Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1872-03-14
THE OIL RING.
What tho Combination Mleans-Aovv
'~tt "WSrks-1ts Consequences.
From tho Bonkoo AdvePtaner

| From The Boston Advertiser.
On Monday last WAS made the frs
open movement of the great combina
ton which, under the style of the Soutl
Improvement Company, seeks to con
troll the petroleum trade of the country
A general and enormous advance val
made in the freight charges on oil t<
the shipping ports, The following will
show the old and, new charges per bar
rel OF forty-five gallons on refined oil il
barrels and in bulk:
...: Oil in Barrels. Oil In Bulk.
| Old New Old Nev
10 10 Nov York i:ss is 2:s4 Isl Isl ~ a:S
The charges to Philadelphia wert
and are Is cents . barrel lower thar
New York. The building of certain
projected competing lines vim Of course
solve the problem, and should be en-
couraged. But meantime the trade j,
at the mercv of the improvement,
company" It should nevertheless b.
fully understood by the community
what this combination means, how &
works, and what are likely to be ths
consequences of il. The South I'm
proyement Company 10 = union of tn
interests of the transporting railroads
and OF the re6ners Of Cleveland and
Pittsburg. These two cities are in IN
advantageous position for supply.
ing the Western market,
but not contented with thii
they have laid their plans for supply.
ing the east and the export trade. But
lying further west than the oil regions,
they were compelled to transport crude
oil to their refneries, and thence east.
ward over longer route than the re.
fineries at the oil-producing regions.
They would thus be placed ordinarily
at disadvantage. This was overcome,
however, by . discriminating tariff:
While tho tariff from Titusville TO Bos-
ton was $l.8O per barrel, the charge
from Cleveland, . much greater dis
tance, was only 81. IS. Either Of these
charges would yield tho railroad COM
panies . fair profit. Cleveland was en-
abled to make good terms by having 1
choice Of routes, while Titusville was
dependent upon one road. The COM
plants from the oil regions were few,
notwithstanding the unfair position in
which the district was. placed. Its
great natural advantages led to q large
increase in the refining business there.
Ibis now combination was therefore
resorted to in order to crush out the
refining interest in the producing re-
gion. The, plan adopted has been
explained. Refined oil from Titusville
must now pay . freight charge Of more
than two and = half cents q gallon, or
1.17to 81. 10 barrel more than before.
Tho reffners of Cleveland and Pitts
burg get . drawback :ef more than
. dollar barrel-no one
knows exactly how much. The
railroad companies get an excellent
profit on the oil sent eastward from the
refineries Of the ring, and they receive
extortionate rates on al the oil refined
in Titusville, and its vicinity. The
ring rehneries regulate the supply and
the price, and receive profit which il
measured, only BY tho 'rapacity they
may choose to display. The first ipdi.
cation of their disposition in that d.
rection IL not 'one to inspire very
Lively confidence in their generosity.
The advance In freights was made in a
manner perfectly regardless of the
rights and interests Of: any one not in
the ring. Dealers in the East had con-
trc cted to deliver . certain amount of
oil at q given price. Intimatlons
that an advance was impend-
ing led them to make unusual
efforts to procure the transportation of
the oil purchased ut the producing
points. No cars were Forthcoming; iii
were sent to Cleveland. Then, With.
out the notice of IN hour having been
given, tho rates were advanced moro
than 80 per cent, and the contracts to
deliver oil, which the railroad ioompan.
les would not forward. can only be filed,
at . great loss. A more reckless and
unfair advantage Of the public was
never taken. II the scheme were open:
to inspection, dealers might know how
to act. But they are not only at the
mercy OF the ring, but they are work.
ing wholly in the, dark. We wish it
might be said that the scheme was too
vast to succeed. The boldness of the
and the helpless condition of
every person Interested in the trade
who il not in the company, prove the
~oAAS4OASs A0o O40&A0 VI OO0VOu 8UU3E58
equally With that Of: New York and
philadelphia the burden Of this A.
rangement. Assurances had been giv-
en- that in the change Of the tariff We
should ~ put on an equality With New
York. But the promise was not kept.
The old difference of 10 cents q barrel
bet 1een the freights to tho two cities il
retained, and is just enough to prevent
our engaging extensively in the busi-
ness. Whether the real difference il
not made greater by {. discrimination
in drawbacks also, is known only to
those who are in the secret of this
great conspiracy. The policy of Mr..
Vanderbilt, who is suspected Of beng
at the bottom of this business even
more than the Cleveland re6ners, would
undoubtedly be to contribute a. large
y as possible to the trade of New
York; and hence We may believe sl-
most any story o. to the ~ yet undis.
covered facts regarding the monopoly.