profit on their business. margin of profit on their business. But it was not the railroad that got the But it was not the railroad that got the But it was not the railroad that got the greater part of this advance. It was the greater part of this advance. It was the greater part of this advance. It was the South Improvement Company. South Improvement Company. South Improvement Company. Not only did it ship its own oil at Not only did it ship its own oil at Not only did it ship its own oil at fully a dollar a barrel cheaper on an fully a dollar a barrel cheaper on an fully a dollar a barrel cheaper on an average than anybody else could, but it average than anybody else could, but it average than anybody else could, but it received fully a dollar a barrel received fully a dollar a barrel received fully a dollar a barrel rake-off on every barrel its competitors rake-off on every barrel its competitors rake-off on every barrel its competitors shipped. shipped. shipped. It was computed and admitted by the It was computed and admitted by the It was computed and admitted by the members of the company who appeared members of the company who appeared members of the company who appeared before the investigating committee of before the investigating committee of before the investigating committee of Congress Congress Congress that this discrimination would have that this discrimination would have that this discrimination would have turned over to them fully $6 million turned over to them fully $6 million turned over to them fully $6 million annually on the carrying trade. annually on the carrying trade. annually on the carrying trade. The railroads expected to receive about The railroads expected to receive about The railroads expected to receive about 1 and 1/2 millions more than from the 1 and 1/2 millions more than from the 1 and 1/2 millions more than from the existing rates. existing rates. existing rates. That is, an additional cost of about That is, an additional cost of about That is, an additional cost of about $1.25 a barrel was added to crude oil, $1.25 a barrel was added to crude oil, $1.25 a barrel was added to crude oil, and it was computed that this would and it was computed that this would and it was computed that this would enable the refiners to advance their enable the refiners to advance their enable the refiners to advance their wholesale price at least 4 cents a wholesale price at least 4 cents a wholesale price at least 4 cents a gallon.

gallon. gallon. It is hardly to be wondered at that when It is hardly to be wondered at that when It is hardly to be wondered at that when the oilmen had before them the full text the oilmen had before them the full text the oilmen had before them the full text of these contracts, they refused of these contracts, they refused of these contracts, they refused absolutely to accept the repeated absolutely to accept the repeated absolutely to accept the repeated assertions of the members of the South assertions of the members of the South assertions of the members of the South Improvement Company that their scheme Improvement Company that their scheme Improvement Company that their scheme was intended only for the good of the was intended only for the good of the was intended only for the good of the oil business. oil business. oil business. The committee of Congress could not be The committee of Congress could not be The committee of Congress could not be persuaded to believe it either. persuaded to believe it either. persuaded to believe it either. "Your success meant the destruction of "Your success meant the destruction of "Your success meant the destruction of every refiner who refused for any reason every refiner who refused for any reason every refiner who refused for any reason to join your company, or whom you did to join your company, or whom you did to join your company, or whom you did not care to have in, and it put the not care to have in, and it put the not care to have in, and it put the producers entirely in your power. producers entirely in your power. producers entirely in your power. It would make a monopoly such as no set It would make a monopoly such as no set It would make a monopoly such as no set of men are fit to handle," the chairman of men are fit to handle," the chairman of men are fit to handle," the chairman of the committee declared. of the committee declared. of the committee declared. Of course, Mr. Warden, the secretary of Of course, Mr. Warden, the secretary of Of course, Mr. Warden, the secretary of the company, protested again and again the company, protested again and again the company, protested again and again that they meant to take in all the that they meant to take in all the that they meant to take in all the refiners. refiners. refiners. But when he had to admit that the But when he had to admit that the But when he had to admit that the contracts with the railroads were not contracts with the railroads were not contracts with the railroads were not made on this condition, his made on this condition, his made on this condition, his protestations met with little credence. protestations met with little credence. protestations met with little credence. Besides, there was the damning fact that Besides, there was the damning fact that Besides, there was the damning fact that no refiners had come in except those in no refiners had come in except those in no refiners had come in except those in Cleveland, and that they with one accord Cleveland, and that they with one accord Cleveland, and that they with one accord testified that they had yielded to testified that they had yielded to testified that they had yielded to force.

force. force. Not a single factory in either New York Not a single factory in either New York Not a single factory in either New York or the oil regions was in the or the oil regions was in the or the oil regions was in the combination. combination. combination. The fact that these producers had never The fact that these producers had never The fact that these producers had never been approached in any way looked very been approached in any way looked very been approached in any way looked very bad for the company, too. bad for the company, too. bad for the company, too. Mr. Watson affirmed and reaffirmed Mr. Watson affirmed and reaffirmed Mr. Watson affirmed and reaffirmed before the committee that it was the before the committee that it was the before the committee that it was the intention of the company to take care of intention of the company to take care of intention of the company to take care of the producers. the producers. the producers. It was an essential part of this It was an essential part of this It was an essential part of this contract that the producers should join contract that the producers should join contract that the producers should join it, he declared. it, he declared. it, he declared. But no such condition was embodied in But no such condition was embodied in But no such condition was embodied in the contract. the contract. the contract. It was verbal only, and besides, it had It was verbal only, and besides, it had It was verbal only, and besides, it had never been submitted to the producers never been submitted to the producers never been submitted to the producers themselves in any form until after the themselves in any form until after the themselves in any form until after the trouble in the oil regions began. trouble in the oil regions began. trouble in the oil regions began. The committee, like the oilmen, insisted The committee, like the oilmen, insisted The committee, like the oilmen, insisted that under the circumstances no such that under the circumstances no such that under the circumstances no such verbal understanding was to be trusted. verbal understanding was to be trusted. verbal understanding was to be trusted. No part of the testimony before the No part of the testimony before the No part of the testimony before the committee made a worse impression than committee made a worse impression than committee made a worse impression than that showing that the chief object of that showing that the chief object of that showing that the chief object of the combination was to put up the price the combination was to put up the price the combination was to put up the price of refined oil to the consumer, though of refined oil to the consumer, though of refined oil to the consumer, though nobody had denied from the first that nobody had denied from the first that nobody had denied from the first that this was the purpose.

this was the purpose. this was the purpose. In a circular intended for private In a circular intended for private In a circular intended for private circulation, which appeared in the circulation, which appeared in the circulation, which appeared in the newspapers about this time, explaining newspapers about this time, explaining newspapers about this time, explaining the facts of the South Improvement the facts of the South Improvement the facts of the South Improvement Company, Company, Company, this was made clear. this was made clear. this was made clear. The object of this combination of The object of this combination of The object of this combination of interest, ran the circular, is interest, ran the circular, is interest, ran the circular, is understood to be twofold. understood to be twofold. understood to be twofold. Firstly, to do away, at least in great Firstly, to do away, at least in great Firstly, to do away, at least in great measure, with the excessive and undue measure, with the excessive and undue measure, with the excessive and undue competition now existing between the competition now existing between the competition now existing between the refining interest, by reason of there refining interest, by reason of there refining interest, by reason of there being a far greater refining capacity being a far greater refining capacity being a far greater refining capacity than is called for or justified by the than is called for or justified by the than is called for or justified by the existing petroleum consuming existing petroleum consuming existing petroleum consuming requirements of the world. requirements of the world. requirements of the world. Secondly, to avoid the heretofore undue Secondly, to avoid the heretofore undue Secondly, to avoid the heretofore undue competition between the various railroad competition between the various railroad competition between the various railroad companies transporting oil to the companies transporting oil to the companies transporting oil to the seaboard by fixing a uniform rate of seaboard by fixing a uniform rate of seaboard by fixing a uniform rate of freight, which it is thought can be freight, which it is thought can be freight, which it is thought can be adhered to by some such arrangement as adhered to by some such arrangement as adhered to by some such arrangement as guaranteeing to each road some such guaranteeing to each road some such guaranteeing to each road some such percentages of the profit of the percentages of the profit of the percentages of the profit of the aggregate amount of oil transported, aggregate amount of oil transported, aggregate amount of oil transported, whether the particular line carries it whether the particular line carries it whether the particular line carries it or not.

or not. or not. It is also asserted that a prominent It is also asserted that a prominent It is also asserted that a prominent feature of the combination will be to feature of the combination will be to feature of the combination will be to limit the production of refined limit the production of refined limit the production of refined petroleum to such amounts as may serve, petroleum to such amounts as may serve, petroleum to such amounts as may serve, in a great measure, to do away with the in a great measure, to do away with the in a great measure, to do away with the serious periodical depressions in the serious periodical depressions in the serious periodical depressions in the article. article. article. It is also to be expected that, desiring It is also to be expected that, desiring It is also to be expected that, desiring to curtail the production of refined to curtail the production of refined to curtail the production of refined petroleum in this country, the railroads petroleum in this country, the railroads petroleum in this country, the railroads will not offer any additional facilities will not offer any additional facilities will not offer any additional facilities for exportation of the crude article. for exportation of the crude article. for exportation of the crude article. A writer in the Oil City Derrick, quoted A writer in the Oil City Derrick, quoted A writer in the Oil City Derrick, quoted in the Cleveland Herald, March 2nd, in the Cleveland Herald, March 2nd, in the Cleveland Herald, March 2nd, 1872, said, 1872, said, 1872, said, "The ring pretend that they will make "The ring pretend that they will make "The ring pretend that they will make their margin out of the consumers. That their margin out of the consumers. That their margin out of the consumers. That is, they will put refined up to a figure is, they will put refined up to a figure is, they will put refined up to a figure that will enable them to pay well for that will enable them to pay well for that will enable them to pay well for crude. The consumers are the avowed crude. The consumers are the avowed crude. The consumers are the avowed victims, since they must pay a price victims, since they must pay a price victims, since they must pay a price which will warrant the ring in going on which will warrant the ring in going on which will warrant the ring in going on with their operations. with their operations. with their operations. And the producers' security for the And the producers' security for the And the producers' security for the price price price is a mere matter of discretion." is a mere matter of discretion." is a mere matter of discretion." Whether the members of the company Whether the members of the company Whether the members of the company discussed the subject, they put forward discussed the subject, they put forward discussed the subject, they put forward this object as one sufficient to justify this object as one sufficient to justify this object as one sufficient to justify the combination.

the combination. the combination. If refined oil was put up, everybody in If refined oil was put up, everybody in If refined oil was put up, everybody in the trade would make more money. the trade would make more money. the trade would make more money. To this end, the public ought to be To this end, the public ought to be To this end, the public ought to be willing to pay more. willing to pay more. willing to pay more. When Mr. Warden was under examination by When Mr. Warden was under examination by When Mr. Warden was under examination by the committee, the chairman said to him, the committee, the chairman said to him, the committee, the chairman said to him, "Under your arrangement, the public "Under your arrangement, the public "Under your arrangement, the public would have been put to an additional would have been put to an additional would have been put to an additional expense of $7,500,000 expense of $7,500,000 expense of $7,500,000 a year." a year." a year." "What public?" said Mr. Warden. "They "What public?" said Mr. Warden. "They "What public?" said Mr. Warden. "They would have had to pay it in Europe." would have had to pay it in Europe." would have had to pay it in Europe." "But to keep up the price abroad, you "But to keep up the price abroad, you "But to keep up the price abroad, you would have had to keep up the price at would have had to keep up the price at would have had to keep up the price at home," said the chairman. home," said the chairman. home," said the chairman. Mr. Warden conceded the point. "You Mr. Warden conceded the point. "You Mr. Warden conceded the point. "You could not get a better price for that could not get a better price for that could not get a better price for that exported without having a better price exported without having a better price exported without having a better price here," he said. Mr. Watson contended here," he said. Mr. Watson contended here," he said. Mr. Watson contended that the price could be put up with that the price could be put up with that the price could be put up with benefit to the consumer. benefit to the consumer. benefit to the consumer. And when he was asked how, he replied, And when he was asked how, he replied, And when he was asked how, he replied, "By steadying the trade. "By steadying the trade. "By steadying the trade. You will notice what all those familiar You will notice what all those familiar You will notice what all those familiar with this trade know, that there are with this trade know, that there are with this trade know, that there are very rapid and excessive fluctuations in very rapid and excessive fluctuations in very rapid and excessive fluctuations in the oil market. That when these the oil market. That when these the oil market. That when these fluctuations take place, the retail fluctuations take place, the retail fluctuations take place, the retail dealers are always quick to note a rise dealers are always quick to note a rise dealers are always quick to note a rise in price, but very slow to note a fall.

in price, but very slow to note a fall. in price, but very slow to note a fall. Even if $2 a barrel had been added to Even if $2 a barrel had been added to Even if $2 a barrel had been added to the price of oil under a steady trade, I the price of oil under a steady trade, I the price of oil under a steady trade, I think the price of the retail purchaser think the price of the retail purchaser think the price of the retail purchaser would not have been increased. would not have been increased. would not have been increased. That increased price would only amount That increased price would only amount That increased price would only amount to 1 cent a quart or cents a gallon, and to 1 cent a quart or cents a gallon, and to 1 cent a quart or cents a gallon, and I think the price would not have been I think the price would not have been I think the price would not have been increased to the retail dealer, because increased to the retail dealer, because increased to the retail dealer, because the fluctuations would have been the fluctuations would have been the fluctuations would have been avoided. avoided. avoided. That was one object to be accomplished." That was one object to be accomplished." That was one object to be accomplished." The committee were not convinced, The committee were not convinced, The committee were not convinced, however, that a scheme which began by however, that a scheme which began by however, that a scheme which began by adding 4 cents to the price of a gallon adding 4 cents to the price of a gallon adding 4 cents to the price of a gallon of oil could be to the good of the of oil could be to the good of the of oil could be to the good of the consumer. consumer. consumer. Nor did anything appear in the contracts Nor did anything appear in the contracts Nor did anything appear in the contracts which showed how the fluctuations in the which showed how the fluctuations in the which showed how the fluctuations in the price of oil were to be avoided. price of oil were to be avoided. price of oil were to be avoided. These fluctuations were due to the rise These fluctuations were due to the rise These fluctuations were due to the rise and fall in the crude market, and that and fall in the crude market, and that and fall in the crude market, and that depended on the amount of crude coming depended on the amount of crude coming depended on the amount of crude coming from the ground. from the ground. from the ground. The South Improvement Company might The South Improvement Company might The South Improvement Company might assert that they meant to bring the assert that they meant to bring the assert that they meant to bring the producers into their scheme and persuade producers into their scheme and persuade producers into their scheme and persuade them to keep down the amount of them to keep down the amount of them to keep down the amount of production in the same way they meant to production in the same way they meant to production in the same way they meant to keep down refined, so that the price keep down refined, so that the price keep down refined, so that the price could be kept steadily high.

could be kept steadily high. could be kept steadily high. But they had nothing to prove that they But they had nothing to prove that they But they had nothing to prove that they were sincere in the intention, nothing were sincere in the intention, nothing were sincere in the intention, nothing to prove that they had thought of the to prove that they had thought of the to prove that they had thought of the producers seriously until the trouble in producers seriously until the trouble in producers seriously until the trouble in the oil regions began. the oil regions began. the oil regions began. It looked very much to the committee as It looked very much to the committee as It looked very much to the committee as if the real intention of the company was if the real intention of the company was if the real intention of the company was to keep up the price of refined to a to keep up the price of refined to a to keep up the price of refined to a certain figure by limiting the output, certain figure by limiting the output, certain figure by limiting the output, and that there was nothing to show that and that there was nothing to show that and that there was nothing to show that it would not go up with crude, though it it would not go up with crude, though it it would not go up with crude, though it might not go down with it. Under these might not go down with it. Under these might not go down with it. Under these circumstances, it seemed as if a circumstances, it seemed as if a circumstances, it seemed as if a fluctuating market which gave a moderate fluctuating market which gave a moderate fluctuating market which gave a moderate average was better for the consumer than average was better for the consumer than average was better for the consumer than the steady price which Mr. Watson the steady price which Mr. Watson the steady price which Mr. Watson thought so good for the public. thought so good for the public. thought so good for the public. 32 cents a gallon was the ideal price 32 cents a gallon was the ideal price 32 cents a gallon was the ideal price they had in view, though refined had not they had in view, though refined had not they had in view, though refined had not sold for that since 1869, sold for that since 1869, sold for that since 1869, the average price in 1870 being 26 and the average price in 1870 being 26 and the average price in 1870 being 26 and 3/8, and in 1871, 3/8, and in 1871, 3/8, and in 1871, 24 and 1/4. 24 and 1/4. 24 and 1/4. The refiner who in 1871 sold his oil at The refiner who in 1871 sold his oil at The refiner who in 1871 sold his oil at 24 and 1/4 cents a gallon cleared easily 24 and 1/4 cents a gallon cleared easily 24 and 1/4 cents a gallon cleared easily 52 cents a barrel, a large profit on his 52 cents a barrel, a large profit on his 52 cents a barrel, a large profit on his investments.

investments. investments. But the refiners in the early stages of But the refiners in the early stages of But the refiners in the early stages of this new industry had made much larger this new industry had made much larger this new industry had made much larger profits. profits. profits. It was to perpetuate these early profits It was to perpetuate these early profits It was to perpetuate these early profits that they had gone into the South that they had gone into the South that they had gone into the South Improvement Company. Improvement Company. Improvement Company. It did not take the full exposition of It did not take the full exposition of It did not take the full exposition of the objects of the South Improvement the objects of the South Improvement the objects of the South Improvement Company brought out by the congressional Company brought out by the congressional Company brought out by the congressional investigating committee, with the investigating committee, with the investigating committee, with the publication of charters and contracts, publication of charters and contracts, publication of charters and contracts, to convince the country at large that to convince the country at large that to convince the country at large that the oil regions were right in their the oil regions were right in their the oil regions were right in their opposition. opposition. opposition. From the first, the sympathy of the From the first, the sympathy of the From the first, the sympathy of the press and the people were with the press and the people were with the press and the people were with the oilmen. oilmen. oilmen. It was evident to everybody that if the It was evident to everybody that if the It was evident to everybody that if the railroads had made the contracts as railroads had made the contracts as railroads had made the contracts as charged, and it daily became more charged, and it daily became more charged, and it daily became more evident they had done so, evident they had done so, evident they had done so, nothing but an absolute monopoly of the nothing but an absolute monopoly of the nothing but an absolute monopoly of the whole oil business by this combination whole oil business by this combination whole oil business by this combination could result. could result. could result. "It was robbery," cried the newspapers "It was robbery," cried the newspapers "It was robbery," cried the newspapers all over the land. all over the land. all over the land. "Under the thin guise of assisting in "Under the thin guise of assisting in "Under the thin guise of assisting in the development of oil refining in the development of oil refining in the development of oil refining in Pittsburgh and Cleveland," said the New Pittsburgh and Cleveland," said the New Pittsburgh and Cleveland," said the New York Tribune, York Tribune, York Tribune, "this corporation has simply laid its "this corporation has simply laid its "this corporation has simply laid its hand upon the throat of the oil traffic hand upon the throat of the oil traffic hand upon the throat of the oil traffic with a demand to stand and deliver.

with a demand to stand and deliver. with a demand to stand and deliver. And if this could be done in the oil And if this could be done in the oil And if this could be done in the oil business, business, business, what was to prevent it being done in any what was to prevent it being done in any what was to prevent it being done in any other industry? other industry? other industry? Why should not a company be formed to Why should not a company be formed to Why should not a company be formed to control wheat or bread or iron or steel control wheat or bread or iron or steel control wheat or bread or iron or steel as well as oil? as well as oil? as well as oil? If the railroads would do this for one If the railroads would do this for one If the railroads would do this for one company, why not for another? company, why not for another? company, why not for another? The South Improvement Company, many The South Improvement Company, many The South Improvement Company, many agreed, was a menace to the free trade agreed, was a menace to the free trade agreed, was a menace to the free trade of the country. of the country. of the country. If the oilmen yielded now, all If the oilmen yielded now, all If the oilmen yielded now, all industries would suffer from their industries would suffer from their industries would suffer from their weakness. The railroads must be taught a weakness. The railroads must be taught a weakness. The railroads must be taught a lesson as well as would-be monopolists. lesson as well as would-be monopolists. lesson as well as would-be monopolists. The oilmen had no thought of yielding. The oilmen had no thought of yielding. The oilmen had no thought of yielding. With every day of the war, their With every day of the war, their With every day of the war, their backbone grew stiffer. backbone grew stiffer. backbone grew stiffer. The men were calmer, too, for their The men were calmer, too, for their The men were calmer, too, for their resistance had found a ground which resistance had found a ground which resistance had found a ground which seemed impregnable to them, and seemed impregnable to them, and seemed impregnable to them, and arguments against the South Improvement arguments against the South Improvement arguments against the South Improvement Company now took the place of Company now took the place of Company now took the place of denunciations. denunciations. denunciations. On all sides, men said, On all sides, men said, On all sides, men said, "This is a transportation question, and "This is a transportation question, and "This is a transportation question, and now is the time to put an end, once and now is the time to put an end, once and now is the time to put an end, once and forever, to the rebates."

forever, to the rebates." forever, to the rebates." This sentiment against discrimination on This sentiment against discrimination on This sentiment against discrimination on account of amount of freight or for any account of amount of freight or for any account of amount of freight or for any other reason had been strong in the other reason had been strong in the other reason had been strong in the country since its beginning, and it now country since its beginning, and it now country since its beginning, and it now crystallized immediately. crystallized immediately. crystallized immediately. The country so buzzed with discussion on The country so buzzed with discussion on The country so buzzed with discussion on the duties of the railroads that the duties of the railroads that the duties of the railroads that reporters sent from the Eastern reporters sent from the Eastern reporters sent from the Eastern newspapers commented on it. newspapers commented on it. newspapers commented on it. Nothing was commoner, indeed, on the Nothing was commoner, indeed, on the Nothing was commoner, indeed, on the trains which ran the length of the trains which ran the length of the trains which ran the length of the region and were its real forums, than to region and were its real forums, than to region and were its real forums, than to hear a man explaining that the railways hear a man explaining that the railways hear a man explaining that the railways derived their existence and power from derived their existence and power from derived their existence and power from the people, that their charters were the people, that their charters were the people, that their charters were contracts with the people, that a contracts with the people, that a contracts with the people, that a fundamental provision of these contracts fundamental provision of these contracts fundamental provision of these contracts was that there should be no was that there should be no was that there should be no discriminating in favor of one person or discriminating in favor of one person or discriminating in favor of one person or one town, that such a discrimination was one town, that such a discrimination was one town, that such a discrimination was a violation of charter, that therefore a violation of charter, that therefore a violation of charter, that therefore the South Improvement Company was the South Improvement Company was the South Improvement Company was founded on fraud, and that the courts founded on fraud, and that the courts founded on fraud, and that the courts must dissolve it if the railways did not must dissolve it if the railways did not must dissolve it if the railways did not abandon it. abandon it. abandon it. The petroleum producers union, which had The petroleum producers union, which had The petroleum producers union, which had been formed to grapple with the monster, been formed to grapple with the monster, been formed to grapple with the monster, actually demanded interstate regulation. actually demanded interstate regulation. actually demanded interstate regulation. For in a circular sent out to newspapers For in a circular sent out to newspapers For in a circular sent out to newspapers and boards of trade asking their aid and boards of trade asking their aid and boards of trade asking their aid against the conspiracy, they included against the conspiracy, they included against the conspiracy, they included this paragraph.

this paragraph. this paragraph. "We urge you to exert all your influence "We urge you to exert all your influence "We urge you to exert all your influence with your representatives in Congress to with your representatives in Congress to with your representatives in Congress to support such measures offered there as support such measures offered there as support such measures offered there as will prohibit for all future time any will prohibit for all future time any will prohibit for all future time any monopoly of railroads or other monopoly of railroads or other monopoly of railroads or other transportation companies from laying transportation companies from laying transportation companies from laying embargoes upon the trade between states embargoes upon the trade between states embargoes upon the trade between states by a system of excessive freights or by a system of excessive freights or by a system of excessive freights or unjust discrimination against buyers or unjust discrimination against buyers or unjust discrimination against buyers or shippers at any trade, by the allowance shippers at any trade, by the allowance shippers at any trade, by the allowance of rebates or drawbacks to any persons of rebates or drawbacks to any persons of rebates or drawbacks to any persons whatever. whatever. whatever. This is a matter of national importance, This is a matter of national importance, This is a matter of national importance, and only the most decided action can and only the most decided action can and only the most decided action can protect you and us from the scheming protect you and us from the scheming protect you and us from the scheming strength of these monopolies." strength of these monopolies." strength of these monopolies." How the whole question appeared to an How the whole question appeared to an How the whole question appeared to an intelligent oil man, one two, who had intelligent oil man, one two, who had intelligent oil man, one two, who had had the courage to resist in the attack had the courage to resist in the attack had the courage to resist in the attack on the trade in Cleveland, and who still on the trade in Cleveland, and who still on the trade in Cleveland, and who still was master of his own refinery, is shown was master of his own refinery, is shown was master of his own refinery, is shown by the following letter to the Cleveland by the following letter to the Cleveland by the following letter to the Cleveland Herald. Herald. Herald. "Editors Herald, "Editors Herald, "Editors Herald, as I understand the financial success of as I understand the financial success of as I understand the financial success of this South Improvement Company is based this South Improvement Company is based this South Improvement Company is based upon contracts made with the officers, upon contracts made with the officers, upon contracts made with the officers, either individually or otherwise, of all either individually or otherwise, of all either individually or otherwise, of all the railroads leading out of the oil the railroads leading out of the oil the railroads leading out of the oil region, by which they, the South region, by which they, the South region, by which they, the South Improvement Company, receive as a Improvement Company, receive as a Improvement Company, receive as a drawback certain excess of freights, not drawback certain excess of freights, not drawback certain excess of freights, not only on every barrel of oil shipped out only on every barrel of oil shipped out only on every barrel of oil shipped out of the oil regions by or to themselves, of the oil regions by or to themselves, of the oil regions by or to themselves, but also on every barrel of oil shipped but also on every barrel of oil shipped but also on every barrel of oil shipped out of the oil regions by or to other out of the oil regions by or to other out of the oil regions by or to other refineries or dealers or consumers.

refineries or dealers or consumers. refineries or dealers or consumers. The first advance in freights to The first advance in freights to The first advance in freights to Cleveland has already been made, viz., Cleveland has already been made, viz., Cleveland has already been made, viz., on crude oil from 40 cents to 65 cents on crude oil from 40 cents to 65 cents on crude oil from 40 cents to 65 cents per barrel. per barrel. per barrel. This seemingly slight advance has This seemingly slight advance has This seemingly slight advance has already caused one party that I know of already caused one party that I know of already caused one party that I know of to pay an excess of over $2,000. to pay an excess of over $2,000. to pay an excess of over $2,000. Other firms have paid larger or smaller Other firms have paid larger or smaller Other firms have paid larger or smaller sums according to the quantity of oil sums according to the quantity of oil sums according to the quantity of oil they were compelled to have. they were compelled to have. they were compelled to have. This excess, we suppose, goes directly This excess, we suppose, goes directly This excess, we suppose, goes directly to swell the profits of the South to swell the profits of the South to swell the profits of the South Improvement Company. Improvement Company. Improvement Company. This is only the beginning. This is only the beginning. This is only the beginning. The whole extent of the evil that may be The whole extent of the evil that may be The whole extent of the evil that may be done to producers, refiners, dealers, done to producers, refiners, dealers, done to producers, refiners, dealers, and consumers, and to the public and consumers, and to the public and consumers, and to the public generally, if this corporation, or generally, if this corporation, or generally, if this corporation, or rather combination of corporations, is rather combination of corporations, is rather combination of corporations, is successful, is so deep and varied and successful, is so deep and varied and successful, is so deep and varied and far-reaching that it cannot be fully far-reaching that it cannot be fully far-reaching that it cannot be fully comprehended, and I will not attempt it comprehended, and I will not attempt it comprehended, and I will not attempt it in detail, but only suggest a few in detail, but only suggest a few in detail, but only suggest a few inquiries. inquiries. inquiries. Where will be their limits? How high Where will be their limits? How high Where will be their limits? How high will they advance freights? How low will will they advance freights? How low will will they advance freights? How low will they force the price of crude?

they force the price of crude? they force the price of crude? How high refined? How high refined? How high refined? Will they adopt a liberal policy for Will they adopt a liberal policy for Will they adopt a liberal policy for producers, or will they destroy their producers, or will they destroy their producers, or will they destroy their interest and crush out the oil interest and crush out the oil interest and crush out the oil production entirely? production entirely? production entirely? Will they be liberal with dealers and Will they be liberal with dealers and Will they be liberal with dealers and consumers and adopt uniform rules with consumers and adopt uniform rules with consumers and adopt uniform rules with steady prices, steady prices, steady prices, or will they take advantage of times and or will they take advantage of times and or will they take advantage of times and circumstances and force ruinous corners circumstances and force ruinous corners circumstances and force ruinous corners upon the trade? upon the trade? upon the trade? These and many other questions are These and many other questions are These and many other questions are pertinent, for clearly if they can pertinent, for clearly if they can pertinent, for clearly if they can control the shipment, they can control control the shipment, they can control control the shipment, they can control the price of oil. And if they can the price of oil. And if they can the price of oil. And if they can control the price to the extent of 25 control the price to the extent of 25 control the price to the extent of 25 cents per barrel, they can control it cents per barrel, they can control it cents per barrel, they can control it entirely. If they can control it entirely. If they can control it entirely. If they can control it entirely, entirely, entirely, where will be their limit? where will be their limit? where will be their limit? Who will dictate a line of policy to Who will dictate a line of policy to Who will dictate a line of policy to them? them? them? And may not one of the greatest and most And may not one of the greatest and most And may not one of the greatest and most important industries of this country be important industries of this country be important industries of this country be destroyed and hundreds of thousands of destroyed and hundreds of thousands of destroyed and hundreds of thousands of businessmen be made bankrupt if this businessmen be made bankrupt if this businessmen be made bankrupt if this combination is successful and has the combination is successful and has the combination is successful and has the disposition to work ruin?

disposition to work ruin? disposition to work ruin? I do not say that I think they will work I do not say that I think they will work I do not say that I think they will work ruin. ruin. ruin. They undoubtedly will attempt to make They undoubtedly will attempt to make They undoubtedly will attempt to make all the money they can and will pursue all the money they can and will pursue all the money they can and will pursue such a policy as in their judgment will such a policy as in their judgment will such a policy as in their judgment will bring them the utmost amount of profits, bring them the utmost amount of profits, bring them the utmost amount of profits, regardless of consequences. regardless of consequences. regardless of consequences. But what that policy will be, of course, But what that policy will be, of course, But what that policy will be, of course, we cannot judge. we cannot judge. we cannot judge. It is understood that the parties to It is understood that the parties to It is understood that the parties to this combination excuse themselves in this combination excuse themselves in this combination excuse themselves in their action before the public by their action before the public by their action before the public by reciting the undoubted facts in the reciting the undoubted facts in the reciting the undoubted facts in the case. case. case. They are these: They are these: They are these: that the refining of oil as a business that the refining of oil as a business that the refining of oil as a business has been of late and is now overdone, has been of late and is now overdone, has been of late and is now overdone, that the capacity for refining oil in that the capacity for refining oil in that the capacity for refining oil in this country exceeds the production in this country exceeds the production in this country exceeds the production in the ratio of three barrels to one, the ratio of three barrels to one, the ratio of three barrels to one, that the railroads have reduced freights that the railroads have reduced freights that the railroads have reduced freights to their lowest extreme and were even to their lowest extreme and were even to their lowest extreme and were even losing money, losing money, losing money, that refiners, in spite of all their that refiners, in spite of all their that refiners, in spite of all their efforts, could not earn their running efforts, could not earn their running efforts, could not earn their running expenses, that the special interest of expenses, that the special interest of expenses, that the special interest of Cleveland as a refining point were in Cleveland as a refining point were in Cleveland as a refining point were in danger of being lost, and that this danger of being lost, and that this danger of being lost, and that this great business might go to other points great business might go to other points great business might go to other points and the millions of dollars in refining and the millions of dollars in refining and the millions of dollars in refining property here to be sacrificed and property here to be sacrificed and property here to be sacrificed and thousands of men thrown out of thousands of men thrown out of thousands of men thrown out of employment, that real estate would employment, that real estate would employment, that real estate would depreciate, and that many other depreciate, and that many other depreciate, and that many other collateral troubles connected with the collateral troubles connected with the collateral troubles connected with the loss of this business would follow, loss of this business would follow, loss of this business would follow, and that now, by the consummation of the and that now, by the consummation of the and that now, by the consummation of the plans of this monopoly, plans of this monopoly, plans of this monopoly, all these evils will be avoided."

all these evils will be avoided." all these evils will be avoided." In answer to this, assuming that the In answer to this, assuming that the In answer to this, assuming that the refining interest of Cleveland is a unit refining interest of Cleveland is a unit refining interest of Cleveland is a unit in this corporation, that of Pittsburgh in this corporation, that of Pittsburgh in this corporation, that of Pittsburgh another, another, another, that of New York another, and that of that of New York another, and that of that of New York another, and that of Philadelphia another, Philadelphia another, Philadelphia another, it follows that it is immaterial to the it follows that it is immaterial to the it follows that it is immaterial to the stockholders of the South Improvement stockholders of the South Improvement stockholders of the South Improvement Company whether the oil produced at the Company whether the oil produced at the Company whether the oil produced at the oil regions is refined by them at their oil regions is refined by them at their oil regions is refined by them at their works in Cleveland, or at Pittsburgh, or works in Cleveland, or at Pittsburgh, or works in Cleveland, or at Pittsburgh, or New York, New York, New York, or in Philadelphia. or in Philadelphia. or in Philadelphia. It would not affect their dividends at It would not affect their dividends at It would not affect their dividends at all, provided they refine the oil at the all, provided they refine the oil at the all, provided they refine the oil at the cheapest point for them to do so. cheapest point for them to do so. cheapest point for them to do so. That place might be Cleveland. That place might be Cleveland. That place might be Cleveland. It might be Pittsburgh. And it might not It might be Pittsburgh. And it might not It might be Pittsburgh. And it might not be either of them. be either of them. be either of them. But it might be New York or But it might be New York or But it might be New York or Philadelphia. Philadelphia. Philadelphia. Therefore, as long as it is for the Therefore, as long as it is for the Therefore, as long as it is for the pecuniary advantage of this combination pecuniary advantage of this combination pecuniary advantage of this combination to refine at Cleveland, they may do so, to refine at Cleveland, they may do so, to refine at Cleveland, they may do so, but no longer. And should it be for the but no longer. And should it be for the but no longer. And should it be for the interest of the combination to interest of the combination to interest of the combination to discontinue their works at Cleveland, discontinue their works at Cleveland, discontinue their works at Cleveland, what would become of the oil refining what would become of the oil refining what would become of the oil refining interest at this point?

interest at this point? interest at this point? That question everybody can answer. That question everybody can answer. That question everybody can answer. Therefore, I see little weight to the Therefore, I see little weight to the Therefore, I see little weight to the argument used that this monopoly is for argument used that this monopoly is for argument used that this monopoly is for the benefit of Cleveland. the benefit of Cleveland. the benefit of Cleveland. Hence, I do not consider the special Hence, I do not consider the special Hence, I do not consider the special danger to Cleveland by any means as danger to Cleveland by any means as danger to Cleveland by any means as averted. averted. averted. But without discussing this position, But without discussing this position, But without discussing this position, its advantages or disadvantages as an its advantages or disadvantages as an its advantages or disadvantages as an oil refining center, for it has both in oil refining center, for it has both in oil refining center, for it has both in a marked degree, a marked degree, a marked degree, on general principles, I will assert on general principles, I will assert on general principles, I will assert that the laws of business and that the laws of business and that the laws of business and manufacturing interests, like the laws manufacturing interests, like the laws manufacturing interests, like the laws of supply and demand, are unchangeable, of supply and demand, are unchangeable, of supply and demand, are unchangeable, and that a prosperity such as this and that a prosperity such as this and that a prosperity such as this monopoly would bring us is a false monopoly would bring us is a false monopoly would bring us is a false prosperity, consequently not permanent, prosperity, consequently not permanent, prosperity, consequently not permanent, but temporary and factitious in but temporary and factitious in but temporary and factitious in character, and damaging in its ultimate character, and damaging in its ultimate character, and damaging in its ultimate results. results. results. And more than all this, if the refining And more than all this, if the refining And more than all this, if the refining prosperity of Cleveland could be prosperity of Cleveland could be prosperity of Cleveland could be reestablished permanently by means of reestablished permanently by means of reestablished permanently by means of the success of this monopoly, we could the success of this monopoly, we could the success of this monopoly, we could not afford to accept it at the cost not afford to accept it at the cost not afford to accept it at the cost proposed, proposed, proposed, viz., that of enriching ourselves at the viz., that of enriching ourselves at the viz., that of enriching ourselves at the expense of those who are weaker, but are expense of those who are weaker, but are expense of those who are weaker, but are in power.

in power. in power. We have just refused to build an opera We have just refused to build an opera We have just refused to build an opera house because we should, by using the house because we should, by using the house because we should, by using the only means we could command to do so, only means we could command to do so, only means we could command to do so, compromise our morality. compromise our morality. compromise our morality. How much more emphatically should we How much more emphatically should we How much more emphatically should we refuse to accept any benefits to our refuse to accept any benefits to our refuse to accept any benefits to our city which have their origin in city which have their origin in city which have their origin in unmitigated fraud? unmitigated fraud? unmitigated fraud? In the opera house instance just cited, In the opera house instance just cited, In the opera house instance just cited, the managers used the compulsion. No the managers used the compulsion. No the managers used the compulsion. No unwilling man would be forced by them to unwilling man would be forced by them to unwilling man would be forced by them to buy a ticket and take his chances. buy a ticket and take his chances. buy a ticket and take his chances. But the South Improvement Company forced But the South Improvement Company forced But the South Improvement Company forced every producer to take a less price for every producer to take a less price for every producer to take a less price for his oil without rendering him an his oil without rendering him an his oil without rendering him an equivalent. equivalent. equivalent. They force every refiner who is in their They force every refiner who is in their They force every refiner who is in their way to prosecute his business against way to prosecute his business against way to prosecute his business against them as competitors at fearful odds, them as competitors at fearful odds, them as competitors at fearful odds, and perhaps at the expense of a royalty and perhaps at the expense of a royalty and perhaps at the expense of a royalty on every barrel, or to sell his works on every barrel, or to sell his works on every barrel, or to sell his works and abandon his business to the South and abandon his business to the South and abandon his business to the South Improvement Company at any paltry price Improvement Company at any paltry price Improvement Company at any paltry price they may dictate. they may dictate. they may dictate. They also force every consumer of oil on They also force every consumer of oil on They also force every consumer of oil on this broad continent, after paying all this broad continent, after paying all this broad continent, after paying all the legitimate cost of producing, the legitimate cost of producing, the legitimate cost of producing, refining, and transportation on oil, to refining, and transportation on oil, to refining, and transportation on oil, to pay them also an additional tribute.

pay them also an additional tribute. pay them also an additional tribute. For what? For what? For what? Absolutely nothing. Absolutely nothing. Absolutely nothing. The railroad companies derive their The railroad companies derive their The railroad companies derive their existence and power to act under existence and power to act under existence and power to act under charters granted them by the citizens charters granted them by the citizens charters granted them by the citizens through their legislatures of the through their legislatures of the through their legislatures of the several states in which they exist. several states in which they exist. several states in which they exist. This charter is a contract made by and This charter is a contract made by and This charter is a contract made by and between the citizens of the one part and between the citizens of the one part and between the citizens of the one part and the railroad company on the other, the railroad company on the other, the railroad company on the other, and both parties bind themselves alike and both parties bind themselves alike and both parties bind themselves alike to the faithful performance of the to the faithful performance of the to the faithful performance of the conditions of the contract. conditions of the contract. conditions of the contract. One of the fundamental provisions of One of the fundamental provisions of One of the fundamental provisions of this contract is that there shall be no this contract is that there shall be no this contract is that there shall be no discrimination shown to any individuals discrimination shown to any individuals discrimination shown to any individuals or body of individuals as to facilities or body of individuals as to facilities or body of individuals as to facilities or privileges of doing business with or privileges of doing business with or privileges of doing business with such railway company. such railway company. such railway company. On the contrary, the railroad company is On the contrary, the railroad company is On the contrary, the railroad company is expressly required in all cases to expressly required in all cases to expressly required in all cases to charge uniform rates for the charge uniform rates for the charge uniform rates for the transportation of freight and transportation of freight and transportation of freight and passengers. passengers. passengers. They must, if desired, carry the freight They must, if desired, carry the freight They must, if desired, carry the freight for A that they do for B, and always at for A that they do for B, and always at for A that they do for B, and always at the same price.

the same price. the same price. Any deviation from the stipulated Any deviation from the stipulated Any deviation from the stipulated condition is a willful and fraudulent condition is a willful and fraudulent condition is a willful and fraudulent violation of their contract. violation of their contract. violation of their contract. If it is by means of such violations of If it is by means of such violations of If it is by means of such violations of contracts on the part of the several contracts on the part of the several contracts on the part of the several railroad companies connected with them railroad companies connected with them railroad companies connected with them that the South Improvement Company that the South Improvement Company that the South Improvement Company expects success, expects success, expects success, then the whole gigantic structure is then the whole gigantic structure is then the whole gigantic structure is established upon fraud as a basis, and established upon fraud as a basis, and established upon fraud as a basis, and it ought to come down. it ought to come down. it ought to come down. Very respectfully, F. M. Backus, Very respectfully, F. M. Backus, Very respectfully, F. M. Backus, Cleveland, Ohio, Cleveland, Ohio, Cleveland, Ohio, March 5, 1872. March 5, 1872. March 5, 1872. This is the end of chapter 3, part 1. This is the end of chapter 3, part 1. This is the end of chapter 3, part 1. Recording by Tom Weiss, Recording by Tom Weiss, Recording by Tom Weiss, tomsaudiobooks.com. Chapter 3, part 2 of The History of the Chapter 3, part 2 of The History of the Standard Oil Company by Ida M. Tarbell. Standard Oil Company by Ida M. Tarbell. Standard Oil Company by Ida M. Tarbell. This LibriVox recording is in the public This LibriVox recording is in the public This LibriVox recording is in the public domain. Recording by Tom Weiss.

domain. Recording by Tom Weiss. domain. Recording by Tom Weiss. Chapter 3, part 2, The Oil War of 1872. The oil men now met the very plausible The oil men now met the very plausible reasons given by the members of the reasons given by the members of the reasons given by the members of the company for their combination more company for their combination more company for their combination more intelligently than at first. intelligently than at first. intelligently than at first. There were grave abuses in the business, There were grave abuses in the business, There were grave abuses in the business, they admitted. There was too great they admitted. There was too great they admitted. There was too great refining capacity, refining capacity, refining capacity, but this they argued was a natural but this they argued was a natural but this they argued was a natural development in a new business whose development in a new business whose development in a new business whose growth had been extraordinary, and whose growth had been extraordinary, and whose growth had been extraordinary, and whose limits were by no means defined. limits were by no means defined. limits were by no means defined. Time and experience would regulate it. Time and experience would regulate it. Time and experience would regulate it. Give the refiners open and regular Give the refiners open and regular Give the refiners open and regular freights with no favors to anyone, and freights with no favors to anyone, and freights with no favors to anyone, and the stronger and better equipped would the stronger and better equipped would the stronger and better equipped would live, the others die, but give all a live, the others die, but give all a live, the others die, but give all a chance. chance. chance. In fact, time and energy would regulate In fact, time and energy would regulate In fact, time and energy would regulate all the evils of which they complained all the evils of which they complained all the evils of which they complained if there were fair play. if there were fair play. if there were fair play. The oil men were not only encouraged by The oil men were not only encouraged by The oil men were not only encouraged by public opinion and by getting their public opinion and by getting their public opinion and by getting their minds clear on the merits of their case, minds clear on the merits of their case, minds clear on the merits of their case, they were upheld by repeated proofs of they were upheld by repeated proofs of they were upheld by repeated proofs of aid from all sides.

aid from all sides. aid from all sides. Even the women of the region were asking Even the women of the region were asking Even the women of the region were asking what they could do, and were offering to what they could do, and were offering to what they could do, and were offering to wear their black velvet bonnets all wear their black velvet bonnets all wear their black velvet bonnets all summer if necessary. summer if necessary. summer if necessary. Solid support came from the independent Solid support came from the independent Solid support came from the independent refiners and shippers in other parts of refiners and shippers in other parts of refiners and shippers in other parts of the country who were offering to stand the country who were offering to stand the country who were offering to stand in with them in their contest. in with them in their contest. in with them in their contest. New York was already one of the chief New York was already one of the chief New York was already one of the chief refining centers of the country, and the refining centers of the country, and the refining centers of the country, and the South Improvement Company had left it South Improvement Company had left it South Improvement Company had left it entirely out of its combination. entirely out of its combination. entirely out of its combination. As incensed as the creek itself, the New As incensed as the creek itself, the New As incensed as the creek itself, the New York interests formed an association, York interests formed an association, York interests formed an association, and about the middle of March sent a and about the middle of March sent a and about the middle of March sent a committee of three with H. H. Rogers of committee of three with H. H. Rogers of committee of three with H. H. Rogers of Charles Pratt and Company at its head to Charles Pratt and Company at its head to Charles Pratt and Company at its head to Oil City to consult with the Producers Oil City to consult with the Producers Oil City to consult with the Producers Union. Union. Union. Their arrival in the oil region was a Their arrival in the oil region was a Their arrival in the oil region was a matter of great satisfaction. matter of great satisfaction. matter of great satisfaction. What made the oil men most exultant, What made the oil men most exultant, What made the oil men most exultant, however, was their growing belief that however, was their growing belief that however, was their growing belief that the railroads, the crux of the whole the railroads, the crux of the whole the railroads, the crux of the whole scheme, were weakening. scheme, were weakening. scheme, were weakening. However fair the great scheme may have However fair the great scheme may have However fair the great scheme may have appeared to the railroad kings in the appeared to the railroad kings in the appeared to the railroad kings in the privacy of the council chamber, privacy of the council chamber, privacy of the council chamber, it began to look dark as soon as it was it began to look dark as soon as it was it began to look dark as soon as it was dragged into the open, dragged into the open, dragged into the open, and signs of a scuttle soon appeared.

and signs of a scuttle soon appeared. and signs of a scuttle soon appeared. General G. B. McClellan, president of General G. B. McClellan, president of General G. B. McClellan, president of the Atlantic and Great Western, sent to the Atlantic and Great Western, sent to the Atlantic and Great Western, sent to the very first mass meeting this the very first mass meeting this the very first mass meeting this telegram: telegram: telegram: New York, February 27, 1872. New York, February 27, 1872. New York, February 27, 1872. Neither the Atlantic and Great Western Neither the Atlantic and Great Western Neither the Atlantic and Great Western nor any of its officers are interested nor any of its officers are interested nor any of its officers are interested in the South Improvement Company. Of in the South Improvement Company. Of in the South Improvement Company. Of course, the policy of the road is to course, the policy of the road is to course, the policy of the road is to accommodate the petroleum interest. accommodate the petroleum interest. accommodate the petroleum interest. G. B. McClellan. G. B. McClellan. G. B. McClellan. A great applause was started, only to be A great applause was started, only to be A great applause was started, only to be stopped by the hisses of a group whose stopped by the hisses of a group whose stopped by the hisses of a group whose spokesman read the following: spokesman read the following: spokesman read the following: Contract with South Improvement Company Contract with South Improvement Company Contract with South Improvement Company signed by George B. McClellan, president signed by George B. McClellan, president signed by George B. McClellan, president of the Atlantic and Great Western of the Atlantic and Great Western of the Atlantic and Great Western Railroad. Railroad. Railroad. I only signed it after it was signed by I only signed it after it was signed by I only signed it after it was signed by all the other parties. all the other parties. all the other parties. J. Gould. J. Gould. J. Gould. The railroads tried in various ways to The railroads tried in various ways to The railroads tried in various ways to appease the oil men. appease the oil men. appease the oil men. They did not enforce the new rates. They They did not enforce the new rates. They They did not enforce the new rates. They had signed the contracts, they declared, had signed the contracts, they declared, had signed the contracts, they declared, only after the South Improvement Company only after the South Improvement Company only after the South Improvement Company had assured them that all the refineries had assured them that all the refineries had assured them that all the refineries and producers were to be taken in.

and producers were to be taken in. and producers were to be taken in. Indeed, they seem to have realized Indeed, they seem to have realized Indeed, they seem to have realized within a fortnight that the scheme was within a fortnight that the scheme was within a fortnight that the scheme was doomed, and to have been quite ready to doomed, and to have been quite ready to doomed, and to have been quite ready to meet cordially a committee of oil men meet cordially a committee of oil men meet cordially a committee of oil men which went east to demand that the which went east to demand that the which went east to demand that the railroads revoke their contracts with railroads revoke their contracts with railroads revoke their contracts with the South Improvement Company. the South Improvement Company. the South Improvement Company. This committee, which was composed of 12 This committee, which was composed of 12 This committee, which was composed of 12 persons, three of them being the New persons, three of them being the New persons, three of them being the New York representatives already mentioned, York representatives already mentioned, York representatives already mentioned, began its work by an interview with began its work by an interview with began its work by an interview with Colonel Scott at the Continental Hotel Colonel Scott at the Continental Hotel Colonel Scott at the Continental Hotel in Philadelphia. in Philadelphia. in Philadelphia. With evident pride, the committee wrote With evident pride, the committee wrote With evident pride, the committee wrote back to the Producers Union. back to the Producers Union. back to the Producers Union. Mr. Scott, differing in this respect Mr. Scott, differing in this respect Mr. Scott, differing in this respect from the railroad representatives whom from the railroad representatives whom from the railroad representatives whom we afterwards met, notified us that he we afterwards met, notified us that he we afterwards met, notified us that he would call upon us at our hotel. would call upon us at our hotel. would call upon us at our hotel. An interesting account of their An interesting account of their An interesting account of their interview was given to the Hepburn interview was given to the Hepburn interview was given to the Hepburn Committee in 1879 Committee in 1879 Committee in 1879 by W. T. Scheide, one of the number. by W. T. Scheide, one of the number. by W. T. Scheide, one of the number. We saw Mr. Scott on the 18th of March, We saw Mr. Scott on the 18th of March, We saw Mr. Scott on the 18th of March, 1872, in Philadelphia, 1872, in Philadelphia, 1872, in Philadelphia, and he said to us that he was very much and he said to us that he was very much and he said to us that he was very much surprised to hear of this agitation in surprised to hear of this agitation in surprised to hear of this agitation in the oil regions, that the object of the the oil regions, that the object of the the oil regions, that the object of the railroads in making this contract with railroads in making this contract with railroads in making this contract with the South Improvement Company was to the South Improvement Company was to the South Improvement Company was to obtain an evener to pool the freight, obtain an evener to pool the freight, obtain an evener to pool the freight, pool the oil freights among the pool the oil freights among the pool the oil freights among the different roads, different roads, different roads, that they had been cutting each other on that they had been cutting each other on that they had been cutting each other on oil freights for a number of years, and oil freights for a number of years, and oil freights for a number of years, and had not made any money out of it, had not made any money out of it, had not made any money out of it, although it was a freight they should although it was a freight they should although it was a freight they should have made money from.

have made money from. have made money from. That they had endeavored to make an That they had endeavored to make an That they had endeavored to make an arrangement among themselves, but had arrangement among themselves, but had arrangement among themselves, but had always failed. always failed. always failed. He said that they supposed that the He said that they supposed that the He said that they supposed that the gentlemen representing the South gentlemen representing the South gentlemen representing the South Improvement Company represented the Improvement Company represented the Improvement Company represented the petroleum trade, but as he was now petroleum trade, but as he was now petroleum trade, but as he was now convinced they did not, he would be very convinced they did not, he would be very convinced they did not, he would be very glad to make an arrangement with this glad to make an arrangement with this glad to make an arrangement with this committee who undoubtedly did represent committee who undoubtedly did represent committee who undoubtedly did represent the petroleum trade. the petroleum trade. the petroleum trade. The committee told him that they could The committee told him that they could The committee told him that they could not make any such contract, that they not make any such contract, that they not make any such contract, that they had no legal authority to do so. He said had no legal authority to do so. He said had no legal authority to do so. He said that could be easily fixed because the that could be easily fixed because the that could be easily fixed because the legislature was then in session, and by legislature was then in session, and by legislature was then in session, and by going to Harrisburg a charter could be going to Harrisburg a charter could be going to Harrisburg a charter could be obtained in a very few days. obtained in a very few days. obtained in a very few days. The committee still said that they would The committee still said that they would The committee still said that they would not agree to any such arrangement, that not agree to any such arrangement, that not agree to any such arrangement, that they did not think the South Improvement they did not think the South Improvement they did not think the South Improvement Company's contract was a good one, and Company's contract was a good one, and Company's contract was a good one, and they were instructed to have it broken, they were instructed to have it broken, they were instructed to have it broken, and so they did not feel that they could and so they did not feel that they could and so they did not feel that they could accept a similar one even if they had accept a similar one even if they had accept a similar one even if they had the power. the power. the power. Leaving Colonel Scott, the committee Leaving Colonel Scott, the committee Leaving Colonel Scott, the committee went on to New York, where they stayed went on to New York, where they stayed went on to New York, where they stayed for about a week, closely watched by the for about a week, closely watched by the for about a week, closely watched by the newspapers, all of which treated the oil newspapers, all of which treated the oil newspapers, all of which treated the oil war as a national affair.

war as a national affair. war as a national affair. Their first interview of importance in Their first interview of importance in Their first interview of importance in New York was with Commodore Vanderbilt, New York was with Commodore Vanderbilt, New York was with Commodore Vanderbilt, who said to them very frankly at the who said to them very frankly at the who said to them very frankly at the beginning of their talk, beginning of their talk, beginning of their talk, "I told Billy, W. H. Vanderbilt, not to "I told Billy, W. H. Vanderbilt, not to "I told Billy, W. H. Vanderbilt, not to have anything to do with that scheme." have anything to do with that scheme." have anything to do with that scheme." The committee in its report said that The committee in its report said that The committee in its report said that the Commodore fully agreed with them the Commodore fully agreed with them the Commodore fully agreed with them upon the justice of their claims, and upon the justice of their claims, and upon the justice of their claims, and frequently asserted his objections to frequently asserted his objections to frequently asserted his objections to any combination seeking a monopoly of any combination seeking a monopoly of any combination seeking a monopoly of other men's property and interest. other men's property and interest. other men's property and interest. He told them that if what they asked was He told them that if what they asked was He told them that if what they asked was that the railroads should fix a tariff that the railroads should fix a tariff that the railroads should fix a tariff which, while giving them a paying rate, which, while giving them a paying rate, which, while giving them a paying rate, would secure the oil men against would secure the oil men against would secure the oil men against drawbacks, rebates, or variations in the drawbacks, rebates, or variations in the drawbacks, rebates, or variations in the tariff, he would willingly cooperate. tariff, he would willingly cooperate. tariff, he would willingly cooperate. The Commodore ended his amiable The Commodore ended his amiable The Commodore ended his amiable concessions by reading the committee a concessions by reading the committee a concessions by reading the committee a letter just received from the South letter just received from the South letter just received from the South Improvement Company offering to Improvement Company offering to Improvement Company offering to cooperate with the producers and cooperate with the producers and cooperate with the producers and refiners or to compromise existing refiners or to compromise existing refiners or to compromise existing differences. differences. differences. The oil men told the Commodore The oil men told the Commodore The oil men told the Commodore emphatically that they would not treat emphatically that they would not treat emphatically that they would not treat with the South Improvement Company or with the South Improvement Company or with the South Improvement Company or with anyone interested in it, nor would with anyone interested in it, nor would with anyone interested in it, nor would they recognize its existence.

they recognize its existence. they recognize its existence. And this stand they kept throughout And this stand they kept throughout And this stand they kept throughout their negotiations, though repeated their negotiations, though repeated their negotiations, though repeated efforts were made by the railroad men, efforts were made by the railroad men, efforts were made by the railroad men, particularly those of the Central particularly those of the Central particularly those of the Central System, to persuade them to a System, to persuade them to a System, to persuade them to a compromise. compromise. compromise. At the meeting with the officials of the At the meeting with the officials of the At the meeting with the officials of the Erie and the Atlantic and Great Western, Erie and the Atlantic and Great Western, Erie and the Atlantic and Great Western, the committee was incensed by being the committee was incensed by being the committee was incensed by being offered a contract similar to that of offered a contract similar to that of offered a contract similar to that of the South Improvement Company on the South Improvement Company on the South Improvement Company on consideration that the original be consideration that the original be consideration that the original be allowed to stand. allowed to stand. allowed to stand. It seemed impossible to the railroad men It seemed impossible to the railroad men It seemed impossible to the railroad men that the oil men really meant what they that the oil men really meant what they that the oil men really meant what they said, and would make no terms save on said, and would make no terms save on said, and would make no terms save on the basis of no discriminations of any the basis of no discriminations of any the basis of no discriminations of any kind to anybody. kind to anybody. kind to anybody. They evidently believed that if the They evidently believed that if the They evidently believed that if the committee had a chance to sign a committee had a chance to sign a committee had a chance to sign a contract as profitable as that of the contract as profitable as that of the contract as profitable as that of the South Improvement Company, all their South Improvement Company, all their South Improvement Company, all their fair talk of fair play, the duty of the fair talk of fair play, the duty of the fair talk of fair play, the duty of the common carrier, equal chance to all in common carrier, equal chance to all in common carrier, equal chance to all in transportation, would at once evaporate. transportation, would at once evaporate. transportation, would at once evaporate. They failed utterly at first to They failed utterly at first to They failed utterly at first to comprehend that the oil war of 1872 comprehend that the oil war of 1872 comprehend that the oil war of 1872 was an uprising against an injustice, was an uprising against an injustice, was an uprising against an injustice, and that the moral wrong of the thing and that the moral wrong of the thing and that the moral wrong of the thing had taken so deep a hold of the oil had taken so deep a hold of the oil had taken so deep a hold of the oil country that the people as a whole had country that the people as a whole had country that the people as a whole had combined to restore right.

combined to restore right. combined to restore right. General McClellan of the Atlantic and General McClellan of the Atlantic and General McClellan of the Atlantic and Great Western, and Mr. Divven, one of Great Western, and Mr. Divven, one of Great Western, and Mr. Divven, one of the Erie's directors, were the only ones the Erie's directors, were the only ones the Erie's directors, were the only ones who gave the committee any support in who gave the committee any support in who gave the committee any support in their position. their position. their position. The final, all-important conference with The final, all-important conference with The final, all-important conference with the railroad men was held on March 25 at the railroad men was held on March 25 at the railroad men was held on March 25 at the Erie offices. the Erie offices. the Erie offices. Horace Clark, president of the Lake Horace Clark, president of the Lake Horace Clark, president of the Lake Shore and Michigan Southern Railway, was Shore and Michigan Southern Railway, was Shore and Michigan Southern Railway, was chairman of this meeting, chairman of this meeting, chairman of this meeting, and according to H. H. Rogers' testimony and according to H. H. Rogers' testimony and according to H. H. Rogers' testimony before the Hepburn Committee in 1879, before the Hepburn Committee in 1879, before the Hepburn Committee in 1879, there were present besides the oil men, there were present besides the oil men, there were present besides the oil men, Colonel Scott, General McClellan, Colonel Scott, General McClellan, Colonel Scott, General McClellan, Director Divven, William H. Vanderbilt, Director Divven, William H. Vanderbilt, Director Divven, William H. Vanderbilt, Mr. Stebbins, and George Hall. Mr. Stebbins, and George Hall. Mr. Stebbins, and George Hall. The meeting had not been long in session The meeting had not been long in session The meeting had not been long in session before Mr. Watson, president of the before Mr. Watson, president of the before Mr. Watson, president of the South Improvement Company, and John D. South Improvement Company, and John D. South Improvement Company, and John D. Rockefeller presented themselves for Rockefeller presented themselves for Rockefeller presented themselves for admission. admission. admission. Up to this time, Mr. Rockefeller had Up to this time, Mr. Rockefeller had Up to this time, Mr. Rockefeller had kept well out of sight in the affair. kept well out of sight in the affair. kept well out of sight in the affair. He had given no interviews, offered no He had given no interviews, offered no He had given no interviews, offered no explanations. explanations. explanations. He had allowed the president of the He had allowed the president of the He had allowed the president of the company to wrestle with the excitement company to wrestle with the excitement company to wrestle with the excitement in his own way, in his own way, in his own way, but things were now in such critical but things were now in such critical but things were now in such critical shape that he came forward in a last shape that he came forward in a last shape that he came forward in a last attempt to save the organization by attempt to save the organization by attempt to save the organization by which he had been able to concentrate in which he had been able to concentrate in which he had been able to concentrate in his own hands the refining interest of his own hands the refining interest of his own hands the refining interest of Cleveland.

Cleveland. Cleveland. With Mr. Watson, he knocked for With Mr. Watson, he knocked for With Mr. Watson, he knocked for admission to the council going on in the admission to the council going on in the admission to the council going on in the Erie offices. Erie offices. Erie offices. The oil men flatly refused to let him The oil men flatly refused to let him The oil men flatly refused to let him in. in. in. A dramatic scene followed. Mr. Clark, A dramatic scene followed. Mr. Clark, A dramatic scene followed. Mr. Clark, the chairman, protesting in agitated the chairman, protesting in agitated the chairman, protesting in agitated tone against shutting out his lifelong tone against shutting out his lifelong tone against shutting out his lifelong friend Watson. friend Watson. friend Watson. The oil men were obdurate. They would The oil men were obdurate. They would The oil men were obdurate. They would have nothing to do with anybody have nothing to do with anybody have nothing to do with anybody concerned with the South Improvement concerned with the South Improvement concerned with the South Improvement Company. Company. Company. So determined were they that although So determined were they that although So determined were they that although Mr. Watson came in, he was obliged at Mr. Watson came in, he was obliged at Mr. Watson came in, he was obliged at once to withdraw. once to withdraw. once to withdraw. A Times reporter who witnessed a little A Times reporter who witnessed a little A Times reporter who witnessed a little scene between the two supporters of the scene between the two supporters of the scene between the two supporters of the tottering company after its president tottering company after its president tottering company after its president was turned out of the meeting remarked was turned out of the meeting remarked was turned out of the meeting remarked sympathetically that Mr. Rockefeller sympathetically that Mr. Rockefeller sympathetically that Mr. Rockefeller soon went away looking pretty blue. soon went away looking pretty blue. soon went away looking pretty blue. The acquiescence of the railroad kings The acquiescence of the railroad kings The acquiescence of the railroad kings in the refusal of the oil men to in the refusal of the oil men to in the refusal of the oil men to recognize representatives of the South recognize representatives of the South recognize representatives of the South Improvement Company was followed by an Improvement Company was followed by an Improvement Company was followed by an unwilling promise to break the contracts unwilling promise to break the contracts unwilling promise to break the contracts with the company. with the company. with the company. Another strong effort was made to Another strong effort was made to Another strong effort was made to persuade the independents to make the persuade the independents to make the persuade the independents to make the same contracts on condition that they same contracts on condition that they same contracts on condition that they ship as much oil, ship as much oil, ship as much oil, but they would not hear of it. They but they would not hear of it. They but they would not hear of it. They demanded open rates with no rebates to demanded open rates with no rebates to demanded open rates with no rebates to anyone.

anyone. anyone. Horace Clark and W. H. Vanderbilt Horace Clark and W. H. Vanderbilt Horace Clark and W. H. Vanderbilt particularly stuck for this arrangement. particularly stuck for this arrangement. particularly stuck for this arrangement. Their opposition to the oil men's Their opposition to the oil men's Their opposition to the oil men's position was so strong that the latter position was so strong that the latter position was so strong that the latter in reporting it to the union said, in reporting it to the union said, in reporting it to the union said, "We feel it proper to say that we are in "We feel it proper to say that we are in "We feel it proper to say that we are in no wise indebted to these gentlemen for no wise indebted to these gentlemen for no wise indebted to these gentlemen for any courtesy or consideration received any courtesy or consideration received any courtesy or consideration received at their hands." at their hands." at their hands." So well did the committee fight its So well did the committee fight its So well did the committee fight its battle and so strongly were they battle and so strongly were they battle and so strongly were they supported by the New York refiners that supported by the New York refiners that supported by the New York refiners that the railroads were finally obliged to the railroads were finally obliged to the railroads were finally obliged to consent to revoke the contracts and to consent to revoke the contracts and to consent to revoke the contracts and to make a new one embodying the views of make a new one embodying the views of make a new one embodying the views of the oil regions. the oil regions. the oil regions. The contract finally signed at this The contract finally signed at this The contract finally signed at this meeting by H. F. Clark for the Lake meeting by H. F. Clark for the Lake meeting by H. F. Clark for the Lake Shore Road, O. H. P. Archer for the Shore Road, O. H. P. Archer for the Shore Road, O. H. P. Archer for the Erie, W. H. Vanderbilt for the Central, Erie, W. H. Vanderbilt for the Central, Erie, W. H. Vanderbilt for the Central, George B. McClellan for the Atlantic and George B. McClellan for the Atlantic and George B. McClellan for the Atlantic and Great Western, Great Western, Great Western, and Thomas A. Scott for the and Thomas A. Scott for the and Thomas A. Scott for the Pennsylvania, agreed that all shipping Pennsylvania, agreed that all shipping Pennsylvania, agreed that all shipping of oil should be made on a basis of of oil should be made on a basis of of oil should be made on a basis of perfect equality to all shippers, perfect equality to all shippers, perfect equality to all shippers, producers, and refiners, and that no producers, and refiners, and that no producers, and refiners, and that no rebates, drawbacks, or other rebates, drawbacks, or other rebates, drawbacks, or other arrangements of any character should be arrangements of any character should be arrangements of any character should be made or allowed that will give any party made or allowed that will give any party made or allowed that will give any party the slightest difference in rates or the slightest difference in rates or the slightest difference in rates or discriminations of any character discriminations of any character discriminations of any character whatever.

whatever. whatever. It was also agreed that the rates should It was also agreed that the rates should It was also agreed that the rates should not be liable to change either for not be liable to change either for not be liable to change either for increase or decrease without first increase or decrease without first increase or decrease without first giving William Hasson, president of the giving William Hasson, president of the giving William Hasson, president of the Producers Union, at least 90 days Producers Union, at least 90 days Producers Union, at least 90 days notice. notice. notice. The same rate was put on refined oil The same rate was put on refined oil The same rate was put on refined oil from Cleveland, Pittsburgh, and the from Cleveland, Pittsburgh, and the from Cleveland, Pittsburgh, and the Creek to eastern shipping points. Creek to eastern shipping points. Creek to eastern shipping points. That is, Mr. Rockefeller could send his That is, Mr. Rockefeller could send his That is, Mr. Rockefeller could send his oil from Cleveland to New York at a oil from Cleveland to New York at a oil from Cleveland to New York at a dollar fifty cents per barrel. dollar fifty cents per barrel. dollar fifty cents per barrel. So could his associates in Pittsburgh. So could his associates in Pittsburgh. So could his associates in Pittsburgh. And this was what it cost the refiner on And this was what it cost the refiner on And this was what it cost the refiner on the Creek, but the latter had this the Creek, but the latter had this the Creek, but the latter had this advantage. He was at the wells. advantage. He was at the wells. advantage. He was at the wells. Mr. Rockefeller and his Pittsburgh Mr. Rockefeller and his Pittsburgh Mr. Rockefeller and his Pittsburgh allies were miles away, and it cost them allies were miles away, and it cost them allies were miles away, and it cost them by the new contract fifty cents to get a by the new contract fifty cents to get a by the new contract fifty cents to get a barrel of crude to their works. barrel of crude to their works. barrel of crude to their works. The oil regions meant that geographical The oil regions meant that geographical The oil regions meant that geographical position should count, that the position should count, that the position should count, that the advantages Mr. Rockefeller had by his advantages Mr. Rockefeller had by his advantages Mr. Rockefeller had by his command of the western market, and by command of the western market, and by command of the western market, and by his access to a cheap eastern waterway, his access to a cheap eastern waterway, his access to a cheap eastern waterway, should be considered as well as their should be considered as well as their should be considered as well as their own position beside the raw product. own position beside the raw product. own position beside the raw product. This contract was the first effective This contract was the first effective This contract was the first effective thrust into the great bubble.

thrust into the great bubble. thrust into the great bubble. Others followed in quick succession. Others followed in quick succession. Others followed in quick succession. On the 28th, the railroads officially On the 28th, the railroads officially On the 28th, the railroads officially annulled their contracts with the annulled their contracts with the annulled their contracts with the company. company. company. About the same time, the Pennsylvania About the same time, the Pennsylvania About the same time, the Pennsylvania legislature repealed the charter. legislature repealed the charter. legislature repealed the charter. On March 30, the committee of oil men On March 30, the committee of oil men On March 30, the committee of oil men sent to Washington to be present during sent to Washington to be present during sent to Washington to be present during the congressional investigation now the congressional investigation now the congressional investigation now about to begin, spent an hour with about to begin, spent an hour with about to begin, spent an hour with President Grant. President Grant. President Grant. They wired home that on their departure They wired home that on their departure They wired home that on their departure he said, "Gentlemen, I have noticed the he said, "Gentlemen, I have noticed the he said, "Gentlemen, I have noticed the progress of monopolies and have long progress of monopolies and have long progress of monopolies and have long been convinced that the national been convinced that the national been convinced that the national government would have to interfere and government would have to interfere and government would have to interfere and protect the people against them." protect the people against them." protect the people against them." The president and the members of The president and the members of The president and the members of Congress of both parties continued to Congress of both parties continued to Congress of both parties continued to show interest in the investigation, and show interest in the investigation, and show interest in the investigation, and there was little or no dissent from the there was little or no dissent from the there was little or no dissent from the final judgment of the committee given final judgment of the committee given final judgment of the committee given early in May that the South Improvement early in May that the South Improvement early in May that the South Improvement Company was the most gigantic and daring Company was the most gigantic and daring Company was the most gigantic and daring conspiracy a free country had ever seen. conspiracy a free country had ever seen. conspiracy a free country had ever seen. Their decision finished the work. Their decision finished the work. Their decision finished the work. The monster was slain, and the oil The monster was slain, and the oil The monster was slain, and the oil regions proclaimed exultantly, regions proclaimed exultantly, regions proclaimed exultantly, "And now came the question.

"And now came the question. "And now came the question. What should they do about the blockade What should they do about the blockade What should they do about the blockade established against the members of the established against the members of the established against the members of the South Improvement Company? South Improvement Company? South Improvement Company? The railroads, they had forgiven. The railroads, they had forgiven. The railroads, they had forgiven. Should they forgive the members of the Should they forgive the members of the Should they forgive the members of the South Improvement Company?" South Improvement Company?" South Improvement Company?" This question came up immediately on the This question came up immediately on the This question came up immediately on the repeal of the charter. repeal of the charter. repeal of the charter. The first severe test to which their The first severe test to which their The first severe test to which their temper was put was early in April, when temper was put was early in April, when temper was put was early in April, when the Fisher brothers, a firm of Oil City the Fisher brothers, a firm of Oil City the Fisher brothers, a firm of Oil City brokers, sold some 20,000 barrels of oil brokers, sold some 20,000 barrels of oil brokers, sold some 20,000 barrels of oil to the Standard Oil Company. to the Standard Oil Company. to the Standard Oil Company. The moment the sale was noise, a perfect The moment the sale was noise, a perfect The moment the sale was noise, a perfect uproar burst forth. Indignant telegrams uproar burst forth. Indignant telegrams uproar burst forth. Indignant telegrams came from every direction condemning the came from every direction condemning the came from every direction condemning the brokers. brokers. brokers. "Betrayal, infamy, mercenary "Betrayal, infamy, mercenary "Betrayal, infamy, mercenary achievement, the most unkindest cut of achievement, the most unkindest cut of achievement, the most unkindest cut of all" was the gist of them. all" was the gist of them. all" was the gist of them. From New York, Porter and Archibald From New York, Porter and Archibald From New York, Porter and Archibald telegraphed annulling all their telegraphed annulling all their telegraphed annulling all their contracts with the guilty brokers. contracts with the guilty brokers. contracts with the guilty brokers. The Oil Exchange passed votes of The Oil Exchange passed votes of The Oil Exchange passed votes of censure, and the Producers Union turned censure, and the Producers Union turned censure, and the Producers Union turned them out. them out. them out. A few days later it was learned that a A few days later it was learned that a A few days later it was learned that a dealer on the Creek was preparing to dealer on the Creek was preparing to dealer on the Creek was preparing to ship 5,000 barrels to the same firm.

ship 5,000 barrels to the same firm. ship 5,000 barrels to the same firm. A mob gathered about the cars and A mob gathered about the cars and A mob gathered about the cars and refused to let them leave. refused to let them leave. refused to let them leave. It was only by stationing a strong guard It was only by stationing a strong guard It was only by stationing a strong guard that the destruction of the oil was that the destruction of the oil was that the destruction of the oil was prevented. prevented. prevented. But something had to be done. But something had to be done. But something had to be done. The cooler heads argued that the The cooler heads argued that the The cooler heads argued that the blockade, which had lasted now 40 days, blockade, which had lasted now 40 days, blockade, which had lasted now 40 days, and from which the region had of course and from which the region had of course and from which the region had of course suffered enormous loss, should be suffered enormous loss, should be suffered enormous loss, should be entirely lifted. entirely lifted. entirely lifted. The objects for which it had been The objects for which it had been The objects for which it had been established had been accomplished. That established had been accomplished. That established had been accomplished. That is, the South Improvement Company had is, the South Improvement Company had is, the South Improvement Company had been destroyed. Now let free trade be been destroyed. Now let free trade be been destroyed. Now let free trade be established. established. established. If anybody wanted to sell to If anybody wanted to sell to If anybody wanted to sell to conspirators, it was his lookout. conspirators, it was his lookout. conspirators, it was his lookout. A long and excited meeting of men from A long and excited meeting of men from A long and excited meeting of men from the entire oil country was held at Oil the entire oil country was held at Oil the entire oil country was held at Oil City to discuss the question. City to discuss the question. City to discuss the question. The president of the Petroleum Producers The president of the Petroleum Producers The president of the Petroleum Producers Union, Captain William Hasson, in Union, Captain William Hasson, in Union, Captain William Hasson, in anticipation of the meeting, had sent to anticipation of the meeting, had sent to anticipation of the meeting, had sent to the officers of all the railroads which the officers of all the railroads which the officers of all the railroads which had been parties to the South had been parties to the South had been parties to the South Improvement Company, the following Improvement Company, the following Improvement Company, the following telegram. telegram. telegram. Office Petroleum Producers Union, Oil Office Petroleum Producers Union, Oil Office Petroleum Producers Union, Oil City, Pennsylvania, April 4, 1872.

City, Pennsylvania, April 4, 1872. City, Pennsylvania, April 4, 1872. We are informed by parties known as We are informed by parties known as We are informed by parties known as members of the South Improvement members of the South Improvement members of the South Improvement Company, now representing the Standard Company, now representing the Standard Company, now representing the Standard Oil Company, who are in the market Oil Company, who are in the market Oil Company, who are in the market overbidding other shippers, that all overbidding other shippers, that all overbidding other shippers, that all contracts between the railroad companies contracts between the railroad companies contracts between the railroad companies and South Improvement and Standard and South Improvement and Standard and South Improvement and Standard companies are canceled. companies are canceled. companies are canceled. Will you please give us official notice Will you please give us official notice Will you please give us official notice whether such contracts are canceled or whether such contracts are canceled or whether such contracts are canceled or not? not? not? The people in mass meeting assembled The people in mass meeting assembled The people in mass meeting assembled have instructed the executive committee have instructed the executive committee have instructed the executive committee not to sell or ship any oil to these not to sell or ship any oil to these not to sell or ship any oil to these parties until we receive such notice. parties until we receive such notice. parties until we receive such notice. Please answer at once as we fear Please answer at once as we fear Please answer at once as we fear violence and destruction of property. violence and destruction of property. violence and destruction of property. Signed, William Hasson, president. Signed, William Hasson, president. Signed, William Hasson, president. General McClellan, Horace F. Clark, General McClellan, Horace F. Clark, General McClellan, Horace F. Clark, Thomas A. Scott, and W. H. Vanderbilt Thomas A. Scott, and W. H. Vanderbilt Thomas A. Scott, and W. H. Vanderbilt all sent emphatic telegrams in reply, all sent emphatic telegrams in reply, all sent emphatic telegrams in reply, asserting that the South Improvement asserting that the South Improvement asserting that the South Improvement contracts had been canceled and that contracts had been canceled and that contracts had been canceled and that their roads had no understanding of any their roads had no understanding of any their roads had no understanding of any nature in regard to freights with the nature in regard to freights with the nature in regard to freights with the Standard Oil Company. Standard Oil Company. Standard Oil Company. "The only existing arrangement is with "The only existing arrangement is with "The only existing arrangement is with you" telegraphed General McClellan.

you" telegraphed General McClellan. you" telegraphed General McClellan. W. H. Vanderbilt reminded Mr. Hasson W. H. Vanderbilt reminded Mr. Hasson W. H. Vanderbilt reminded Mr. Hasson that the agreement of March 25 between that the agreement of March 25 between that the agreement of March 25 between the railroad companies and the joint the railroad companies and the joint the railroad companies and the joint committee of producers and refiners was committee of producers and refiners was committee of producers and refiners was on a basis of perfect equality for all. on a basis of perfect equality for all. on a basis of perfect equality for all. And the inference was, how could Mr. And the inference was, how could Mr. And the inference was, how could Mr. Vanderbilt possibly make a special Vanderbilt possibly make a special Vanderbilt possibly make a special arrangement with the Standard? arrangement with the Standard? arrangement with the Standard? From the Standard Oil Company, the From the Standard Oil Company, the From the Standard Oil Company, the following was received. following was received. following was received. Cleveland, Ohio, April 8, 1872. Cleveland, Ohio, April 8, 1872. Cleveland, Ohio, April 8, 1872. To Captain William Hasson, To Captain William Hasson, To Captain William Hasson, In answer to your telegram, this company In answer to your telegram, this company In answer to your telegram, this company holds no contract with the railroad holds no contract with the railroad holds no contract with the railroad companies or any of them or with the companies or any of them or with the companies or any of them or with the South Improvement Company. South Improvement Company. South Improvement Company. The contracts between the South The contracts between the South The contracts between the South Improvement Company and the railroads Improvement Company and the railroads Improvement Company and the railroads have been canceled, and I am informed have been canceled, and I am informed have been canceled, and I am informed you have been so advised by telegram. you have been so advised by telegram. you have been so advised by telegram. I state unqualifiedly that report I state unqualifiedly that report I state unqualifiedly that report circulated in the oil regions and circulated in the oil regions and circulated in the oil regions and elsewhere that this company or any elsewhere that this company or any elsewhere that this company or any member of it threatened to depress oil member of it threatened to depress oil member of it threatened to depress oil are false. are false. are false. John D. Rockefeller, president.

John D. Rockefeller, president. John D. Rockefeller, president. After reading all the telegrams, the After reading all the telegrams, the After reading all the telegrams, the committee submitted its report. committee submitted its report. committee submitted its report. The gist of it was that since they had The gist of it was that since they had The gist of it was that since they had official assurance that the hated official assurance that the hated official assurance that the hated contracts were canceled, contracts were canceled, contracts were canceled, and that since they had secured from all and that since they had secured from all and that since they had secured from all the trunk lines a fair rate of freight the trunk lines a fair rate of freight the trunk lines a fair rate of freight equal to all shippers and producers, equal to all shippers and producers, equal to all shippers and producers, great or small, with an abolition of the great or small, with an abolition of the great or small, with an abolition of the system of rebates and drawbacks, system of rebates and drawbacks, system of rebates and drawbacks, the time had arrived to open the the time had arrived to open the the time had arrived to open the channels of trade to all parties channels of trade to all parties channels of trade to all parties desiring to purchase or deal in oil on desiring to purchase or deal in oil on desiring to purchase or deal in oil on terms of equality. terms of equality. terms of equality. The report was received with approbation The report was received with approbation The report was received with approbation and delight and put an official end to and delight and put an official end to and delight and put an official end to the oil war. the oil war. the oil war. But no number of resolutions could wipe But no number of resolutions could wipe But no number of resolutions could wipe out the memory of the 40 days of out the memory of the 40 days of out the memory of the 40 days of terrible excitement and loss which the terrible excitement and loss which the terrible excitement and loss which the region had suffered. region had suffered. region had suffered. No triumph could stifle the suspicion No triumph could stifle the suspicion No triumph could stifle the suspicion and the bitterness which had been sown and the bitterness which had been sown and the bitterness which had been sown broadcast through the region. broadcast through the region. broadcast through the region. Every particle of independent manhood in Every particle of independent manhood in Every particle of independent manhood in these men whose very life was these men whose very life was these men whose very life was independent action had been outraged. independent action had been outraged. independent action had been outraged. Their sense of fair play, the saving Their sense of fair play, the saving Their sense of fair play, the saving force of the region in the days before force of the region in the days before force of the region in the days before law and order had been established, had law and order had been established, had law and order had been established, had been violated.

been violated. been violated. These were things which could not be These were things which could not be These were things which could not be forgotten. forgotten. forgotten. There henceforth could be no trust in There henceforth could be no trust in There henceforth could be no trust in those who had devised the scheme which those who had devised the scheme which those who had devised the scheme which the producers believed was intended to the producers believed was intended to the producers believed was intended to rob them of their property. rob them of their property. rob them of their property. It was inevitable that under the It was inevitable that under the It was inevitable that under the pressure of their indignation and pressure of their indignation and pressure of their indignation and resentment, some person or persons resentment, some person or persons resentment, some person or persons should be fixed upon as responsible, and should be fixed upon as responsible, and should be fixed upon as responsible, and should be hated accordingly. should be hated accordingly. should be hated accordingly. Before the lifting of the embargo, this Before the lifting of the embargo, this Before the lifting of the embargo, this responsibility had been fixed. It was responsibility had been fixed. It was responsibility had been fixed. It was the Standard Oil Company of Cleveland, the Standard Oil Company of Cleveland, the Standard Oil Company of Cleveland, so the oil regions decided, which was at so the oil regions decided, which was at so the oil regions decided, which was at the bottom of the business. And the the bottom of the business. And the the bottom of the business. And the Mephistopheles of the Cleveland company, Mephistopheles of the Cleveland company, Mephistopheles of the Cleveland company, as they put it, was John D. Rockefeller. as they put it, was John D. Rockefeller. as they put it, was John D. Rockefeller. Even the Cleveland Herald acknowledged Even the Cleveland Herald acknowledged Even the Cleveland Herald acknowledged this popular judgment. "Whether justly this popular judgment. "Whether justly this popular judgment. "Whether justly or unjustly," the editor wrote, or unjustly," the editor wrote, or unjustly," the editor wrote, "Cleveland has the odium of having "Cleveland has the odium of having "Cleveland has the odium of having originated the scheme." originated the scheme." originated the scheme." This opinion gained ground as the days This opinion gained ground as the days This opinion gained ground as the days passed. passed. passed. The activity of the president of the The activity of the president of the The activity of the president of the Standard in New York in trying to save Standard in New York in trying to save Standard in New York in trying to save the contracts with the railroads, and the contracts with the railroads, and the contracts with the railroads, and his constant appearance with Mr. Watson, his constant appearance with Mr. Watson, his constant appearance with Mr. Watson, and the fact brought out by the and the fact brought out by the and the fact brought out by the congressional investigation that a congressional investigation that a congressional investigation that a larger block in the South Improvement larger block in the South Improvement larger block in the South Improvement Company stock was owned in the Standard Company stock was owned in the Standard Company stock was owned in the Standard than in any other firm, strengthened the than in any other firm, strengthened the than in any other firm, strengthened the belief.

belief. belief. But what did more than anything else to But what did more than anything else to But what did more than anything else to fix the conviction was what they had fix the conviction was what they had fix the conviction was what they had learned of the career of the Standard learned of the career of the Standard learned of the career of the Standard Oil Company in Cleveland. Oil Company in Cleveland. Oil Company in Cleveland. Before the oil war, the company had been Before the oil war, the company had been Before the oil war, the company had been known simply as one of several known simply as one of several known simply as one of several successful firms in the city. It drove successful firms in the city. It drove successful firms in the city. It drove close bargains, but it paid promptly, close bargains, but it paid promptly, close bargains, but it paid promptly, and was considered a desirable customer. and was considered a desirable customer. and was considered a desirable customer. Now the oil regions learned for the Now the oil regions learned for the Now the oil regions learned for the first time of the sudden and phenomenal first time of the sudden and phenomenal first time of the sudden and phenomenal expansion of the company. expansion of the company. expansion of the company. Where there had been at the beginning of Where there had been at the beginning of Where there had been at the beginning of 1872, 1872, 1872, 26 refining firms in Cleveland, there 26 refining firms in Cleveland, there 26 refining firms in Cleveland, there were but six left. were but six left. were but six left. In three months before and during the In three months before and during the In three months before and during the oil war, the Standard had absorbed 20 oil war, the Standard had absorbed 20 oil war, the Standard had absorbed 20 plants. plants. plants. It was generally charged by the It was generally charged by the It was generally charged by the Cleveland refiners that Mr. Rockefeller Cleveland refiners that Mr. Rockefeller Cleveland refiners that Mr. Rockefeller had used the South Improvement scheme to had used the South Improvement scheme to had used the South Improvement scheme to persuade or compel his rivals to sell to persuade or compel his rivals to sell to persuade or compel his rivals to sell to him. "Why?" cried the oil men, "The him. "Why?" cried the oil men, "The him. "Why?" cried the oil men, "The Standard Oil has done already in Standard Oil has done already in Standard Oil has done already in Cleveland what the South Improvement Cleveland what the South Improvement Cleveland what the South Improvement Company set out to do with the whole Company set out to do with the whole Company set out to do with the whole country. And it has done it by the same country. And it has done it by the same country. And it has done it by the same means."

means." means." By the time the blockade was raised, By the time the blockade was raised, By the time the blockade was raised, another unhappy conviction was fixed on another unhappy conviction was fixed on another unhappy conviction was fixed on the oil regions. The Standard Oil the oil regions. The Standard Oil the oil regions. The Standard Oil Company meant to carry out the plans of Company meant to carry out the plans of Company meant to carry out the plans of the exploded South Improvement Company. the exploded South Improvement Company. the exploded South Improvement Company. The promoters of the scheme were partly The promoters of the scheme were partly The promoters of the scheme were partly responsible for the report. responsible for the report. responsible for the report. Under the smart of their defeat, they Under the smart of their defeat, they Under the smart of their defeat, they talked rather more freely than their talked rather more freely than their talked rather more freely than their policy of silence justified, and their policy of silence justified, and their policy of silence justified, and their remarks were quoted widely. remarks were quoted widely. remarks were quoted widely. Mr. Rockefeller was reported in the Mr. Rockefeller was reported in the Mr. Rockefeller was reported in the Derrick to have said to a prominent oil Derrick to have said to a prominent oil Derrick to have said to a prominent oil man of Oil City that the South man of Oil City that the South man of Oil City that the South Improvement Company could work under the Improvement Company could work under the Improvement Company could work under the charter of the Standard Oil Company. And charter of the Standard Oil Company. And charter of the Standard Oil Company. And to have predicted that in less than two to have predicted that in less than two to have predicted that in less than two months, the gentleman would be glad to months, the gentleman would be glad to months, the gentleman would be glad to join him. join him. join him. The newspapers made much of the The newspapers made much of the The newspapers made much of the following similar story reported by a following similar story reported by a following similar story reported by a New York correspondent. New York correspondent. New York correspondent. A prominent Cleveland member of what was A prominent Cleveland member of what was A prominent Cleveland member of what was the South Improvement Company had said the South Improvement Company had said the South Improvement Company had said within two days, "The business now will within two days, "The business now will within two days, "The business now will be done by the Standard Oil Company. We be done by the Standard Oil Company. We be done by the Standard Oil Company. We have a rate of freight by water from have a rate of freight by water from have a rate of freight by water from Cleveland to New York at 70 cents. No Cleveland to New York at 70 cents. No Cleveland to New York at 70 cents. No man in the trade shall make a dollar man in the trade shall make a dollar man in the trade shall make a dollar this year. We purpose to manipulating this year. We purpose to manipulating this year. We purpose to manipulating the market as to run the price of crude the market as to run the price of crude the market as to run the price of crude on the creek as low as two and a half.

on the creek as low as two and a half. on the creek as low as two and a half. We mean to show the world that the South We mean to show the world that the South We mean to show the world that the South Improvement Company was organized for Improvement Company was organized for Improvement Company was organized for business and means business in spite of business and means business in spite of business and means business in spite of opposition. The same thing has been said opposition. The same thing has been said opposition. The same thing has been said in substance by the leading Philadelphia in substance by the leading Philadelphia in substance by the leading Philadelphia member. member. member. "The trade here regards the Standard Oil "The trade here regards the Standard Oil "The trade here regards the Standard Oil Company as simply taking the place of Company as simply taking the place of Company as simply taking the place of the South Improvement Company, and as the South Improvement Company, and as the South Improvement Company, and as being ready at any moment to make the being ready at any moment to make the being ready at any moment to make the same attempt to control the trade as its same attempt to control the trade as its same attempt to control the trade as its progenitors did," said the New York progenitors did," said the New York progenitors did," said the New York Bulletin about the middle of April. And Bulletin about the middle of April. And Bulletin about the middle of April. And the Cleveland Herald discussed the the Cleveland Herald discussed the the Cleveland Herald discussed the situation under the heading "South situation under the heading "South situation under the heading "South Improvement Company, alias Standard Oil Improvement Company, alias Standard Oil Improvement Company, alias Standard Oil Company." Company." Company." The effect of these reports in the oil The effect of these reports in the oil The effect of these reports in the oil regions was most disastrous. Their open regions was most disastrous. Their open regions was most disastrous. Their open war became a kind of guerrilla war became a kind of guerrilla war became a kind of guerrilla opposition. Those who sold oil to the opposition. Those who sold oil to the opposition. Those who sold oil to the Standard were ostracized, and its Standard were ostracized, and its Standard were ostracized, and its president was openly scorned. president was openly scorned. president was openly scorned. If Mr. Rockefeller had been an ordinary If Mr. Rockefeller had been an ordinary If Mr. Rockefeller had been an ordinary man, the outburst of popular contempt man, the outburst of popular contempt man, the outburst of popular contempt and suspicion which suddenly poured on and suspicion which suddenly poured on and suspicion which suddenly poured on his head would have thwarted and crushed his head would have thwarted and crushed his head would have thwarted and crushed him. But he was no ordinary man.

him. But he was no ordinary man. him. But he was no ordinary man. He had the powerful imagination to see He had the powerful imagination to see He had the powerful imagination to see what might be done with the oil business what might be done with the oil business what might be done with the oil business if it could be centered in his hands, if it could be centered in his hands, if it could be centered in his hands, the intelligence to analyze the problem the intelligence to analyze the problem the intelligence to analyze the problem into its elements, and to find the key into its elements, and to find the key into its elements, and to find the key to control. to control. to control. He had the essential element of all He had the essential element of all He had the essential element of all great achievement, a steadfastness to a great achievement, a steadfastness to a great achievement, a steadfastness to a purpose once conceived which nothing purpose once conceived which nothing purpose once conceived which nothing could crush. could crush. could crush. The oil regions might rage, call him a The oil regions might rage, call him a The oil regions might rage, call him a conspirator, and all those who sold him conspirator, and all those who sold him conspirator, and all those who sold him oil traitors. The railroads might oil traitors. The railroads might oil traitors. The railroads might withdraw their contracts, and the withdraw their contracts, and the withdraw their contracts, and the legislature annul his charter. legislature annul his charter. legislature annul his charter. Undisturbed and unresting, he kept at Undisturbed and unresting, he kept at Undisturbed and unresting, he kept at his great purpose. his great purpose. his great purpose. Even if his nature had not been such as Even if his nature had not been such as Even if his nature had not been such as to forbid him to abandon an enterprise to forbid him to abandon an enterprise to forbid him to abandon an enterprise in which he saw promise of vast profits, in which he saw promise of vast profits, in which he saw promise of vast profits, even if he had not had a mind which even if he had not had a mind which even if he had not had a mind which stopped by a wall, burrows under or stopped by a wall, burrows under or stopped by a wall, burrows under or creeps around, he would nevertheless creeps around, he would nevertheless creeps around, he would nevertheless have been forced to desperate efforts to have been forced to desperate efforts to have been forced to desperate efforts to keep up his business. He had increased keep up his business. He had increased keep up his business. He had increased his refining capacity in Cleveland to his refining capacity in Cleveland to his refining capacity in Cleveland to 10,000 barrels on the strength of the 10,000 barrels on the strength of the 10,000 barrels on the strength of the South Improvement Company contracts.

South Improvement Company contracts. South Improvement Company contracts. These contracts were annulled, and in These contracts were annulled, and in These contracts were annulled, and in their place was one signed by officials their place was one signed by officials their place was one signed by officials of all the oil shipping roads refusing of all the oil shipping roads refusing of all the oil shipping roads refusing rebates to everybody. His geographical rebates to everybody. His geographical rebates to everybody. His geographical position was such that it cost him under position was such that it cost him under position was such that it cost him under these new contracts 50 cents more to get these new contracts 50 cents more to get these new contracts 50 cents more to get oil from the wells to New York than it oil from the wells to New York than it oil from the wells to New York than it did his rivals on the creek. True, he did his rivals on the creek. True, he did his rivals on the creek. True, he had many counterbalancing advantages, a had many counterbalancing advantages, a had many counterbalancing advantages, a growing western market almost entirely growing western market almost entirely growing western market almost entirely in his hands, lake traffic, close in his hands, lake traffic, close in his hands, lake traffic, close proximity to all sorts of accessories to proximity to all sorts of accessories to proximity to all sorts of accessories to his manufacturing. But this contract put his manufacturing. But this contract put his manufacturing. But this contract put him on a level with his rivals. By his him on a level with his rivals. By his him on a level with his rivals. By his size, he should have better terms than size, he should have better terms than size, he should have better terms than they. they. they. What did he do? What did he do? What did he do? He got a rebate. Seven years later, Mr. He got a rebate. Seven years later, Mr. He got a rebate. Seven years later, Mr. Rockefeller's partner, H. M. Flagler, Rockefeller's partner, H. M. Flagler, Rockefeller's partner, H. M. Flagler, was called before a commission of the was called before a commission of the was called before a commission of the Ohio State Legislature appointed to Ohio State Legislature appointed to Ohio State Legislature appointed to investigate railroads. He was asked for investigate railroads. He was asked for investigate railroads. He was asked for the former contracts between his company the former contracts between his company the former contracts between his company and the railroads, and among others, he and the railroads, and among others, he and the railroads, and among others, he presented one showing that from the 1st presented one showing that from the 1st presented one showing that from the 1st of April until the middle of November, of April until the middle of November, of April until the middle of November, 1872, 1872, 1872, their eastbound rate was $1.25, their eastbound rate was $1.25, their eastbound rate was $1.25, 25 cents less than that set by the 25 cents less than that set by the 25 cents less than that set by the agreement of March 25th between the oil agreement of March 25th between the oil agreement of March 25th between the oil men and the railroads.

men and the railroads. men and the railroads. The discrepancy between the date Mr. The discrepancy between the date Mr. The discrepancy between the date Mr. Flagler gives for this contract and that Flagler gives for this contract and that Flagler gives for this contract and that of Mr. Vanderbilt's telegram to Mr. of Mr. Vanderbilt's telegram to Mr. of Mr. Vanderbilt's telegram to Mr. Hasson stating that his road had no Hasson stating that his road had no Hasson stating that his road had no contract with the Standard Oil April contract with the Standard Oil April contract with the Standard Oil April 6th, and of Mr. Rockefeller's own 6th, and of Mr. Rockefeller's own 6th, and of Mr. Rockefeller's own telegram stating he had no contracts telegram stating he had no contracts telegram stating he had no contracts with the railroads April 8th, the writer with the railroads April 8th, the writer with the railroads April 8th, the writer is unable to explain. is unable to explain. is unable to explain. How had Mr. Rockefeller been able to get How had Mr. Rockefeller been able to get How had Mr. Rockefeller been able to get this rebate? this rebate? this rebate? Simply as he had always done, by virtue Simply as he had always done, by virtue Simply as he had always done, by virtue of the quantity he shipped. of the quantity he shipped. of the quantity he shipped. He was able to say to Mr. Vanderbilt, "I He was able to say to Mr. Vanderbilt, "I He was able to say to Mr. Vanderbilt, "I can make a contract to ship 60 carloads can make a contract to ship 60 carloads can make a contract to ship 60 carloads of oil a day over your road, nearly of oil a day over your road, nearly of oil a day over your road, nearly 4,800 barrels. 4,800 barrels. 4,800 barrels. I cannot give this to you regularly I cannot give this to you regularly I cannot give this to you regularly unless you will make me a concession." unless you will make me a concession." unless you will make me a concession." And Mr. Vanderbilt made the concession And Mr. Vanderbilt made the concession And Mr. Vanderbilt made the concession while he was signing the contract with while he was signing the contract with while he was signing the contract with the oil men. the oil men. the oil men. Of course, the rate was secret. And Mr. Of course, the rate was secret. And Mr. Of course, the rate was secret. And Mr. Rockefeller probably understood now, as Rockefeller probably understood now, as Rockefeller probably understood now, as he had not two months before, how he had not two months before, how he had not two months before, how essential it was that he keep it secret. essential it was that he keep it secret. essential it was that he keep it secret. His task was more difficult now, for he His task was more difficult now, for he His task was more difficult now, for he had an enemy active, clamorous, had an enemy active, clamorous, had an enemy active, clamorous, contemptuous, whose suspicions had contemptuous, whose suspicions had contemptuous, whose suspicions had reached that acute point where they reached that acute point where they reached that acute point where they could believe nothing but evil of him, could believe nothing but evil of him, could believe nothing but evil of him, the producers and independent refiners the producers and independent refiners the producers and independent refiners of the oil regions. It was utterly of the oil regions. It was utterly of the oil regions. It was utterly impossible that he should ever silence impossible that he should ever silence impossible that he should ever silence this enemy, for their points of view this enemy, for their points of view this enemy, for their points of view were diametrically opposed.

were diametrically opposed. were diametrically opposed. They believed in independent effort, They believed in independent effort, They believed in independent effort, every man for himself, and fair play for every man for himself, and fair play for every man for himself, and fair play for all. They wanted competition, loved open all. They wanted competition, loved open all. They wanted competition, loved open fight. They considered that all business fight. They considered that all business fight. They considered that all business should be done openly, that the railways should be done openly, that the railways should be done openly, that the railways were bound as public carriers to give were bound as public carriers to give were bound as public carriers to give equal rates, that any combination which equal rates, that any combination which equal rates, that any combination which favored one firm or one locality at the favored one firm or one locality at the favored one firm or one locality at the expense of another was unjust and expense of another was unjust and expense of another was unjust and illegal. illegal. illegal. This belief long held by many of the oil This belief long held by many of the oil This belief long held by many of the oil men had been crystallized by the men had been crystallized by the men had been crystallized by the uprising into a common sentiment. uprising into a common sentiment. uprising into a common sentiment. It had become the moral code of the It had become the moral code of the It had become the moral code of the region. region. region. Mr. Rockefeller's point of view was Mr. Rockefeller's point of view was Mr. Rockefeller's point of view was different. different. different. He believed that the good of all was in He believed that the good of all was in He believed that the good of all was in a combination which would control the a combination which would control the a combination which would control the business as the South Improvement business as the South Improvement business as the South Improvement Company proposed to control it. Company proposed to control it. Company proposed to control it. Such a combination would end at once all Such a combination would end at once all Such a combination would end at once all the abuses the business suffered. the abuses the business suffered. the abuses the business suffered. As rebates and special rates were As rebates and special rates were As rebates and special rates were essential to this control, he favored essential to this control, he favored essential to this control, he favored them. them. them. Of course, Mr. Rockefeller must have Of course, Mr. Rockefeller must have Of course, Mr. Rockefeller must have known that the railroad was a common known that the railroad was a common known that the railroad was a common carrier, and that the common law forbade carrier, and that the common law forbade carrier, and that the common law forbade discrimination. But he knew that the discrimination. But he knew that the discrimination. But he knew that the railroads had not obeyed the laws railroads had not obeyed the laws railroads had not obeyed the laws governing them, that they had regularly governing them, that they had regularly governing them, that they had regularly granted special rates and rebates to granted special rates and rebates to granted special rates and rebates to those who had large amounts of freight.

those who had large amounts of freight. those who had large amounts of freight. That is, you were able to bargain with That is, you were able to bargain with That is, you were able to bargain with the railroads as you did with the man the railroads as you did with the man the railroads as you did with the man carrying on a strictly private business carrying on a strictly private business carrying on a strictly private business depending in no way on a public depending in no way on a public depending in no way on a public franchise. franchise. franchise. Moreover, Mr. Rockefeller probably Moreover, Mr. Rockefeller probably Moreover, Mr. Rockefeller probably believed that, in spite of the believed that, in spite of the believed that, in spite of the agreements, if he did not get rebates, agreements, if he did not get rebates, agreements, if he did not get rebates, somebody else would. That they were for somebody else would. That they were for somebody else would. That they were for the wariest, the shrewdest, the most the wariest, the shrewdest, the most the wariest, the shrewdest, the most persistent. If somebody was to get persistent. If somebody was to get persistent. If somebody was to get rebates, why not he? rebates, why not he? rebates, why not he? This point of view was no uncommon one. This point of view was no uncommon one. This point of view was no uncommon one. Many men held it, and felt a sort of Many men held it, and felt a sort of Many men held it, and felt a sort of scorn, as practical men always do, for scorn, as practical men always do, for scorn, as practical men always do, for theorists, when it was contended that theorists, when it was contended that theorists, when it was contended that the shipper was as wrong in taking rates the shipper was as wrong in taking rates the shipper was as wrong in taking rates as the railroads in granting them. as the railroads in granting them. as the railroads in granting them. Thus, on one hand, there was an Thus, on one hand, there was an Thus, on one hand, there was an exaggerated sense of personal exaggerated sense of personal exaggerated sense of personal independence. On the other, a firm independence. On the other, a firm independence. On the other, a firm belief in combination. belief in combination. belief in combination. On one hand, a determination to root out On one hand, a determination to root out On one hand, a determination to root out the vicious system of rebates practiced the vicious system of rebates practiced the vicious system of rebates practiced by the railway. by the railway. by the railway. On the other, a determination to keep it On the other, a determination to keep it On the other, a determination to keep it alive and profit by it. alive and profit by it. alive and profit by it. Those theories which the body of oil men Those theories which the body of oil men Those theories which the body of oil men held as vital and fundamental, Mr.

held as vital and fundamental, Mr. held as vital and fundamental, Mr. Rockefeller and his associates either Rockefeller and his associates either Rockefeller and his associates either did not comprehend or were deaf to. did not comprehend or were deaf to. did not comprehend or were deaf to. This lack of comprehension by many men This lack of comprehension by many men This lack of comprehension by many men of what seems to other men to be the of what seems to other men to be the of what seems to other men to be the most obvious principles of justice is most obvious principles of justice is most obvious principles of justice is not rare. not rare. not rare. Many men who are widely known as good Many men who are widely known as good Many men who are widely known as good share it. share it. share it. Mr. Rockefeller was good. There was no Mr. Rockefeller was good. There was no Mr. Rockefeller was good. There was no more faithful Baptist in Cleveland than more faithful Baptist in Cleveland than more faithful Baptist in Cleveland than he. he. he. Every enterprise of that church he had Every enterprise of that church he had Every enterprise of that church he had supported liberally from his youth. supported liberally from his youth. supported liberally from his youth. He gave to its poor. He visited its He gave to its poor. He visited its He gave to its poor. He visited its sick. He wept with its suffering. sick. He wept with its suffering. sick. He wept with its suffering. Moreover, he gave unostentatiously to Moreover, he gave unostentatiously to Moreover, he gave unostentatiously to many outside charities of whose many outside charities of whose many outside charities of whose worthiness he was satisfied. He was worthiness he was satisfied. He was worthiness he was satisfied. He was simple and frugal in his habits. He simple and frugal in his habits. He simple and frugal in his habits. He never went to the theater, never drank never went to the theater, never drank never went to the theater, never drank wine. wine. wine. He gave much time to the training of his He gave much time to the training of his He gave much time to the training of his children, seeking to develop in them his children, seeking to develop in them his children, seeking to develop in them his own habits of economy and of charity. own habits of economy and of charity. own habits of economy and of charity. Yet, he was willing to strain every Yet, he was willing to strain every Yet, he was willing to strain every nerve to obtain for himself special and nerve to obtain for himself special and nerve to obtain for himself special and unjust privileges from the railroads unjust privileges from the railroads unjust privileges from the railroads which were bound to ruin every man in which were bound to ruin every man in which were bound to ruin every man in the oil business not sharing them with the oil business not sharing them with the oil business not sharing them with him.

him. him. He was willing to array himself against He was willing to array himself against He was willing to array himself against the combined better sentiment of a whole the combined better sentiment of a whole the combined better sentiment of a whole industry, to oppose a popular movement industry, to oppose a popular movement industry, to oppose a popular movement aimed at righting an injustice so aimed at righting an injustice so aimed at righting an injustice so revolting to one sense of fair play as revolting to one sense of fair play as revolting to one sense of fair play as that of railroad discriminations. that of railroad discriminations. that of railroad discriminations. Religious emotion and sentiment of Religious emotion and sentiment of Religious emotion and sentiment of charity, propriety, and self-denial charity, propriety, and self-denial charity, propriety, and self-denial seemed to have taken the place in him of seemed to have taken the place in him of seemed to have taken the place in him of notions of justice and regard for the notions of justice and regard for the notions of justice and regard for the rights of others. rights of others. rights of others. Unhampered then by any ethical Unhampered then by any ethical Unhampered then by any ethical consideration, undismayed by the clamor consideration, undismayed by the clamor consideration, undismayed by the clamor of the oil regions, believing firmly as of the oil regions, believing firmly as of the oil regions, believing firmly as ever that relief for the disorders in ever that relief for the disorders in ever that relief for the disorders in the oil business lay in combining and the oil business lay in combining and the oil business lay in combining and controlling the entire refining controlling the entire refining controlling the entire refining interest, this man of vast patience and interest, this man of vast patience and interest, this man of vast patience and foresight took up his work. foresight took up his work. foresight took up his work. That work now was to carry out some kind That work now was to carry out some kind That work now was to carry out some kind of a scheme which would limit the output of a scheme which would limit the output of a scheme which would limit the output of refined oil. of refined oil. of refined oil. He had put his competitors in Cleveland He had put his competitors in Cleveland He had put his competitors in Cleveland out of the way. out of the way. out of the way. He had secured special privileges in He had secured special privileges in He had secured special privileges in transportation. But, there were still transportation. But, there were still transportation. But, there were still too many refineries at work to make it too many refineries at work to make it too many refineries at work to make it possible to put up the price of oil 4 possible to put up the price of oil 4 possible to put up the price of oil 4 cents a gallon.

cents a gallon. cents a gallon. It was certain, too, that no scheme It was certain, too, that no scheme It was certain, too, that no scheme could be worked to do that unless the could be worked to do that unless the could be worked to do that unless the oil regions could be mollified. oil regions could be mollified. oil regions could be mollified. That now was Mr. Rockefeller's most That now was Mr. Rockefeller's most That now was Mr. Rockefeller's most important business. important business. important business. Just how he began is not known. Just how he began is not known. Just how he began is not known. It is only certain that the day after It is only certain that the day after It is only certain that the day after the newspapers of the oil regions the newspapers of the oil regions the newspapers of the oil regions printed the report of the congressional printed the report of the congressional printed the report of the congressional committee on commerce denouncing the committee on commerce denouncing the committee on commerce denouncing the South Improvement Company as one of the South Improvement Company as one of the South Improvement Company as one of the most gigantic and dangerous conspiracies most gigantic and dangerous conspiracies most gigantic and dangerous conspiracies ever attempted, and declaring that if it ever attempted, and declaring that if it ever attempted, and declaring that if it had not been checked in time, it would had not been checked in time, it would had not been checked in time, it would have resulted in the absorption and have resulted in the absorption and have resulted in the absorption and arbitrary control of trade in all the arbitrary control of trade in all the arbitrary control of trade in all the great interests of the country, Mr. great interests of the country, Mr. great interests of the country, Mr. Rockefeller and several other members of Rockefeller and several other members of Rockefeller and several other members of the South Improvement Company appeared the South Improvement Company appeared the South Improvement Company appeared in the oil regions. in the oil regions. in the oil regions. They had come, they explained, to They had come, they explained, to They had come, they explained, to present a new plan of cooperation and to present a new plan of cooperation and to present a new plan of cooperation and to show the oil men that it was to their show the oil men that it was to their show the oil men that it was to their interest to go into it. interest to go into it. interest to go into it. Whether they would be able to obtain by Whether they would be able to obtain by Whether they would be able to obtain by persuasion what they had failed to persuasion what they had failed to persuasion what they had failed to obtain by assault was now an interesting obtain by assault was now an interesting obtain by assault was now an interesting uncertainty. uncertainty. uncertainty. End of chapter 3. Recording by Tom End of chapter 3. Recording by Tom End of chapter 3. Recording by Tom Weiss, tomsaudiobooks.com.