The History Of Standard Oil, Ch 07 - The Crisis Of 1878

chapter 7 part one of the history of chapter 7 part one of the history of Standard Oil volume 1 by Ida Tarbell Standard Oil volume 1 by Ida Tarbell Standard Oil volume 1 by Ida Tarbell this LibriVox recording is in the public this LibriVox recording is in the public this LibriVox recording is in the public domain recording by Tom domain recording by Tom domain recording by Tom Weiss the crisis of Weiss the crisis of Weiss the crisis of 1878 it was clear enough by the opening 1878 it was clear enough by the opening 1878 it was clear enough by the opening of of of 1878 that Mr Rockefeller need no longer 1878 that Mr Rockefeller need no longer 1878 that Mr Rockefeller need no longer fear any serious trouble from the fear any serious trouble from the fear any serious trouble from the refining element to be sure there were refining element to be sure there were refining element to be sure there were scattered concerns still holding out and scattered concerns still holding out and scattered concerns still holding out and some of them doing very well but his some of them doing very well but his some of them doing very well but his latest move had put him in a position to latest move had put him in a position to latest move had put him in a position to cut off or at least seriously to cut off or at least seriously to cut off or at least seriously to interfere with the very raw material in interfere with the very raw material in interfere with the very raw material in which they worked it was hardly to be which they worked it was hardly to be which they worked it was hardly to be expected after the defeat of the expected after the defeat of the expected after the defeat of the Pennsylvania that any railroad would be Pennsylvania that any railroad would be Pennsylvania that any railroad would be rash enough to combine with even a rash enough to combine with even a rash enough to combine with even a strong group of refiners as for strong group of refiners as for strong group of refiners as for independent pipelines there were so many independent pipelines there were so many independent pipelines there were so many ways of discouraging their building that ways of discouraging their building that ways of discouraging their building that it did not seem probable that anyone it did not seem probable that anyone it did not seem probable that anyone would ever go far it was only a matter would ever go far it was only a matter would ever go far it was only a matter of time then when all remaining outside of time then when all remaining outside of time then when all remaining outside refiners must come into His fold or die refiners must come into His fold or die refiners must come into His fold or die Mr rockefeller's path would now have Mr rockefeller's path would now have Mr rockefeller's path would now have been smooth had it not been for the oil been smooth had it not been for the oil been smooth had it not been for the oil producers but the oil producers producers but the oil producers producers but the oil producers naturally his enemy he being the buyer naturally his enemy he being the buyer naturally his enemy he being the buyer and they the seller had become in the and they the seller had become in the and they the seller had become in the six years before Mr Rockefeller had made six years before Mr Rockefeller had made six years before Mr Rockefeller had made himself the only gatherer of their oil himself the only gatherer of their oil himself the only gatherer of their oil irreconcilable opponents of whatever he irreconcilable opponents of whatever he irreconcilable opponents of whatever he might do might do might do the South improvement company they the South improvement company they the South improvement company they regarded rightly enough as devised to regarded rightly enough as devised to regarded rightly enough as devised to control the price of their product and

control the price of their product and control the price of their product and that scheme they wrongfully laid that scheme they wrongfully laid that scheme they wrongfully laid entirely at Mr rockefeller's door Mr entirely at Mr rockefeller's door Mr entirely at Mr rockefeller's door Mr Rockefeller had been only one of The Rockefeller had been only one of The Rockefeller had been only one of The Originators of the South improvement Originators of the South improvement Originators of the South improvement company but the fact that he had become company but the fact that he had become company but the fact that he had become later practically its only supporter later practically its only supporter later practically its only supporter that he was the only one who had that he was the only one who had that he was the only one who had profited by it and that he had turned profited by it and that he had turned profited by it and that he had turned his Cleveland plant into a machine for his Cleveland plant into a machine for his Cleveland plant into a machine for carrying out its Provisions had caused carrying out its Provisions had caused carrying out its Provisions had caused the oil country to fix on him the entire the oil country to fix on him the entire the oil country to fix on him the entire responsibility then the oil men's responsibility then the oil men's responsibility then the oil men's experience with Mr Rockefeller in 1873 experience with Mr Rockefeller in 1873 experience with Mr Rockefeller in 1873 had been unfortunate they charged the had been unfortunate they charged the had been unfortunate they charged the failure of their Alliance to his failure of their Alliance to his failure of their Alliance to his duplicity there is no doubt that Mr duplicity there is no doubt that Mr duplicity there is no doubt that Mr Rockefeller played a shrewd and false Rockefeller played a shrewd and false Rockefeller played a shrewd and false game with the oil men in game with the oil men in game with the oil men in 1873 but the failure of their Alliance 1873 but the failure of their Alliance 1873 but the failure of their Alliance was their own fault they did not hold was their own fault they did not hold was their own fault they did not hold together they failed to limit their together they failed to limit their together they failed to limit their production as they agreed they suspected production as they agreed they suspected production as they agreed they suspected one another and at a moment when if they one another and at a moment when if they one another and at a moment when if they had been as patient and wise as their had been as patient and wise as their had been as patient and wise as their great opponent they would have had the great opponent they would have had the great opponent they would have had the game in their own hands and him at their game in their own hands and him at their game in their own hands and him at their feet as he had been in 1872 for the sake feet as he had been in 1872 for the sake feet as he had been in 1872 for the sake of immediate returns they abandoned some of immediate returns they abandoned some of immediate returns they abandoned some of the best features of their of the best features of their of the best features of their organizations and Allied themselves with organizations and Allied themselves with organizations and Allied themselves with a man they a man they a man they distrusted when that Alliance failed distrusted when that Alliance failed distrusted when that Alliance failed they threw on Mr rockefeller's shoulder they threw on Mr rockefeller's shoulder they threw on Mr rockefeller's shoulder a blame which they should have taken on a blame which they should have taken on a blame which they should have taken on their own another very real cause for their own another very real cause for their own another very real cause for their anxiety and dislike was that as their anxiety and dislike was that as their anxiety and dislike was that as the refiners alliance progressed the the refiners alliance progressed the the refiners alliance progressed the refiners made a much larger share of the

refiners made a much larger share of the refiners made a much larger share of the profits than the producers thought Fair profits than the producers thought Fair profits than the producers thought Fair the abandoning of their Alliance in 1873 the abandoning of their Alliance in 1873 the abandoning of their Alliance in 1873 had of course put an end to their had of course put an end to their had of course put an end to their measures for limiting production and for measures for limiting production and for measures for limiting production and for holding over production until it could holding over production until it could holding over production until it could be sold at the prices they thought be sold at the prices they thought be sold at the prices they thought profitable the drill had gone on merily profitable the drill had gone on merily profitable the drill had gone on merily through 1873 1874 and through 1873 1874 and through 1873 1874 and 1875 regardless of consump or prices by 1875 regardless of consump or prices by 1875 regardless of consump or prices by the end of the end of the end of 1874 there were over 35 million barrels 1874 there were over 35 million barrels 1874 there were over 35 million barrels of oil in stock more than twice what of oil in stock more than twice what of oil in stock more than twice what there had ever been before production there had ever been before production there had ever been before production was well to a million barrels a month was well to a million barrels a month was well to a million barrels a month and prices that year averaged but and prices that year averaged but and prices that year averaged but $1.15 a barrel for men who considered $3 $1.15 a barrel for men who considered $3 $1.15 a barrel for men who considered $3 a starvation price this was indeed hard a starvation price this was indeed hard a starvation price this was indeed hard luck things looked better by the end of luck things looked better by the end of luck things looked better by the end of 1875 for production was falling off by 1875 for production was falling off by 1875 for production was falling off by March March March 1876 stocks had been so reduced that 1876 stocks had been so reduced that 1876 stocks had been so reduced that there was strong confidence that the there was strong confidence that the there was strong confidence that the price of crude oil must Advance by June price of crude oil must Advance by June price of crude oil must Advance by June the Oil City Derek began to prophecy $3 the Oil City Derek began to prophecy $3 the Oil City Derek began to prophecy $3 oil and to advise oil men to hold crude oil and to advise oil men to hold crude oil and to advise oil men to hold crude for that price in August $3 was reached for that price in August $3 was reached for that price in August $3 was reached in the Oil City exchange it had been in the Oil City exchange it had been in the Oil City exchange it had been nearly four years since that price had nearly four years since that price had nearly four years since that price had been paid for oil and the day the point been paid for oil and the day the point been paid for oil and the day the point was reached August 25 the Brokers fairly was reached August 25 the Brokers fairly was reached August 25 the Brokers fairly went mad they jumped on their chairs went mad they jumped on their chairs went mad they jumped on their chairs threw up their hats beat one another on threw up their hats beat one another on threw up their hats beat one another on the back while the spectators in the the back while the spectators in the the back while the spectators in the crowded galleries most of them crowded galleries most of them crowded galleries most of them speculators yelled in sympathy before

speculators yelled in sympathy before speculators yelled in sympathy before 6:00 that day oil reached $311 6:00 that day oil reached $311 6:00 that day oil reached $311 and4 nobody thought of stopping because and4 nobody thought of stopping because and4 nobody thought of stopping because it was supper time the exchange was open it was supper time the exchange was open it was supper time the exchange was open until nearly midnight prices booming on until nearly midnight prices booming on until nearly midnight prices booming on to $317 a half cents it seemed like old to $317 a half cents it seemed like old to $317 a half cents it seemed like old times in the oil region the good old times in the oil region the good old times in the oil region the good old flush times when people made a fortune flush times when people made a fortune flush times when people made a fortune one day and threw it away the next of one day and threw it away the next of one day and threw it away the next of course refined oil went up steadily with course refined oil went up steadily with course refined oil went up steadily with crude refine reached 21 and 38 in New crude refine reached 21 and 38 in New crude refine reached 21 and 38 in New York the day of this Boom at Oil City York the day of this Boom at Oil City York the day of this Boom at Oil City the day following the rise was one of the day following the rise was one of the day following the rise was one of the most exciting the oil exchange had the most exciting the oil exchange had the most exciting the oil exchange had ever seen never before declared the ever seen never before declared the ever seen never before declared the Derek in its report was so much business Derek in its report was so much business Derek in its report was so much business done from early in the morning until done from early in the morning until done from early in the morning until 10:00 at night the exchange was crowded 10:00 at night the exchange was crowded 10:00 at night the exchange was crowded by frantic speculators their off by frantic speculators their off by frantic speculators their off excitement was clear from their blanched excitement was clear from their blanched excitement was clear from their blanched faces and wild voices fully 800,000 faces and wild voices fully 800,000 faces and wild voices fully 800,000 barrels of oil exchanged hands that day barrels of oil exchanged hands that day barrels of oil exchanged hands that day the advance between the time the the advance between the time the the advance between the time the exchanged opened and its close was over exchanged opened and its close was over exchanged opened and its close was over 55 refined in New York advanced in 55 refined in New York advanced in 55 refined in New York advanced in accordance with the Market On The Creek accordance with the Market On The Creek accordance with the Market On The Creek closing at closing at closing at 24 this went on for several days when a 24 this went on for several days when a 24 this went on for several days when a new element in the situation began to new element in the situation began to new element in the situation began to force itself on the oil men's attention force itself on the oil men's attention force itself on the oil men's attention one of the chief reasons on which they one of the chief reasons on which they one of the chief reasons on which they they based their confidence in high they based their confidence in high they based their confidence in high prices for crude oil was the fact that prices for crude oil was the fact that prices for crude oil was the fact that the foreigners were short of refined oil the foreigners were short of refined oil the foreigners were short of refined oil it was the custom then as now for it was the custom then as now for it was the custom then as now for exporters to buy their oil for the

exporters to buy their oil for the exporters to buy their oil for the winter European trade in the late summer winter European trade in the late summer winter European trade in the late summer and early fall when the boom began the and early fall when the boom began the and early fall when the boom began the harbor at New York was beginning to fill harbor at New York was beginning to fill harbor at New York was beginning to fill up with ships for caros but to the up with ships for caros but to the up with ships for caros but to the consternation of the oilmen intent on consternation of the oilmen intent on consternation of the oilmen intent on keeping up the Boom the exporters were keeping up the Boom the exporters were keeping up the Boom the exporters were refusing to buy they were declaring the refusing to buy they were declaring the refusing to buy they were declaring the price to which refined had risen to be price to which refined had risen to be price to which refined had risen to be out of proportion to the price of crew out of proportion to the price of crew out of proportion to the price of crew more they declared the latter a more they declared the latter a more they declared the latter a speculative price only once they argued speculative price only once they argued speculative price only once they argued had it touched $4 and the refiners were had it touched $4 and the refiners were had it touched $4 and the refiners were not buying at that price for not buying at that price for not buying at that price for manufacturer they were holding refined manufacturer they were holding refined manufacturer they were holding refined too high it was early in September when too high it was early in September when too high it was early in September when the realization Came Upon the oil the realization Came Upon the oil the realization Came Upon the oil regions that a new element was in the regions that a new element was in the regions that a new element was in the problem a veritable blockade in problem a veritable blockade in problem a veritable blockade in exports as the days went on they saw exports as the days went on they saw exports as the days went on they saw that this was no temporary affair they that this was no temporary affair they that this was no temporary affair they saw that Mr rockefeller's combination saw that Mr rockefeller's combination saw that Mr rockefeller's combination was at last carrying out just what it was at last carrying out just what it was at last carrying out just what it had been organized to do forcing the had been organized to do forcing the had been organized to do forcing the price it wanted for price it wanted for price it wanted for refined day after day refined was held refined day after day refined was held refined day after day refined was held at 26 C day after day the exporters at 26 C day after day the exporters at 26 C day after day the exporters refused to buy it was not until the end refused to buy it was not until the end refused to buy it was not until the end of September in fact that they began to of September in fact that they began to of September in fact that they began to yield as it was inevitable they should yield as it was inevitable they should yield as it was inevitable they should do for the game was certainly in the do for the game was certainly in the do for the game was certainly in the hands of the refiners and Europe had to hands of the refiners and Europe had to hands of the refiners and Europe had to have its light the exporters began to have its light the exporters began to have its light the exporters began to see too that if they held off longer see too that if they held off longer see too that if they held off longer they might have to pay higher prices for they might have to pay higher prices for they might have to pay higher prices for it was rumored that the standard it was rumored that the standard it was rumored that the standard combination was shutting down its

combination was shutting down its combination was shutting down its factories literally making refined factories literally making refined factories literally making refined scarce while crude oil was piling up in scarce while crude oil was piling up in scarce while crude oil was piling up in Pennsylvania with the yielding of the Pennsylvania with the yielding of the Pennsylvania with the yielding of the exporter exactly what they feared exporter exactly what they feared exporter exactly what they feared occurred the price was raised the occurred the price was raised the occurred the price was raised the exporters bed again the matter began to exporters bed again the matter began to exporters bed again the matter began to attract public attention the New York attract public attention the New York attract public attention the New York heral was particularly active in airing heral was particularly active in airing heral was particularly active in airing the situation and did not hesitate to the situation and did not hesitate to the situation and did not hesitate to denounce it as a petroleum plot the denounce it as a petroleum plot the denounce it as a petroleum plot the leaders were interviewed among them Mr leaders were interviewed among them Mr leaders were interviewed among them Mr Rockefeller Mr Rockefeller still held to Rockefeller Mr Rockefeller still held to Rockefeller Mr Rockefeller still held to his theory that to make oil deer was his theory that to make oil deer was his theory that to make oil deer was worthy of public approval they had aimed worthy of public approval they had aimed worthy of public approval they had aimed to control the price of oil in a to control the price of oil in a to control the price of oil in a perfectly legitimate way he told the perfectly legitimate way he told the perfectly legitimate way he told the herald reporter and the exporters would herald reporter and the exporters would herald reporter and the exporters would have to yield to their prices by the end have to yield to their prices by the end have to yield to their prices by the end of October New York Harbor was full of of October New York Harbor was full of of October New York Harbor was full of vessels a mute protest against the vessels a mute protest against the vessels a mute protest against the corner and it was not until November corner and it was not until November corner and it was not until November that the exporters finally gave in and that the exporters finally gave in and that the exporters finally gave in and began to take all the oil they could get began to take all the oil they could get began to take all the oil they could get at prices asked which ranged from 26 to at prices asked which ranged from 26 to at prices asked which ranged from 26 to 35 and these prices were held all 35 and these prices were held all 35 and these prices were held all through the winter of 1876 77 up to through the winter of 1876 77 up to through the winter of 1876 77 up to February 22 they were held regardless of February 22 they were held regardless of February 22 they were held regardless of the price of crw or due to their utmost the price of crw or due to their utmost the price of crw or due to their utmost The Producers could not keep their oil The Producers could not keep their oil The Producers could not keep their oil up to the corresponding price of of up to the corresponding price of of up to the corresponding price of of refined according to the scale of refined according to the scale of refined according to the scale of relative prices then accepted 26 Cents a relative prices then accepted 26 Cents a relative prices then accepted 26 Cents a gallon for refined meant $5 a barrel for gallon for refined meant $5 a barrel for gallon for refined meant $5 a barrel for crude yet there was not a month in the crude yet there was not a month in the crude yet there was not a month in the entire period of this holdup that crude

entire period of this holdup that crude entire period of this holdup that crude averaged that price in December when the averaged that price in December when the averaged that price in December when the average price of refined was average price of refined was average price of refined was 2938 crude was but $378 and8 a barrel 2938 crude was but $378 and8 a barrel 2938 crude was but $378 and8 a barrel The Producers held meetings and passed The Producers held meetings and passed The Producers held meetings and passed resolutions cursed the refiners and resolutions cursed the refiners and resolutions cursed the refiners and talked of building independent talked of building independent talked of building independent refineries filled The Columns of the refineries filled The Columns of the refineries filled The Columns of the Derek with open letters advocating a Derek with open letters advocating a Derek with open letters advocating a shutdown an alliance of their own shutdown an alliance of their own shutdown an alliance of their own restrictive legislation an oil men's restrictive legislation an oil men's restrictive legislation an oil men's Railway and what was more to the point Railway and what was more to the point Railway and what was more to the point some of them supported with more or less some of them supported with more or less some of them supported with more or less Fidelity the efforts to build up counter Fidelity the efforts to build up counter Fidelity the efforts to build up counter movements noted in the last chapter the movements noted in the last chapter the movements noted in the last chapter the Colombia conduit line the Seaboard Colombia conduit line the Seaboard Colombia conduit line the Seaboard Pipeline and especially the alliance Pipeline and especially the alliance Pipeline and especially the alliance with the Empire Transportation Company with the Empire Transportation Company with the Empire Transportation Company attempted in the spring of attempted in the spring of attempted in the spring of 1877 there seemed more hope in this last 1877 there seemed more hope in this last 1877 there seemed more hope in this last combination than in any other movement combination than in any other movement combination than in any other movement for they had faith in Colonel pots and for they had faith in Colonel pots and for they had faith in Colonel pots and besides they were accustomed to seeing besides they were accustomed to seeing besides they were accustomed to seeing the Pennsylvania Railroad get what it the Pennsylvania Railroad get what it the Pennsylvania Railroad get what it wanted the defeat of the Pennsylvania wanted the defeat of the Pennsylvania wanted the defeat of the Pennsylvania was therefore the heavier blow indeed was therefore the heavier blow indeed was therefore the heavier blow indeed the news of the sail of the Empire the news of the sail of the Empire the news of the sail of the Empire pipelines to the standard was like the pipelines to the standard was like the pipelines to the standard was like the sounding of the toxin in the angry and sounding of the toxin in the angry and sounding of the toxin in the angry and baffled Oil regions it revived the baffled Oil regions it revived the baffled Oil regions it revived the Spirit Of Spirit Of Spirit Of 1872 but it was the spirit of 1872 but it was the spirit of 1872 but it was the spirit of 1872 with new dignity and a discretion 1872 with new dignity and a discretion 1872 with new dignity and a discretion such had never before been seen in the such had never before been seen in the such had never before been seen in the blaton region in every town from mcken blaton region in every town from mcken blaton region in every town from mcken County Southwest of Butler the oil towns County Southwest of Butler the oil towns County Southwest of Butler the oil towns hastened to organize themselves into a

hastened to organize themselves into a hastened to organize themselves into a secret society little by little it came secret society little by little it came secret society little by little it came out that a producers Union had been out that a producers Union had been out that a producers Union had been organized from all that could be learned organized from all that could be learned organized from all that could be learned it looked very much as if the petroleum it looked very much as if the petroleum it looked very much as if the petroleum producers Union had come into existence producers Union had come into existence producers Union had come into existence to do business on November 21 to do business on November 21 to do business on November 21 1877 the first meeting of the new 1877 the first meeting of the new 1877 the first meeting of the new organization was held the petroleum organization was held the petroleum organization was held the petroleum Parliament or congress it was called Parliament or congress it was called Parliament or congress it was called this Congress which met in Titusville this Congress which met in Titusville this Congress which met in Titusville was composed of 172 delegates it was was composed of 172 delegates it was was composed of 172 delegates it was claimed that it represented at least claimed that it represented at least claimed that it represented at least 2,000 oil producers and not less than 75 2,000 oil producers and not less than 75 2,000 oil producers and not less than 75 millions in money it is certain it millions in money it is certain it millions in money it is certain it included the representative men of the included the representative men of the included the representative men of the oil regions those to whose daring hard oil regions those to whose daring hard oil regions those to whose daring hard work and energy the Discover and work and energy the Discover and work and energy the Discover and development of the oil fields as they development of the oil fields as they development of the oil fields as they were known at that time were entirely were known at that time were entirely were known at that time were entirely due for 4 days the Congress was in due for 4 days the Congress was in due for 4 days the Congress was in session and it is a remarkable comment session and it is a remarkable comment session and it is a remarkable comment on the seriousness with which it had on the seriousness with which it had on the seriousness with which it had undertaken its work that although undertaken its work that although undertaken its work that although reporters from all parts of the country reporters from all parts of the country reporters from all parts of the country interested in oil were present nothing interested in oil were present nothing interested in oil were present nothing leaked out in December a second session leaked out in December a second session leaked out in December a second session of 4 days was held in Titusville but no of 4 days was held in Titusville but no of 4 days was held in Titusville but no announcement of what was doing was made announcement of what was doing was made announcement of what was doing was made to the Press indeed it was only as lines to the Press indeed it was only as lines to the Press indeed it was only as lines of action developed that the public of action developed that the public of action developed that the public became familiar with what the producers became familiar with what the producers became familiar with what the producers had resolved on in the days of secret had resolved on in the days of secret had resolved on in the days of secret session which they had held their session which they had held their session which they had held their resolutions had been eminently wise and resolutions had been eminently wise and resolutions had been eminently wise and they undertook their support vigorously they undertook their support vigorously they undertook their support vigorously and intelligently first and foremost

and intelligently first and foremost and intelligently first and foremost they resolved to stand by all efforts to they resolved to stand by all efforts to they resolved to stand by all efforts to secure an outlet to the independent secure an outlet to the independent secure an outlet to the independent Seaboard of the standard and the Allied Seaboard of the standard and the Allied Seaboard of the standard and the Allied railroads two Enterprises were put railroads two Enterprises were put railroads two Enterprises were put before them at once the first was what before them at once the first was what before them at once the first was what was known as the Equitable petroleum was known as the Equitable petroleum was known as the Equitable petroleum company an organization started by one company an organization started by one company an organization started by one of the most resourceful and active of the most resourceful and active of the most resourceful and active independent men in the oil country one independent men in the oil country one independent men in the oil country one of whom we are to hear more Lewis Emory of whom we are to hear more Lewis Emory of whom we are to hear more Lewis Emory JR this company in which some 200 oil JR this company in which some 200 oil JR this company in which some 200 oil producers in the Bradford field had producers in the Bradford field had producers in the Bradford field had taken stock proposed to lay a pipeline taken stock proposed to lay a pipeline taken stock proposed to lay a pipeline to Buffalo and to ship their oil then by to Buffalo and to ship their oil then by to Buffalo and to ship their oil then by the Erie Canal they had acquired a the Erie Canal they had acquired a the Erie Canal they had acquired a RightWay to Buffalo and had Capital RightWay to Buffalo and had Capital RightWay to Buffalo and had Capital pledge to carry out the project the pledge to carry out the project the pledge to carry out the project the second Enterprise come before the newly second Enterprise come before the newly second Enterprise come before the newly formed Union was much more ambitious it formed Union was much more ambitious it formed Union was much more ambitious it was nothing less than a Revival of Mr was nothing less than a Revival of Mr was nothing less than a Revival of Mr Harley's Enterprise which had attracted Harley's Enterprise which had attracted Harley's Enterprise which had attracted so much attention in so much attention in so much attention in 1876 it was revived now by the three men 1876 it was revived now by the three men 1876 it was revived now by the three men who had been operating the Colombia who had been operating the Colombia who had been operating the Colombia conduit line under release messers conduit line under release messers conduit line under release messers Benson Melby and Hopkins who had been Benson Melby and Hopkins who had been Benson Melby and Hopkins who had been set free by the sale of that property to set free by the sale of that property to set free by the sale of that property to the the the standard their experience with the standard their experience with the standard their experience with the pipeline business had convinced them it pipeline business had convinced them it pipeline business had convinced them it was one of the most Luc lucrative was one of the most Luc lucrative was one of the most Luc lucrative Departments of the oil industry they Departments of the oil industry they Departments of the oil industry they believed too that oil could be pumped believed too that oil could be pumped believed too that oil could be pumped over the mountains and no sooner were over the mountains and no sooner were over the mountains and no sooner were they free than they took up Mr Harley's they free than they took up Mr Harley's they free than they took up Mr Harley's old idea and engaged the same engineer old idea and engaged the same engineer old idea and engaged the same engineer he had brought into the Enterprise he had brought into the Enterprise he had brought into the Enterprise General Herman Hal to survey a route General Herman Hal to survey a route General Herman Hal to survey a route from Brady's bend on the alagan river to

from Brady's bend on the alagan river to from Brady's bend on the alagan river to Baltimore Maryland a distance of 235 Baltimore Maryland a distance of 235 Baltimore Maryland a distance of 235 miles to both of these projects the miles to both of these projects the miles to both of these projects the general Council of the Union gave general Council of the Union gave general Council of the Union gave promise of promise of promise of support the demand for interstate support the demand for interstate support the demand for interstate commerce legislation was renewed At Once commerce legislation was renewed At Once commerce legislation was renewed At Once by the union and in December EG by the union and in December EG by the union and in December EG Patterson the head of the committee Patterson the head of the committee Patterson the head of the committee having the matter in hand prepared the having the matter in hand prepared the having the matter in hand prepared the first draft of an act which was put in first draft of an act which was put in first draft of an act which was put in formal shape by George B Hibert of formal shape by George B Hibert of formal shape by George B Hibert of Buffalo Council employed by the union Buffalo Council employed by the union Buffalo Council employed by the union for this purpose Mr Hibert also prepared for this purpose Mr Hibert also prepared for this purpose Mr Hibert also prepared a memorandum of the law on the subject a memorandum of the law on the subject a memorandum of the law on the subject the bill prepared by Mr Patterson and Mr the bill prepared by Mr Patterson and Mr the bill prepared by Mr Patterson and Mr Hibbert was introduced into the House of Hibbert was introduced into the House of Hibbert was introduced into the House of Representatives in May 1878 by L F Representatives in May 1878 by L F Representatives in May 1878 by L F Watson whose home was in Warren County Watson whose home was in Warren County Watson whose home was in Warren County Pennsylvania it was called into Pennsylvania it was called into Pennsylvania it was called into committee and came out as the Reagan committee and came out as the Reagan committee and came out as the Reagan Bill and as such was passed by the end Bill and as such was passed by the end Bill and as such was passed by the end of the year by the house but only to be of the year by the house but only to be of the year by the house but only to be smothered later in the Senate at the smothered later in the Senate at the smothered later in the Senate at the same time that the effort was going on same time that the effort was going on same time that the effort was going on in Washington for Relief the legislature in Washington for Relief the legislature in Washington for Relief the legislature of Pennsylvania was being besieged again of Pennsylvania was being besieged again of Pennsylvania was being besieged again for a free pipeline Bill and an for a free pipeline Bill and an for a free pipeline Bill and an antidiscrimination antidiscrimination antidiscrimination Bill both of these projects failed and Bill both of these projects failed and Bill both of these projects failed and the committee having them in charge said the committee having them in charge said the committee having them in charge said said bitterly in its report to the union said bitterly in its report to the union said bitterly in its report to the union how well we have succeeded at Harrisburg how well we have succeeded at Harrisburg how well we have succeeded at Harrisburg you all know it would be in vain for you all know it would be in vain for you all know it would be in vain for your committee to describe the efforts your committee to describe the efforts your committee to describe the efforts of the council in this direction it has of the council in this direction it has of the council in this direction it has been simply a history of failure and been simply a history of failure and been simply a history of failure and disgrace if it has taught us anything it disgrace if it has taught us anything it disgrace if it has taught us anything it is that our present lawmakers as a body

is that our present lawmakers as a body is that our present lawmakers as a body are ignorant corrupt and unprincipled are ignorant corrupt and unprincipled are ignorant corrupt and unprincipled that the majority of them are directly that the majority of them are directly that the majority of them are directly or indirectly under the control of the or indirectly under the control of the or indirectly under the control of the very monopolies against whose acts we very monopolies against whose acts we very monopolies against whose acts we have been seeking relief there has been have been seeking relief there has been have been seeking relief there has been invented by the Standard Oil Company no invented by the Standard Oil Company no invented by the Standard Oil Company no argument or assertion however false or argument or assertion however false or argument or assertion however false or ridiculous which has not found a man in ridiculous which has not found a man in ridiculous which has not found a man in the Pennsylvania legislature mean enough the Pennsylvania legislature mean enough the Pennsylvania legislature mean enough to become its champion on every side to become its champion on every side to become its champion on every side indeed The Producers hasten to protect indeed The Producers hasten to protect indeed The Producers hasten to protect themselves against the lord of the oil themselves against the lord of the oil themselves against the lord of the oil regions as Mr Rockefeller not inapply regions as Mr Rockefeller not inapply regions as Mr Rockefeller not inapply was called on the completion of his was called on the completion of his was called on the completion of his pipeline pipeline pipeline Monopoly that they were not merely Monopoly that they were not merely Monopoly that they were not merely alarmist in thinking that they must do alarmist in thinking that they must do alarmist in thinking that they must do something to protect their interest was something to protect their interest was something to protect their interest was demonstrated sooner than was demonstrated sooner than was demonstrated sooner than was anticipated the demonstration was anticipated the demonstration was anticipated the demonstration was hurried by an unforeseen and difficult hurried by an unforeseen and difficult hurried by an unforeseen and difficult situation a great outpouring of oil in a situation a great outpouring of oil in a situation a great outpouring of oil in a new field the Bradford or Northern field new field the Bradford or Northern field new field the Bradford or Northern field in mcken County in mcken County in mcken County Pennsylvania about the time that Mr Pennsylvania about the time that Mr Pennsylvania about the time that Mr rockefeller's lordship was realized it rockefeller's lordship was realized it rockefeller's lordship was realized it became certain that a deposit of oil had became certain that a deposit of oil had became certain that a deposit of oil had been discovered which was going to lead been discovered which was going to lead been discovered which was going to lead soon to a production vastly in excess of soon to a production vastly in excess of soon to a production vastly in excess of the consumption as well as in excess of the consumption as well as in excess of the consumption as well as in excess of of the then existing facilities for of the then existing facilities for of the then existing facilities for Gathering and storing oil if Mr Gathering and storing oil if Mr Gathering and storing oil if Mr Rockefeller wished to keep his Monopoly Rockefeller wished to keep his Monopoly Rockefeller wished to keep his Monopoly he must it was evident enter upon a he must it was evident enter upon a he must it was evident enter upon a campaign of expansion calling for an campaign of expansion calling for an campaign of expansion calling for an immense expenditure of energy and money immense expenditure of energy and money immense expenditure of energy and money he must lay pipes in aund directions to he must lay pipes in aund directions to he must lay pipes in aund directions to get the output of new wells he must get the output of new wells he must get the output of new wells he must build tanks holding thousands of barrels

build tanks holding thousands of barrels build tanks holding thousands of barrels to receive the oil and all of this must to receive the oil and all of this must to receive the oil and all of this must be done quickly if Rivals were to be be done quickly if Rivals were to be be done quickly if Rivals were to be kept out of the way there was no kept out of the way there was no kept out of the way there was no hesitation on the part of the United hesitation on the part of the United hesitation on the part of the United pipelines one of the greatest pipelines one of the greatest pipelines one of the greatest construction Feats the country has ever construction Feats the country has ever construction Feats the country has ever seen was put through in the Years 1878 seen was put through in the Years 1878 seen was put through in the Years 1878 1879 and 1880 in the Bradford oil field 1879 and 1880 in the Bradford oil field 1879 and 1880 in the Bradford oil field by the standard interest it was a by the standard interest it was a by the standard interest it was a wonderful illustration of the surpassing wonderful illustration of the surpassing wonderful illustration of the surpassing intelligence energy and courage with intelligence energy and courage with intelligence energy and courage with which the standard oil attacks its which the standard oil attacks its which the standard oil attacks its problems but while it was putting problems but while it was putting problems but while it was putting through this feat it instituted a policy through this feat it instituted a policy through this feat it instituted a policy toward the producers which was regarded toward the producers which was regarded toward the producers which was regarded by them as tyranical and by them as tyranical and by them as tyranical and unjustifiable the first maneuver in this unjustifiable the first maneuver in this unjustifiable the first maneuver in this new policy hit the producer in a very new policy hit the producer in a very new policy hit the producer in a very tender spot or it concerned the price he tender spot or it concerned the price he tender spot or it concerned the price he was to receive for oil the method which was to receive for oil the method which was to receive for oil the method which prevailed at the time in handling and prevailed at the time in handling and prevailed at the time in handling and buying and selling oil was this at the buying and selling oil was this at the buying and selling oil was this at the request of a well owner connected with request of a well owner connected with request of a well owner connected with his pipeline his oil was run and his pipeline his oil was run and his pipeline his oil was run and credited to him in the pipeline office credited to him in the pipeline office credited to him in the pipeline office here he could hold it as long as he here he could hold it as long as he here he could hold it as long as he wished by paying a storage charge if he wished by paying a storage charge if he wished by paying a storage charge if he wished to sell his credit balance bance wished to sell his credit balance bance wished to sell his credit balance bance as oil to his account was called he as oil to his account was called he as oil to his account was called he simply gave the buyer an order on the simply gave the buyer an order on the simply gave the buyer an order on the line for the oil and it was transferred line for the oil and it was transferred line for the oil and it was transferred to the account of the new buyer the to the account of the new buyer the to the account of the new buyer the pipelines frequently had hundreds of pipelines frequently had hundreds of pipelines frequently had hundreds of thousands of barrels of oil in hand and thousands of barrels of oil in hand and thousands of barrels of oil in hand and they traded with this oil as Banks do they traded with this oil as Banks do they traded with this oil as Banks do with their deposits that is they issued with their deposits that is they issued with their deposits that is they issued certificates for each 1,000 barrels of certificates for each 1,000 barrels of certificates for each 1,000 barrels of oil on hand and these certificates were

oil on hand and these certificates were oil on hand and these certificates were negotiable like any other paper now the negotiable like any other paper now the negotiable like any other paper now the United pipelines acknowledged itself a United pipelines acknowledged itself a United pipelines acknowledged itself a common carrier and so was obliged to common carrier and so was obliged to common carrier and so was obliged to discharge the duty of collecting oil on discharge the duty of collecting oil on discharge the duty of collecting oil on demand or at least within a reasonable demand or at least within a reasonable demand or at least within a reasonable time after the demand of its time after the demand of its time after the demand of its patrons but in December patrons but in December patrons but in December 1877 after the Monopoly was completed 1877 after the Monopoly was completed 1877 after the Monopoly was completed they refused to discharge their they refused to discharge their they refused to discharge their obligations in the customary way on The obligations in the customary way on The obligations in the customary way on The Plea that they had not sufficient Plea that they had not sufficient Plea that they had not sufficient tankage to carry oil in the Bradford tankage to carry oil in the Bradford tankage to carry oil in the Bradford field they issued an order that no oil field they issued an order that no oil field they issued an order that no oil would be run in that district for anyone would be run in that district for anyone would be run in that district for anyone unless it was sold for immediate unless it was sold for immediate unless it was sold for immediate shipment that is no oil would be taken shipment that is no oil would be taken shipment that is no oil would be taken to hold for storage it would be taken to hold for storage it would be taken to hold for storage it would be taken for shipping only at the same time the for shipping only at the same time the for shipping only at the same time the standard buyer ja Boswick decreed that standard buyer ja Boswick decreed that standard buyer ja Boswick decreed that henceforth no Bradford oil would be henceforth no Bradford oil would be henceforth no Bradford oil would be bought for immediate shipment unless it bought for immediate shipment unless it bought for immediate shipment unless it was offered at less than the market was offered at less than the market was offered at less than the market price no fixed discount was set the price no fixed discount was set the price no fixed discount was set the seller was asked what he would take his seller was asked what he would take his seller was asked what he would take his offer was of course according to his offer was of course according to his offer was of course according to his Necessities even then an answer was not Necessities even then an answer was not Necessities even then an answer was not always immediately given the seller was always immediately given the seller was always immediately given the seller was told to come back in 5 or 10 days and he told to come back in 5 or 10 days and he told to come back in 5 or 10 days and he would be told if his oil would be taken would be told if his oil would be taken would be told if his oil would be taken a feature of the New Order particularly a feature of the New Order particularly a feature of the New Order particularly ging to the oil men was the manner in ging to the oil men was the manner in ging to the oil men was the manner in which it was enforced formerly the buyer which it was enforced formerly the buyer which it was enforced formerly the buyer and seller had met freely in the oil and seller had met freely in the oil and seller had met freely in the oil exchanges and their business offices and exchanges and their business offices and exchanges and their business offices and transactions had been carried on as

transactions had been carried on as transactions had been carried on as among equals now the producers were among equals now the producers were among equals now the producers were obliged to form in line before the obliged to form in line before the obliged to form in line before the United p pipeline offices and to enter United p pipeline offices and to enter United p pipeline offices and to enter one at a time to consult the buyer a one at a time to consult the buyer a one at a time to consult the buyer a line of 100 men or more often stood line of 100 men or more often stood line of 100 men or more often stood during the hour set before the office during the hour set before the office during the hour set before the office waiting their turn to dispose of their waiting their turn to dispose of their waiting their turn to dispose of their oil it should be said in Justice to Mr oil it should be said in Justice to Mr oil it should be said in Justice to Mr Boswick that he was not the first buyer Boswick that he was not the first buyer Boswick that he was not the first buyer to take oil at a discount The Producers to take oil at a discount The Producers to take oil at a discount The Producers themselves frequently offered oil at themselves frequently offered oil at themselves frequently offered oil at less than the market price when a need less than the market price when a need less than the market price when a need of money but Mr Boswick was the first of money but Mr Boswick was the first of money but Mr Boswick was the first buyer in a situation to force them to buyer in a situation to force them to buyer in a situation to force them to make the discount make the discount make the discount regularly when these orders came few of regularly when these orders came few of regularly when these orders came few of the producers had sufficient private the producers had sufficient private the producers had sufficient private tankage to take care of any amount of tankage to take care of any amount of tankage to take care of any amount of oil here was the situation then to keep oil here was the situation then to keep oil here was the situation then to keep oil from running on the ground the oil from running on the ground the oil from running on the ground the producer must sell it but if he sold it producer must sell it but if he sold it producer must sell it but if he sold it he must take a price from 2 to 25 cents he must take a price from 2 to 25 cents he must take a price from 2 to 25 cents or more below the market the immediate or more below the market the immediate or more below the market the immediate shipment order was not an invention of shipment order was not an invention of shipment order was not an invention of the United pipelines it had been the United pipelines it had been the United pipelines it had been enforced more than once for brief enforced more than once for brief enforced more than once for brief periods by various lines when they found periods by various lines when they found periods by various lines when they found their capacity overcrowded by some their capacity overcrowded by some their capacity overcrowded by some unexpected situation in 1872 episo atic unexpected situation in 1872 episo atic unexpected situation in 1872 episo atic among the horses so upset things in the among the horses so upset things in the among the horses so upset things in the oil regions that for a short time an oil regions that for a short time an oil regions that for a short time an immediate shipment order was enforced in immediate shipment order was enforced in immediate shipment order was enforced in 1872 when the pipelines were overtaxed 1872 when the pipelines were overtaxed 1872 when the pipelines were overtaxed by a great outpouring of oil in the by a great outpouring of oil in the by a great outpouring of oil in the lower field immediate shipment had been lower field immediate shipment had been lower field immediate shipment had been attempted but at that time there were

attempted but at that time there were attempted but at that time there were still so many independent pipes still so many independent pipes still so many independent pipes struggling for business that the struggling for business that the struggling for business that the movement met no success now however the movement met no success now however the movement met no success now however the United pipeline had things its own way United pipeline had things its own way United pipeline had things its own way that they were not ready to meet the that they were not ready to meet the that they were not ready to meet the growing Bradford production is plain growing Bradford production is plain growing Bradford production is plain from a study of the figures there were from a study of the figures there were from a study of the figures there were in the oil regions at the close of in the oil regions at the close of in the oil regions at the close of 1877 according to the Oil City Derek 4 1877 according to the Oil City Derek 4 1877 according to the Oil City Derek 4 million barrels of tankage there was on million barrels of tankage there was on million barrels of tankage there was on hand at this time hand at this time hand at this time 3,127 837 barrels of oil but the EMP 3,127 837 barrels of oil but the EMP 3,127 837 barrels of oil but the EMP tankage was in the wrong place in the tankage was in the wrong place in the tankage was in the wrong place in the Bradford field where the daily Bradford field where the daily Bradford field where the daily production had suddenly increased from production had suddenly increased from production had suddenly increased from 2,000 Barrels in January to 2,000 Barrels in January to 2,000 Barrels in January to 8,451 Barrels in December there was only 8,451 Barrels in December there was only 8,451 Barrels in December there was only a little over 200,000 barrels of tankage a little over 200,000 barrels of tankage a little over 200,000 barrels of tankage in order to take care of the oil the in order to take care of the oil the in order to take care of the oil the pipelines began to make nearly all their pipelines began to make nearly all their pipelines began to make nearly all their shipments from that field and oil piled shipments from that field and oil piled shipments from that field and oil piled up in the lower region to the great up in the lower region to the great up in the lower region to the great dissatisfaction of The Producers there dissatisfaction of The Producers there dissatisfaction of The Producers there as soon as as the situation of the as soon as as the situation of the as soon as as the situation of the Bradford field was realized both the Bradford field was realized both the Bradford field was realized both the United pipes and the producers began a United pipes and the producers began a United pipes and the producers began a furious campaign of tank building by the furious campaign of tank building by the furious campaign of tank building by the beginning of April beginning of April beginning of April 1878 the tankage there had been 1878 the tankage there had been 1878 the tankage there had been increased to 1,1 152,246 barrels capacity were built in mcken barrels capacity were built in mcken County the greater number of these

County the greater number of these County the greater number of these belonged to the producers according to belonged to the producers according to belonged to the producers according to the United pipeline statement there was the United pipeline statement there was the United pipeline statement there was under their control in the entire oil under their control in the entire oil under their control in the entire oil regions in October 5 million2 200,000 regions in October 5 million2 200,000 regions in October 5 million2 200,000 barrels of tankage 2/3 of which belonged barrels of tankage 2/3 of which belonged barrels of tankage 2/3 of which belonged to producers but was held by them under to producers but was held by them under to producers but was held by them under aase but oil poured from the ground aase but oil poured from the ground aase but oil poured from the ground faster than tanks could be built in 6 faster than tanks could be built in 6 faster than tanks could be built in 6 months that is by July months that is by July months that is by July 1878 the daily output of Bradford had 1878 the daily output of Bradford had 1878 the daily output of Bradford had become over 18,000 barrels an increase become over 18,000 barrels an increase become over 18,000 barrels an increase of 10,000 barrels a day over that of the of 10,000 barrels a day over that of the of 10,000 barrels a day over that of the previous December that it was a most previous December that it was a most previous December that it was a most difficult situation for everybody is difficult situation for everybody is difficult situation for everybody is evident there was but one way to prevent evident there was but one way to prevent evident there was but one way to prevent loss shut down the wells and stop the loss shut down the wells and stop the loss shut down the wells and stop the drill but this The Producers refused to drill but this The Producers refused to drill but this The Producers refused to consider of course the price of oil went consider of course the price of oil went consider of course the price of oil went down rapidly so far did the production down rapidly so far did the production down rapidly so far did the production exceed consumption but why cried the exceed consumption but why cried the exceed consumption but why cried the producer when oil is already so low take producer when oil is already so low take producer when oil is already so low take advantage of our necessity and force us advantage of our necessity and force us advantage of our necessity and force us into compet competition with each other into compet competition with each other into compet competition with each other why enforce this immediate why enforce this immediate why enforce this immediate shipment they answered their question shipment they answered their question shipment they answered their question themselves and began then to make a themselves and began then to make a themselves and began then to make a charge against the standard which they charge against the standard which they charge against the standard which they continue to make today that is that it continue to make today that is that it continue to make today that is that it habitually meets the extraordinary habitually meets the extraordinary habitually meets the extraordinary expenses to which it is put by expenses to which it is put by expenses to which it is put by depressing the price of crude oil taking depressing the price of crude oil taking depressing the price of crude oil taking it out of the producer the Bradford it out of the producer the Bradford it out of the producer the Bradford region demanded great Investments region demanded great Investments region demanded great Investments therefore immediate shipment the therefore immediate shipment the therefore immediate shipment the producer pays the writer has no

producer pays the writer has no producer pays the writer has no documentary proof that this is Mr documentary proof that this is Mr documentary proof that this is Mr rockefeller's policy but there is no rockefeller's policy but there is no rockefeller's policy but there is no question that the oil region believes it question that the oil region believes it question that the oil region believes it is and this belief must be taken into is and this belief must be taken into is and this belief must be taken into account if one attempts to explain the account if one attempts to explain the account if one attempts to explain the long Warfare of the oil country on him long Warfare of the oil country on him long Warfare of the oil country on him and his company it is a common enough and his company it is a common enough and his company it is a common enough thing today indeed to hear oil producers thing today indeed to hear oil producers thing today indeed to hear oil producers in Northwestern Pennsylvania remark in Northwestern Pennsylvania remark in Northwestern Pennsylvania remark factiously when a new endowment to factiously when a new endowment to factiously when a new endowment to Chicago University is reported yes I Chicago University is reported yes I Chicago University is reported yes I contributed so much on such a day don't contributed so much on such a day don't contributed so much on such a day don't you remember how the market slumped you remember how the market slumped you remember how the market slumped Without a Cause the university needed Without a Cause the university needed Without a Cause the university needed the money and so Mr Rockefeller called the money and so Mr Rockefeller called the money and so Mr Rockefeller called on us to stand to deliver a few months on us to stand to deliver a few months on us to stand to deliver a few months after immediate shipment was begun a new after immediate shipment was begun a new after immediate shipment was begun a new cause for dissatisfaction arose more or cause for dissatisfaction arose more or cause for dissatisfaction arose more or less private tankage leased to the lines less private tankage leased to the lines less private tankage leased to the lines had always been in existence it enabled had always been in existence it enabled had always been in existence it enabled a producer to carry his oil without a producer to carry his oil without a producer to carry his oil without paying storage and of course it was the paying storage and of course it was the paying storage and of course it was the business of the company to empty the business of the company to empty the business of the company to empty the storage within a reasonable time after storage within a reasonable time after storage within a reasonable time after the owner demanded it but in the spring the owner demanded it but in the spring the owner demanded it but in the spring the lines under the same plea of underc the lines under the same plea of underc the lines under the same plea of underc capacity refused to carry out this duty capacity refused to carry out this duty capacity refused to carry out this duty to the tank owner that is they refused to the tank owner that is they refused to the tank owner that is they refused to give him his tankage although he had to give him his tankage although he had to give him his tankage although he had sold his oil thus a owns 5,000 barrels sold his oil thus a owns 5,000 barrels sold his oil thus a owns 5,000 barrels of tankage it is full he sells a of tankage it is full he sells a of tankage it is full he sells a proportion of it to Mr Boswick and ask proportion of it to Mr Boswick and ask proportion of it to Mr Boswick and ask the United pipelines to run the oil the United pipelines to run the oil the United pipelines to run the oil accumulated at his Wells but the United accumulated at his Wells but the United accumulated at his Wells but the United pipelines refuses on the ground that the pipelines refuses on the ground that the pipelines refuses on the ground that the line is full line is full line is full the lost to producers incident upon

the lost to producers incident upon the lost to producers incident upon these orders was terrible all over the these orders was terrible all over the these orders was terrible all over the Bradford field men saw their oil running Bradford field men saw their oil running Bradford field men saw their oil running on the ground though they offered to on the ground though they offered to on the ground though they offered to sell it at ruinous prices and though sell it at ruinous prices and though sell it at ruinous prices and though they might have thousands of barrels of they might have thousands of barrels of they might have thousands of barrels of tankage leased to the United lines yet tankage leased to the United lines yet tankage leased to the United lines yet they did not Riot conscious that their they did not Riot conscious that their they did not Riot conscious that their own Reckless drilling had brought on the own Reckless drilling had brought on the own Reckless drilling had brought on the trouble they cursed the standard and put trouble they cursed the standard and put trouble they cursed the standard and put down more down more down more Wells but in the spring of Wells but in the spring of Wells but in the spring of 1878 Mr Ro Feller and his colleagues 1878 Mr Ro Feller and his colleagues 1878 Mr Ro Feller and his colleagues instituted a series of Maneuvers which instituted a series of Maneuvers which instituted a series of Maneuvers which shattered The Last Remnant of confidence shattered The Last Remnant of confidence shattered The Last Remnant of confidence the oilmen had in the sincerity of their the oilmen had in the sincerity of their the oilmen had in the sincerity of their claim that they were doing their utmost claim that they were doing their utmost claim that they were doing their utmost to relieve the distressed oil regions to relieve the distressed oil regions to relieve the distressed oil regions and that their measures were necessary and that their measures were necessary and that their measures were necessary to hold the producers in check the to hold the producers in check the to hold the producers in check the pipelines began to refuse to load cars pipelines began to refuse to load cars pipelines began to refuse to load cars for the shippers who supplied the few for the shippers who supplied the few for the shippers who supplied the few independent refiners with oil the independent refiners with oil the independent refiners with oil the experiences of many of these independent experiences of many of these independent experiences of many of these independent men have been told before the courts for men have been told before the courts for men have been told before the courts for instance wh Nicholson the representative instance wh Nicholson the representative instance wh Nicholson the representative of Mr Olen of New York a shepher of of Mr Olen of New York a shepher of of Mr Olen of New York a shepher of petroleum testified that in May petroleum testified that in May petroleum testified that in May 1878 he began to have difficulty in 1878 he began to have difficulty in 1878 he began to have difficulty in getting cars at oene one day Mr Olen getting cars at oene one day Mr Olen getting cars at oene one day Mr Olen telegraphed to the officials of the telegraphed to the officials of the telegraphed to the officials of the Eerie Road to know if he could get 100 Eerie Road to know if he could get 100 Eerie Road to know if he could get 100 cars to run east the reply came back yes cars to run east the reply came back yes cars to run east the reply came back yes about noon Mr Nicholson says he saw Mr about noon Mr Nicholson says he saw Mr about noon Mr Nicholson says he saw Mr OD day the manager of the United OD day the manager of the United OD day the manager of the United pipelines in which his oil was stored pipelines in which his oil was stored pipelines in which his oil was stored and told him that he was waiting to have and told him that he was waiting to have and told him that he was waiting to have his cars loaded Mr day at once said he

his cars loaded Mr day at once said he his cars loaded Mr day at once said he could not load the cars but I have an could not load the cars but I have an could not load the cars but I have an order from the Erie officials giving me order from the Erie officials giving me order from the Erie officials giving me the cars Mr Nicholson objected that the cars Mr Nicholson objected that the cars Mr Nicholson objected that makes no difference OD day replied I makes no difference OD day replied I makes no difference OD day replied I cannot load cars except upon an order cannot load cars except upon an order cannot load cars except upon an order from Pratt nor would he do it the cars from Pratt nor would he do it the cars from Pratt nor would he do it the cars were not loaded for Mr Nicholson were not loaded for Mr Nicholson were not loaded for Mr Nicholson although at that time he had 10,000 although at that time he had 10,000 although at that time he had 10,000 barrels of oil in the united pipelines barrels of oil in the united pipelines barrels of oil in the united pipelines and an order for 100 cars from the and an order for 100 cars from the and an order for 100 cars from the officials of the Eerie Road in his hand officials of the Eerie Road in his hand officials of the Eerie Road in his hand BB Campbell at that time president of BB Campbell at that time president of BB Campbell at that time president of The Producers Union gave his experience The Producers Union gave his experience The Producers Union gave his experience at this time in the suit of the at this time in the suit of the at this time in the suit of the Commonwealth against the Pennsylvania Commonwealth against the Pennsylvania Commonwealth against the Pennsylvania Railroad I never heard of a scarcity of Railroad I never heard of a scarcity of Railroad I never heard of a scarcity of cars until the early part of June cars until the early part of June cars until the early part of June 1878 I came to Parker about 5:00 in the 1878 I came to Parker about 5:00 in the 1878 I came to Parker about 5:00 in the evening and found the citizens in a evening and found the citizens in a evening and found the citizens in a state of terrible excitement the state of terrible excitement the state of terrible excitement the pipelines would not run oil unless it pipelines would not run oil unless it pipelines would not run oil unless it was sold the only shippers we had in was sold the only shippers we had in was sold the only shippers we had in Parker of any amount is the Agents of Parker of any amount is the Agents of Parker of any amount is the Agents of the Standard Oil Company would not buy the Standard Oil Company would not buy the Standard Oil Company would not buy oil stating that they could not get cars oil stating that they could not get cars oil stating that they could not get cars hundreds of Wells were stopped to their hundreds of Wells were stopped to their hundreds of Wells were stopped to their great injury thousands more whose owners great injury thousands more whose owners great injury thousands more whose owners were afraid to stop them for fear of were afraid to stop them for fear of were afraid to stop them for fear of damage by saltwater were pumping the oil damage by saltwater were pumping the oil damage by saltwater were pumping the oil on the ground I used all the influence I on the ground I used all the influence I on the ground I used all the influence I had to prevent an outbreak and had to prevent an outbreak and had to prevent an outbreak and destruction of railroad and pipelines I destruction of railroad and pipelines I destruction of railroad and pipelines I at once went over to the alagan Valley at once went over to the alagan Valley at once went over to the alagan Valley Railroad office and telegraphed to John Railroad office and telegraphed to John Railroad office and telegraphed to John Scott president of the alagan Valley Scott president of the alagan Valley Scott president of the alagan Valley Railroad Company Railroad Company Railroad Company the refusal of the United to run oil the refusal of the United to run oil the refusal of the United to run oil unless sold upon immediate shipment and

unless sold upon immediate shipment and unless sold upon immediate shipment and of the railroad to furnish cars had of the railroad to furnish cars had of the railroad to furnish cars had created such a degree of excitement here created such a degree of excitement here created such a degree of excitement here that the more conservative part of the that the more conservative part of the that the more conservative part of the citizens will not be able to control the citizens will not be able to control the citizens will not be able to control the peace and I fear that the scenes of last peace and I fear that the scenes of last peace and I fear that the scenes of last July will be repeated on an aggravated July will be repeated on an aggravated July will be repeated on an aggravated scale that message I left in the office scale that message I left in the office scale that message I left in the office about 7:00 in the evening I got up the about 7:00 in the evening I got up the about 7:00 in the evening I got up the next morning before 7 and received an next morning before 7 and received an next morning before 7 and received an answer what would you advise should be answer what would you advise should be answer what would you advise should be done John Scott I answered will you meet done John Scott I answered will you meet done John Scott I answered will you meet tomorrow morning which would be Saturday tomorrow morning which would be Saturday tomorrow morning which would be Saturday on Saturday morning I came in on an on Saturday morning I came in on an on Saturday morning I came in on an early train and met at the Depot Mr Shin early train and met at the Depot Mr Shin early train and met at the Depot Mr Shin then I believe vice president of the then I believe vice president of the then I believe vice president of the alagen Valley Railroad Company David a alagen Valley Railroad Company David a alagen Valley Railroad Company David a Stewart one of the directors of the road Stewart one of the directors of the road Stewart one of the directors of the road and Thomas M King assistant and Thomas M King assistant and Thomas M King assistant superintendent I spoke very plainly to superintendent I spoke very plainly to superintendent I spoke very plainly to Mr Shin telling him that the idea of a Mr Shin telling him that the idea of a Mr Shin telling him that the idea of a scarcity of cars on daily shipments of scarcity of cars on daily shipments of scarcity of cars on daily shipments of less than 30,000 barrels a day was such less than 30,000 barrels a day was such less than 30,000 barrels a day was such an absurd bareface pretense that he an absurd bareface pretense that he an absurd bareface pretense that he could not expect men of ordinary could not expect men of ordinary could not expect men of ordinary intelligence to accept it as the intelligence to accept it as the intelligence to accept it as the preceding fall when business required preceding fall when business required preceding fall when business required the railroads could carry day after day the railroads could carry day after day the railroads could carry day after day from 50,000 to 60,000 barrels of oil Mr from 50,000 to 60,000 barrels of oil Mr from 50,000 to 60,000 barrels of oil Mr Shin stated clearly that I knew that the Shin stated clearly that I knew that the Shin stated clearly that I knew that the alagan Valley railroad company did not alagan Valley railroad company did not alagan Valley railroad company did not control the oil business over its line control the oil business over its line control the oil business over its line but was governed entirely and but was governed entirely and but was governed entirely and exclusively by orders received from the exclusively by orders received from the exclusively by orders received from the Pennsylvania Railroad Company I then Pennsylvania Railroad Company I then Pennsylvania Railroad Company I then requested him to be the vehicle of requested him to be the vehicle of requested him to be the vehicle of communicating to the Pennsylvania communicating to the Pennsylvania communicating to the Pennsylvania Railroad officials my views on the Railroad officials my views on the Railroad officials my views on the subject telling him that I was convinced

subject telling him that I was convinced subject telling him that I was convinced that unless immediate relief was that unless immediate relief was that unless immediate relief was furnished and cars afforded there would furnished and cars afforded there would furnished and cars afforded there would be an outbreak in the oil regions after be an outbreak in the oil regions after be an outbreak in the oil regions after further conversation we parted my further conversation we parted my further conversation we parted my interview with them was not as officials interview with them was not as officials interview with them was not as officials of the alagan Valley railroad company of the alagan Valley railroad company of the alagan Valley railroad company but as representatives of the oil but as representatives of the oil but as representatives of the oil traffic carried and controlled by the traffic carried and controlled by the traffic carried and controlled by the Pennsylvania Road on the next Monday I Pennsylvania Road on the next Monday I Pennsylvania Road on the next Monday I returned to Parker after passing Red returned to Parker after passing Red returned to Parker after passing Red Bank where the low grade Road the Bank where the low grade Road the Bank where the low grade Road the connecting link between the Valley Road connecting link between the Valley Road connecting link between the Valley Road and the Philadelphia and Eerie Road and the Philadelphia and Eerie Road and the Philadelphia and Eerie Road meets the Valley Road between that point meets the Valley Road between that point meets the Valley Road between that point in Parker the express train was delayed in Parker the express train was delayed in Parker the express train was delayed for over half an hour in passing through for over half an hour in passing through for over half an hour in passing through hundreds of empty oil cars in June hundreds of empty oil cars in June hundreds of empty oil cars in June another exasperating episode occurred another exasperating episode occurred another exasperating episode occurred growing out of the attempts of the growing out of the attempts of the growing out of the attempts of the oilman to secure independent routes to oilman to secure independent routes to oilman to secure independent routes to the Seaboard as we have seen two the Seaboard as we have seen two the Seaboard as we have seen two Enterprises had been launched late in Enterprises had been launched late in Enterprises had been launched late in 1877 under the the patronage of the 1877 under the the patronage of the 1877 under the the patronage of the petroleum producers Union as soon as the petroleum producers Union as soon as the petroleum producers Union as soon as the Equitable had acquired its right away to Equitable had acquired its right away to Equitable had acquired its right away to Buffalo Mr emry the head of the company Buffalo Mr emry the head of the company Buffalo Mr emry the head of the company his papers in hand sought an interview his papers in hand sought an interview his papers in hand sought an interview with representatives of the Buffalo and with representatives of the Buffalo and with representatives of the Buffalo and mcken Road and told them if they did not mcken Road and told them if they did not mcken Road and told them if they did not consent that the Equitable lay a consent that the Equitable lay a consent that the Equitable lay a pipeline to the road and did not pipeline to the road and did not pipeline to the road and did not contract to carry the oil from that contract to carry the oil from that contract to carry the oil from that connection to Buffalo the pipeline to connection to Buffalo the pipeline to connection to Buffalo the pipeline to Buffalo would be laid after considerable Buffalo would be laid after considerable Buffalo would be laid after considerable negotiation a contractor was made with negotiation a contractor was made with negotiation a contractor was made with the railroad and by June the new company the railroad and by June the new company the railroad and by June the new company was ready with pipeline cars and barges was ready with pipeline cars and barges was ready with pipeline cars and barges to carry oil to New York but no sooner

to carry oil to New York but no sooner to carry oil to New York but no sooner did they attempt to begin operations did they attempt to begin operations did they attempt to begin operations than the railroad under pressure from than the railroad under pressure from than the railroad under pressure from the Pennsylvania Railroad it was claimed the Pennsylvania Railroad it was claimed the Pennsylvania Railroad it was claimed refused to carry out its contracts the refused to carry out its contracts the refused to carry out its contracts the cars the Equitable order sent to the cars the Equitable order sent to the cars the Equitable order sent to the Loading track were refused A Sidetrack Loading track were refused A Sidetrack Loading track were refused A Sidetrack it had laid was torn up the Frog torn it had laid was torn up the Frog torn it had laid was torn up the Frog torn out everything indeed was done to out everything indeed was done to out everything indeed was done to prevent the Equitable doing business prevent the Equitable doing business prevent the Equitable doing business though finally a vigorous appeal to the though finally a vigorous appeal to the though finally a vigorous appeal to the law brought the road to terms and in law brought the road to terms and in law brought the road to terms and in July oil began to flow Eastward by this July oil began to flow Eastward by this July oil began to flow Eastward by this indirect route no sooner did the indirect route no sooner did the indirect route no sooner did the standard find that the Equitable people standard find that the Equitable people standard find that the Equitable people were really doing business than they were really doing business than they were really doing business than they appealed to the railroads a meeting of appealed to the railroads a meeting of appealed to the railroads a meeting of the representatives of the trunk lines the representatives of the trunk lines the representatives of the trunk lines was held in Saratoga in July and the was held in Saratoga in July and the was held in Saratoga in July and the rates on crewed Eastward were dropped to rates on crewed Eastward were dropped to rates on crewed Eastward were dropped to 80 cents to meet the new competition 80 cents to meet the new competition 80 cents to meet the new competition while this fight was going on against while this fight was going on against while this fight was going on against the Equitable all sorts of interference the Equitable all sorts of interference the Equitable all sorts of interference were being put in the way of the were being put in the way of the were being put in the way of the Seaboard line between Brady's Ben and Seaboard line between Brady's Ben and Seaboard line between Brady's Ben and Baltimore it was ridiculed as chimerical Baltimore it was ridiculed as chimerical Baltimore it was ridiculed as chimerical to attempt to pump oil over the to attempt to pump oil over the to attempt to pump oil over the mountains and general Hal was declared mountains and general Hal was declared mountains and general Hal was declared to be a Visionary engineer with a record to be a Visionary engineer with a record to be a Visionary engineer with a record of failures all the old stories retailed of failures all the old stories retailed of failures all the old stories retailed in in in 1876 were dragged out again the farmers 1876 were dragged out again the farmers 1876 were dragged out again the farmers were told that the leakage from the were told that the leakage from the were told that the leakage from the pipeline would ruin their fields and pipeline would ruin their fields and pipeline would ruin their fields and endanger their buildings and an active endanger their buildings and an active endanger their buildings and an active campaign to excite Prejudice was carried campaign to excite Prejudice was carried campaign to excite Prejudice was carried on again in the farmers papers on again in the farmers papers on again in the farmers papers Philadelphia and Pittsburgh both fought Philadelphia and Pittsburgh both fought Philadelphia and Pittsburgh both fought the plan the press and Chambers of the plan the press and Chambers of the plan the press and Chambers of Commerce opposing the free pipe bill at Commerce opposing the free pipe bill at Commerce opposing the free pipe bill at that time before the legislature and the that time before the legislature and the that time before the legislature and the project generally in Pittsburgh the

project generally in Pittsburgh the project generally in Pittsburgh the opposition created almost a riot for the opposition created almost a riot for the opposition created almost a riot for the oil producers of the lower field who had oil producers of the lower field who had oil producers of the lower field who had long bought their supplies there now long bought their supplies there now long bought their supplies there now threatened to boycott the city if the threatened to boycott the city if the threatened to boycott the city if the pipeline was fought so strong was the pipeline was fought so strong was the pipeline was fought so strong was the opposition that Capital took fright and opposition that Capital took fright and opposition that Capital took fright and the company found it most difficult to the company found it most difficult to the company found it most difficult to secure funds secure funds secure funds this opposition to the pipeline was of this opposition to the pipeline was of this opposition to the pipeline was of course charged against the standard and course charged against the standard and course charged against the standard and the Pennsylvania the Pennsylvania the Pennsylvania Railroad now while the railroads were Railroad now while the railroads were Railroad now while the railroads were refusing cars to Independent shippers or refusing cars to Independent shippers or refusing cars to Independent shippers or if they gave an order for them the if they gave an order for them the if they gave an order for them the United pipelines were refusing to load United pipelines were refusing to load United pipelines were refusing to load them while the standard and the them while the standard and the them while the standard and the railroads were doing their utmost to railroads were doing their utmost to railroads were doing their utmost to prevent the Equitable line doing prevent the Equitable line doing prevent the Equitable line doing business and were discouraging in every business and were discouraging in every business and were discouraging in every way the Seaboard pipeline new routes way the Seaboard pipeline new routes way the Seaboard pipeline new routes which would take care of a proportion at which would take care of a proportion at which would take care of a proportion at least of the oil which they claimed they least of the oil which they claimed they least of the oil which they claimed they could not handle could not handle could not handle thousands of barrels of oil were running thousands of barrels of oil were running thousands of barrels of oil were running on the ground in Bradford and two of the on the ground in Bradford and two of the on the ground in Bradford and two of the independent refineries of New York shut independent refineries of New York shut independent refineries of New York shut down entirely in order that a third of down entirely in order that a third of down entirely in order that a third of their number might get oil enough to their number might get oil enough to their number might get oil enough to fill an order this interference with the fill an order this interference with the fill an order this interference with the outside interest thus preventing the outside interest thus preventing the outside interest thus preventing the small degree of relief which they would small degree of relief which they would small degree of relief which they would have afforded and a growing conviction have afforded and a growing conviction have afforded and a growing conviction that the standard meant to keep up the that the standard meant to keep up the that the standard meant to keep up the immediate shipment order at least until immediate shipment order at least until immediate shipment order at least until it had built the pipes and tanks needed it had built the pipes and tanks needed it had built the pipes and tanks needed in the Bradford field finally AR the in the Bradford field finally AR the in the Bradford field finally AR the region to a point where Riot was region to a point where Riot was region to a point where Riot was imminent the long line of producers imminent the long line of producers imminent the long line of producers which filed into the United pipelines which filed into the United pipelines which filed into the United pipelines office day after day to sell their oil office day after day to sell their oil office day after day to sell their oil at whatever prices they could get for it

at whatever prices they could get for it at whatever prices they could get for it and who having put in an offer which and who having put in an offer which and who having put in an offer which vared according to their Necessities vared according to their Necessities vared according to their Necessities were usually told to come back in 10 were usually told to come back in 10 were usually told to come back in 10 days and the buyer would see whether he days and the buyer would see whether he days and the buyer would see whether he wanted it or not this long line of men wanted it or not this long line of men wanted it or not this long line of men began to talk of Revolution crowds began to talk of Revolution crowds began to talk of Revolution crowds gathered about the offices of the gathered about the offices of the gathered about the offices of the standard threatening and Jer ing standard threatening and Jer ing standard threatening and Jer ing mysterious things crossbones and death mysterious things crossbones and death mysterious things crossbones and death heads were found plentifully sprinkled heads were found plentifully sprinkled heads were found plentifully sprinkled on the buildings owned by the standard on the buildings owned by the standard on the buildings owned by the standard interest more than once the Slumber of interest more than once the Slumber of interest more than once the Slumber of the oil towns was disturbed by marching the oil towns was disturbed by marching the oil towns was disturbed by marching bodies of men it was certain that a bodies of men it was certain that a bodies of men it was certain that a species of clu clux had hold of the species of clu clux had hold of the species of clu clux had hold of the Bradford region and that a very little Bradford region and that a very little Bradford region and that a very little spark was needed to touch off the United spark was needed to touch off the United spark was needed to touch off the United pipelines in the meantime things were pipelines in the meantime things were pipelines in the meantime things were scarcely less exciting in the lower scarcely less exciting in the lower scarcely less exciting in the lower Fields the immediate shipment order was Fields the immediate shipment order was Fields the immediate shipment order was looked H there as particularly looked H there as particularly looked H there as particularly outrageous because there was no lack of outrageous because there was no lack of outrageous because there was no lack of lines or tanks in that field and when in lines or tanks in that field and when in lines or tanks in that field and when in the summer of 1878 there was added to the summer of 1878 there was added to the summer of 1878 there was added to this cause an unjustifiable scarcity of this cause an unjustifiable scarcity of this cause an unjustifiable scarcity of cars excitement Rose to Fever heat and cars excitement Rose to Fever heat and cars excitement Rose to Fever heat and of chapter 7 part one recording by Tom of chapter 7 part one recording by Tom of chapter 7 part one recording by Tom Weiss Tom's audiobooks.com chapter 7 part two of the history of chapter 7 part two of the history of Standard Oil volume 1 by Ida Tarbell Standard Oil volume 1 by Ida Tarbell Standard Oil volume 1 by Ida Tarbell recording by Tom

recording by Tom recording by Tom Weiss the crisis of Weiss the crisis of Weiss the crisis of 1878 the only thing which prevented a 1878 the only thing which prevented a 1878 the only thing which prevented a riot at this time and great destruction riot at this time and great destruction riot at this time and great destruction of property if not of life was the of property if not of life was the of property if not of life was the strong hand the petroleum producers strong hand the petroleum producers strong hand the petroleum producers Union had on the country fearing that if Union had on the country fearing that if Union had on the country fearing that if violence did occur the different violence did occur the different violence did occur the different movements they had underway would be movements they had underway would be movements they had underway would be prejudiced they sent a committee of 25 prejudiced they sent a committee of 25 prejudiced they sent a committee of 25 men to Harrisburg to see Governor hard men to Harrisburg to see Governor hard men to Harrisburg to see Governor hard they laid before him and the they laid before him and the they laid before him and the Attorney General of the state the Attorney General of the state the Attorney General of the state the grievance of the oil producers in an grievance of the oil producers in an grievance of the oil producers in an appeal reviewing the history of the appeal reviewing the history of the appeal reviewing the history of the industry they demanded that the United industry they demanded that the United industry they demanded that the United pipelines be made to perform its Duty as pipelines be made to perform its Duty as pipelines be made to perform its Duty as a public carrier and the railroads be a public carrier and the railroads be a public carrier and the railroads be made to cease their discrimination made to cease their discrimination made to cease their discrimination against shippers both in the matter of against shippers both in the matter of against shippers both in the matter of rebates and in Furnishing cars they rebates and in Furnishing cars they rebates and in Furnishing cars they called the the governor's attention to called the the governor's attention to called the the governor's attention to the fact that there were already the fact that there were already the fact that there were already existing laws touching these matters existing laws touching these matters existing laws touching these matters which in their judgment met the case and which in their judgment met the case and which in their judgment met the case and if the existing laws did not give them if the existing laws did not give them if the existing laws did not give them relief that it was the plain duty of the relief that it was the plain duty of the relief that it was the plain duty of the executive to call a meeting of the executive to call a meeting of the executive to call a meeting of the legislature and pass such acts as would legislature and pass such acts as would legislature and pass such acts as would do so Governor Harr was much stirred by do so Governor Harr was much stirred by do so Governor Harr was much stirred by the story of The Producers he went the story of The Producers he went the story of The Producers he went himself to the oil regions to see the himself to the oil regions to see the himself to the oil regions to see the situation and in August directed The situation and in August directed The situation and in August directed The Producers to put their demands into the Producers to put their demands into the Producers to put their demands into the form of an appeal this was done and it form of an appeal this was done and it form of an appeal this was done and it was decided to bring proceedings by writ was decided to bring proceedings by writ was decided to bring proceedings by writ of quaranto against the United pipelines of quaranto against the United pipelines of quaranto against the United pipelines and by separate bills in equity against and by separate bills in equity against and by separate bills in equity against the Pennsylvania Railroad and the other the Pennsylvania Railroad and the other the Pennsylvania Railroad and the other lines doing business in the state it was

lines doing business in the state it was lines doing business in the state it was September before the state authorities September before the state authorities September before the state authorities began their investigation of the United began their investigation of the United began their investigation of the United pipelines the hearings being held in pipelines the hearings being held in pipelines the hearings being held in Titusville many witnesses summoned Titusville many witnesses summoned Titusville many witnesses summoned failed to appear but enough testimony failed to appear but enough testimony failed to appear but enough testimony was brought out in this investigation to was brought out in this investigation to was brought out in this investigation to show that the railroads had refused to show that the railroads had refused to show that the railroads had refused to furnish cars for Independence when they furnish cars for Independence when they furnish cars for Independence when they had them empty and that the United had them empty and that the United had them empty and that the United pipelines had clearly violated its Duty pipelines had clearly violated its Duty pipelines had clearly violated its Duty as a common carrier in his report on as a common carrier in his report on as a common carrier in his report on this investigation the Secretary of this investigation the Secretary of this investigation the Secretary of internal affairs William McCanless internal affairs William McCanless internal affairs William McCanless rendered a verdict that the charges of rendered a verdict that the charges of rendered a verdict that the charges of the oil producers had not been the oil producers had not been the oil producers had not been substantiated in any way that demanded substantiated in any way that demanded substantiated in any way that demanded action the indignation which followed action the indignation which followed action the indignation which followed this report was intense it found aent in this report was intense it found aent in this report was intense it found aent in hanging an effigy of mandas who was hanging an effigy of mandas who was hanging an effigy of mandas who was universally known in the state as buck universally known in the state as buck universally known in the state as buck in the oil exchange at Parker of the in the oil exchange at Parker of the in the oil exchange at Parker of the morning of October 19 the figure of a morning of October 19 the figure of a morning of October 19 the figure of a man was found hanged by the neck to a man was found hanged by the neck to a man was found hanged by the neck to a Gallows and the producers left it Gallows and the producers left it Gallows and the producers left it hanging there all day so that they might hanging there all day so that they might hanging there all day so that they might jeer and curse it across the forehead of jeer and curse it across the forehead of jeer and curse it across the forehead of the epige in large blood red letters the epige in large blood red letters the epige in large blood red letters were the words Pennsylvania Railroad were the words Pennsylvania Railroad were the words Pennsylvania Railroad pinned to The Gallows there was a card pinned to The Gallows there was a card pinned to The Gallows there was a card bearing a quotation from secretary bearing a quotation from secretary bearing a quotation from secretary mccandless's report the charges of the mccandless's report the charges of the mccandless's report the charges of the oil producers have not been oil producers have not been oil producers have not been substantiated in any way that demands substantiated in any way that demands substantiated in any way that demands action in Bradford a huge Effigy hung in action in Bradford a huge Effigy hung in action in Bradford a huge Effigy hung in the streets all day and in the village the streets all day and in the village the streets all day and in the village of tarport nearby another swayed on The

of tarport nearby another swayed on The of tarport nearby another swayed on The Gallows they pulled down the Effigy at Gallows they pulled down the Effigy at Gallows they pulled down the Effigy at Bradford and Drew from a pocket what Bradford and Drew from a pocket what Bradford and Drew from a pocket what reported to be a check signed by John D reported to be a check signed by John D reported to be a check signed by John D Rockefeller president of the Standard Rockefeller president of the Standard Rockefeller president of the Standard Oil Company in favor of buck mcandless Oil Company in favor of buck mcandless Oil Company in favor of buck mcandless for $20,000 for $20,000 for $20,000 and endorsed by the Pennsylvania and endorsed by the Pennsylvania and endorsed by the Pennsylvania Railroad company that represented the Railroad company that represented the Railroad company that represented the price they said that mandas got for price they said that mandas got for price they said that mandas got for signing the report throughout the oil signing the report throughout the oil signing the report throughout the oil country there was hardly an oil producer country there was hardly an oil producer country there was hardly an oil producer to be found not associated with a to be found not associated with a to be found not associated with a Standard Oil Company who did not believe Standard Oil Company who did not believe Standard Oil Company who did not believe that MCAS had sold himself and his that MCAS had sold himself and his that MCAS had sold himself and his office to the standard oil combination office to the standard oil combination office to the standard oil combination for for for $20,000 and used the money to help in $20,000 and used the money to help in $20,000 and used the money to help in his Congressional canvas the excitement his Congressional canvas the excitement his Congressional canvas the excitement in the oil regions spread all over the in the oil regions spread all over the in the oil regions spread all over the country something of the importance the country something of the importance the country something of the importance the Press attached to it may be judged from Press attached to it may be judged from Press attached to it may be judged from the way the New York son handled the the way the New York son handled the the way the New York son handled the question for 6 weeks it kept one of the question for 6 weeks it kept one of the question for 6 weeks it kept one of the ablest members of its staff in the oil ablest members of its staff in the oil ablest members of its staff in the oil regions six Columns of the first page of regions six Columns of the first page of regions six Columns of the first page of the issue for November 13 was taken up the issue for November 13 was taken up the issue for November 13 was taken up with the story of the excitement coupled with the story of the excitement coupled with the story of the excitement coupled with the full account of the South with the full account of the South with the full account of the South improvement company and a development of improvement company and a development of improvement company and a development of the Standard Oil company out of that the Standard Oil company out of that the Standard Oil company out of that concern on November 23 the first page concern on November 23 the first page concern on November 23 the first page contained four columns more under contained four columns more under contained four columns more under blazing headlines early in blazing headlines early in blazing headlines early in 1879 the hearing of the suits in equity 1879 the hearing of the suits in equity 1879 the hearing of the suits in equity brought by the Commonwealth against the brought by the Commonwealth against the brought by the Commonwealth against the various Transportation companies of various Transportation companies of various Transportation companies of which The Producers had been complaining which The Producers had been complaining which The Producers had been complaining were begun the witnesses subpoena failed

were begun the witnesses subpoena failed were begun the witnesses subpoena failed at first to appear and when on the stand at first to appear and when on the stand at first to appear and when on the stand they frequently refused to reply but it they frequently refused to reply but it they frequently refused to reply but it soon became apparent to them that the soon became apparent to them that the soon became apparent to them that the state authorities were in Earnest and state authorities were in Earnest and state authorities were in Earnest and that they must answer or go to Europe by that they must answer or go to Europe by that they must answer or go to Europe by March March March 1879 an important array of testimony had 1879 an important array of testimony had 1879 an important array of testimony had been brought Out Among the standard men been brought Out Among the standard men been brought Out Among the standard men who had appeared had been John D archal who had appeared had been John D archal who had appeared had been John D archal William Fu Charles lockart and JJ William Fu Charles lockart and JJ William Fu Charles lockart and JJ Vandergriff a score or more of producers Vandergriff a score or more of producers Vandergriff a score or more of producers also appeared the most important witness also appeared the most important witness also appeared the most important witness from the railroad circles and indeed the from the railroad circles and indeed the from the railroad circles and indeed the most important witness who appeared was most important witness who appeared was most important witness who appeared was AJ casset Mr cass's testimony was AJ casset Mr cass's testimony was AJ casset Mr cass's testimony was startling in its Tander and its startling in its Tander and its startling in its Tander and its completeness and substantiated in every completeness and substantiated in every completeness and substantiated in every particular what the oilmen had been particular what the oilmen had been particular what the oilmen had been claiming that the Pennsylvania Railroad claiming that the Pennsylvania Railroad claiming that the Pennsylvania Railroad had become the creature of the Standard had become the creature of the Standard had become the creature of the Standard Oil company that it was not only giving Oil company that it was not only giving Oil company that it was not only giving that company rates much lower than to that company rates much lower than to that company rates much lower than to any other organization but that it was any other organization but that it was any other organization but that it was using its facilities with a direct view using its facilities with a direct view using its facilities with a direct view of preventing any outside refiner or of preventing any outside refiner or of preventing any outside refiner or dealer in oil from carrying on an dealer in oil from carrying on an dealer in oil from carrying on an independent business the same or similar independent business the same or similar independent business the same or similar conditions not only in oil but in other conditions not only in oil but in other conditions not only in oil but in other products which led to these suits led to products which led to these suits led to products which led to these suits led to investigations in other states toward investigations in other states toward investigations in other states toward the end of 1878 the Chamber of Commerce the end of 1878 the Chamber of Commerce the end of 1878 the Chamber of Commerce of New York City demanded from the of New York City demanded from the of New York City demanded from the legislature of the state an legislature of the state an legislature of the state an investigation of the New York investigation of the New York investigation of the New York railroads this investigation was carried railroads this investigation was carried railroads this investigation was carried on from the beginning of

on from the beginning of on from the beginning of 1879 the revelations were amazing before 1879 the revelations were amazing before 1879 the revelations were amazing before the heurn commission as it was called the heurn commission as it was called the heurn commission as it was called from the name of the chairman was from the name of the chairman was from the name of the chairman was through with its work there had appeared through with its work there had appeared through with its work there had appeared before it to of testimony in regard to before it to of testimony in regard to before it to of testimony in regard to the conduct of the Standard Oil company the conduct of the Standard Oil company the conduct of the Standard Oil company and of the relation of the Erie and the and of the relation of the Erie and the and of the relation of the Erie and the central roads to it HH Rogers JD central roads to it HH Rogers JD central roads to it HH Rogers JD archbald yabz a Boswick and WT shidy a archbald yabz a Boswick and WT shidy a archbald yabz a Boswick and WT shidy a large number of independent oil men had large number of independent oil men had large number of independent oil men had also appeared William H Vanderbilt had also appeared William H Vanderbilt had also appeared William H Vanderbilt had been examined and GH Blanchard the been examined and GH Blanchard the been examined and GH Blanchard the freight agent of the Eerie Road had freight agent of the Eerie Road had freight agent of the Eerie Road had given a full account of the relation of given a full account of the relation of given a full account of the relation of the eie to the standard perhaps the most the eie to the standard perhaps the most the eie to the standard perhaps the most useful piece of testimony after that of useful piece of testimony after that of useful piece of testimony after that of Mr casset belonging to this period of Mr casset belonging to this period of Mr casset belonging to this period of the standards the standards the standards history at the same time that the history at the same time that the history at the same time that the Pennsylvania suits were going on and the Pennsylvania suits were going on and the Pennsylvania suits were going on and the heurn commission was doing its work the heurn commission was doing its work the heurn commission was doing its work the legislature of Ohio instituted an legislature of Ohio instituted an legislature of Ohio instituted an investigation it was commonly charged investigation it was commonly charged investigation it was commonly charged that this investigation was smothered that this investigation was smothered that this investigation was smothered but it was not smothered until hm but it was not smothered until hm but it was not smothered until hm Flagler had appeared before it and given Flagler had appeared before it and given Flagler had appeared before it and given some most interesting facts concerning some most interesting facts concerning some most interesting facts concerning rebates a number of gentlemen who were rebates a number of gentlemen who were rebates a number of gentlemen who were finding it hard to do Oil Business also finding it hard to do Oil Business also finding it hard to do Oil Business also appeared before the Ohio committee and appeared before the Ohio committee and appeared before the Ohio committee and told their stories by April told their stories by April told their stories by April 1879 there had been brought out in these 1879 there had been brought out in these 1879 there had been brought out in these various investigations a massive various investigations a massive various investigations a massive testimony sufficient in the Judgment of testimony sufficient in the Judgment of testimony sufficient in the Judgment of certain of The Producers to establish certain of The Producers to establish certain of The Producers to establish the truth of a charge which they had the truth of a charge which they had the truth of a charge which they had long been making and that was that the

long been making and that was that the long been making and that was that the standard was simply a Revival of the standard was simply a Revival of the standard was simply a Revival of the South improvement South improvement South improvement company now the verdict of the company now the verdict of the company now the verdict of the Congressional committee had been that Congressional committee had been that Congressional committee had been that the South improvement company was was a the South improvement company was was a the South improvement company was was a conspiracy therefore said the producers conspiracy therefore said the producers conspiracy therefore said the producers the Standard Oil company is a the Standard Oil company is a the Standard Oil company is a conspiracy their hope had been from the conspiracy their hope had been from the conspiracy their hope had been from the first to obtain proof to establish this first to obtain proof to establish this first to obtain proof to establish this charge having this they believed they charge having this they believed they charge having this they believed they could obtain judgment from the courts could obtain judgment from the courts could obtain judgment from the courts against the officials of the company and against the officials of the company and against the officials of the company and either break it up or put its members in either break it up or put its members in either break it up or put its members in the the the penitentiary the more hot-headed of the penitentiary the more hot-headed of the penitentiary the more hot-headed of the producers believe they now had this producers believe they now had this producers believe they now had this evidence if one will examine the evidence if one will examine the evidence if one will examine the testimony which had been given thus far testimony which had been given thus far testimony which had been given thus far in the course of the various in the course of the various in the course of the various examinations one will see that there was examinations one will see that there was examinations one will see that there was reason for their belief in the first reason for their belief in the first reason for their belief in the first place it had been established that all place it had been established that all place it had been established that all the stockholders of the South the stockholders of the South the stockholders of the South improvement company excepting four were improvement company excepting four were improvement company excepting four were now members of the Standard Oil now members of the Standard Oil now members of the Standard Oil combination indeed the only persons combination indeed the only persons combination indeed the only persons holding High positions in the new holding High positions in the new holding High positions in the new combination at this state who were not combination at this state who were not combination at this state who were not South improvement company men were South improvement company men were South improvement company men were Charles Bratt JJ Vandergriff HH Rogers Charles Bratt JJ Vandergriff HH Rogers Charles Bratt JJ Vandergriff HH Rogers and John D archal the South improvement and John D archal the South improvement and John D archal the South improvement company had been a secret organization company had been a secret organization company had been a secret organization so was the new standard Alliance that is so was the new standard Alliance that is so was the new standard Alliance that is the most strenuous efforts had been made the most strenuous efforts had been made the most strenuous efforts had been made to keep it secret for instance the sale to keep it secret for instance the sale to keep it secret for instance the sale of the works of lockart Warden and Pratt of the works of lockart Warden and Pratt of the works of lockart Warden and Pratt to the standard was kept from the public to the standard was kept from the public to the standard was kept from the public indeed it was a year after these sales indeed it was a year after these sales indeed it was a year after these sales before even the Eerie Railroad knew that

before even the Eerie Railroad knew that before even the Eerie Railroad knew that Mr Rockefeller had any affiliations Mr Rockefeller had any affiliations Mr Rockefeller had any affiliations besides those with pratton company and besides those with pratton company and besides those with pratton company and it made its contracts with him on this it made its contracts with him on this it made its contracts with him on this assumption when purchases of refineries assumption when purchases of refineries assumption when purchases of refineries were made it was the custom to continue were made it was the custom to continue were made it was the custom to continue the business under the name of the the business under the name of the the business under the name of the original concern thus when Mrs B of original concern thus when Mrs B of original concern thus when Mrs B of Cleveland sold in 1878 as recounted in Cleveland sold in 1878 as recounted in Cleveland sold in 1878 as recounted in the last chapter the person selling were the last chapter the person selling were the last chapter the person selling were obliged to keep the sale secret even obliged to keep the sale secret even obliged to keep the sale secret even from the employees of the concern the from the employees of the concern the from the employees of the concern the understanding was with regard to the understanding was with regard to the understanding was with regard to the sale of the property to the Standard Oil sale of the property to the Standard Oil sale of the property to the Standard Oil company said the shipping clerk in his company said the shipping clerk in his company said the shipping clerk in his affidavit that it should not be known affidavit that it should not be known affidavit that it should not be known outside of their own parties that it was outside of their own parties that it was outside of their own parties that it was to be kept a profound secret and that to be kept a profound secret and that to be kept a profound secret and that the business was to be carried on as if the business was to be carried on as if the business was to be carried on as if the B oil company was still a the B oil company was still a the B oil company was still a competitor the secret rights with which competitor the secret rights with which competitor the secret rights with which the contract was made in the contract was made in the contract was made in 1876 between Mr Rockefeller and 1876 between Mr Rockefeller and 1876 between Mr Rockefeller and scoffield shurmer and teagle have scoffield shurmer and teagle have scoffield shurmer and teagle have already been described to keep the already been described to keep the already been described to keep the relations of the various standard relations of the various standard relations of the various standard concerns secret Mr Rockefeller went so concerns secret Mr Rockefeller went so concerns secret Mr Rockefeller went so far in 1880 as to make an affidavit like far in 1880 as to make an affidavit like far in 1880 as to make an affidavit like the following it is not true as stated the following it is not true as stated the following it is not true as stated by Mr teagle that in his affidavit that by Mr teagle that in his affidavit that by Mr teagle that in his affidavit that the Standard Oil Company directly or the Standard Oil Company directly or the Standard Oil Company directly or indirectly through its officers or indirectly through its officers or indirectly through its officers or agents owns or controls the works of agents owns or controls the works of agents owns or controls the works of warden Fu and Company lockart Fu and warden Fu and Company lockart Fu and warden Fu and Company lockart Fu and Company ja Bostwick and Company C Company ja Bostwick and Company C Company ja Bostwick and Company C pratton company acne refining company pratton company acne refining company pratton company acne refining company Imperial refining Company Camden Imperial refining Company Camden Imperial refining Company Camden Consolidated company and the devau Consolidated company and the devau Consolidated company and the devau manufacturing company nor is it true

manufacturing company nor is it true manufacturing company nor is it true that the Standard Oil Company directly that the Standard Oil Company directly that the Standard Oil Company directly or indirectly through its officers or or indirectly through its officers or or indirectly through its officers or agents owns or controls the refinery at agents owns or controls the refinery at agents owns or controls the refinery at Hunter Point New York it is not true Hunter Point New York it is not true Hunter Point New York it is not true that the Standard Oil Company directly that the Standard Oil Company directly that the Standard Oil Company directly or indirectly through its officers or or indirectly through its officers or or indirectly through its officers or agents purchased or acquired the Empire agents purchased or acquired the Empire agents purchased or acquired the Empire transportation company or furnished the transportation company or furnished the transportation company or furnished the money therefore nor is it true that the money therefore nor is it true that the money therefore nor is it true that the Standard Oil Company inaugurated or Standard Oil Company inaugurated or Standard Oil Company inaugurated or began or induced any other person or began or induced any other person or began or induced any other person or Corporation to inaugurate or begin a war Corporation to inaugurate or begin a war Corporation to inaugurate or begin a war upon the Pennsylvania Railroad Company upon the Pennsylvania Railroad Company upon the Pennsylvania Railroad Company or the Empire transportation company as or the Empire transportation company as or the Empire transportation company as stated in the Affidavit of Mr stated in the Affidavit of Mr stated in the Affidavit of Mr teagle there may be a technical teagle there may be a technical teagle there may be a technical explanation of this affidavit although explanation of this affidavit although explanation of this affidavit although the writer knows of none there was the writer knows of none there was the writer knows of none there was certainly abundant testimony in certainly abundant testimony in certainly abundant testimony in existence that the works of mess's Pratt existence that the works of mess's Pratt existence that the works of mess's Pratt lockheart and Warden at least had been lockheart and Warden at least had been lockheart and Warden at least had been bought long before this affidavit was bought long before this affidavit was bought long before this affidavit was made and paid for in Standard Oil made and paid for in Standard Oil made and paid for in Standard Oil Company stock and that they were working Company stock and that they were working Company stock and that they were working in Alliance with that company it was in Alliance with that company it was in Alliance with that company it was shown in the last chapter that on shown in the last chapter that on shown in the last chapter that on October 17 October 17 October 17 1877 the Standard Oil paid 2 million 1877 the Standard Oil paid 2 million 1877 the Standard Oil paid 2 million $500,000 in certified checks on the $500,000 in certified checks on the $500,000 in certified checks on the purchasing price of the plant of the purchasing price of the plant of the purchasing price of the plant of the Empire transportation company while none Empire transportation company while none Empire transportation company while none of the other members of the Standard Oil of the other members of the Standard Oil of the other members of the Standard Oil Company examined in Company examined in Company examined in 1879 was quite so Sweeping in his 1879 was quite so Sweeping in his 1879 was quite so Sweeping in his denials all of them evaded direct denials all of them evaded direct denials all of them evaded direct answers the reason they gave for this answers the reason they gave for this answers the reason they gave for this evasion was that the investigations were evasion was that the investigations were evasion was that the investigations were an interference with their rights as an interference with their rights as an interference with their rights as private citizens and that the government

private citizens and that the government private citizens and that the government had no business to inquire into their had no business to inquire into their had no business to inquire into their methods consequently when asked methods consequently when asked methods consequently when asked questions they refused to answer by questions they refused to answer by questions they refused to answer by advice of councel ultimately the advice of councel ultimately the advice of councel ultimately the gentleman did answer a great many gentleman did answer a great many gentleman did answer a great many questions but taking the testimony all questions but taking the testimony all questions but taking the testimony all in all through these years it certainly in all through these years it certainly in all through these years it certainly is a mild characterization to say that is a mild characterization to say that is a mild characterization to say that it totally lacks it frankness the it totally lacks it frankness the it totally lacks it frankness the testimony of the standard officials testimony of the standard officials testimony of the standard officials before the heurn commission was so before the heurn commission was so before the heurn commission was so evasive that the committee in making its evasive that the committee in making its evasive that the committee in making its report spoke bitterly of the company as report spoke bitterly of the company as report spoke bitterly of the company as a mysterious organization whose business a mysterious organization whose business a mysterious organization whose business and transactions are of such a character and transactions are of such a character and transactions are of such a character that its members decline giving a that its members decline giving a that its members decline giving a history or description of it lest this history or description of it lest this history or description of it lest this testimony be used to convict them of a testimony be used to convict them of a testimony be used to convict them of a crime The Producers certainly were right crime The Producers certainly were right crime The Producers certainly were right in claiming that secrecy was a in claiming that secrecy was a in claiming that secrecy was a characteristic of the standard as it had characteristic of the standard as it had characteristic of the standard as it had been of the self-improvement been of the self-improvement been of the self-improvement company the new standard combination company the new standard combination company the new standard combination like the South improvement company aimed like the South improvement company aimed like the South improvement company aimed at controlling the entire refining at controlling the entire refining at controlling the entire refining interest the coal oil business belongs interest the coal oil business belongs interest the coal oil business belongs to us Mr Rockefeller once told a to us Mr Rockefeller once told a to us Mr Rockefeller once told a recalcitrant refer his associates were recalcitrant refer his associates were recalcitrant refer his associates were saying the same on all sides the object saying the same on all sides the object saying the same on all sides the object of the Standard Oil company is to secure of the Standard Oil company is to secure of the Standard Oil company is to secure the entire refining business of the the entire refining business of the the entire refining business of the world a member of the concern told BF n world a member of the concern told BF n world a member of the concern told BF n an Ohio producer the method the standard an Ohio producer the method the standard an Ohio producer the method the standard depended upon to secure this control was depended upon to secure this control was depended upon to secure this control was the same as the method of the South the same as the method of the South the same as the method of the South improvement company special privileges improvement company special privileges improvement company special privileges in in in transportation we have seen how transportation we have seen how transportation we have seen how intelligently and persistently Mr

intelligently and persistently Mr intelligently and persistently Mr Rockefeller worked to secure these Rockefeller worked to secure these Rockefeller worked to secure these special privileges until in special privileges until in special privileges until in 1977 he had made with all the trunk 1977 he had made with all the trunk 1977 he had made with all the trunk lines contracts which in every lines contracts which in every lines contracts which in every particular paralleled the contracts particular paralleled the contracts particular paralleled the contracts which in January which in January which in January 1872 Mr Scott gold Vanderbilt and mlen 1872 Mr Scott gold Vanderbilt and mlen 1872 Mr Scott gold Vanderbilt and mlen made with the South improvement company made with the South improvement company made with the South improvement company he now had a rebate on every barrel of he now had a rebate on every barrel of he now had a rebate on every barrel of oil he shipped and this was given with oil he shipped and this was given with oil he shipped and this was given with the understanding that the railroad the understanding that the railroad the understanding that the railroad should allow no rebate to any other should allow no rebate to any other should allow no rebate to any other shipper unless that shipper could shipper unless that shipper could shipper unless that shipper could guarantee and furnish a quantity of oil guarantee and furnish a quantity of oil guarantee and furnish a quantity of oil for shipment which would after deduction for shipment which would after deduction for shipment which would after deduction of his commission realized to the road of his commission realized to the road of his commission realized to the road the same amount of profit realized from the same amount of profit realized from the same amount of profit realized from the standard trade he also had a the standard trade he also had a the standard trade he also had a drawback on every barrel his rival drawback on every barrel his rival drawback on every barrel his rival shipped no clause in the South shipped no clause in the South shipped no clause in the South Improvement company's contract with Improvement company's contract with Improvement company's contract with railroads had given more offense to the railroads had given more offense to the railroads had given more offense to the oil world than that which called for a oil world than that which called for a oil world than that which called for a drawback to the company on the oil drawback to the company on the oil drawback to the company on the oil shipped by Outsiders it will be shipped by Outsiders it will be shipped by Outsiders it will be remembered that the beneficiaries of remembered that the beneficiaries of remembered that the beneficiaries of this contract were to receive drawbacks this contract were to receive drawbacks this contract were to receive drawbacks of a16 Cent a barrel on all crude oil of a16 Cent a barrel on all crude oil of a16 Cent a barrel on all crude oil that outside parties shipped from the that outside parties shipped from the that outside parties shipped from the oil regions to New York and a oil regions to New York and a oil regions to New York and a proportionate drawback on that shipped proportionate drawback on that shipped proportionate drawback on that shipped from other points the rebate system was from other points the rebate system was from other points the rebate system was considered illegal and unjust but men considered illegal and unjust but men considered illegal and unjust but men were more or less accustomed to it the were more or less accustomed to it the were more or less accustomed to it the drawback on other people's shipment was drawback on other people's shipment was drawback on other people's shipment was a new device and it threw the oil region a new device and it threw the oil region a new device and it threw the oil region into a frenzy of Rage it did not seem into a frenzy of Rage it did not seem into a frenzy of Rage it did not seem possible that the standard would attempt possible that the standard would attempt possible that the standard would attempt to revive this practice again and yet

to revive this practice again and yet to revive this practice again and yet when it had got it hands strongly on the when it had got it hands strongly on the when it had got it hands strongly on the four trunk lines it made a demand for four trunk lines it made a demand for four trunk lines it made a demand for the drawback it has already been the drawback it has already been the drawback it has already been recounted how on February 5 recounted how on February 5 recounted how on February 5 1878 4 months after the Pennsylvania 1878 4 months after the Pennsylvania 1878 4 months after the Pennsylvania succumbed to the standard's demand Mr succumbed to the standard's demand Mr succumbed to the standard's demand Mr ode wrote to Mr cassid I here repeat ode wrote to Mr cassid I here repeat ode wrote to Mr cassid I here repeat what I once stated to you and which I what I once stated to you and which I what I once stated to you and which I wish you to receive and treat as wish you to receive and treat as wish you to receive and treat as strictly confidential that we have been strictly confidential that we have been strictly confidential that we have been for many months receiving from the New for many months receiving from the New for many months receiving from the New York Central and Eerie railroads certain York Central and Eerie railroads certain York Central and Eerie railroads certain sums of money in no instance less than sums of money in no instance less than sums of money in no instance less than 20 cents per barrel on every barrel of 20 cents per barrel on every barrel of 20 cents per barrel on every barrel of crude oil carried by each of these roads crude oil carried by each of these roads crude oil carried by each of these roads cooperating as we are doing with the cooperating as we are doing with the cooperating as we are doing with the Standard Oil company and the trunk lines Standard Oil company and the trunk lines Standard Oil company and the trunk lines in every effort to secure for the in every effort to secure for the in every effort to secure for the railroads paying rates of freight on the railroads paying rates of freight on the railroads paying rates of freight on the oil they carry I am constrained to say oil they carry I am constrained to say oil they carry I am constrained to say to you that in Justice to the interest I to you that in Justice to the interest I to you that in Justice to the interest I represent we should receive from your represent we should receive from your represent we should receive from your company at least 20 cents on each barrel company at least 20 cents on each barrel company at least 20 cents on each barrel of crude oil you of crude oil you of crude oil you transport and Mr casset after seeing the transport and Mr casset after seeing the transport and Mr casset after seeing the freight bills showing that both the freight bills showing that both the freight bills showing that both the Central and Erie allowed a drawback gave Central and Erie allowed a drawback gave Central and Erie allowed a drawback gave orders that the Pennsylvania pay one of orders that the Pennsylvania pay one of orders that the Pennsylvania pay one of 22 and a half cents when Mr casset was 22 and a half cents when Mr casset was 22 and a half cents when Mr casset was under examination in under examination in under examination in 1874 The Examiner remarked I understand 1874 The Examiner remarked I understand 1874 The Examiner remarked I understand Mr casset that this 22.5 cents paid to Mr casset that this 22.5 cents paid to Mr casset that this 22.5 cents paid to the American transfer company is not the American transfer company is not the American transfer company is not restricted to all oil that passed restricted to all oil that passed restricted to all oil that passed through their lines no sir it is paid on through their lines no sir it is paid on through their lines no sir it is paid on all oil received and transferred by us

all oil received and transferred by us all oil received and transferred by us among the interesting documents among the interesting documents among the interesting documents presented at this inquiry was a presented at this inquiry was a presented at this inquiry was a statement of the crude oil shipments statement of the crude oil shipments statement of the crude oil shipments over the Pennsylvania Road for February over the Pennsylvania Road for February over the Pennsylvania Road for February and March and March and March 1878 they footed up to a total of 1878 they footed up to a total of 1878 they footed up to a total of 343,387 A5 barrels on this amount a 343,387 A5 barrels on this amount a 343,387 A5 barrels on this amount a discount of 20 cents a barrel was discount of 20 cents a barrel was discount of 20 cents a barrel was allowed to the Standard Oil Company allowed to the Standard Oil Company allowed to the Standard Oil Company through its agent the American Transfer through its agent the American Transfer through its agent the American Transfer Company among other agents who shipped Company among other agents who shipped Company among other agents who shipped this oil was HC Oland in all Mr Olen this oil was HC Oland in all Mr Olen this oil was HC Oland in all Mr Olen shipped shipped shipped 29,8 76 barrels and on this the Standard 29,8 76 barrels and on this the Standard 29,8 76 barrels and on this the Standard Oil Company received 20 cents of barrel Oil Company received 20 cents of barrel Oil Company received 20 cents of barrel that is after Mr Olan had paid for his that is after Mr Olan had paid for his that is after Mr Olan had paid for his oil paid for having it carried by the oil paid for having it carried by the oil paid for having it carried by the pipeline to the railroad and paid the pipeline to the railroad and paid the pipeline to the railroad and paid the railroad the full rate of freight railroad the full rate of freight railroad the full rate of freight without the commission the standard without the commission the standard without the commission the standard received the Pennsylvania was obliged to received the Pennsylvania was obliged to received the Pennsylvania was obliged to turn over to the Standard Oil Company 20 turn over to the Standard Oil Company 20 turn over to the Standard Oil Company 20 cents of the amount he had paid on each cents of the amount he had paid on each cents of the amount he had paid on each Barrel The Examiner tried very hard to Barrel The Examiner tried very hard to Barrel The Examiner tried very hard to find out if there was a legitimate find out if there was a legitimate find out if there was a legitimate question why such an allowance should question why such an allowance should question why such an allowance should have been made to the American Transfer have been made to the American Transfer have been made to the American Transfer Company on oil it did not handle we pay Company on oil it did not handle we pay Company on oil it did not handle we pay that Mr casset said as a commission to that Mr casset said as a commission to that Mr casset said as a commission to them to Aid in securing us our share of them to Aid in securing us our share of them to Aid in securing us our share of the trade we pay it said the comproller the trade we pay it said the comproller the trade we pay it said the comproller for procuring oil to go over the lines for procuring oil to go over the lines for procuring oil to go over the lines in which the Pennsylvania Railroad is in which the Pennsylvania Railroad is in which the Pennsylvania Railroad is interested as against the New York lines interested as against the New York lines interested as against the New York lines and the New York and the New York and the New York Central do you understand the examiner Central do you understand the examiner Central do you understand the examiner questioned of one of the Auditors that questioned of one of the Auditors that questioned of one of the Auditors that the American Transfer Company secured to

the American Transfer Company secured to the American Transfer Company secured to the Pennsylvania Road the traffic of the the Pennsylvania Road the traffic of the the Pennsylvania Road the traffic of the outside refiners of New York mentioned outside refiners of New York mentioned outside refiners of New York mentioned in the statement quoted above I never in the statement quoted above I never in the statement quoted above I never raised a question of that kind in my raised a question of that kind in my raised a question of that kind in my mind answered the Adroid auditor but the mind answered the Adroid auditor but the mind answered the Adroid auditor but the answer was evident the American Transfer answer was evident the American Transfer answer was evident the American Transfer Company had nothing whatever to do with Company had nothing whatever to do with Company had nothing whatever to do with the oil shipped by Mr Olen or airs the oil shipped by Mr Olen or airs the oil shipped by Mr Olen or airs Lombard and Company or J rouso or any Lombard and Company or J rouso or any Lombard and Company or J rouso or any one of the other Independents mentioned one of the other Independents mentioned one of the other Independents mentioned in the statement unless per chance that in the statement unless per chance that in the statement unless per chance that oil had come originally from the lines oil had come originally from the lines oil had come originally from the lines of the American Transfer Company in that of the American Transfer Company in that of the American Transfer Company in that case the shipper had paid the line for case the shipper had paid the line for case the shipper had paid the line for the service rendered at the time he the service rendered at the time he the service rendered at the time he bought the oil the custom then and now bought the oil the custom then and now bought the oil the custom then and now the tax was paid by the Pennsylvania the tax was paid by the Pennsylvania the tax was paid by the Pennsylvania solely because the Standard Oil company solely because the Standard Oil company solely because the Standard Oil company had the power to demand it the demand had the power to demand it the demand had the power to demand it the demand was made in the name of the American was made in the name of the American was made in the name of the American Transfer Company as a blind naturally Transfer Company as a blind naturally Transfer Company as a blind naturally the proof that the standard had revived the proof that the standard had revived the proof that the standard had revived the most obnoxious feature of the South the most obnoxious feature of the South the most obnoxious feature of the South improvement company improvement company improvement company aroused intense bitterness and disgust aroused intense bitterness and disgust aroused intense bitterness and disgust among the among the among the oilmen another offensive Clause of the oilmen another offensive Clause of the oilmen another offensive Clause of the 1872 contracts was that pledging the 1872 contracts was that pledging the 1872 contracts was that pledging the railroads to lower or raise the gross railroads to lower or raise the gross railroads to lower or raise the gross rates of transportation for such times rates of transportation for such times rates of transportation for such times and to such extent as might be necessary and to such extent as might be necessary and to such extent as might be necessary to overcome competition now the new to overcome competition now the new to overcome competition now the new contracts of the standard provided the contracts of the standard provided the contracts of the standard provided the same Arrangement that is they stipulated same Arrangement that is they stipulated same Arrangement that is they stipulated that the rates were to be lowered if that the rates were to be lowered if that the rates were to be lowered if necessary so as to place the standard on necessary so as to place the standard on necessary so as to place the standard on a parad with shippers by competing lines

a parad with shippers by competing lines a parad with shippers by competing lines the workings of the Clause were the workings of the Clause were the workings of the Clause were Illustrated when the producers got the Illustrated when the producers got the Illustrated when the producers got the Equitable line through in Equitable line through in Equitable line through in 1878 the railroads dropping their charge 1878 the railroads dropping their charge 1878 the railroads dropping their charge to 80 cents a barrel and in some cases to 80 cents a barrel and in some cases to 80 cents a barrel and in some cases even less The Producers certainly had even less The Producers certainly had even less The Producers certainly had evidence enough for their claim that the evidence enough for their claim that the evidence enough for their claim that the contracts of the South improvement contracts of the South improvement contracts of the South improvement company and the Standard Oil company company and the Standard Oil company company and the Standard Oil company with the railroads were similar in every with the railroads were similar in every with the railroads were similar in every particular as far as principles were particular as far as principles were particular as far as principles were concerned that they differed alone in concerned that they differed alone in concerned that they differed alone in the amounts of the rebate and the amounts of the rebate and the amounts of the rebate and drawbacks there was plenty of evidence drawbacks there was plenty of evidence drawbacks there was plenty of evidence brought out also to show that the object brought out also to show that the object brought out also to show that the object of the standard operations was like that of the standard operations was like that of the standard operations was like that of the South improvement company keeping of the South improvement company keeping of the South improvement company keeping up the price of refined oil both up the price of refined oil both up the price of refined oil both combinations were formed to keep the combinations were formed to keep the combinations were formed to keep the refined article scarce on the market by refined article scarce on the market by refined article scarce on the market by controlling all the refineries and by controlling all the refineries and by controlling all the refineries and by refusing to sell under refusing to sell under refusing to sell under competition the officials of the South competition the officials of the South competition the officials of the South improvement company stated under oath improvement company stated under oath improvement company stated under oath that they had hoped to raise the price that they had hoped to raise the price that they had hoped to raise the price 50% the central organization hoped to 50% the central organization hoped to 50% the central organization hoped to put up the price of refined from 15 to put up the price of refined from 15 to put up the price of refined from 15 to 25 as a matter of fact that organization 25 as a matter of fact that organization 25 as a matter of fact that organization when it finally got control of the when it finally got control of the when it finally got control of the market could have the pric considerably market could have the pric considerably market could have the pric considerably more the spectacular demonstration in more the spectacular demonstration in more the spectacular demonstration in the winter of 1876 and the winter of 1876 and the winter of 1876 and 1877 of what could be done in keeping up 1877 of what could be done in keeping up 1877 of what could be done in keeping up the price of refin was still rankling in the price of refin was still rankling in the price of refin was still rankling in the minds of the oilmen they saw that it the minds of the oilmen they saw that it the minds of the oilmen they saw that it was by that coup that the standard had was by that coup that the standard had was by that coup that the standard had gotten the ready money to pay for the gotten the ready money to pay for the gotten the ready money to pay for the plant of the Empire Transportation plant of the Empire Transportation plant of the Empire Transportation Company the money to buy in whatever it

Company the money to buy in whatever it Company the money to buy in whatever it wanted the money to pay the 50% dividend wanted the money to pay the 50% dividend wanted the money to pay the 50% dividend to which one of its members testified in to which one of its members testified in to which one of its members testified in the Ohio the Ohio the Ohio investigation they remembered that while investigation they remembered that while investigation they remembered that while the refiners had been selling refined the refiners had been selling refined the refiners had been selling refined around 30 cents a gallon they had sold around 30 cents a gallon they had sold around 30 cents a gallon they had sold crude at less than $4 a barrel Little crude at less than $4 a barrel Little crude at less than $4 a barrel Little Wonder then that they felt they had Wonder then that they felt they had Wonder then that they felt they had evidence that the standard had actually evidence that the standard had actually evidence that the standard had actually done what they had always claimed it done what they had always claimed it done what they had always claimed it would do if it got hold of the refining would do if it got hold of the refining would do if it got hold of the refining interest as it interest as it interest as it planned even in the case where certain planned even in the case where certain planned even in the case where certain large producers had entered into a large producers had entered into a large producers had entered into a partnership with the standard on partnership with the standard on partnership with the standard on condition that they paid them prices for condition that they paid them prices for condition that they paid them prices for crude commencment with the price of crude commencment with the price of crude commencment with the price of refined these producers claimed the refined these producers claimed the refined these producers claimed the agreement had not been kept one of these agreement had not been kept one of these agreement had not been kept one of these cases came to light in a suit instituted cases came to light in a suit instituted cases came to light in a suit instituted in in in 1878 it seems that sometime in December 1878 it seems that sometime in December 1878 it seems that sometime in December 1874 the large Oil Company of HL Taylor 1874 the large Oil Company of HL Taylor 1874 the large Oil Company of HL Taylor and company sold one half interest in and company sold one half interest in and company sold one half interest in its property to the Standard Oil Company its property to the Standard Oil Company its property to the Standard Oil Company the reason for the sale the plan have the reason for the sale the plan have the reason for the sale the plan have stated in their complaint to be as stated in their complaint to be as stated in their complaint to be as follows the extent of there the follows the extent of there the follows the extent of there the standards business and control over standards business and control over standards business and control over pipelines and refineries had enabled pipelines and refineries had enabled pipelines and refineries had enabled them to procure and they had procured them to procure and they had procured them to procure and they had procured from the railways more favorable terms from the railways more favorable terms from the railways more favorable terms for transportation than others could for transportation than others could for transportation than others could obtain these advantages and Facilities obtain these advantages and Facilities obtain these advantages and Facilities placed it within their power to obtain placed it within their power to obtain placed it within their power to obtain and they did obtain far better and more and they did obtain far better and more and they did obtain far better and more uniform prices of petroleum that could uniform prices of petroleum that could uniform prices of petroleum that could be obtained by the plaintiffs the said be obtained by the plaintiffs the said be obtained by the plaintiffs the said organization and firms by virtue of organization and firms by virtue of organization and firms by virtue of their Monopoly of the business of

their Monopoly of the business of their Monopoly of the business of refining and transportation of oil had refining and transportation of oil had refining and transportation of oil had been at times almost the only buyers in been at times almost the only buyers in been at times almost the only buyers in the market and at such times had been the market and at such times had been the market and at such times had been enable to dictate and establish a price enable to dictate and establish a price enable to dictate and establish a price for crude oil far below its actual value for crude oil far below its actual value for crude oil far below its actual value as determined by prices of refined oil as determined by prices of refined oil as determined by prices of refined oil at same dates and they thus obtained a at same dates and they thus obtained a at same dates and they thus obtained a large share of the profits which should large share of the profits which should large share of the profits which should have fallen to the plaintiff and other have fallen to the plaintiff and other have fallen to the plaintiff and other purchasers the sale was made and in purchasers the sale was made and in purchasers the sale was made and in consideration of the foring premises and consideration of the foring premises and consideration of the foring premises and upon the promise and agreement on the upon the promise and agreement on the upon the promise and agreement on the part of the defendants that the part of the defendants that the part of the defendants that the partnership thus formed should have the partnership thus formed should have the partnership thus formed should have the benefit of the advantage and Facilities benefit of the advantage and Facilities benefit of the advantage and Facilities of the said defendants and the of the said defendants and the of the said defendants and the organizations and firms managed and organizations and firms managed and organizations and firms managed and controlled by defendants in marketing controlled by defendants in marketing controlled by defendants in marketing its oil that the firm should have to the its oil that the firm should have to the its oil that the firm should have to the extent of its production the advantage extent of its production the advantage extent of its production the advantage of the sales of refined by the of the sales of refined by the of the sales of refined by the defendants or said Standard Oil company defendants or said Standard Oil company defendants or said Standard Oil company either for present or future delivery so either for present or future delivery so either for present or future delivery so that there should be at no time any that there should be at no time any that there should be at no time any margin or difference between the ruling margin or difference between the ruling margin or difference between the ruling price of refined oil and the price which price of refined oil and the price which price of refined oil and the price which defendants would pay the partnership defendants would pay the partnership defendants would pay the partnership forr by It produced beyond the necessary forr by It produced beyond the necessary forr by It produced beyond the necessary cost of refining this thing formed the cost of refining this thing formed the cost of refining this thing formed the inducement and the larger part of the inducement and the larger part of the inducement and the larger part of the consideration for the sale of said consideration for the sale of said consideration for the sale of said property to the defendants the amount property to the defendants the amount property to the defendants the amount actually received for set interest was actually received for set interest was actually received for set interest was Far beneath its actual value and without Far beneath its actual value and without Far beneath its actual value and without the agreement on the part of the the agreement on the part of the the agreement on the part of the defendants to pay to the partnership for defendants to pay to the partnership for defendants to pay to the partnership for its product prices at all times its product prices at all times its product prices at all times commensurate with the prices of refined commensurate with the prices of refined commensurate with the prices of refined oil they would not have sold a set oil they would not have sold a set oil they would not have sold a set interest nor entered into said interest nor entered into said interest nor entered into said partnership the defendants also partnership the defendants also partnership the defendants also requested to do so have not only failed

requested to do so have not only failed requested to do so have not only failed neglected and refused to comply with neglected and refused to comply with neglected and refused to comply with this agreement but have by false and this agreement but have by false and this agreement but have by false and erroneous statements misled the plers erroneous statements misled the plers erroneous statements misled the plers and induced them to consent to the sale and induced them to consent to the sale and induced them to consent to the sale to them and to the Standard Oil Company to them and to the Standard Oil Company to them and to the Standard Oil Company of large quantities of crude petroleum of large quantities of crude petroleum of large quantities of crude petroleum produced by the partnership at prices produced by the partnership at prices produced by the partnership at prices far below its actual value to the great far below its actual value to the great far below its actual value to the great loss and damage of the orders loss and damage of the orders loss and damage of the orders that on or about December 6th that on or about December 6th that on or about December 6th 1876 refined was selling at a price 1876 refined was selling at a price 1876 refined was selling at a price equivalent to $7 for crude oil at which equivalent to $7 for crude oil at which equivalent to $7 for crude oil at which time plaintiffs called upon defendants time plaintiffs called upon defendants time plaintiffs called upon defendants for a compliance with their agreement for a compliance with their agreement for a compliance with their agreement and asked that they take or purchase and asked that they take or purchase and asked that they take or purchase 210,000 barrels of the production of the 210,000 barrels of the production of the 210,000 barrels of the production of the partnership at a price commensurate with partnership at a price commensurate with partnership at a price commensurate with the price of refined at that time this the price of refined at that time this the price of refined at that time this defendant neglected and refused to do defendant neglected and refused to do defendant neglected and refused to do and the partnership was forced to sell and the partnership was forced to sell and the partnership was forced to sell the same at prices varying from $3 to4 the same at prices varying from $3 to4 the same at prices varying from $3 to4 do making a loss to the partnership upon do making a loss to the partnership upon do making a loss to the partnership upon this one transaction of from $600,000 to this one transaction of from $600,000 to this one transaction of from $600,000 to $1 million for which said defendants $1 million for which said defendants $1 million for which said defendants neglect and refuse to account that the neglect and refuse to account that the neglect and refuse to account that the said defendants for themselves and for said defendants for themselves and for said defendants for themselves and for the said Standard Oil company and other the said Standard Oil company and other the said Standard Oil company and other organizations and firms of for said has organizations and firms of for said has organizations and firms of for said has since the formation of the partnership since the formation of the partnership since the formation of the partnership received from the railways a rebate or received from the railways a rebate or received from the railways a rebate or drawback in the shape of wheelage or drawback in the shape of wheelage or drawback in the shape of wheelage or otherwise at times as high as $1 per otherwise at times as high as $1 per otherwise at times as high as $1 per barrel upon all oil shipped by them to barrel upon all oil shipped by them to barrel upon all oil shipped by them to the Seaboard the Seaboard the Seaboard that instead of using these advantages that instead of using these advantages that instead of using these advantages which they possess for the benefit and which they possess for the benefit and which they possess for the benefit and profit of the partnership as they profit of the partnership as they profit of the partnership as they covenent to do they have used them

covenent to do they have used them covenent to do they have used them against its interest by restraining against its interest by restraining against its interest by restraining trade preventing competition and forcing trade preventing competition and forcing trade preventing competition and forcing Plaines to accept any price which Plaines to accept any price which Plaines to accept any price which defendants the said Standard Oil company defendants the said Standard Oil company defendants the said Standard Oil company or the other organizations afor said or the other organizations afor said or the other organizations afor said might offer for their production that might offer for their production that might offer for their production that the amount of oil produced and sold by the amount of oil produced and sold by the amount of oil produced and sold by the partnership for the three years the partnership for the three years the partnership for the three years beginning with the date of its formation beginning with the date of its formation beginning with the date of its formation and ending December December 1 1877 was and ending December December 1 1877 was and ending December December 1 1877 was 2,657 830 barrels of oil that the 2,657 830 barrels of oil that the 2,657 830 barrels of oil that the profits of defendants upon oil refined profits of defendants upon oil refined profits of defendants upon oil refined by them during said period taking into by them during said period taking into by them during said period taking into consideration the rebates and drawbacks consideration the rebates and drawbacks consideration the rebates and drawbacks received from the railways have averaged received from the railways have averaged received from the railways have averaged at least $1 per barrel over and above at least $1 per barrel over and above at least $1 per barrel over and above the cost of refining and at times as the cost of refining and at times as the cost of refining and at times as high as four high as four high as four and5 that these profits under the and5 that these profits under the and5 that these profits under the partnership agreement that no margin partnership agreement that no margin partnership agreement that no margin should exist between crude and refined should exist between crude and refined should exist between crude and refined prices should to the extent of the prices should to the extent of the prices should to the extent of the production of the partnership have been production of the partnership have been production of the partnership have been paid by defendants to the partnership paid by defendants to the partnership paid by defendants to the partnership that the amount lost by the partnership that the amount lost by the partnership that the amount lost by the partnership and realized by the defendants by reason and realized by the defendants by reason and realized by the defendants by reason of the failure and refusal of said of the failure and refusal of said of the failure and refusal of said defendants to comply with their defendants to comply with their defendants to comply with their agreement is not less than agreement is not less than agreement is not less than $2,500,000 for one half of which $2,500,000 for one half of which $2,500,000 for one half of which defendants should account to your orders defendants should account to your orders defendants should account to your orders but which they neglect and refuse to do but which they neglect and refuse to do but which they neglect and refuse to do so naturally enough the produc ERS now so naturally enough the produc ERS now so naturally enough the produc ERS now pointed out that the case of the HL pointed out that the case of the HL pointed out that the case of the HL Taylor company was a demonstration of Taylor company was a demonstration of Taylor company was a demonstration of what they had claimed in what they had claimed in what they had claimed in 1872 when the South improvement company 1872 when the South improvement company 1872 when the South improvement company alarmed at the uprising offered them a

alarmed at the uprising offered them a alarmed at the uprising offered them a contract and what they had always contract and what they had always contract and what they had always claimed since when the Standard Oil claimed since when the Standard Oil claimed since when the Standard Oil offered contracts for oil on a sliding offered contracts for oil on a sliding offered contracts for oil on a sliding scale Biz that such contracts were never scale Biz that such contracts were never scale Biz that such contracts were never meant to be kept that they were o blind meant to be kept that they were o blind meant to be kept that they were o blind to enable the standard to make Scoops to enable the standard to make Scoops to enable the standard to make Scoops such as they had made in the winter of such as they had made in the winter of such as they had made in the winter of 1876 and 1877 1876 and 1877 1876 and 1877 taking all these points into taking all these points into taking all these points into consideration first that the Standard consideration first that the Standard consideration first that the Standard Oil Company like the South improvement Oil Company like the South improvement Oil Company like the South improvement company was a secret company was a secret company was a secret organization second that both companies organization second that both companies organization second that both companies were composed in the main of the same were composed in the main of the same were composed in the main of the same parties third that it aimed like its parties third that it aimed like its parties third that it aimed like its predecessors at getting entire control predecessors at getting entire control predecessors at getting entire control of the refining interest fourth that it of the refining interest fourth that it of the refining interest fourth that it used the power the combination gave it used the power the combination gave it used the power the combination gave it to get rebates on its own oil shipments to get rebates on its own oil shipments to get rebates on its own oil shipments and draw back on the shipments of other and draw back on the shipments of other and draw back on the shipments of other people fifth that it had arranged people fifth that it had arranged people fifth that it had arranged contracts which compelled the railroads contracts which compelled the railroads contracts which compelled the railroads to run out all competition by lowering to run out all competition by lowering to run out all competition by lowering their rates six that it aimed to put up their rates six that it aimed to put up their rates six that it aimed to put up the price of refined without allowing the price of refined without allowing the price of refined without allowing the producer a share of the profits the producer a share of the profits the producer a share of the profits taking all these points into taking all these points into taking all these points into consideration many of The Producers consideration many of The Producers consideration many of The Producers including the president of the petroleum including the president of the petroleum including the president of the petroleum producers Union BB Campbell and certain producers Union BB Campbell and certain producers Union BB Campbell and certain members of his Council came to the members of his Council came to the members of his Council came to the conclusion that as had sufficient conclusion that as had sufficient conclusion that as had sufficient evidence against the members of the evidence against the members of the evidence against the members of the standard combination to ensure standard combination to ensure standard combination to ensure conviction for criminal conspiracy they conviction for criminal conspiracy they conviction for criminal conspiracy they should proceed against them strenuous should proceed against them strenuous should proceed against them strenuous opposition to the proceedings as hastily

opposition to the proceedings as hastily opposition to the proceedings as hastily and Ill advised developed in the council and Ill advised developed in the council and Ill advised developed in the council and the legal committee but the majority and the legal committee but the majority and the legal committee but the majority decided that the prosecution should be decided that the prosecution should be decided that the prosecution should be instituted Mr Scott and Mr casset were instituted Mr Scott and Mr casset were instituted Mr Scott and Mr casset were omitted from the proposed indictment on omitted from the proposed indictment on omitted from the proposed indictment on the ground that they were already weary the ground that they were already weary the ground that they were already weary of the standard and would cease their of the standard and would cease their of the standard and would cease their illegal practice gladly if they could on illegal practice gladly if they could on illegal practice gladly if they could on the 29th day of April the 29th day of April the 29th day of April 1879 the grand jury of the county of 1879 the grand jury of the county of 1879 the grand jury of the county of Clarion found an indictment against John Clarion found an indictment against John Clarion found an indictment against John D Rockefeller William Rockefeller jabz a D Rockefeller William Rockefeller jabz a D Rockefeller William Rockefeller jabz a Boswick Daniel OD day William G Warden Boswick Daniel OD day William G Warden Boswick Daniel OD day William G Warden Charles lockart Henry M Flagler Jacob J Charles lockart Henry M Flagler Jacob J Charles lockart Henry M Flagler Jacob J Vandergriff and George W Gertie gery was Vandergriff and George W Gertie gery was Vandergriff and George W Gertie gery was the cashier of the Standard Oil Company the cashier of the Standard Oil Company the cashier of the Standard Oil Company there were eight counts in the there were eight counts in the there were eight counts in the indictment and charged in brief a indictment and charged in brief a indictment and charged in brief a conspiracy for the purpose of securing a conspiracy for the purpose of securing a conspiracy for the purpose of securing a monopoly of the business of buying and monopoly of the business of buying and monopoly of the business of buying and selling crew petroleum and to prevent selling crew petroleum and to prevent selling crew petroleum and to prevent others than themselves from buying and others than themselves from buying and others than themselves from buying and selling and making a legitimate profit selling and making a legitimate profit selling and making a legitimate profit thereby a combination to oppress and thereby a combination to oppress and thereby a combination to oppress and injure those engaged in producing injure those engaged in producing injure those engaged in producing petroleum a conspiracy to prevent others petroleum a conspiracy to prevent others petroleum a conspiracy to prevent others than themselves from engaging in the than themselves from engaging in the than themselves from engaging in the business of refining petroleum and to business of refining petroleum and to business of refining petroleum and to secure a monopoly of that business for secure a monopoly of that business for secure a monopoly of that business for themselves a combination to injure the themselves a combination to injure the themselves a combination to injure the carrying trade of the alagan valley and carrying trade of the alagan valley and carrying trade of the alagan valley and Pennsylvania Railroad companies by Pennsylvania Railroad companies by Pennsylvania Railroad companies by preventing them from receiving the preventing them from receiving the preventing them from receiving the natural petroleum traffic to divert the natural petroleum traffic to divert the natural petroleum traffic to divert the traffic naturally belonging to the traffic naturally belonging to the traffic naturally belonging to the Pennsylvania carriers to those of other Pennsylvania carriers to those of other Pennsylvania carriers to those of other states by unlawful means and to extort

states by unlawful means and to extort states by unlawful means and to extort from railroad companies unreasonable from railroad companies unreasonable from railroad companies unreasonable rebates and commissions and by rebates and commissions and by rebates and commissions and by fraudulent means and devices to control fraudulent means and devices to control fraudulent means and devices to control the market prices of crude and refine the market prices of crude and refine the market prices of crude and refine petroleum and acquire unlockable gains petroleum and acquire unlockable gains petroleum and acquire unlockable gains thereby four of the persons mentioned in thereby four of the persons mentioned in thereby four of the persons mentioned in the indictment Ms oday Warden Lockard the indictment Ms oday Warden Lockard the indictment Ms oday Warden Lockard and Vandergriff all citizens of and Vandergriff all citizens of and Vandergriff all citizens of Pennsylvania gave bail and early in June Pennsylvania gave bail and early in June Pennsylvania gave bail and early in June application was made to Governor Hoy of application was made to Governor Hoy of application was made to Governor Hoy of Pennsylvania to issue a requisition Pennsylvania to issue a requisition Pennsylvania to issue a requisition before the governor of New York for the before the governor of New York for the before the governor of New York for the extradition of the other five gentlemen extradition of the other five gentlemen extradition of the other five gentlemen with damaging testimony piling up day by with damaging testimony piling up day by with damaging testimony piling up day by day in three states and with an day in three states and with an day in three states and with an indictment for conspiracy hanging over indictment for conspiracy hanging over indictment for conspiracy hanging over the heads of himself and eight of his the heads of himself and eight of his the heads of himself and eight of his associates matters look gloomy for John associates matters look gloomy for John associates matters look gloomy for John D Rock Feller in the spring of D Rock Feller in the spring of D Rock Feller in the spring of 1879 the good of the oil business 1879 the good of the oil business 1879 the good of the oil business certainly seemed to be in danger end of certainly seemed to be in danger end of certainly seemed to be in danger end of chapter 7 recording by Tom Weiss Toms chapter 7 recording by Tom Weiss Toms chapter 7 recording by Tom Weiss Toms audiobooks.com