The History Of Standard Oil, Ch 09 - The Fight For The Seaboard Pipeline

the history of Standard Oil Volume 2 by the history of Standard Oil Volume 2 by Ida Tarbell chapter n the fight for the Ida Tarbell chapter n the fight for the Ida Tarbell chapter n the fight for the Seaboard Seaboard Seaboard pipeline the project for a seaboard pipeline the project for a seaboard pipeline the project for a seaboard pipeline to be built by the producers pipeline to be built by the producers pipeline to be built by the producers and to be kept independent of standard and to be kept independent of standard and to be kept independent of standard capital and Direction had been pushed capital and Direction had been pushed capital and Direction had been pushed with amazing energy early in the fall of with amazing energy early in the fall of with amazing energy early in the fall of 1878 General Hal reported that his 1878 General Hal reported that his 1878 General Hal reported that his RightWay was complete from the alagan RightWay was complete from the alagan RightWay was complete from the alagan river to Baltimore contracts were L for river to Baltimore contracts were L for river to Baltimore contracts were L for the telegraphed line and preparation the telegraphed line and preparation the telegraphed line and preparation begun to lay the pipe before much actual begun to lay the pipe before much actual begun to lay the pipe before much actual work had been done it became clear to work had been done it became clear to work had been done it became clear to the company that it was not from the the company that it was not from the the company that it was not from the butler oil field but from that of butler oil field but from that of butler oil field but from that of Bradford that a seaboard pipeline should Bradford that a seaboard pipeline should Bradford that a seaboard pipeline should be run that the former field was showing be run that the former field was showing be run that the former field was showing signs of exhaustion while the latter was signs of exhaustion while the latter was signs of exhaustion while the latter was evidently going to yield abundantly with evidently going to yield abundantly with evidently going to yield abundantly with a promptness which would have done a promptness which would have done a promptness which would have done credit to Mr Rockefeller himself messers credit to Mr Rockefeller himself messers credit to Mr Rockefeller himself messers Benson Hopkins and Melby changed their Benson Hopkins and Melby changed their Benson Hopkins and Melby changed their plan the new idea was to lay a 6-in line plan the new idea was to lay a 6-in line plan the new idea was to lay a 6-in line from rickford in the Bradford field to from rickford in the Bradford field to from rickford in the Bradford field to Williamsport on the reading railroad a Williamsport on the reading railroad a Williamsport on the reading railroad a distance of 109 miles the reading not distance of 109 miles the reading not distance of 109 miles the reading not having had so far any oil Freight was having had so far any oil Freight was having had so far any oil Freight was happy to enter into a contract with them happy to enter into a contract with them happy to enter into a contract with them to run oil to both Philadelphia and New to run oil to both Philadelphia and New to run oil to both Philadelphia and New York until they could get through to the York until they could get through to the York until they could get through to the Seaboard themselves in November Seaboard themselves in November Seaboard themselves in November 1878 a limited partnership called the 1878 a limited partnership called the 1878 a limited partnership called the Tidewater pipe company was organized Tidewater pipe company was organized Tidewater pipe company was organized with a capital of 600 with a capital of 600 with a capital of 600 $25,000 to carry out the scheme many of

$25,000 to carry out the scheme many of $25,000 to carry out the scheme many of the best known producers of the oil the best known producers of the oil the best known producers of the oil regions took stock in the company the regions took stock in the company the regions took stock in the company the largest stockholders being AA suner and largest stockholders being AA suner and largest stockholders being AA suner and BD Benson the first work was to get a BD Benson the first work was to get a BD Benson the first work was to get a RightWay the company went at the work RightWay the company went at the work RightWay the company went at the work with secrecy and dispatch its first move with secrecy and dispatch its first move with secrecy and dispatch its first move was to buy from the Equitable pipeline was to buy from the Equitable pipeline was to buy from the Equitable pipeline the second independent effort to which the second independent effort to which the second independent effort to which as we have seen the producers Union LED as we have seen the producers Union LED as we have seen the producers Union LED support in support in support in 1878 a short line it had built and a 1878 a short line it had built and a 1878 a short line it had built and a portion of a RightWay Eastward which portion of a RightWay Eastward which portion of a RightWay Eastward which Colonel Potts had been quietly trying to Colonel Potts had been quietly trying to Colonel Potts had been quietly trying to secure this was a good start and the secure this was a good start and the secure this was a good start and the chief engineer BF waren pushed his way chief engineer BF waren pushed his way chief engineer BF waren pushed his way forward to Williamsport near the line forward to Williamsport near the line forward to Williamsport near the line which William pots had projected the which William pots had projected the which William pots had projected the standard intent on stopping them and standard intent on stopping them and standard intent on stopping them and indeed on putting an end to all future indeed on putting an end to all future indeed on putting an end to all future ventures of this sort set out at once to ventures of this sort set out at once to ventures of this sort set out at once to get what was called a deadline across get what was called a deadline across get what was called a deadline across the state this was an exclusive right the state this was an exclusive right the state this was an exclusive right for pipeline purposes from the northern for pipeline purposes from the northern for pipeline purposes from the northern to the southern boundary of to the southern boundary of to the southern boundary of Pennsylvania as there was no free Pennsylvania as there was no free Pennsylvania as there was no free pipeline bill in those days this pipeline bill in those days this pipeline bill in those days this deadline if it had been complete would deadline if it had been complete would deadline if it had been complete would have been an effectual barrier to the have been an effectual barrier to the have been an effectual barrier to the Tidewater much money was spent in this Tidewater much money was spent in this Tidewater much money was spent in this sorted business but they never succeeded sorted business but they never succeeded sorted business but they never succeeded in completing a line the Tidewater after in completing a line the Tidewater after in completing a line the Tidewater after a little delay found a gap not far from a little delay found a gap not far from a little delay found a gap not far from where it wanted to cross and soon had where it wanted to cross and soon had where it wanted to cross and soon had pushed itself through to pushed itself through to pushed itself through to Williamsport with the actual laying of Williamsport with the actual laying of Williamsport with the actual laying of the pipe there was no interference which the pipe there was no interference which the pipe there was no interference which proved serious though the railroads proved serious though the railroads proved serious though the railroads frequently held back shipments of

frequently held back shipments of frequently held back shipments of supplies at Williamsport where the pipe supplies at Williamsport where the pipe supplies at Williamsport where the pipe crossed under the railroad it was torn crossed under the railroad it was torn crossed under the railroad it was torn out once the Tidewater had no trouble in out once the Tidewater had no trouble in out once the Tidewater had no trouble in this case in getting an injunction which this case in getting an injunction which this case in getting an injunction which prevented further prevented further prevented further lawlessness by the end of May the lawlessness by the end of May the lawlessness by the end of May the company was ready for Operation the company was ready for Operation the company was ready for Operation the plant which they had constructed plant which they had constructed plant which they had constructed proposed to transport 10,000 barrels of proposed to transport 10,000 barrels of proposed to transport 10,000 barrels of oil a day over a distance of 109 miles oil a day over a distance of 109 miles oil a day over a distance of 109 miles the apparatus for doing this consisted the apparatus for doing this consisted the apparatus for doing this consisted simply of Tanks pumps and pipes at simply of Tanks pumps and pipes at simply of Tanks pumps and pipes at Coryville on the edge of the Bradford Coryville on the edge of the Bradford Coryville on the edge of the Bradford field two iron tanks each holding 25,000 field two iron tanks each holding 25,000 field two iron tanks each holding 25,000 barrels of oil were connected with an barrels of oil were connected with an barrels of oil were connected with an enormous pump of a new pattern devised enormous pump of a new pattern devised enormous pump of a new pattern devised by the Holly company especially for this by the Holly company especially for this by the Holly company especially for this work this pump which was driven by an work this pump which was driven by an work this pump which was driven by an engine of 70 horsepower was expected to engine of 70 horsepower was expected to engine of 70 horsepower was expected to force the oil through a 6-in pipe to a force the oil through a 6-in pipe to a force the oil through a 6-in pipe to a second station 28 M away and about 700 second station 28 M away and about 700 second station 28 M away and about 700 ft higher here a second pump took up the ft higher here a second pump took up the ft higher here a second pump took up the oil again driving it to the summit of oil again driving it to the summit of oil again driving it to the summit of the alanes a few miles east from this the alanes a few miles east from this the alanes a few miles east from this point the oil ran by gravitation to point the oil ran by gravitation to point the oil ran by gravitation to Williamsport it was announced that the Williamsport it was announced that the Williamsport it was announced that the pumps would be started on the morning of pumps would be started on the morning of pumps would be started on the morning of May 28th the experiment was watched with May 28th the experiment was watched with May 28th the experiment was watched with keenest interest up to that time oil had keenest interest up to that time oil had keenest interest up to that time oil had never been pumped over 30 miles and no never been pumped over 30 miles and no never been pumped over 30 miles and no great elevation had been overcome here great elevation had been overcome here great elevation had been overcome here was a line 109 Mi long running over a was a line 109 Mi long running over a was a line 109 Mi long running over a mountain nearly 2600 ft high it was mountain nearly 2600 ft high it was mountain nearly 2600 ft high it was freely bet in the oil regions that the freely bet in the oil regions that the freely bet in the oil regions that the Tidewater would get nothing but a

Tidewater would get nothing but a Tidewater would get nothing but a drizzle for its pains however oilmen drizzle for its pains however oilmen drizzle for its pains however oilmen standard men representatives of the standard men representatives of the standard men representatives of the Pennsylvania Railroad newspapermen and Pennsylvania Railroad newspapermen and Pennsylvania Railroad newspapermen and natives gathered in numbers at the natives gathered in numbers at the natives gathered in numbers at the stations and indeed all along the route stations and indeed all along the route stations and indeed all along the route to watch the result the pumpit station to watch the result the pumpit station to watch the result the pumpit station one was started by BD Benson the one was started by BD Benson the one was started by BD Benson the president of the company there were president of the company there were president of the company there were present with him several members of the present with him several members of the present with him several members of the concern and today these men speak with concern and today these men speak with concern and today these men speak with emotion of the moment when Mr Benson emotion of the moment when Mr Benson emotion of the moment when Mr Benson opened the valve to admit the oil to the opened the valve to admit the oil to the opened the valve to admit the oil to the pump would the great Venture on which pump would the great Venture on which pump would the great Venture on which they had staked all be a success without they had staked all be a success without they had staked all be a success without a hitch the oil flowed in a full stream a hitch the oil flowed in a full stream a hitch the oil flowed in a full stream into the pipe and began its long journey into the pipe and began its long journey into the pipe and began its long journey over the mountains it traveled about as over the mountains it traveled about as over the mountains it traveled about as fast as a man could walk and as the pipe fast as a man could walk and as the pipe fast as a man could walk and as the pipe lay on the ground the head of the stream lay on the ground the head of the stream lay on the ground the head of the stream could be located by the sound patrolman could be located by the sound patrolman could be located by the sound patrolman followed the pipe the entire length followed the pipe the entire length followed the pipe the entire length watching for leaks watching for leaks watching for leaks there was now and then a delay from the there was now and then a delay from the there was now and then a delay from the stopping of the pumps but the cause was stopping of the pumps but the cause was stopping of the pumps but the cause was trivial enough never anything worse than trivial enough never anything worse than trivial enough never anything worse than chips under the valves or clogging in chips under the valves or clogging in chips under the valves or clogging in the pipe by stones and bits of wood the pipe by stones and bits of wood the pipe by stones and bits of wood which the workmen had carelessly left in which the workmen had carelessly left in which the workmen had carelessly left in when joining the pipe when the oil when joining the pipe when the oil when joining the pipe when the oil reached the second station there was reached the second station there was reached the second station there was General rejoicing nevertheless the General rejoicing nevertheless the General rejoicing nevertheless the steepest incline the summit of the steepest incline the summit of the steepest incline the summit of the alanes had yet to be overcome the oil alanes had yet to be overcome the oil alanes had yet to be overcome the oil went up to the top of the mountain went up to the top of the mountain went up to the top of the mountain without difficulty and on June 4 the 7th without difficulty and on June 4 the 7th without difficulty and on June 4 the 7th day after Mr Benson opened the valve at day after Mr Benson opened the valve at day after Mr Benson opened the valve at Station 1 oil flowed into the big

Station 1 oil flowed into the big Station 1 oil flowed into the big receiving tank Beyond receiving tank Beyond receiving tank Beyond Williamsport a new era had come in the Williamsport a new era had come in the Williamsport a new era had come in the oil business oil could be pumped over oil business oil could be pumped over oil business oil could be pumped over the mountains it was only a matter of the mountains it was only a matter of the mountains it was only a matter of time when the Tidewater would pump to time when the Tidewater would pump to time when the Tidewater would pump to New York once at the Seaboard The Tide New York once at the Seaboard The Tide New York once at the Seaboard The Tide Water had a large and Shore Outlet for Water had a large and Shore Outlet for Water had a large and Shore Outlet for its oil in the group of independent its oil in the group of independent its oil in the group of independent refiners left at the mercy of the refiners left at the mercy of the refiners left at the mercy of the standard in the fall of 18 77 by the standard in the fall of 18 77 by the standard in the fall of 18 77 by the downfall of the Empire line these downfall of the Empire line these downfall of the Empire line these refiners had most of them run the entire refiners had most of them run the entire refiners had most of them run the entire gamut of experiences forced on the trade gamut of experiences forced on the trade gamut of experiences forced on the trade by the railroads and the standard take by the railroads and the standard take by the railroads and the standard take for instance the experience of Air's for instance the experience of Air's for instance the experience of Air's Lumbard and Company related by jiah Lumbard and Company related by jiah Lumbard and Company related by jiah Lombard in Lombard in Lombard in 1879 in the Pennsylvania suits they had 1879 in the Pennsylvania suits they had 1879 in the Pennsylvania suits they had gone into the business in 1869 in West gone into the business in 1869 in West gone into the business in 1869 in West 66 Street at the beginning they had 66 Street at the beginning they had 66 Street at the beginning they had shipped principally over the eie shipped principally over the eie shipped principally over the eie sometimes as high as 50,000 barrels a sometimes as high as 50,000 barrels a sometimes as high as 50,000 barrels a month but when that road came into the month but when that road came into the month but when that road came into the hands of Fisk and G those gentlemen hands of Fisk and G those gentlemen hands of Fisk and G those gentlemen began to try to build up a refining began to try to build up a refining began to try to build up a refining business in New York for their own business in New York for their own business in New York for their own friends Edward Stokes was at that time friends Edward Stokes was at that time friends Edward Stokes was at that time hand in glove with Fisk he had in the hand in glove with Fisk he had in the hand in glove with Fisk he had in the oil regions an able friend Henry Harley oil regions an able friend Henry Harley oil regions an able friend Henry Harley Harley bought and shipped the oil over Harley bought and shipped the oil over Harley bought and shipped the oil over the Eerie special rates were given him the Eerie special rates were given him the Eerie special rates were given him and the Stokes Refinery soon began to and the Stokes Refinery soon began to and the Stokes Refinery soon began to flourish at the expense of the former flourish at the expense of the former flourish at the expense of the former shippers of the eie Mr Mr Lombard shippers of the eie Mr Mr Lombard shippers of the eie Mr Mr Lombard finding as he says that there was no finding as he says that there was no finding as he says that there was no possibility of doing business with that possibility of doing business with that possibility of doing business with that road under the Fisk and Gould management road under the Fisk and Gould management road under the Fisk and Gould management went over to the New York Central here

went over to the New York Central here went over to the New York Central here he furnished his own cars Air's Lombard he furnished his own cars Air's Lombard he furnished his own cars Air's Lombard and company owned 100 cards on the and company owned 100 cards on the and company owned 100 cards on the central in central in central in 1872 worth about 1872 worth about 1872 worth about $35,000 and in these they shipped the $35,000 and in these they shipped the $35,000 and in these they shipped the bulk of their oil the South improvement bulk of their oil the South improvement bulk of their oil the South improvement company Maneuvers in the spring Of company Maneuvers in the spring Of company Maneuvers in the spring Of 1872 completely stopped their shipping 1872 completely stopped their shipping 1872 completely stopped their shipping over that road and in 1872 they sold over that road and in 1872 they sold over that road and in 1872 they sold their cars Mr Lombard said in his their cars Mr Lombard said in his their cars Mr Lombard said in his testimony we gave them the cars because testimony we gave them the cars because testimony we gave them the cars because the Standard Oil were getting the the Standard Oil were getting the the Standard Oil were getting the ascendancy so much over the New York ascendancy so much over the New York ascendancy so much over the New York roads that we could not get a rate of roads that we could not get a rate of roads that we could not get a rate of freight from the lower districts and the freight from the lower districts and the freight from the lower districts and the Parker District where the bulk of the Parker District where the bulk of the Parker District where the bulk of the oil was produced at that time that would oil was produced at that time that would oil was produced at that time that would enable us to compete with them in the enable us to compete with them in the enable us to compete with them in the New York market so there was no use in New York market so there was no use in New York market so there was no use in owning the cars driven off the arean owning the cars driven off the arean owning the cars driven off the arean central The Firm made a running central The Firm made a running central The Firm made a running arrangement with Mr Rockefeller for a arrangement with Mr Rockefeller for a arrangement with Mr Rockefeller for a year the standard bought the cars and year the standard bought the cars and year the standard bought the cars and agreed to furnish Air's Lombard and agreed to furnish Air's Lombard and agreed to furnish Air's Lombard and Company crude oil for a certain price at Company crude oil for a certain price at Company crude oil for a certain price at a certain time and take the refined oil a certain time and take the refined oil a certain time and take the refined oil from them at a fixed price this contract from them at a fixed price this contract from them at a fixed price this contract was made probably under the refiners was made probably under the refiners was made probably under the refiners association which Mr Rockefeller association which Mr Rockefeller association which Mr Rockefeller succeeded in affecting in August succeeded in affecting in August succeeded in affecting in August 1872 after the failure of the South 1872 after the failure of the South 1872 after the failure of the South improvement company which Association as improvement company which Association as improvement company which Association as we have already seen took in fully four we have already seen took in fully four we have already seen took in fully four fifths of the refining interests of the fifths of the refining interests of the fifths of the refining interests of the country the contract continued Mr country the contract continued Mr country the contract continued Mr Lombard said in testimony for a year or Lombard said in testimony for a year or Lombard said in testimony for a year or more and was then terminated by notice more and was then terminated by notice more and was then terminated by notice from the Standard Oil Company soon after

from the Standard Oil Company soon after from the Standard Oil Company soon after the termination of the contract with the the termination of the contract with the the termination of the contract with the standard which was either late in 1873 standard which was either late in 1873 standard which was either late in 1873 or early in or early in or early in 1874 Mr Lombard was not able to decide 1874 Mr Lombard was not able to decide 1874 Mr Lombard was not able to decide this when he was under examination The this when he was under examination The this when he was under examination The Firm began shipping over the Firm began shipping over the Firm began shipping over the Pennsylvania Railroad they bought part Pennsylvania Railroad they bought part Pennsylvania Railroad they bought part of their oil at this time from Adnan of their oil at this time from Adnan of their oil at this time from Adnan Nahar now sometime in 1875 as we have Nahar now sometime in 1875 as we have Nahar now sometime in 1875 as we have seen Mr nart began to feel the standard seen Mr nart began to feel the standard seen Mr nart began to feel the standard pressure and his business was sold to pressure and his business was sold to pressure and his business was sold to the standard again A's Lombard and the standard again A's Lombard and the standard again A's Lombard and Company found a large part of their Company found a large part of their Company found a large part of their supply of oil cut off for about a year supply of oil cut off for about a year supply of oil cut off for about a year they shipped over the Pennsylvania it they shipped over the Pennsylvania it they shipped over the Pennsylvania it was not long however before the concern was not long however before the concern was not long however before the concern found that even on the Pennsylvania they found that even on the Pennsylvania they found that even on the Pennsylvania they were under a disadvantage that road were under a disadvantage that road were under a disadvantage that road having made in 187 5 discriminated having made in 187 5 discriminated having made in 187 5 discriminated contracts with the standard Again The contracts with the standard Again The contracts with the standard Again The Firm changed buying its oil from ja Firm changed buying its oil from ja Firm changed buying its oil from ja Boswick and Company of New York now Boswick and Company of New York now Boswick and Company of New York now Boswick was the Standard Oil buyer one Boswick was the Standard Oil buyer one Boswick was the Standard Oil buyer one of the original South improvement of the original South improvement of the original South improvement company and a stockholder in the company and a stockholder in the company and a stockholder in the Standard Oil Company Mr Lombard swore Standard Oil Company Mr Lombard swore Standard Oil Company Mr Lombard swore that he had not been taking oil of that he had not been taking oil of that he had not been taking oil of Boswick for more than a year before the Boswick for more than a year before the Boswick for more than a year before the standard began to draw its lines around standard began to draw its lines around standard began to draw its lines around him as he put it and again the question him as he put it and again the question him as he put it and again the question arose how were they to get oil for their arose how were they to get oil for their arose how were they to get oil for their refin Refinery there seemed to be no way refin Refinery there seemed to be no way refin Refinery there seemed to be no way but to try to make a contract with the but to try to make a contract with the but to try to make a contract with the Pennsylvania company on the 18th of May Pennsylvania company on the 18th of May Pennsylvania company on the 18th of May 1877 he went to Philadelphia and saw 1877 he went to Philadelphia and saw 1877 he went to Philadelphia and saw Colonel pots who told him he would be

Colonel pots who told him he would be Colonel pots who told him he would be glad to have his shipments on the glad to have his shipments on the glad to have his shipments on the Pennsylvania accordingly a contract was Pennsylvania accordingly a contract was Pennsylvania accordingly a contract was made for a year the company guaranteeing made for a year the company guaranteeing made for a year the company guaranteeing them as low a rate as anybody else had them as low a rate as anybody else had them as low a rate as anybody else had but this contract of Mr Lombard was but this contract of Mr Lombard was but this contract of Mr Lombard was destined to end as speedily and as destined to end as speedily and as destined to end as speedily and as disastrously disastrously disastrously as all of those he had been making for as all of those he had been making for as all of those he had been making for over 5 years for in the fall of the year over 5 years for in the fall of the year over 5 years for in the fall of the year the Empire line was sold to the standard the Empire line was sold to the standard the Empire line was sold to the standard and in the spring of 1878 when Mr and in the spring of 1878 when Mr and in the spring of 1878 when Mr Lombard's contract ran out the Lombard's contract ran out the Lombard's contract ran out the Pennsylvania refused to renew it on the Pennsylvania refused to renew it on the Pennsylvania refused to renew it on the terms they gave the standard Mr Lombard terms they gave the standard Mr Lombard terms they gave the standard Mr Lombard gave a very interesting account of the gave a very interesting account of the gave a very interesting account of the interview he and his fellow refiners of interview he and his fellow refiners of interview he and his fellow refiners of New York had with Mr cassid in reference New York had with Mr cassid in reference New York had with Mr cassid in reference to this to this to this matter in March matter in March matter in March 1878 I I think it was by appointment we 1878 I I think it was by appointment we 1878 I I think it was by appointment we had an interview with Mr casset third had an interview with Mr casset third had an interview with Mr casset third vice president of the Pennsylvania vice president of the Pennsylvania vice president of the Pennsylvania Railroad there were present Mr Bush Mr Railroad there were present Mr Bush Mr Railroad there were present Mr Bush Mr Gregory Mr Burke Mr Olan and myself Gregory Mr Burke Mr Olan and myself Gregory Mr Burke Mr Olan and myself besides Mr cassid it was held in Mr besides Mr cassid it was held in Mr besides Mr cassid it was held in Mr Bush's office 123 Pearl Street New York Bush's office 123 Pearl Street New York Bush's office 123 Pearl Street New York we sought that interview for the purpose we sought that interview for the purpose we sought that interview for the purpose of finding out what our position would of finding out what our position would of finding out what our position would be on the Pennsylvania Railroad after be on the Pennsylvania Railroad after be on the Pennsylvania Railroad after the termination of our contract with the the termination of our contract with the the termination of our contract with the Empire line which they had assumed we Empire line which they had assumed we Empire line which they had assumed we had had quite a plain talk on the had had quite a plain talk on the had had quite a plain talk on the subject we began by telling Mr casset subject we began by telling Mr casset subject we began by telling Mr casset something that he already knew that we something that he already knew that we something that he already knew that we for the past year had been probably the for the past year had been probably the for the past year had been probably the largest shippers over the Pennsylvania largest shippers over the Pennsylvania largest shippers over the Pennsylvania Railroad that they had had largest Railroad that they had had largest Railroad that they had had largest shippers of petroleum he acknowledged it

shippers of petroleum he acknowledged it shippers of petroleum he acknowledged it and we asked him if we should after the and we asked him if we should after the and we asked him if we should after the 1st of May be on the same footing and 1st of May be on the same footing and 1st of May be on the same footing and have as low a rate of freight as anybody have as low a rate of freight as anybody have as low a rate of freight as anybody else which was guaranteed by contract up else which was guaranteed by contract up else which was guaranteed by contract up to that time he said no we would not we to that time he said no we would not we to that time he said no we would not we asked him why not well he said it would asked him why not well he said it would asked him why not well he said it would not be satisfactory to the Standard Oil not be satisfactory to the Standard Oil not be satisfactory to the Standard Oil Company I then put the question to him Company I then put the question to him Company I then put the question to him what difference it made to the what difference it made to the what difference it made to the Pennsylvania Railroad Company whether it Pennsylvania Railroad Company whether it Pennsylvania Railroad Company whether it was satisfactory to the Standard Oil was satisfactory to the Standard Oil was satisfactory to the Standard Oil company or not he said that the Standard company or not he said that the Standard company or not he said that the Standard Oil company was the only party which Oil company was the only party which Oil company was the only party which could keep peace between the trunk lines could keep peace between the trunk lines could keep peace between the trunk lines I said it seems to me you have the I said it seems to me you have the I said it seems to me you have the matter very much in your own hands there matter very much in your own hands there matter very much in your own hands there are but four of you if you AG Upon A are but four of you if you AG Upon A are but four of you if you AG Upon A Certain rate of freight the oil is to Certain rate of freight the oil is to Certain rate of freight the oil is to come forward at I see no use of the come forward at I see no use of the come forward at I see no use of the intervention of a third party or a fifth intervention of a third party or a fifth intervention of a third party or a fifth party in this case he said I cannot party in this case he said I cannot party in this case he said I cannot trust or rather he said they are the trust or rather he said they are the trust or rather he said they are the only people that can keep Harmony then only people that can keep Harmony then only people that can keep Harmony then we had a little discussion about the we had a little discussion about the we had a little discussion about the rates he said that they had been rates he said that they had been rates he said that they had been bringing oil for the past year at a very bringing oil for the past year at a very bringing oil for the past year at a very low rate I told him I understood it was low rate I told him I understood it was low rate I told him I understood it was a little over 70 cents an average on a little over 70 cents an average on a little over 70 cents an average on crude petroleum he denied it and and crude petroleum he denied it and and crude petroleum he denied it and and said it was not then when we were said it was not then when we were said it was not then when we were talking about the subject of rates he talking about the subject of rates he talking about the subject of rates he said of course the rates on petroleum said of course the rates on petroleum said of course the rates on petroleum were very profitable and said we could were very profitable and said we could were very profitable and said we could find out the rate at which they would find out the rate at which they would find out the rate at which they would bring petroleum if they were compelled bring petroleum if they were compelled bring petroleum if they were compelled to by looking up their annual report and to by looking up their annual report and to by looking up their annual report and seeing the cost a ton per mile which was

seeing the cost a ton per mile which was seeing the cost a ton per mile which was something like 5 or six Mills per ton something like 5 or six Mills per ton something like 5 or six Mills per ton per mile and which if we figured that it per mile and which if we figured that it per mile and which if we figured that it would be a very profitable business we would be a very profitable business we would be a very profitable business we told him we did not object to him making told him we did not object to him making told him we did not object to him making a good profit at any time all we wished a good profit at any time all we wished a good profit at any time all we wished was to have as low a rate of freight as was to have as low a rate of freight as was to have as low a rate of freight as anybody else had which we could not get anybody else had which we could not get anybody else had which we could not get he said we had better make an he said we had better make an he said we had better make an arrangement with the standard and we arrangement with the standard and we arrangement with the standard and we would all of us make money and that they would all of us make money and that they would all of us make money and that they had a very large business and proposed had a very large business and proposed had a very large business and proposed to make money and the Discrimination to make money and the Discrimination to make money and the Discrimination would be so light against us that we would be so light against us that we would be so light against us that we would hardly notice it and we formed the would hardly notice it and we formed the would hardly notice it and we formed the idea from what he said we asked him idea from what he said we asked him idea from what he said we asked him whether the discrimination against us whether the discrimination against us whether the discrimination against us would be larger if the rate of freight would be larger if the rate of freight would be larger if the rate of freight were high than it would if the rate of were high than it would if the rate of were high than it would if the rate of freight were low he said yes it would be freight were low he said yes it would be freight were low he said yes it would be but he said the Discrimination would be but he said the Discrimination would be but he said the Discrimination would be very small we tried to find out by very small we tried to find out by very small we tried to find out by asking what it would be but did not asking what it would be but did not asking what it would be but did not succeed he then said if we would Unite succeed he then said if we would Unite succeed he then said if we would Unite with the standard we would do better and with the standard we would do better and with the standard we would do better and everything would be Peaceable and everything would be Peaceable and everything would be Peaceable and harmonious and he would use his efforts harmonious and he would use his efforts harmonious and he would use his efforts to promote such a union if we wished it to promote such a union if we wished it to promote such a union if we wished it we told him we did not wish to unite we told him we did not wish to unite we told him we did not wish to unite with the standard we dealt on freight with the standard we dealt on freight with the standard we dealt on freight matters with the Pennsylvania Railroad matters with the Pennsylvania Railroad matters with the Pennsylvania Railroad not with the Standard Oil Company not with the Standard Oil Company not with the Standard Oil Company there was another interview at which Mr there was another interview at which Mr there was another interview at which Mr Bush Mr Olen Mr casset and myself were Bush Mr Olen Mr casset and myself were Bush Mr Olen Mr casset and myself were the only parties as I remember it it was the only parties as I remember it it was the only parties as I remember it it was held in Pennsylvania at the office of held in Pennsylvania at the office of held in Pennsylvania at the office of the Pennsylvania Railroad in the last the Pennsylvania Railroad in the last the Pennsylvania Railroad in the last part of May or early part of June it was part of May or early part of June it was part of May or early part of June it was at the time of what we called The at the time of what we called The at the time of what we called The Squeeze In Cars previous to that time we

Squeeze In Cars previous to that time we Squeeze In Cars previous to that time we had all the cars we wanted without any had all the cars we wanted without any had all the cars we wanted without any difficulty at that time and when we were difficulty at that time and when we were difficulty at that time and when we were wanting just about the same kind of cars wanting just about the same kind of cars wanting just about the same kind of cars we had previously been wanting and we had previously been wanting and we had previously been wanting and business was running on very easily we business was running on very easily we business was running on very easily we found we were unable to get anything found we were unable to get anything found we were unable to get anything like the amounts we had before instead like the amounts we had before instead like the amounts we had before instead of getting for the firm I represented of getting for the firm I represented of getting for the firm I represented from 12 to 15 cars a day we were getting from 12 to 15 cars a day we were getting from 12 to 15 cars a day we were getting only one or two utterly insufficient for only one or two utterly insufficient for only one or two utterly insufficient for the business we came over to see Mr the business we came over to see Mr the business we came over to see Mr cassid about it Mr Bush Mr Olan and cassid about it Mr Bush Mr Olan and cassid about it Mr Bush Mr Olan and myself he said he knew there was trouble myself he said he knew there was trouble myself he said he knew there was trouble that the other side the Standard Oil that the other side the Standard Oil that the other side the Standard Oil company had some 500 Cars full here at company had some 500 Cars full here at company had some 500 Cars full here at Phil Philadelphia and Baltimore that he Phil Philadelphia and Baltimore that he Phil Philadelphia and Baltimore that he had not discovered it until recently but had not discovered it until recently but had not discovered it until recently but that he would have it remedied they had that he would have it remedied they had that he would have it remedied they had been holding them there full I asked him been holding them there full I asked him been holding them there full I asked him why if he knew of the cars being why if he knew of the cars being why if he knew of the cars being detained he kept giving them cars he detained he kept giving them cars he detained he kept giving them cars he said he did not know exactly how that said he did not know exactly how that said he did not know exactly how that was I told him if these cars were was I told him if these cars were was I told him if these cars were shipped here and held it seemed to me shipped here and held it seemed to me shipped here and held it seemed to me they ought to stop giving cars to they ought to stop giving cars to they ought to stop giving cars to parties holding them he said the matter parties holding them he said the matter parties holding them he said the matter would be remedied soon we asked him how would be remedied soon we asked him how would be remedied soon we asked him how soon he could not tell exactly I said soon he could not tell exactly I said soon he could not tell exactly I said can't you stop giving them cars he said can't you stop giving them cars he said can't you stop giving them cars he said he would remedy the matter we should he would remedy the matter we should he would remedy the matter we should have all the cars we needed and it was have all the cars we needed and it was have all the cars we needed and it was at that time that he made the remark to at that time that he made the remark to at that time that he made the remark to which Mr Bush testified when we had some which Mr Bush testified when we had some which Mr Bush testified when we had some little general conversation that if we little general conversation that if we little general conversation that if we build a pipeline he would buy it up for build a pipeline he would buy it up for build a pipeline he would buy it up for old iron in 60 days I think I remarked

old iron in 60 days I think I remarked old iron in 60 days I think I remarked that the conduit pipe brought a good that the conduit pipe brought a good that the conduit pipe brought a good price for old iron in a laughing way the price for old iron in a laughing way the price for old iron in a laughing way the interview was pleasant enough interview was pleasant enough interview was pleasant enough then early in July I think it was the then early in July I think it was the then early in July I think it was the last part of June or early part of July last part of June or early part of July last part of June or early part of July Mr Olan Mr Bush Mr Wilson Mr King Mr Mr Olan Mr Bush Mr Wilson Mr King Mr Mr Olan Mr Bush Mr Wilson Mr King Mr Gregory and myself came to Philadelphia Gregory and myself came to Philadelphia Gregory and myself came to Philadelphia and met Colonel Scott president of the and met Colonel Scott president of the and met Colonel Scott president of the Pennsylvania Railroad Mr casset and Mr Pennsylvania Railroad Mr casset and Mr Pennsylvania Railroad Mr casset and Mr bundred at the office of the bundred at the office of the bundred at the office of the Pennsylvania Road with the same trouble Pennsylvania Road with the same trouble Pennsylvania Road with the same trouble the same troubles as of old a scarcity the same troubles as of old a scarcity the same troubles as of old a scarcity of cars and a discrimination in Freight of cars and a discrimination in Freight of cars and a discrimination in Freight as to scarcity of cars they claimed that as to scarcity of cars they claimed that as to scarcity of cars they claimed that we were getting our allotment we told we were getting our allotment we told we were getting our allotment we told them we knew nothing about an allotment them we knew nothing about an allotment them we knew nothing about an allotment that previous to the 1st of May we had that previous to the 1st of May we had that previous to the 1st of May we had sufficient cars for our business since sufficient cars for our business since sufficient cars for our business since that time we got scarcely any that if that time we got scarcely any that if that time we got scarcely any that if they had not sufficient cars to do the they had not sufficient cars to do the they had not sufficient cars to do the business with we would put on cars Mr business with we would put on cars Mr business with we would put on cars Mr Scott said they would not allow that Scott said they would not allow that Scott said they would not allow that they had bought out one line and did not they had bought out one line and did not they had bought out one line and did not propose to have another we then demanded propose to have another we then demanded propose to have another we then demanded cars for the business making again the cars for the business making again the cars for the business making again the offer to put on cars if they could not offer to put on cars if they could not offer to put on cars if they could not furnish them with the the same result he furnish them with the the same result he furnish them with the the same result he said they had already fought one fight said they had already fought one fight said they had already fought one fight in our behalf which cost them a million5 in our behalf which cost them a million5 in our behalf which cost them a million5 dollar we told them not at all in our dollar we told them not at all in our dollar we told them not at all in our behalf we had nothing to do with it we behalf we had nothing to do with it we behalf we had nothing to do with it we were simply shippers over the road and were simply shippers over the road and were simply shippers over the road and did not participate in the matter at all did not participate in the matter at all did not participate in the matter at all it was a matter of their own he seemed it was a matter of their own he seemed it was a matter of their own he seemed to be a little sore about that when he to be a little sore about that when he to be a little sore about that when he made the remark which has been given in

made the remark which has been given in made the remark which has been given in evidence before he said there would be evidence before he said there would be evidence before he said there would be no piece of profit in the business until no piece of profit in the business until no piece of profit in the business until we made some arrangement with the we made some arrangement with the we made some arrangement with the Standard Oil Company he would be very Standard Oil Company he would be very Standard Oil Company he would be very glad to have such an arrangement made glad to have such an arrangement made glad to have such an arrangement made and would do all in his power to and would do all in his power to and would do all in his power to accomplish it we told him we did not accomplish it we told him we did not accomplish it we told him we did not wish any arrangement with the Standard wish any arrangement with the Standard wish any arrangement with the Standard Oil Company we had been dealing for Oil Company we had been dealing for Oil Company we had been dealing for years with the Pennsylvania Railroad and years with the Pennsylvania Railroad and years with the Pennsylvania Railroad and we wish to deal with them now on all we wish to deal with them now on all we wish to deal with them now on all transportation and Freight matters I transportation and Freight matters I transportation and Freight matters I think there was nothing further in that think there was nothing further in that think there was nothing further in that interview he asked why we did not apply interview he asked why we did not apply interview he asked why we did not apply to the other roads for to the other roads for to the other roads for transportation we told him we had he transportation we told him we had he transportation we told him we had he said with what results that the Central said with what results that the Central said with what results that the Central Road had no cars of their own he said Road had no cars of their own he said Road had no cars of their own he said that was a very flimsy pretext I said that was a very flimsy pretext I said that was a very flimsy pretext I said that the Eerie Road cars were controlled that the Eerie Road cars were controlled that the Eerie Road cars were controlled by the Standard Oil and the central cars by the Standard Oil and the central cars by the Standard Oil and the central cars were controlled by the Standard Oil that were controlled by the Standard Oil that were controlled by the Standard Oil that in fact the whole transportation of the in fact the whole transportation of the in fact the whole transportation of the oil country seemed to be controlled by oil country seemed to be controlled by oil country seemed to be controlled by the Standard Oil company and the New the Standard Oil company and the New the Standard Oil company and the New York Central and the Erie and the York Central and the Erie and the York Central and the Erie and the Pennsylvania Central and the Baltimore Pennsylvania Central and the Baltimore Pennsylvania Central and the Baltimore and Ohio they controlled the whole thing and Ohio they controlled the whole thing and Ohio they controlled the whole thing and there was no chance and in addition and there was no chance and in addition and there was no chance and in addition to that we had been shippers and to that we had been shippers and to that we had been shippers and customers of the Pennsylvania Road for customers of the Pennsylvania Road for customers of the Pennsylvania Road for years naturally enough men who had been years naturally enough men who had been years naturally enough men who had been through such experiences as these of Mr through such experiences as these of Mr through such experiences as these of Mr Lombard were glad to unite with the Lombard were glad to unite with the Lombard were glad to unite with the Tidewater which promised to free them Tidewater which promised to free them Tidewater which promised to free them from the railroads in their Chief from the railroads in their Chief from the railroads in their Chief competition and they promised to take competition and they promised to take competition and they promised to take all their supply from the line the all their supply from the line the all their supply from the line the success of the Tidewater experiment success of the Tidewater experiment success of the Tidewater experiment brought Mr Rockefeller face to face with

brought Mr Rockefeller face to face with brought Mr Rockefeller face to face with a new situation just how serious this a new situation just how serious this a new situation just how serious this situation was is shown by the difference situation was is shown by the difference situation was is shown by the difference in the cost of transporting a barrel of in the cost of transporting a barrel of in the cost of transporting a barrel of oil to the Seaboard by Rail and oil to the Seaboard by Rail and oil to the Seaboard by Rail and transporting it by pipe according to the transporting it by pipe according to the transporting it by pipe according to the calculation of Mr Gowan the president of calculation of Mr Gowan the president of calculation of Mr Gowan the president of the reading railroad the cost by rail the reading railroad the cost by rail the reading railroad the cost by rail was at that time from 35 to was at that time from 35 to was at that time from 35 to 45 the open rate was from a125 to .40 45 the open rate was from a125 to .40 45 the open rate was from a125 to .40 and a Standard Oil Company probably paid and a Standard Oil Company probably paid and a Standard Oil Company probably paid about 85 cents when the roads were not about 85 cents when the roads were not about 85 cents when the roads were not protecting it from injury by protecting it from injury by protecting it from injury by competition now according to General competition now according to General competition now according to General Hal's calculation in Hal's calculation in Hal's calculation in 1876 oil could be carried in pipes from 1876 oil could be carried in pipes from 1876 oil could be carried in pipes from the oil regions to the Seaboard for 16 the oil regions to the Seaboard for 16 the oil regions to the Seaboard for 16 and 23 cents a barrel General Hal and 23 cents a barrel General Hal and 23 cents a barrel General Hal calculated the average difference in calculated the average difference in calculated the average difference in cost of the two systems to be 23 cents cost of the two systems to be 23 cents cost of the two systems to be 23 cents enough to pay 28% dividends on the cost enough to pay 28% dividends on the cost enough to pay 28% dividends on the cost of a line even if the railway put their of a line even if the railway put their of a line even if the railway put their Freights down to cost this little Freights down to cost this little Freights down to cost this little calculation is enough to show that the calculation is enough to show that the calculation is enough to show that the day of the railroads as longdistance day of the railroads as longdistance day of the railroads as longdistance Transporters of crude oil was over that Transporters of crude oil was over that Transporters of crude oil was over that the pipelines were bound to replace them the pipelines were bound to replace them the pipelines were bound to replace them now Mr Rockefeller had by 10 years of now Mr Rockefeller had by 10 years of now Mr Rockefeller had by 10 years of effort made the roads his servant would effort made the roads his servant would effort made the roads his servant would he be able to control the new carrier a he be able to control the new carrier a he be able to control the new carrier a man of lesser intellect might not have man of lesser intellect might not have man of lesser intellect might not have foreseen the inevitableness of the new foreseen the inevitableness of the new foreseen the inevitableness of the new situation a man of lesser courage would situation a man of lesser courage would situation a man of lesser courage would not have sprung to meet it Mr

not have sprung to meet it Mr not have sprung to meet it Mr Rockefeller however is like all great Rockefeller however is like all great Rockefeller however is like all great generals generals generals he never fails to foresee where the he never fails to foresee where the he never fails to foresee where the battle is to be fought he never fails to battle is to be fought he never fails to battle is to be fought he never fails to get the choice of get the choice of get the choice of positions he wasted no time now in positions he wasted no time now in positions he wasted no time now in deciding what should be done he proposed deciding what should be done he proposed deciding what should be done he proposed not merely to control future not merely to control future not merely to control future long-distance oil Transportation he long-distance oil Transportation he long-distance oil Transportation he proposed to own it proposed to own it proposed to own it outright hardly had the news of the outright hardly had the news of the outright hardly had the news of the success of the Tidewaters experiment success of the Tidewaters experiment success of the Tidewaters experiment reached the standard before this truly reached the standard before this truly reached the standard before this truly Napoleonic decision was being carried Napoleonic decision was being carried Napoleonic decision was being carried out Mr Rock F had secured a RightWay out Mr Rock F had secured a RightWay out Mr Rock F had secured a RightWay from the Bradford field to Bon New from the Bradford field to Bon New from the Bradford field to Bon New Jersey and was laying a seaboard Jersey and was laying a seaboard Jersey and was laying a seaboard pipeline of his own at the same time he pipeline of his own at the same time he pipeline of his own at the same time he set out to acquire a RightWay to set out to acquire a RightWay to set out to acquire a RightWay to Philadelphia and soon a line to that Philadelphia and soon a line to that Philadelphia and soon a line to that point was under point was under point was under construction even before these Seaboard construction even before these Seaboard construction even before these Seaboard lines were ready pipes had been laid lines were ready pipes had been laid lines were ready pipes had been laid from the oil regions to the standards from the oil regions to the standards from the oil regions to the standards Inland refining points Cleveland Buffalo Inland refining points Cleveland Buffalo Inland refining points Cleveland Buffalo and and and Pittsburgh with the completion of this Pittsburgh with the completion of this Pittsburgh with the completion of this system Mr Rockefeller would be be system Mr Rockefeller would be be system Mr Rockefeller would be be independent of the railroads as far as independent of the railroads as far as independent of the railroads as far as the transportation of crude oil was the transportation of crude oil was the transportation of crude oil was concerned it was of course a new concerned it was of course a new concerned it was of course a new Department in his business and to manage Department in his business and to manage Department in his business and to manage it a new company was organized in April it a new company was organized in April it a new company was organized in April 1881 the national Transit company with a 1881 the national Transit company with a 1881 the national Transit company with a capital of $5 million and a charter of capital of $5 million and a charter of capital of $5 million and a charter of historical interest for it was a mate of historical interest for it was a mate of historical interest for it was a mate of the charter of the ill-fated South the charter of the ill-fated South the charter of the ill-fated South improvement company granted by the same improvement company granted by the same improvement company granted by the same legislature and giving the same Omnibus

legislature and giving the same Omnibus legislature and giving the same Omnibus privileges privileges privileges the right in fact to do any kind of the right in fact to do any kind of the right in fact to do any kind of business except banking in any part of business except banking in any part of business except banking in any part of the world the South Improvement Charter the world the South Improvement Charter the world the South Improvement Charter as we have seen was repealed the charter as we have seen was repealed the charter as we have seen was repealed the charter which the national Transit company now which the national Transit company now which the national Transit company now bought seems to have gone into hiding bought seems to have gone into hiding bought seems to have gone into hiding when the character of its mate was when the character of its mate was when the character of its mate was disclosed and so had been disclosed and so had been disclosed and so had been forgotten how it came to be on Earth by forgotten how it came to be on Earth by forgotten how it came to be on Earth by the standard or what they paid for it the standard or what they paid for it the standard or what they paid for it the writer does not know however as HH the writer does not know however as HH the writer does not know however as HH Rogers aptly told the indust Commission Rogers aptly told the indust Commission Rogers aptly told the indust Commission in in in 1899 when he was asked if a considerable 1899 when he was asked if a considerable 1899 when he was asked if a considerable sum was not given for it I should sum was not given for it I should sum was not given for it I should suppose every good thing has to be paid suppose every good thing has to be paid suppose every good thing has to be paid for I should say a man owning a charter for I should say a man owning a charter for I should say a man owning a charter of that kind would sell it at the best of that kind would sell it at the best of that kind would sell it at the best price he could get and while Mr price he could get and while Mr price he could get and while Mr Rockefeller was making this lavish Rockefeller was making this lavish Rockefeller was making this lavish expenditure of money and energy to meet expenditure of money and energy to meet expenditure of money and energy to meet the situation created by the Bold the situation created by the Bold the situation created by the Bold development of the Tidewater what was development of the Tidewater what was development of the Tidewater what was his attitude toward that company one his attitude toward that company one his attitude toward that company one would suppose that Mr Rockefeller of all would suppose that Mr Rockefeller of all would suppose that Mr Rockefeller of all men would be the first to acknowledge men would be the first to acknowledge men would be the first to acknowledge the service the Tidewater had rendered the service the Tidewater had rendered the service the Tidewater had rendered the oil business that in this case he the oil business that in this case he the oil business that in this case he would have felt an obligation to make an would have felt an obligation to make an would have felt an obligation to make an exception to his claim that the oil exception to his claim that the oil exception to his claim that the oil business was his that he would have business was his that he would have business was his that he would have allowed the new company to live but Mr allowed the new company to live but Mr allowed the new company to live but Mr rockefeller's commercial vision is too rockefeller's commercial vision is too rockefeller's commercial vision is too Keen for that that would not be business Keen for that that would not be business Keen for that that would not be business The Tide Water had been built to feed a The Tide Water had been built to feed a The Tide Water had been built to feed a few independent refineries in New York few independent refineries in New York few independent refineries in New York if these refineries operated outside of if these refineries operated outside of if these refineries operated outside of him they might might disturb his system

him they might might disturb his system him they might might disturb his system that is they might increase the output that is they might increase the output that is they might increase the output of refined and so lower its price The of refined and so lower its price The of refined and so lower its price The Tide Water must not be allowed to live Tide Water must not be allowed to live Tide Water must not be allowed to live then but how could it be put out of then but how could it be put out of then but how could it be put out of commission it had money to operate there commission it had money to operate there commission it had money to operate there were plenty of oil producers glad to were plenty of oil producers glad to were plenty of oil producers glad to give it their production because it was give it their production because it was give it their production because it was independent the reading railroad had independent the reading railroad had independent the reading railroad had gone heart and soul into its fight it gone heart and soul into its fight it gone heart and soul into its fight it had refiners pledged to take its oil and had refiners pledged to take its oil and had refiners pledged to take its oil and these refiners had markets of their own these refiners had markets of their own these refiners had markets of their own at home and abroad at home and abroad at home and abroad what was he going to do about it there what was he going to do about it there what was he going to do about it there were several ways to accomplish his end were several ways to accomplish his end were several ways to accomplish his end in two of them at least Mr Rockefeller in two of them at least Mr Rockefeller in two of them at least Mr Rockefeller excelled from long practice the first excelled from long practice the first excelled from long practice the first was to get out of the way the refineries was to get out of the way the refineries was to get out of the way the refineries which the Tidewater expected to feed and which the Tidewater expected to feed and which the Tidewater expected to feed and this was undertaken at once the refiners this was undertaken at once the refiners this was undertaken at once the refiners were approached usually by members of were approached usually by members of were approached usually by members of the Standard Oil company as private the Standard Oil company as private the Standard Oil company as private individuals and terms of purchase or individuals and terms of purchase or individuals and terms of purchase or lease so generous made to them that they lease so generous made to them that they lease so generous made to them that they could not afford to decline at this the could not afford to decline at this the could not afford to decline at this the same time they were assured same time they were assured same time they were assured confidentially that the Tidewater scheme confidentially that the Tidewater scheme confidentially that the Tidewater scheme was a pure Chimera that they understood was a pure Chimera that they understood was a pure Chimera that they understood the pipeline business better than the pipeline business better than the pipeline business better than anybody else and they knew oil could not anybody else and they knew oil could not anybody else and they knew oil could not be pumped over the be pumped over the be pumped over the mountains all but one firm yielded to mountains all but one firm yielded to mountains all but one firm yielded to the pressure heirs and Lombard stood by the pressure heirs and Lombard stood by the pressure heirs and Lombard stood by the Tidewater but soon after the refusal the Tidewater but soon after the refusal the Tidewater but soon after the refusal to sell they were condemned as a public to sell they were condemned as a public to sell they were condemned as a public nuisance and obliged to move their works nuisance and obliged to move their works nuisance and obliged to move their works the Tide Water met the situation by the Tide Water met the situation by the Tide Water met the situation by beginning to build refineries of its own

beginning to build refineries of its own beginning to build refineries of its own one at Bon New Jersey and another near one at Bon New Jersey and another near one at Bon New Jersey and another near Philadelphia in the meantime storing the Philadelphia in the meantime storing the Philadelphia in the meantime storing the oil it had expected to sell having done oil it had expected to sell having done oil it had expected to sell having done his best to cut off his rival's Outlet his best to cut off his rival's Outlet his best to cut off his rival's Outlet Mr Rockefeller called upon the railroads Mr Rockefeller called upon the railroads Mr Rockefeller called upon the railroads to carry out that article of their to carry out that article of their to carry out that article of their contract with him which bound them to contract with him which bound them to contract with him which bound them to protect him from injury by protect him from injury by protect him from injury by competition what was done was told a few competition what was done was told a few competition what was done was told a few months later to the committee on months later to the committee on months later to the committee on Commerce in the House of Representatives Commerce in the House of Representatives Commerce in the House of Representatives by Franklin B Gowan the president of the by Franklin B Gowan the president of the by Franklin B Gowan the president of the reading railroad according to Mr Gowan reading railroad according to Mr Gowan reading railroad according to Mr Gowan the tide water and reading were no the tide water and reading were no the tide water and reading were no sooner ready to run oil than a meeting sooner ready to run oil than a meeting sooner ready to run oil than a meeting of the trunk lines was held at Saratoga of the trunk lines was held at Saratoga of the trunk lines was held at Saratoga at which the representatives of the at which the representatives of the at which the representatives of the Standard Oil Company were present and on Standard Oil Company were present and on Standard Oil Company were present and on that day the through rate on oil was that day the through rate on oil was that day the through rate on oil was reduced to 20 cents per barrel to the reduced to 20 cents per barrel to the reduced to 20 cents per barrel to the Standard Oil Company it was subsequently Standard Oil Company it was subsequently Standard Oil Company it was subsequently reduced to 15 cents Mr Gowan told the reduced to 15 cents Mr Gowan told the reduced to 15 cents Mr Gowan told the committee and I believe the though I do committee and I believe the though I do committee and I believe the though I do not certainly know to 10 cents a barrel not certainly know to 10 cents a barrel not certainly know to 10 cents a barrel in cars of the Standard Oil company and in cars of the Standard Oil company and in cars of the Standard Oil company and I am told that at the meeting at I am told that at the meeting at I am told that at the meeting at Saratoga a time was fixed by the Saratoga a time was fixed by the Saratoga a time was fixed by the Standard Oil company within which they Standard Oil company within which they Standard Oil company within which they promised to secure the control of the promised to secure the control of the promised to secure the control of the pipeline provided the trunk lines would pipeline provided the trunk lines would pipeline provided the trunk lines would make the rate for carrying oil so low make the rate for carrying oil so low make the rate for carrying oil so low that all concerned in transportation that all concerned in transportation that all concerned in transportation would lose money I know this that only would lose money I know this that only would lose money I know this that only three or four months ago we were told I three or four months ago we were told I three or four months ago we were told I do not mean myself but the gentleman who do not mean myself but the gentleman who do not mean myself but the gentleman who directly repes presented the pipeline directly repes presented the pipeline directly repes presented the pipeline which leads to our road that if they

which leads to our road that if they which leads to our road that if they would agree to give all their oil to the would agree to give all their oil to the would agree to give all their oil to the Standard Oil Company to be refined we Standard Oil Company to be refined we Standard Oil Company to be refined we could carry 10,000 barrels a day and the could carry 10,000 barrels a day and the could carry 10,000 barrels a day and the rates would be Advanced by the trunk rates would be Advanced by the trunk rates would be Advanced by the trunk lines but to use the language of those lines but to use the language of those lines but to use the language of those making the offer we meaning the Standard making the offer we meaning the Standard making the offer we meaning the Standard Oil company will never permit the trunk Oil company will never permit the trunk Oil company will never permit the trunk lines to advance the rate on oil until lines to advance the rate on oil until lines to advance the rate on oil until your pipeline gives us all its product your pipeline gives us all its product your pipeline gives us all its product to refine and the prophecy of 4 months to refine and the prophecy of 4 months to refine and the prophecy of 4 months ago has become the history of ago has become the history of ago has become the history of today Mr Flagler differs with Mr Gowan today Mr Flagler differs with Mr Gowan today Mr Flagler differs with Mr Gowan in his explanation of this cut in rates in his explanation of this cut in rates in his explanation of this cut in rates Mr Flagler contends that the Standard Mr Flagler contends that the Standard Mr Flagler contends that the Standard Oil Company really opposed it but that Oil Company really opposed it but that Oil Company really opposed it but that the railroads insisted on it Mr the railroads insisted on it Mr the railroads insisted on it Mr flagler's testimony is interesting flagler's testimony is interesting flagler's testimony is interesting reading in connection with all that we reading in connection with all that we reading in connection with all that we know about the Tidewater company it will know about the Tidewater company it will know about the Tidewater company it will be found in the be found in the be found in the appendix this was a Tidewaters first appendix this was a Tidewaters first appendix this was a Tidewaters first Year's experience the second and third Year's experience the second and third Year's experience the second and third were not unlike it but the company lived were not unlike it but the company lived were not unlike it but the company lived and expanded it bought and built and expanded it bought and built and expanded it bought and built refineries it sent its president to refineries it sent its president to refineries it sent its president to Europe to open markets it extended its Europe to open markets it extended its Europe to open markets it extended its pipeline still nearer to the Seaboard pipeline still nearer to the Seaboard pipeline still nearer to the Seaboard and it did this by a series of amazingly and it did this by a series of amazingly and it did this by a series of amazingly Plucky and Adroid Financial moves Plucky and Adroid Financial moves Plucky and Adroid Financial moves borrowing money speculating in oil borrowing money speculating in oil borrowing money speculating in oil exchanging credit chasing checks from exchanging credit chasing checks from exchanging credit chasing checks from bank to bank hustling in short as few bank to bank hustling in short as few bank to bank hustling in short as few men ever did to keep a business alive men ever did to keep a business alive men ever did to keep a business alive and every move had to be made with and every move had to be made with and every move had to be made with caution for the standard eye was always caution for the standard eye was always caution for the standard eye was always on them its hand always outstretched

on them its hand always outstretched on them its hand always outstretched Samuel Q brown the present president of Samuel Q brown the present president of Samuel Q brown the present president of the organization when on the witness the organization when on the witness the organization when on the witness stand in December stand in December stand in December 1882 said that so much did the Tide 1882 said that so much did the Tide 1882 said that so much did the Tide Water fear Espionage that they were Water fear Espionage that they were Water fear Espionage that they were accustomed to keep their oil accustomed to keep their oil accustomed to keep their oil transactions as a private and not a transactions as a private and not a transactions as a private and not a general account in order that they might general account in order that they might general account in order that they might not be reported to the standard that not be reported to the standard that not be reported to the standard that even matters which they believed were even matters which they believed were even matters which they believed were keeping in an absolutely private way keeping in an absolutely private way keeping in an absolutely private way frequently lead out to the the injury of frequently lead out to the the injury of frequently lead out to the the injury of the business by January the business by January the business by January 1882 the tide water was in such a 1882 the tide water was in such a 1882 the tide water was in such a satisfactory condition that it decided satisfactory condition that it decided satisfactory condition that it decided to negotiate a loan of $2 million to to negotiate a loan of $2 million to to negotiate a loan of $2 million to carry out plans for enlargement the carry out plans for enlargement the carry out plans for enlargement the First National Bank of New York after a First National Bank of New York after a First National Bank of New York after a thorough examination of the business thorough examination of the business thorough examination of the business agreed to take the bonds at 90 cents on agreed to take the bonds at 90 cents on agreed to take the bonds at 90 cents on the dollar but trouble began as soon as the dollar but trouble began as soon as the dollar but trouble began as soon as the probable success of the bond issue the probable success of the bond issue the probable success of the bond issue was known the officials of the First was known the officials of the First was known the officials of the First National Bank were called upon by by National Bank were called upon by by National Bank were called upon by by stockholders of the Tidewater men stockholders of the Tidewater men stockholders of the Tidewater men holding nearly a third of the company's holding nearly a third of the company's holding nearly a third of the company's stock and assured that the company was stock and assured that the company was stock and assured that the company was insolvent and that it would be unsafe insolvent and that it would be unsafe insolvent and that it would be unsafe for the bank to take the loan the first for the bank to take the loan the first for the bank to take the loan the first national decline to be influenced by the national decline to be influenced by the national decline to be influenced by the information on the ground that the information on the ground that the information on the ground that the disgruntled stockholders had sold disgruntled stockholders had sold disgruntled stockholders had sold themselves to the Standard Oil company themselves to the Standard Oil company themselves to the Standard Oil company and were trying to discredit the and were trying to discredit the and were trying to discredit the Tidewater so that the standard might buy Tidewater so that the standard might buy Tidewater so that the standard might buy it in it had been planned to place some it in it had been planned to place some it in it had been planned to place some of these Bonds in Europe and Franklin B of these Bonds in Europe and Franklin B of these Bonds in Europe and Franklin B gwan was sent over for that purpose Mr gwan was sent over for that purpose Mr gwan was sent over for that purpose Mr Brown said on the witness stand a few Brown said on the witness stand a few Brown said on the witness stand a few months later that as soon as Mr Gowan

months later that as soon as Mr Gowan months later that as soon as Mr Gowan started from this side it was caed to started from this side it was caed to started from this side it was caed to Europe that he was going over to place Europe that he was going over to place Europe that he was going over to place bonds which were not sound that the bonds which were not sound that the bonds which were not sound that the stockholders were all of them wealthy stockholders were all of them wealthy stockholders were all of them wealthy men and if the bonds had been good men and if the bonds had been good men and if the bonds had been good property they would have taken them property they would have taken them property they would have taken them themselves Mr Brown declared this report themselves Mr Brown declared this report themselves Mr Brown declared this report was spread so generally on the other was spread so generally on the other was spread so generally on the other side that it interfered seriously with side that it interfered seriously with side that it interfered seriously with Mr gow's attempt to place the loan these Mr gow's attempt to place the loan these Mr gow's attempt to place the loan these maneuver failing to ruin the Tidewaters maneuver failing to ruin the Tidewaters maneuver failing to ruin the Tidewaters credit a more serious attack was made in credit a more serious attack was made in credit a more serious attack was made in the fall of the fall of the fall of 1882 by the filing of a long bill of 1882 by the filing of a long bill of 1882 by the filing of a long bill of complaint against the management of the complaint against the management of the complaint against the management of the company followed by an appeal that a company followed by an appeal that a company followed by an appeal that a receiver be appointed and the business receiver be appointed and the business receiver be appointed and the business wound up the appeal came from EG wound up the appeal came from EG wound up the appeal came from EG Patterson a stockholder of the Tidewater Patterson a stockholder of the Tidewater Patterson a stockholder of the Tidewater and a man who up to this time had been and a man who up to this time had been and a man who up to this time had been one of the most intelligent opponents of one of the most intelligent opponents of one of the most intelligent opponents of the standard in the oil regions Mr the standard in the oil regions Mr the standard in the oil regions Mr Patterson was one of the few who had Patterson was one of the few who had Patterson was one of the few who had realized I ized from the first realized I ized from the first realized I ized from the first development of Mr rockefeller's development of Mr rockefeller's development of Mr rockefeller's pretentions that it was a question of pretentions that it was a question of pretentions that it was a question of transportation and that if the railroads transportation and that if the railroads transportation and that if the railroads could be forced by courts and legislatur could be forced by courts and legislatur could be forced by courts and legislatur to do their Duty the coal oil business to do their Duty the coal oil business to do their Duty the coal oil business would not belong to Mr Rockefeller he would not belong to Mr Rockefeller he would not belong to Mr Rockefeller he had been one of the strongest factors in had been one of the strongest factors in had been one of the strongest factors in the great suits compromised in 1880 and the great suits compromised in 1880 and the great suits compromised in 1880 and his disgust at the outcome had been so his disgust at the outcome had been so his disgust at the outcome had been so great that he had washed his hands of great that he had washed his hands of great that he had washed his hands of The Producers Union later he had been The Producers Union later he had been The Producers Union later he had been engaged by the state of Penn engaged by the state of Penn engaged by the state of Penn to collect evidence on which the support to collect evidence on which the support to collect evidence on which the support a claim against the Standard Oil company a claim against the Standard Oil company a claim against the Standard Oil company for some $3 million of back taxes the

for some $3 million of back taxes the for some $3 million of back taxes the standard had made Mr Patterson's service standard had made Mr Patterson's service standard had made Mr Patterson's service unnecessary by coming forward and giving unnecessary by coming forward and giving unnecessary by coming forward and giving the Attorney General all the information the Attorney General all the information the Attorney General all the information as to its Financial condition which he as to its Financial condition which he as to its Financial condition which he desired exasperated at the result of all desired exasperated at the result of all desired exasperated at the result of all his efforts and feeling that he had been his efforts and feeling that he had been his efforts and feeling that he had been deserted by the public he had tried to deserted by the public he had tried to deserted by the public he had tried to serve Mr Patterson sent word to the serve Mr Patterson sent word to the serve Mr Patterson sent word to the standard that he proposed still further standard that he proposed still further standard that he proposed still further to attack them just how he never to attack them just how he never to attack them just how he never explained unless they would give him not explained unless they would give him not explained unless they would give him not to attack as much as there was in a to attack as much as there was in a to attack as much as there was in a contract from the state they seemed to contract from the state they seemed to contract from the state they seemed to have thought it worthwhile to buy peace have thought it worthwhile to buy peace have thought it worthwhile to buy peace and agreed to give Mr Patterson some and agreed to give Mr Patterson some and agreed to give Mr Patterson some $20,000 an all and secure him a position $20,000 an all and secure him a position $20,000 an all and secure him a position for a term of years the first payment for a term of years the first payment for a term of years the first payment was made at the end of April was made at the end of April was made at the end of April 1882 and $5,000 of the money received Mr 1882 and $5,000 of the money received Mr 1882 and $5,000 of the money received Mr Patterson paid to the Tidewater for Patterson paid to the Tidewater for Patterson paid to the Tidewater for stock he had taken at it its stock he had taken at it its stock he had taken at it its Organization no sooner was the stock in Organization no sooner was the stock in Organization no sooner was the stock in his hands than he began the preparation his hands than he began the preparation his hands than he began the preparation of the Bill of complaint above referred of the Bill of complaint above referred of the Bill of complaint above referred to and in December the case was heard to and in December the case was heard to and in December the case was heard the oil Regents watched it with keenest the oil Regents watched it with keenest the oil Regents watched it with keenest interest that Mr Patterson had made some interest that Mr Patterson had made some interest that Mr Patterson had made some settlement with the standard was settlement with the standard was settlement with the standard was generally known and the charge was generally known and the charge was generally known and the charge was freely circulated that they had bribed freely circulated that they had bribed freely circulated that they had bribed him to bring this suit in hopes of him to bring this suit in hopes of him to bring this suit in hopes of blasting the credit of the Tidewater and blasting the credit of the Tidewater and blasting the credit of the Tidewater and getting it sto for a song the test Tony getting it sto for a song the test Tony getting it sto for a song the test Tony brought out in the trial did not bear brought out in the trial did not bear brought out in the trial did not bear out this popular notion the case was out this popular notion the case was out this popular notion the case was rather more rather more rather more complicated that tosit was backed by the

complicated that tosit was backed by the complicated that tosit was backed by the standard one would have to be very naive standard one would have to be very naive standard one would have to be very naive to doubt but they were using other and to doubt but they were using other and to doubt but they were using other and stronger parties than Mr Patterson and stronger parties than Mr Patterson and stronger parties than Mr Patterson and that was a faction of the company known that was a faction of the company known that was a faction of the company known as the Taylor saterfield crowd these men as the Taylor saterfield crowd these men as the Taylor saterfield crowd these men controlling some $200,000 worth of controlling some $200,000 worth of controlling some $200,000 worth of Tidewater stock had been professing Tidewater stock had been professing Tidewater stock had been professing themselves dissatisfied with the themselves dissatisfied with the themselves dissatisfied with the management of the business business for management of the business business for management of the business business for some months though always refusing to some months though always refusing to some months though always refusing to sell their Holdings at an advanced price sell their Holdings at an advanced price sell their Holdings at an advanced price it was generally believed in the oil it was generally believed in the oil it was generally believed in the oil regions that their dissatisfaction was regions that their dissatisfaction was regions that their dissatisfaction was fictitious that they were in reality in fictitious that they were in reality in fictitious that they were in reality in League with the standard in an attempt League with the standard in an attempt League with the standard in an attempt to create a panic in Tidewater stock a to create a panic in Tidewater stock a to create a panic in Tidewater stock a belief which was strengthened when it belief which was strengthened when it belief which was strengthened when it was learned that a big oil company which was learned that a big oil company which was learned that a big oil company which the gentleman controlled the union had the gentleman controlled the union had the gentleman controlled the union had been sold about that time to the been sold about that time to the been sold about that time to the Standard Oil trust for something like Standard Oil trust for something like Standard Oil trust for something like $500 $1,000 in its stock the first $500 $1,000 in its stock the first $500 $1,000 in its stock the first maneuver of the Taylor saterfield maneuver of the Taylor saterfield maneuver of the Taylor saterfield faction had been the attempt to dissuade faction had been the attempt to dissuade faction had been the attempt to dissuade the First National Bank from taking the the First National Bank from taking the the First National Bank from taking the Tidewater loan referred to about about Tidewater loan referred to about about Tidewater loan referred to about about failing in this they seem to have imbued failing in this they seem to have imbued failing in this they seem to have imbued Mr Patterson thoroughly with their Mr Patterson thoroughly with their Mr Patterson thoroughly with their pretended dissatisfaction and to have pretended dissatisfaction and to have pretended dissatisfaction and to have persuaded him to bring the suit for some persuaded him to bring the suit for some persuaded him to bring the suit for some reason which is not clear they failed reason which is not clear they failed reason which is not clear they failed properly to support him in the suit and properly to support him in the suit and properly to support him in the suit and when it came off they practically when it came off they practically when it came off they practically deserted him deserted him deserted him the Tidewater had no trouble in proving the Tidewater had no trouble in proving the Tidewater had no trouble in proving that the complaints of insolvency and that the complaints of insolvency and that the complaints of insolvency and mismanagement were without foundation mismanagement were without foundation mismanagement were without foundation and judge Pearson Church of meville

and judge Pearson Church of meville and judge Pearson Church of meville before whom the case was argued refused before whom the case was argued refused before whom the case was argued refused to appoint the receiver intimating to appoint the receiver intimating to appoint the receiver intimating strongly that in his judgment the case strongly that in his judgment the case strongly that in his judgment the case was an attempt to Levy a species of was an attempt to Levy a species of was an attempt to Levy a species of blackmail in which it must not be blackmail in which it must not be blackmail in which it must not be expected that his court would cooperate expected that his court would cooperate expected that his court would cooperate judge Church's decision was given on judge Church's decision was given on judge Church's decision was given on January 15 two days later a sensation January 15 two days later a sensation January 15 two days later a sensation came in Tidewater Affairs which quite came in Tidewater Affairs which quite came in Tidewater Affairs which quite knocked the Patterson suit out of the knocked the Patterson suit out of the knocked the Patterson suit out of the public mind it was nothing less than a public mind it was nothing less than a public mind it was nothing less than a bold attempt by the Taylor party or as bold attempt by the Taylor party or as bold attempt by the Taylor party or as it was now known the standard party to it was now known the standard party to it was now known the standard party to seize the Reigns of government it was a seize the Reigns of government it was a seize the Reigns of government it was a very cleverly plan coup the yearly very cleverly plan coup the yearly very cleverly plan coup the yearly meeting for the election of officers in meeting for the election of officers in meeting for the election of officers in the company was fixed for a certain the company was fixed for a certain the company was fixed for a certain Wednesday in January by verbal agreement Wednesday in January by verbal agreement Wednesday in January by verbal agreement it had been postponed in 1882 to it had been postponed in 1882 to it had been postponed in 1882 to sometime in February the control ER DB sometime in February the control ER DB sometime in February the control ER DB Stewart a member of the Taylor faction Stewart a member of the Taylor faction Stewart a member of the Taylor faction representing that he could not have his representing that he could not have his representing that he could not have his statements ready earlier no notices were statements ready earlier no notices were statements ready earlier no notices were sent out to this effect although this sent out to this effect although this sent out to this effect although this should have been done Taylor and his should have been done Taylor and his should have been done Taylor and his party taking advantage of this fact party taking advantage of this fact party taking advantage of this fact perfectly well known to them appeared at perfectly well known to them appeared at perfectly well known to them appeared at the Tidewater offices on January 17th the Tidewater offices on January 17th the Tidewater offices on January 17th and although one of the bents in faction and although one of the bents in faction and although one of the bents in faction as the majority was known from the name as the majority was known from the name as the majority was known from the name of the company's president was present of the company's president was present of the company's president was present with sufficient proxies to vote nearly with sufficient proxies to vote nearly with sufficient proxies to vote nearly two thirds of the stock they overruled two thirds of the stock they overruled two thirds of the stock they overruled him and elected themselves to control him and elected themselves to control him and elected themselves to control they also elected to the board of they also elected to the board of they also elected to the board of managers Franklin B Gowan the president managers Franklin B Gowan the president managers Franklin B Gowan the president of the reading and James R Kean the

of the reading and James R Kean the of the reading and James R Kean the famous Speculator both large holders of famous Speculator both large holders of famous Speculator both large holders of Tidewater Tidewater Tidewater bonds they followed their election bonds they followed their election bonds they followed their election immediately by sending out notices to immediately by sending out notices to immediately by sending out notices to the banks with which the company did the banks with which the company did the banks with which the company did business not to honor checks drawn by business not to honor checks drawn by business not to honor checks drawn by the Benson party and to the post office the Benson party and to the post office the Benson party and to the post office to deliver mail to no one but themselves to deliver mail to no one but themselves to deliver mail to no one but themselves the announcement caused a terrible the announcement caused a terrible the announcement caused a terrible commotion in oil circles both Mr Kean commotion in oil circles both Mr Kean commotion in oil circles both Mr Kean and Mr gwan refused to recognize the new and Mr gwan refused to recognize the new and Mr gwan refused to recognize the new board Mr Gowan telegraphing in answer to board Mr Gowan telegraphing in answer to board Mr Gowan telegraphing in answer to the notification of his election John the notification of his election John the notification of his election John saterfield Titusville at quarter of 3:00 saterfield Titusville at quarter of 3:00 saterfield Titusville at quarter of 3:00 today I received a dispatch signed with today I received a dispatch signed with today I received a dispatch signed with your name as manager and chairman your name as manager and chairman your name as manager and chairman stating that a meeting of the board of stating that a meeting of the board of stating that a meeting of the board of managers would be held at noon today managers would be held at noon today managers would be held at noon today while the notice itself is sufficient to while the notice itself is sufficient to while the notice itself is sufficient to render invalid any action you may have render invalid any action you may have render invalid any action you may have attempted at such meeting as has been attempted at such meeting as has been attempted at such meeting as has been held even if you had power to act at all held even if you had power to act at all held even if you had power to act at all I deny your right to call any meeting or I deny your right to call any meeting or I deny your right to call any meeting or act in any manner as an officer of the act in any manner as an officer of the act in any manner as an officer of the company and will hold you and all your company and will hold you and all your company and will hold you and all your Associates responsible at law for the Associates responsible at law for the Associates responsible at law for the occurrences of yesterday and for your occurrences of yesterday and for your occurrences of yesterday and for your subsequent action hereunder signed FB subsequent action hereunder signed FB subsequent action hereunder signed FB gallon the Benson party took immediate gallon the Benson party took immediate gallon the Benson party took immediate action applying for an injunction action applying for an injunction action applying for an injunction restraining the new board from taking restraining the new board from taking restraining the new board from taking possession of the books and offices this possession of the books and offices this possession of the books and offices this was granted and a date for a hearing was granted and a date for a hearing was granted and a date for a hearing appointed up to the hearing the old appointed up to the hearing the old appointed up to the hearing the old board did business behind barricaded board did business behind barricaded board did business behind barricaded doors the case was heard in Needville

doors the case was heard in Needville doors the case was heard in Needville before judge Pearson Church the same who before judge Pearson Church the same who before judge Pearson Church the same who had heard the Patterson case as it was a had heard the Patterson case as it was a had heard the Patterson case as it was a case to be decided on Purely technical case to be decided on Purely technical case to be decided on Purely technical matters the rules governing elections no matters the rules governing elections no matters the rules governing elections no sensation was looked for but one came sensation was looked for but one came sensation was looked for but one came immediately it was a long affidavit from immediately it was a long affidavit from immediately it was a long affidavit from James R ke James R ke James R ke even more notorious than the now there even more notorious than the now there even more notorious than the now there were fewer of his kind for deals in were fewer of his kind for deals in were fewer of his kind for deals in corners and devious stock tricks corners and devious stock tricks corners and devious stock tricks declaring that both the Patterson case declaring that both the Patterson case declaring that both the Patterson case and this attempt to obtain control were and this attempt to obtain control were and this attempt to obtain control were dictated by the malicious Ingenuity of dictated by the malicious Ingenuity of dictated by the malicious Ingenuity of the standard for the purpose of the standard for the purpose of the standard for the purpose of destroying the tide water and getting destroying the tide water and getting destroying the tide water and getting hold of its property from my first hold of its property from my first hold of its property from my first connection with the company said Mr Kean connection with the company said Mr Kean connection with the company said Mr Kean it has been hampered and embarrassed in it has been hampered and embarrassed in it has been hampered and embarrassed in its business by the unscrupulous its business by the unscrupulous its business by the unscrupulous competition of the Standard Oil Company competition of the Standard Oil Company competition of the Standard Oil Company when it first first began to transport when it first first began to transport when it first first began to transport and deliver oil at Tidewater the and deliver oil at Tidewater the and deliver oil at Tidewater the refineries which purchased and refined refineries which purchased and refined refineries which purchased and refined oil were one after another bought up by oil were one after another bought up by oil were one after another bought up by the Standard Oil company or driven out the Standard Oil company or driven out the Standard Oil company or driven out of business by vexations and oppressive of business by vexations and oppressive of business by vexations and oppressive annoyances the most private details of annoyances the most private details of annoyances the most private details of our business have been communicated to our business have been communicated to our business have been communicated to the officers of the Standard Oil company the officers of the Standard Oil company the officers of the Standard Oil company and they have by every means in their and they have by every means in their and they have by every means in their power interfered with our Affairs by the power interfered with our Affairs by the power interfered with our Affairs by the arrangement which they were able to make arrangement which they were able to make arrangement which they were able to make with the railroads leading from the oil with the railroads leading from the oil with the railroads leading from the oil regions other than the Philadelphia and regions other than the Philadelphia and regions other than the Philadelphia and reading railroad company and the Central reading railroad company and the Central reading railroad company and the Central Railroad of New Jersey the Standard Oil Railroad of New Jersey the Standard Oil Railroad of New Jersey the Standard Oil Company have been able to obtain a Company have been able to obtain a Company have been able to obtain a control of the business of transporting control of the business of transporting control of the business of transporting and refining oil with the exception of and refining oil with the exception of and refining oil with the exception of that part of the business which has been

that part of the business which has been that part of the business which has been carried on by the Tidewater pipe company carried on by the Tidewater pipe company carried on by the Tidewater pipe company and their refineries to which it had and their refineries to which it had and their refineries to which it had made deliveries repeated efforts have made deliveries repeated efforts have made deliveries repeated efforts have been made by parties in their interest been made by parties in their interest been made by parties in their interest to secure the control of the Tidewater to secure the control of the Tidewater to secure the control of the Tidewater pipe company and if they could succeed pipe company and if they could succeed pipe company and if they could succeed the Monopoly thereby secured would add the Monopoly thereby secured would add the Monopoly thereby secured would add many million dollars a year to their many million dollars a year to their many million dollars a year to their profit Mr kean's putting of the case was profit Mr kean's putting of the case was profit Mr kean's putting of the case was undoubtedly correct but Pious hor of undoubtedly correct but Pious hor of undoubtedly correct but Pious hor of commercial brigandage coming from Jim commercial brigandage coming from Jim commercial brigandage coming from Jim Keane was useful only to give joy to a Keane was useful only to give joy to a Keane was useful only to give joy to a cynical World unencumbered by the cynical World unencumbered by the cynical World unencumbered by the possession of stock in either concern possession of stock in either concern possession of stock in either concern the Keen sensation was followed by a the Keen sensation was followed by a the Keen sensation was followed by a second an affidavit from John D archal second an affidavit from John D archal second an affidavit from John D archal of the Standard Oil Company denying that of the Standard Oil Company denying that of the Standard Oil Company denying that his company had any interest in the his company had any interest in the his company had any interest in the present suit but adding that for some present suit but adding that for some present suit but adding that for some time time time the officers of the Tidewater had been the officers of the Tidewater had been the officers of the Tidewater had been seeking an alliance with the seeking an alliance with the seeking an alliance with the standard Brian D Benson and David Melby standard Brian D Benson and David Melby standard Brian D Benson and David Melby have at various times for the past years have at various times for the past years have at various times for the past years met me at their own instance and have met me at their own instance and have met me at their own instance and have proposed to combine the business of the proposed to combine the business of the proposed to combine the business of the Tidewater pipe company with that of the Tidewater pipe company with that of the Tidewater pipe company with that of the Standard Oil Company Desiring the Standard Oil Company Desiring the Standard Oil Company Desiring the Standard Oil Company to agree on a Standard Oil Company to agree on a Standard Oil Company to agree on a division of the business of transporting division of the business of transporting division of the business of transporting and refining oil and to agree with the and refining oil and to agree with the and refining oil and to agree with the Tidewater pipe company in fixing the Tidewater pipe company in fixing the Tidewater pipe company in fixing the rate of transporting oil and the price rate of transporting oil and the price rate of transporting oil and the price of refined roils these proposals were of refined roils these proposals were of refined roils these proposals were renewed to me by BD Benson during the renewed to me by BD Benson during the renewed to me by BD Benson during the summer of summer of summer of 1882 he coming to my office at his own 1882 he coming to my office at his own 1882 he coming to my office at his own instance in urging by various arguments instance in urging by various arguments instance in urging by various arguments such an such an such an arrangement these proposals in whatever

arrangement these proposals in whatever arrangement these proposals in whatever shape made have always been declined shape made have always been declined shape made have always been declined this deponent has always had many this deponent has always had many this deponent has always had many interviews with James R keen and always interviews with James R keen and always interviews with James R keen and always at his request upon the same subject in at his request upon the same subject in at his request upon the same subject in which interviews said Keen has earnestly which interviews said Keen has earnestly which interviews said Keen has earnestly urged such a combination and has used urged such a combination and has used urged such a combination and has used many arguments in favor of the advantage many arguments in favor of the advantage many arguments in favor of the advantage which would result from such a which would result from such a which would result from such a combination these proposals have always combination these proposals have always combination these proposals have always been been been declined naturally they were declined declined naturally they were declined declined naturally they were declined the standard was not seeking an alliance the standard was not seeking an alliance the standard was not seeking an alliance it was seeking ownership of the it was seeking ownership of the it was seeking ownership of the Tidewater and it expected so to Tidewater and it expected so to Tidewater and it expected so to discredit the company that it could buy discredit the company that it could buy discredit the company that it could buy in its stock for a song Mr Arch bal's in its stock for a song Mr Arch bal's in its stock for a song Mr Arch bal's affidavit cooled popular Sympathy For affidavit cooled popular Sympathy For affidavit cooled popular Sympathy For The Haunted concern no little however a The Haunted concern no little however a The Haunted concern no little however a suggestion of any kind of a compromise suggestion of any kind of a compromise suggestion of any kind of a compromise with the standard was looked upon as with the standard was looked upon as with the standard was looked upon as ranked dis loyalty by the oil regions ranked dis loyalty by the oil regions ranked dis loyalty by the oil regions pre competition in rates and in prices pre competition in rates and in prices pre competition in rates and in prices they contended the only hope of the they contended the only hope of the they contended the only hope of the country Mr Arch Ball's affidavit must country Mr Arch Ball's affidavit must country Mr Arch Ball's affidavit must have something in it everybody thought have something in it everybody thought have something in it everybody thought though it might be as Mr Benson though it might be as Mr Benson though it might be as Mr Benson immediately swore grossly immediately swore grossly immediately swore grossly inaccurate such was the character of the inaccurate such was the character of the inaccurate such was the character of the charges and countercharges in this charges and countercharges in this charges and countercharges in this purely technical case the judge took purely technical case the judge took purely technical case the judge took little notice of them in his decision little notice of them in his decision little notice of them in his decision but after an exhausted discussion of the but after an exhausted discussion of the but after an exhausted discussion of the points in D in the election decided it points in D in the election decided it points in D in the election decided it was illegal and continued the injunction was illegal and continued the injunction was illegal and continued the injunction he had granted against the new board he had granted against the new board he had granted against the new board judge Church's decision aroused General judge Church's decision aroused General judge Church's decision aroused General exaltation in the oil regions as any exaltation in the oil regions as any exaltation in the oil regions as any failure of the standard to get what it failure of the standard to get what it failure of the standard to get what it wanted was bound to do and with good

wanted was bound to do and with good wanted was bound to do and with good reason the tide wat's growth in the face reason the tide wat's growth in the face reason the tide wat's growth in the face of the standard's constant interference of the standard's constant interference of the standard's constant interference with its business was proof that with its business was proof that with its business was proof that independent pipelines and independent independent pipelines and independent independent pipelines and independent refineries could be built up if men had refineries could be built up if men had refineries could be built up if men had sufficient brains and courage and sufficient brains and courage and sufficient brains and courage and patience patience patience what one set of men had done another what one set of men had done another what one set of men had done another could do their hope of restoring freedom could do their hope of restoring freedom could do their hope of restoring freedom of competition to the oil business was of competition to the oil business was of competition to the oil business was still further brightened in June by the still further brightened in June by the still further brightened in June by the news that the legislature of news that the legislature of news that the legislature of Pennsylvania had passed a free pipeline Pennsylvania had passed a free pipeline Pennsylvania had passed a free pipeline Bill the measure that they had been Bill the measure that they had been Bill the measure that they had been urging for 12 years without aail with a urging for 12 years without aail with a urging for 12 years without aail with a sturdy example of Independence like the sturdy example of Independence like the sturdy example of Independence like the Tidewater before them and the right of Tidewater before them and the right of Tidewater before them and the right of eminent domain for pipes the future of eminent domain for pipes the future of eminent domain for pipes the future of competition in oil seemed to be up to competition in oil seemed to be up to competition in oil seemed to be up to the oil oil men the oil oil men the oil oil men themselves but the oil regions have themselves but the oil regions have themselves but the oil regions have always been prone to jump at conclusions always been prone to jump at conclusions always been prone to jump at conclusions they were forgetting Mr rockefeller's they were forgetting Mr rockefeller's they were forgetting Mr rockefeller's record when they concluded that he was record when they concluded that he was record when they concluded that he was through with the Tidewater because he through with the Tidewater because he through with the Tidewater because he had failed in his old South improvement had failed in his old South improvement had failed in his old South improvement company trick that is failed to create a company trick that is failed to create a company trick that is failed to create a panic among Tidewater stockholders and panic among Tidewater stockholders and panic among Tidewater stockholders and so get their property at Panic prices so get their property at Panic prices so get their property at Panic prices was no reason at all to suppose he had was no reason at all to suppose he had was no reason at all to suppose he had abandoned the chase there still remained abandoned the chase there still remained abandoned the chase there still remained a legitimate method of getting into the a legitimate method of getting into the a legitimate method of getting into the company and as a last resort Mr company and as a last resort Mr company and as a last resort Mr Rockefeller accepted it he bought the Rockefeller accepted it he bought the Rockefeller accepted it he bought the minority stock of the concern held by minority stock of the concern held by minority stock of the concern held by the Taylor party up to this time Mr the Taylor party up to this time Mr the Taylor party up to this time Mr Rockefeller had appeared in Tidewater Rockefeller had appeared in Tidewater Rockefeller had appeared in Tidewater Affairs as a destroyer he now appeared Affairs as a destroyer he now appeared Affairs as a destroyer he now appeared in a role in which he is quite as able

in a role in which he is quite as able in a role in which he is quite as able as a pacifier and his extraordinary as a pacifier and his extraordinary as a pacifier and his extraordinary persuasiveness was never exercised to persuasiveness was never exercised to persuasiveness was never exercised to better effect we own $200,000 worth of better effect we own $200,000 worth of better effect we own $200,000 worth of your stock he could tell the people he your stock he could tell the people he your stock he could tell the people he had been fighting if you will consent to had been fighting if you will consent to had been fighting if you will consent to confine yourselves to a fixed percentage confine yourselves to a fixed percentage confine yourselves to a fixed percentage of our joint business and will sustain of our joint business and will sustain of our joint business and will sustain pipage rates and the price of refined pipage rates and the price of refined pipage rates and the price of refined oil we will let you alone let us dwell oil we will let you alone let us dwell oil we will let you alone let us dwell together in peace the Tidewater tired of together in peace the Tidewater tired of together in peace the Tidewater tired of the fight accept it and so these men to the fight accept it and so these men to the fight accept it and so these men to whom the oil business owes one of its whom the oil business owes one of its whom the oil business owes one of its most remarkable developments who in the most remarkable developments who in the most remarkable developments who in the face of the most powerful and face of the most powerful and face of the most powerful and unscrupulous opposition had in four unscrupulous opposition had in four unscrupulous opposition had in four years build up a business worth 5 and 1 years build up a business worth 5 and 1 years build up a business worth 5 and 1 half millions of dollars half millions of dollars half millions of dollars signed contracts in October signed contracts in October signed contracts in October 1883 fixing the relative amount of 1883 fixing the relative amount of 1883 fixing the relative amount of business they were henceforth to do as business they were henceforth to do as business they were henceforth to do as 112% of the aggregate the standard 112% of the aggregate the standard 112% of the aggregate the standard having having having 88.5% the two simply became allies the 88.5% the two simply became allies the 88.5% the two simply became allies the agreement between them was the same in agreement between them was the same in agreement between them was the same in effect as all Mr rockefeller's running effect as all Mr rockefeller's running effect as all Mr rockefeller's running agreements it limited and kept up prices agreements it limited and kept up prices agreements it limited and kept up prices any benefit the oil business might have any benefit the oil business might have any benefit the oil business might have reaped from natural and decent reaped from natural and decent reaped from natural and decent competition between the two was of competition between the two was of competition between the two was of course ended by the alliance for all course ended by the alliance for all course ended by the alliance for all practical purposes the two were one in practical purposes the two were one in practical purposes the two were one in the phrase of the region the Tidewater the phrase of the region the Tidewater the phrase of the region the Tidewater had gone over to the standard and there had gone over to the standard and there had gone over to the standard and there it has always remained the contract was it has always remained the contract was it has always remained the contract was made for 15 years but since its

made for 15 years but since its made for 15 years but since its expiration it has been lived up too expiration it has been lived up too expiration it has been lived up too honorably by both parties without other honorably by both parties without other honorably by both parties without other than a verbal understanding for note than a verbal understanding for note than a verbal understanding for note this Mr Rockefeller always keeps his this Mr Rockefeller always keeps his this Mr Rockefeller always keeps his word word word indeed in studying his career one is indeed in studying his career one is indeed in studying his career one is frequently reminded of Tom Sawyer's frequently reminded of Tom Sawyer's frequently reminded of Tom Sawyer's great resolution never to suly piracy by great resolution never to suly piracy by great resolution never to suly piracy by dishonesty the tide water has prospered dishonesty the tide water has prospered dishonesty the tide water has prospered within the boundary Mr Rockefeller Drew within the boundary Mr Rockefeller Drew within the boundary Mr Rockefeller Drew for as those who have accept it for as those who have accept it for as those who have accept it submissively his boundaries have never submissively his boundaries have never submissively his boundaries have never failed to do Mr Rockefeller is right failed to do Mr Rockefeller is right failed to do Mr Rockefeller is right when he says as he does so often that when he says as he does so often that when he says as he does so often that all who come with him Prosper that the all who come with him Prosper that the all who come with him Prosper that the company would have succeeded in becoming company would have succeeded in becoming company would have succeeded in becoming eventually a a formidable rival of the eventually a a formidable rival of the eventually a a formidable rival of the standard and in controlling much more standard and in controlling much more standard and in controlling much more than 11% of the business no one can than 11% of the business no one can than 11% of the business no one can doubt who knew Mr Benson major Hopkins doubt who knew Mr Benson major Hopkins doubt who knew Mr Benson major Hopkins Mr Melby and their colleagues they were Mr Melby and their colleagues they were Mr Melby and their colleagues they were businessmen of the first order as their businessmen of the first order as their businessmen of the first order as their tremendous work from 1878 to 1883 tremendous work from 1878 to 1883 tremendous work from 1878 to 1883 shows Once More the good of the oil shows Once More the good of the oil shows Once More the good of the oil business was Secure and Mr Rockefeller business was Secure and Mr Rockefeller business was Secure and Mr Rockefeller at once proceeded to arrange his great at once proceeded to arrange his great at once proceeded to arrange his great house in the New Order made necessary by house in the New Order made necessary by house in the New Order made necessary by the introduction of the C board pipeline the introduction of the C board pipeline the introduction of the C board pipeline the entire transportation department of the entire transportation department of the entire transportation department of the business had to be the business had to be the business had to be reorganized when the Seaboard pipeline reorganized when the Seaboard pipeline reorganized when the Seaboard pipeline became a factor in the oil business in became a factor in the oil business in became a factor in the oil business in 1879 the Standard Oil company owned 1879 the Standard Oil company owned 1879 the Standard Oil company owned practically the entire system of oil practically the entire system of oil practically the entire system of oil Gathering pipelines that is the lines Gathering pipelines that is the lines Gathering pipelines that is the lines carrying oil from the wells to the

carrying oil from the wells to the carrying oil from the wells to the storing or shipping points these pipes storing or shipping points these pipes storing or shipping points these pipes were organized under the name of the were organized under the name of the were organized under the name of the United pipelines and the organization United pipelines and the organization United pipelines and the organization was magnificent in both extent and and was magnificent in both extent and and was magnificent in both extent and and in character of service rendered never in character of service rendered never in character of service rendered never indeed has the ability of the men Mr indeed has the ability of the men Mr indeed has the ability of the men Mr Rockefeller gathered into his machine Rockefeller gathered into his machine Rockefeller gathered into his machine shown to better Advantage than in the shown to better Advantage than in the shown to better Advantage than in the building up and management of the building up and management of the building up and management of the pipeline business at the end of 1883 pipeline business at the end of 1883 pipeline business at the end of 1883 when the alliance was made with the when the alliance was made with the when the alliance was made with the Tidewater the United pipelines were Tidewater the United pipelines were Tidewater the United pipelines were taking from the wells of Pennsylvania taking from the wells of Pennsylvania taking from the wells of Pennsylvania fully a million and a half barrels of fully a million and a half barrels of fully a million and a half barrels of oil a month their pipes of an aggregate oil a month their pipes of an aggregate oil a month their pipes of an aggregate length of 3,000 Mi connected with length of 3,000 Mi connected with length of 3,000 Mi connected with thousands of Wells scattered all over thousands of Wells scattered all over thousands of Wells scattered all over the wide oil regions whenever the oil the wide oil regions whenever the oil the wide oil regions whenever the oil men opened a new field no matter how men opened a new field no matter how men opened a new field no matter how remote from those already developed the remote from those already developed the remote from those already developed the United pipelines immediately went there United pipelines immediately went there United pipelines immediately went there to care for the oil in more than one to care for the oil in more than one to care for the oil in more than one case in these years of rapid and case in these years of rapid and case in these years of rapid and excessive development of oil territory excessive development of oil territory excessive development of oil territory the pipeline company invested great sums the pipeline company invested great sums the pipeline company invested great sums in preparing to take care of oil fields in preparing to take care of oil fields in preparing to take care of oil fields whose yield never paid the cost of the whose yield never paid the cost of the whose yield never paid the cost of the pipe laid thus in 1882 there was a pipe laid thus in 1882 there was a pipe laid thus in 1882 there was a tremendous excitement over the opening tremendous excitement over the opening tremendous excitement over the opening of the Cherry Grove field the standard of the Cherry Grove field the standard of the Cherry Grove field the standard spent $2 million getting ready to take spent $2 million getting ready to take spent $2 million getting ready to take care of a great outpouring of oil which care of a great outpouring of oil which care of a great outpouring of oil which came but did not stay in 1882 Cherry came but did not stay in 1882 Cherry came but did not stay in 1882 Cherry Grove produced Grove produced Grove produced 2,345 400 Barrels in

2,345 400 Barrels in 2,345 400 Barrels in 1883 755,000 one short-lived group of wells 755,000 one short-lived group of wells in this field on which they never in this field on which they never in this field on which they never realized more than 20 cents pipage the realized more than 20 cents pipage the realized more than 20 cents pipage the standard not only gathered this oil it standard not only gathered this oil it standard not only gathered this oil it stored it to weight its owner's demand stored it to weight its owner's demand stored it to weight its owner's demand at this date it controlled 40 million at this date it controlled 40 million at this date it controlled 40 million barrels of iron tankage in which it barrels of iron tankage in which it barrels of iron tankage in which it stored the enormous stocks over 35 stored the enormous stocks over 35 stored the enormous stocks over 35 million barrels which had accumulated in million barrels which had accumulated in million barrels which had accumulated in the five previous years when the oil the five previous years when the oil the five previous years when the oil passed to the pipeline the owner passed to the pipeline the owner passed to the pipeline the owner received his money for it at once if he received his money for it at once if he received his money for it at once if he wished or the line carried it when a wished or the line carried it when a wished or the line carried it when a producer had 1,000 barrels in the line producer had 1,000 barrels in the line producer had 1,000 barrels in the line he received a pipeline certificate for he received a pipeline certificate for he received a pipeline certificate for it in December of it in December of it in December of 1883 the United pipelines had issued 1883 the United pipelines had issued 1883 the United pipelines had issued certificates for nearly all of the 35 certificates for nearly all of the 35 certificates for nearly all of the 35 million barrels of stocks above ground million barrels of stocks above ground million barrels of stocks above ground the oil men thus had a bank for their the oil men thus had a bank for their the oil men thus had a bank for their oil a bank recognized generally as sound oil a bank recognized generally as sound oil a bank recognized generally as sound as any in the United as any in the United as any in the United States such were the returns from the States such were the returns from the States such were the returns from the pipeline for its services that no pipeline for its services that no pipeline for its services that no business ever Justified more fully the business ever Justified more fully the business ever Justified more fully the extraordinary outlays of money and extraordinary outlays of money and extraordinary outlays of money and energy which it had taken to perfect it energy which it had taken to perfect it energy which it had taken to perfect it for each barrel of oil the United for each barrel of oil the United for each barrel of oil the United pipelines gathered they received when it pipelines gathered they received when it pipelines gathered they received when it was taken from the lines 20 cents the was taken from the lines 20 cents the was taken from the lines 20 cents the service cost them perhaps 2 cents after service cost them perhaps 2 cents after service cost them perhaps 2 cents after installation though in these years when installation though in these years when installation though in these years when they were obliged to carry some 30

they were obliged to carry some 30 they were obliged to carry some 30 million barrels they had constantly $6 million barrels they had constantly $6 million barrels they had constantly $6 million on their books on which they did million on their books on which they did million on their books on which they did not at once realize they could have for not at once realize they could have for not at once realize they could have for to let this sum stand because of the to let this sum stand because of the to let this sum stand because of the storage charge for every 1,000 barrels storage charge for every 1,000 barrels storage charge for every 1,000 barrels carried in their tanks they received carried in their tanks they received carried in their tanks they received $625 each 15 days $152 a year now $625 each 15 days $152 a year now $625 each 15 days $152 a year now tankage did not cost over $250 for 1,000 tankage did not cost over $250 for 1,000 tankage did not cost over $250 for 1,000 barrels so that the storage more than barrels so that the storage more than barrels so that the storage more than paid its cost in 2 years there were paid its cost in 2 years there were paid its cost in 2 years there were often great losses by fire but these often great losses by fire but these often great losses by fire but these were paid by the owners of the oil a PR were paid by the owners of the oil a PR were paid by the owners of the oil a PR assessment being made there was a assessment being made there was a assessment being made there was a deterioration in quantity and quality of deterioration in quantity and quality of deterioration in quantity and quality of oil from holding but this again was paid oil from holding but this again was paid oil from holding but this again was paid by the owners in a shrinkage charge of by the owners in a shrinkage charge of by the owners in a shrinkage charge of 3% deducted from the quantity of oil 3% deducted from the quantity of oil 3% deducted from the quantity of oil when run thus on every side the pipeline when run thus on every side the pipeline when run thus on every side the pipeline business was guarded so long as it could business was guarded so long as it could business was guarded so long as it could keep out competition and hold up its keep out competition and hold up its keep out competition and hold up its prices there was no better paying prices there was no better paying prices there was no better paying business in the United States than business in the United States than business in the United States than piping piping piping oil as we have seen Mr Rockefeller began oil as we have seen Mr Rockefeller began oil as we have seen Mr Rockefeller began to add long-distance pipes to his to add long-distance pipes to his to add long-distance pipes to his business as soon as the Tidewater business as soon as the Tidewater business as soon as the Tidewater demonstrated their feasibility and demonstrated their feasibility and demonstrated their feasibility and before the time the Tidewater was before the time the Tidewater was before the time the Tidewater was brought into harmony he had a complete brought into harmony he had a complete brought into harmony he had a complete system to the Seaboard and to his Inland system to the Seaboard and to his Inland system to the Seaboard and to his Inland Refinery points organized under the name Refinery points organized under the name Refinery points organized under the name of the national Transit company the of the national Transit company the of the national Transit company the United pipelines and the national United pipelines and the national United pipelines and the national Transit company were really one business Transit company were really one business Transit company were really one business the former consisting of local lines and

the former consisting of local lines and the former consisting of local lines and the other of trunk lines and to make the the other of trunk lines and to make the the other of trunk lines and to make the organization more compact the former was organization more compact the former was organization more compact the former was transferred to the latter on April 1 transferred to the latter on April 1 transferred to the latter on April 1 1884 the paid up capital of the concern 1884 the paid up capital of the concern 1884 the paid up capital of the concern at this date was $31 million just as Mr at this date was $31 million just as Mr at this date was $31 million just as Mr Rockefeller claimed in Rockefeller claimed in Rockefeller claimed in 1878 that he was prepared to enter into 1878 that he was prepared to enter into 1878 that he was prepared to enter into a contract to refine all the petroleum a contract to refine all the petroleum a contract to refine all the petroleum that could be sold in the markets of the that could be sold in the markets of the that could be sold in the markets of the world so now he could announce that he world so now he could announce that he world so now he could announce that he was prepared to gather store and was prepared to gather store and was prepared to gather store and transport all the crude petroleum not transport all the crude petroleum not transport all the crude petroleum not only that the markets of the world only that the markets of the world only that the markets of the world demanded but that the producers took demanded but that the producers took demanded but that the producers took from the ground from the ground from the ground as things now stood the only remaining as things now stood the only remaining as things now stood the only remaining point where he could possibly be point where he could possibly be point where he could possibly be affected by competition was the affected by competition was the affected by competition was the railroads a new relation to the railroads a new relation to the railroads a new relation to the railroads was created by the new railroads was created by the new railroads was created by the new development Mr Rockefeller was not only development Mr Rockefeller was not only development Mr Rockefeller was not only independent of them he was their independent of them he was their independent of them he was their competitor for like them he was a common competitor for like them he was a common competitor for like them he was a common carrier obliged to transport what was carrier obliged to transport what was carrier obliged to transport what was offered his open rate to New York was 45 offered his open rate to New York was 45 offered his open rate to New York was 45 to Philadelphia 40 though the actual to Philadelphia 40 though the actual to Philadelphia 40 though the actual service probably did not cost over 10 service probably did not cost over 10 service probably did not cost over 10 cents by the alliance with the Tidewater cents by the alliance with the Tidewater cents by the alliance with the Tidewater any danger of competition from a any danger of competition from a any danger of competition from a pipeline which could of course afford to pipeline which could of course afford to pipeline which could of course afford to cut the price was shut off the railroads cut the price was shut off the railroads cut the price was shut off the railroads might possibly however lower the prices might possibly however lower the prices might possibly however lower the prices a little and still make a profit it was a little and still make a profit it was a little and still make a profit it was very necessary that the price be kept up very necessary that the price be kept up very necessary that the price be kept up in order that too much encouragement in order that too much encouragement in order that too much encouragement should not be given to outside

should not be given to outside should not be given to outside refiners the only Group which threatened refiners the only Group which threatened refiners the only Group which threatened to grow to large portions at this time to grow to large portions at this time to grow to large portions at this time was in the oil regions a group which was was in the oil regions a group which was was in the oil regions a group which was the direct outgrowth of the compromise the direct outgrowth of the compromise the direct outgrowth of the compromise of of of 1880 as will be remembered the agreement 1880 as will be remembered the agreement 1880 as will be remembered the agreement with the Pennsylvania Railroad made then with the Pennsylvania Railroad made then with the Pennsylvania Railroad made then stipulated that all rat should be open stipulated that all rat should be open stipulated that all rat should be open and that if a rebate was given to one and that if a rebate was given to one and that if a rebate was given to one shipper another could have it on demand shipper another could have it on demand shipper another could have it on demand after the compromise the Pennsylvania after the compromise the Pennsylvania after the compromise the Pennsylvania had undertaken again to stimulate the had undertaken again to stimulate the had undertaken again to stimulate the growth of independent refineries and growth of independent refineries and growth of independent refineries and several plants had been built in several plants had been built in several plants had been built in Titusville an oil City having removed Titusville an oil City having removed Titusville an oil City having removed the new yor York group from competition the new yor York group from competition the new yor York group from competition by the alliance with the Tidewater it by the alliance with the Tidewater it by the alliance with the Tidewater it was Mr rockefeller's business to make it was Mr rockefeller's business to make it was Mr rockefeller's business to make it as hard as possible for The Independents as hard as possible for The Independents as hard as possible for The Independents in the oil regions to do business and to in the oil regions to do business and to in the oil regions to do business and to do this he must make a contract with the do this he must make a contract with the do this he must make a contract with the Pennsylvania moreover when Mr Pennsylvania moreover when Mr Pennsylvania moreover when Mr Rockefeller entered New Jersey with his Rockefeller entered New Jersey with his Rockefeller entered New Jersey with his Seaboard pipeline he had been obliged to Seaboard pipeline he had been obliged to Seaboard pipeline he had been obliged to cross the Pennsylvania Railroad he could cross the Pennsylvania Railroad he could cross the Pennsylvania Railroad he could not do so without the consent of the not do so without the consent of the not do so without the consent of the company there being no free pipeline in company there being no free pipeline in company there being no free pipeline in the country he accordingly had been the country he accordingly had been the country he accordingly had been obliged to make a traffic arrangement obliged to make a traffic arrangement obliged to make a traffic arrangement with them to get his pipe through a new with them to get his pipe through a new with them to get his pipe through a new Arrangement was now necessary in order Arrangement was now necessary in order Arrangement was now necessary in order to prevent competition and in August to prevent competition and in August to prevent competition and in August 1884 a contract was signed for 1884 a contract was signed for 1884 a contract was signed for considerations mutually interchanged by considerations mutually interchanged by considerations mutually interchanged by which the national Transit company which the national Transit company which the national Transit company agreed to give the Pennsylvania Railroad agreed to give the Pennsylvania Railroad agreed to give the Pennsylvania Railroad 26% of all petroleum brought to the 26% of all petroleum brought to the 26% of all petroleum brought to the Atlantic seab board by all existing

Atlantic seab board by all existing Atlantic seab board by all existing carriers whether rail or pipe now carriers whether rail or pipe now carriers whether rail or pipe now engaged in transporting such property or engaged in transporting such property or engaged in transporting such property or which may Hereafter engage in such which may Hereafter engage in such which may Hereafter engage in such transportation in conjunction with the transportation in conjunction with the transportation in conjunction with the transit company's transit company's transit company's pipes at the same time that the transit pipes at the same time that the transit pipes at the same time that the transit company agreed to give the railroad this company agreed to give the railroad this company agreed to give the railroad this amount of oil it also signed an amount of oil it also signed an amount of oil it also signed an agreement to carry this oil for the agreement to carry this oil for the agreement to carry this oil for the railroad on a sliding scale when the railroad on a sliding scale when the railroad on a sliding scale when the open rate of the pipeline was 40 cents open rate of the pipeline was 40 cents open rate of the pipeline was 40 cents to Philadelphia the railroad was to pay to Philadelphia the railroad was to pay to Philadelphia the railroad was to pay the company 8 cents with each 5 cents the company 8 cents with each 5 cents the company 8 cents with each 5 cents difference up or down in the open rate difference up or down in the open rate difference up or down in the open rate there was to be one 1 cent difference to there was to be one 1 cent difference to there was to be one 1 cent difference to the railroad the transit never to the railroad the transit never to the railroad the transit never to receive less than six or more than 10 receive less than six or more than 10 receive less than six or more than 10 cents suppose for example that the cents suppose for example that the cents suppose for example that the entire Seaboard shipment of oil in the entire Seaboard shipment of oil in the entire Seaboard shipment of oil in the month ending December 20 1884 had been 1 month ending December 20 1884 had been 1 month ending December 20 1884 had been 1 million barrels 260,000 barrels belong million barrels 260,000 barrels belong million barrels 260,000 barrels belong to the Pennsylvania if the transit to the Pennsylvania if the transit to the Pennsylvania if the transit company ran all the railroads percentage company ran all the railroads percentage company ran all the railroads percentage it would get 8 cents of barrel for the it would get 8 cents of barrel for the it would get 8 cents of barrel for the service $20,800 and it would pay the service $20,800 and it would pay the service $20,800 and it would pay the railroad $14 $4,000 less railroad $14 $4,000 less railroad $14 $4,000 less 20,800 or $83,200 20,800 or $83,200 20,800 or $83,200 the pipeline probably never ran the the pipeline probably never ran the the pipeline probably never ran the whole amount more or less refined oil whole amount more or less refined oil whole amount more or less refined oil Napa Benzene and other petroleum Napa Benzene and other petroleum Napa Benzene and other petroleum products would necessarily go by rail products would necessarily go by rail products would necessarily go by rail large sums were paid monthly by the large sums were paid monthly by the large sums were paid monthly by the national Transit however to the railroad national Transit however to the railroad national Transit however to the railroad Mr Rockefeller seems to have been paying Mr Rockefeller seems to have been paying Mr Rockefeller seems to have been paying the Pennsylvania Railroad this money not

the Pennsylvania Railroad this money not the Pennsylvania Railroad this money not to compete with him as an oil carrier it to compete with him as an oil carrier it to compete with him as an oil carrier it would be ult to find in our variegated would be ult to find in our variegated would be ult to find in our variegated commercial history a more beautiful commercial history a more beautiful commercial history a more beautiful example of the beneficience of example of the beneficience of example of the beneficience of combination to those in the combination to those in the combination to those in the deal with the removal of danger of any deal with the removal of danger of any deal with the removal of danger of any competition by the Pennsylvania Railroad competition by the Pennsylvania Railroad competition by the Pennsylvania Railroad the transportation department of the the transportation department of the the transportation department of the Standard Oil trust seems to have been as Standard Oil trust seems to have been as Standard Oil trust seems to have been as nearly a perfect machine both in nearly a perfect machine both in nearly a perfect machine both in efficiency and in its monopolistic power efficiency and in its monopolistic power efficiency and in its monopolistic power as ever has been devised it was more as ever has been devised it was more as ever has been devised it was more perfect indeed than the refining end of perfect indeed than the refining end of perfect indeed than the refining end of the trust for independent refiners did the trust for independent refiners did the trust for independent refiners did exist and since 1880 they had been exist and since 1880 they had been exist and since 1880 they had been showing increasing Vigor whereas there showing increasing Vigor whereas there showing increasing Vigor whereas there seemed now no opportunity for an seemed now no opportunity for an seemed now no opportunity for an independent pipeline ever again to independent pipeline ever again to independent pipeline ever again to develop who with the Tidewater story in develop who with the Tidewater story in develop who with the Tidewater story in mind would be bold enough to attempt to mind would be bold enough to attempt to mind would be bold enough to attempt to reach the sea for the time being then reach the sea for the time being then reach the sea for the time being then the Standard Oil company had things all the Standard Oil company had things all the Standard Oil company had things all its own way it collected with its Ally its own way it collected with its Ally its own way it collected with its Ally the Tide Water practically the entire the Tide Water practically the entire the Tide Water practically the entire output of a great raw product it output of a great raw product it output of a great raw product it manufactured fully 90% of this product manufactured fully 90% of this product manufactured fully 90% of this product and aimed to manufacture and aimed to manufacture and aimed to manufacture 100% it was a common carrier and so 100% it was a common carrier and so 100% it was a common carrier and so obliged to deliver oil for rival obliged to deliver oil for rival obliged to deliver oil for rival refineries if they called for it but refineries if they called for it but refineries if they called for it but these refineries paid 40 or 45 cents for these refineries paid 40 or 45 cents for these refineries paid 40 or 45 cents for a service which cost a standard oil a service which cost a standard oil a service which cost a standard oil trust not over 1/4 of the sum Mr trust not over 1/4 of the sum Mr trust not over 1/4 of the sum Mr Rockefeller had every reason to be Rockefeller had every reason to be Rockefeller had every reason to be satisfied with oil transportation in

satisfied with oil transportation in satisfied with oil transportation in 1884 but there was a part of the oil 1884 but there was a part of the oil 1884 but there was a part of the oil business which was not so completely in business which was not so completely in business which was not so completely in his grasp the markets of the country his grasp the markets of the country his grasp the markets of the country were still open there the few were still open there the few were still open there the few independent refiners who had escaped independent refiners who had escaped independent refiners who had escaped strangulation were free to barter as strangulation were free to barter as strangulation were free to barter as they could but the right to make all the they could but the right to make all the they could but the right to make all the oil in the world which Mr Rockefeller oil in the world which Mr Rockefeller oil in the world which Mr Rockefeller claimed carried with it the right to claimed carried with it the right to claimed carried with it the right to sell all the oil the world consumed the sell all the oil the world consumed the sell all the oil the world consumed the independent was there a poacher in the independent was there a poacher in the independent was there a poacher in the market and must be driven out end of market and must be driven out end of market and must be driven out end of chapter 9 recording by Tom Weiss Toms chapter 9 recording by Tom Weiss Toms chapter 9 recording by Tom Weiss Toms audiobooks.com