The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-03-16
N5netY-Gave Million Gal
Ions Annually.
What the metropolitan Refners and
Brokers Think OF the Matter.
Important Interviews and Sta
Tlstios.
TslES kHONOPOhHST'S' DEFENCE
Harrisburg, March ID, 1872.

Harrisburg, March ID, 1872.
The first victory for many years OF the people over
the corporations has been achieved In the Pennsy
wanna Legislature. No State Is 20 much under the
control OF corporations as this. They own not only
Its Legislature, but lhreelourths OF the STATE on
ciais, from It's Governor down. No man dares hope
for office VINO fights them; those who gain Office
must be their willing slaves, ready to respond TO the
crack OF The whip and 20 take with
due humility all Kicks that may be ad-
mmistered 10 them. Yet In no State
If there SO much dread or public sentiment, and
pubic sentiment is at last beginning TO make itself
master over those VINO would control it, one Of the
'rlchest plums' mas been iaken away from those
who have fer years been enjoying great monopoly.
And not only the people OF the oil regions but the
great oil interests OF the country viii rejoice nerea.
the history OF the legislation that has placed the
oil interests of the ccuntry at the mercy OF three
railroads and ring oispecuators, is briefly as pos
sjhlo, as Golows:--
THE CREATToN OF THE ''oiL RING.n
In $50. the Legislature Of pennsylvania CON-
Renccd TO pass what are called private pipe bills
mat ~ allowing private parties in the oil regions
10 construct two lnch pipes TO run over the surface
OF The ground and carry OIL 10 Tie railroad depots
AND boat landings Up 10 1868 tnese bills were
very numerous. There was no opposition to them.
The OIL producers, rehners ana dealers were
satisfied wth them. In 1893 strong
combination OF spectators and politicians
came TO harrisburg and had bill
passed absorbing AL The private companies and
forming combination Known as the Western
Pipe Company. Year after Year the producers in
The OIL regions peuoned the Legislature Tor q free
pipe bill but the petitions were in vain; corpora
lions were stronger In Harrisburg than they were.
The proauoers and shippers showed that granting
a.
not only the producer ana shipper but the dealer
and consumer, al the mercy or men VINO could DO as
Ihey pleased. They were the only ones who were
uegnizant OF the condition OF the market: they had
the power to ix such prices rs suited Their conYe-
Djence and their pockets.
TIE ERlE-ALLEGHANY SOB"
IN 1868 the Erie Ring, as owners OF what was
known as the Anegnany transportation Company,
went into pool with the Western Pine Company,
agreeing to carry their oil from Oh City TO New
York for Gliy-two and half cents a barrel, and
charge the outside public 81 so. TINS gave the
monopoly or this carrying trade to the Erie, anu
ihis road also gave preference 10 the Cleveland
re6Ders OF thrty-siX cents yer barrel IN cost OF
transportation over all other Western redners. This
arrangement continued unt 1871. When IL ceased
The Iehners OF Cleveland, Pitthurg and other
places came 10 the Legislature and had a
charter passed under The title OF. the Soulh
Improvement Company. There is something
mysterious about the passage or ills bill The
records say that 1t was introduced MArca IS, 1871
ami was signed by the Governor May 4, 1871. There
Is no legislative record as TO who introduced It or
how 1T passed. The only aluson TO IL Is that Sena-
tor Graham. Chairman OF Corporations reported it
from Ills committee. IL reached the Governor some
how or other, and, ike all bills OF that Kind mat
ever go 10 hm, ne approved it. This South I'm
provement Company Is The corporation that for a
year mas had all the Oil reiners and producers ou-
ride OF their ring at Their mercy.
CAPITAL OF THE SOUTH IMPROVEMENT COMPANY.
This improvement Company hati capital or
el0,o00,QO0 anu with tins they absorbed al pipe
companies IN the oil regions, with one exception.
They then made contract with the PENNSYLVANIA
Central, New YORK Central dhrough It's Lake Shore
connection and the Ellie to carry their oil, giving
them the advantage OF having drawback Of 81
per barrel The rates to New York were increased
10 81 Go per barrel, and as the South Improvement
Company mad the privilege OF the drawback, they
iney soon had a monopoly OF the refining capacity
OF the country. All legislation 10 euro or crush out
tins monopoly was throtted here The Legislature
registered the monopoly's DEGREES regularly and
systemauSally as the monopoiists desired. II was
keep II az long as possible.
THE RING BEING SHATTERED.
Ihis year the people OF the OIL regions outside OF
the ring rose In arms sent a petition TO this
Legislature, signed by 10000 names, 10y the hands
q such prominent citizens as L. w. Mitchell aud
MI culver q lhe ola firm OF culver Penn
aw CO. he pas sew g r9rS, ,Gasmandng that
pipe bill. This committee came to HARRISBURG.
and as they saw that II no use lgn,ing Tie
they would make a compromise. Tom scott Of Inc
Pennsylvania Central, met the committee nalf way.
aud after conference bil was drawn up with i
proviso which Mr. Scott said would De acceptable
10 his company. me bill authorizes any person
roads OF boats. The proviso is as iollows;-
THE FREE PIPE REGUL iTIoNs.
THAT no line OF pipe shall he lald under the au-
thorty Of this act within I'VE miles oi the line
for the purpose OF carving OIL out or the state and
intended for Philadelphia, Baltimore and New YORK
using pipes laid under this act SHAH give preference
10 the lines OF road fraverslng the greatest distance
Il C.