The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-11-13

My Coll" said Cant. Hassan. TN par
alyze the trade and ruin the oil country"
suddenly after Sumter than did these PRODUCERS
of OIL They could scarcely he restrained from
violence They suspended business 9nd heli
excited meetings. In every town and Nl,iAge
preparnl ions were made for res sistance, WHAT
can we doY" asked "A timd OPERATOR in the OIL
sons reply. Dor We own tie wells. Wccn
prevent their having any oil Mt ALL. We shant
lose so much money in that way us In what they
In the town Of Tidioute mass meeting was
called. 1t was dcnsely throngod by maddcncd
Producers. and they determined without dis
sent TO shut down their works md never begin
until old rates were restored or now route
ing WIS cnlle1 at Titusville " to consider"
to quote from the resolutions. the necessity Of
constructing n railway from Erie by way Of
Titusvilc into tho oil region. connecting with
waler communication to New York"
These Producers meant business Tor when
the ,Titusvillc meeting was held. they wero
ready with plans and surveys for railroads TO
the hikes and to southern trunk lines not IN the
combination; and these were accompanied win
careful estimates OF the cost. They would have
organized u company subscribed the capital.
| and gone to work on the spot Many OF the re-
| nncrs OF tho oil region acted with the Producers,
| for the Standard had not at that time absorbed
| the whole refining interest there. The success
| Of tho railroad scheme meant death to them. 1t
required skill and pluck to control some OF the
Producers and to get order an ana sys,em INTO
| his own hook. Without perfect union tho
Producers were helpless; and they were within
|
THE PRODUCERS UNION FORMED
But they were held aud organized into Pro-
| ducers' Union, with u capital Of n million dol
| lars, and mutual pledge with Wow of CON
| trolling the sale and transportation OF their
| oil. The Legislature was in session at Harris.
burg at the time. and n strong and determined
hadn't come to foo, and did not propose 70 be
| oyerridden by the Pennsylvania Railroad Ring.
| They wanted Free Pipe bill, and were going
to have It. Word reached Harrisburg Of the
| great excitement in the oil region, ana tho
% gsp 6o 9 sSS
went home with u copy Ola Free Pipe bill. passed
by the Assembly and signed blythe Governor. in
Meanwhile the Producers had found out just
what the secret combination was, and they went
straight to Washington with their troubles
| They told Congressman thnt II was compact
| by the side Of the possibilities OF which Credit
| Mobilier was n small thing. for II was possible
under It for the railroads and any combination
to control every great exporting staple OF tho
country; so Congress granted them the nvcsti-
Some years before, when the Pennsylvania
Legislature were peddling out special charters
passed one OF extraordinary privileges,
which allowed the corporators to do almost
Moon. the Legislative agent OF the Pennsylvania
railroad, with others. owned; Peter II. watson
heard OF this charter called upon Moon. and
read 1t. II was just what no. wanted; There
was nothing In his way tnat he could not do
under Il. and Tor IA consideration Moon trans
Watson. with this in his pocket got to Cleye-
land and closeted himself with John ID. Rocke-
feler. The grim President Of tho Standard
was too slow Tor the nervous Watson. but Rock
efeller never did ANYTHING in a hurry. He
| never moves until he sees his path "a clear as
daylight will show II, and he wanted time to ex-
anime this apparently intricate charter
rel of Teaned oiI sbipped him .d could be- controed
and that by II system Of rebates could be OBJ
tained from the railroads which would XIII ey-
cry outside interest. Rockefeller at last made
and on Jan 2, 1872. the c9rporaiors met in Phil
John d. Rockefeller. J. A. Bostinck, VIM. Rock
sielleT o: H. Paype H NJ wIiis wfIIiHisIer w; g. War,
one heavy shareholders in the Standard Oh
Company,
w6s1 tho PS PrUdSGsTs found III; Oqt they
u. oil Company to fight. They are the men who
learned that this South Improvement Company
I had made secret contracts with all railways
which. in addition TO the 100 per cent. adynnc,
in freightage. there was 10 be nm average rebate
I of 81 barrel and this was to be allowed TO then
not only on all oil shipped 10y these persons. bu
also on all oil shipped by everybod else Tha
| Ia Rockcfnller 4 c6 we're 10 get n rebate OF /
dollar u barrel on every single barrel OF OF
carried. no matter for whom. The he uaggregate , o
3 | this would have amounted TO 81, ,OO0OOO year
Y this item alone in the carrying trade; but 1
. would also lead TO monopoly OF the entire re
% | nning and marketing OF OIL. business thef
0 amounting to u little short OF slOO.OOO.0OO I
year brvo sroh q cor,roc, >, soi1 ,ho o,,orrov .
. | lToNt hucu u foulThcl shlu lu' dllpTntD u
the Producers. and We send every. one o
them to State prison for conspiracy" "Wc arr
4 going 10 prove it before committee Of Con
/ Producers say that the attorneys Of the Soutl
S Improvement Company told the gentlemen VIII
had secured the contract that under i every on
e OF them. and the officials Of the railroads VIII
j. had signed it, were liable to indictment for con
r spracy
n But President Rockefeller had managed stub
!, born rellners before. ana brought them to thei
I knees. When eXpostulated with concerning
i the contract that the South Improvement Com
pany had with the railroads, he said that h
! did not propose to make any war upon the FRO
n duccrs. He even Intended to make an agree
g ment with them, 10y which they were To receiv
for he crude 9 price to tn
J; when they heard this proposition. What
y they said, He will make no war on us II "
u business In n free country"
l. Then Mr.. RockeiellGT and those associate
's goaled to madness. but also had put out thei
% money like water to defend themselves; ha
il min,tion SSn, KID e9wed he Pepnsyyania Assem-
/, bly,; had sent committee OF stern men I
II Washington, and Congress had granted thei
le An investigation; were holding mass meeting
10 everywhere, and creating an Irresistible publ
y sentiment-all this, together with the knowledg
Is said 10 he illegal. showed the standard peopl
A. that thGy h9d gone TOO iac ana SO there ere wa
Is Tho PRODUCERS were asked to meet them /
80 committee IN New Iork,, Tho Producers an
q Rennera had published thoir ultimatum. y
III oil must be shipped through tho Executive Con
II mittec OF the Producers Union and equitab
rates OF freight must be- established. with n
. drawbacks. II the railroads cannot be induce
,a or compelled to cancel their contracts with I'll
N South Improvement Company. in ninety day
~ we will have line Of our own running 10 watt
~, communication with the seubOard."
"a Agents Of Rockefeller, who travelled secret
nj through tho oil regions, reported daily to hi
~ the state of feeling, and At length there cAn
70 word that the Producers had carried tho WI
~ ~ into Africa. They made strong effort to brn
., the New York. Boston. Philadelphia. and Bn
ot timore rclnorles into their movement and tel
IL graphed TO them the following message:
r: The Petroleum Producers a'k your cooperation by
Of fung buy oil or sell any to any person perso
ne in any Way connected with the south lmproveme
na Company
ld Every exporter who WAS not in the StandaI
,h combination promised to hop tho Produce
ld In this way. for II was a matter of life or dea
H. with their business whether the South In
no proyomcnt scheme succeeded or not.
Id Meanwhile tho whole scheme was being la
no bare by the Congressional Committee al
's. whom the newspapers published the contrac
ed there was a burst of Indignation all over Il
ro country Heavy shippers in other lines sue
G. as grain and lumber. saw that the success
at the scheme made it onlya question Of tin
IN when nil thn grant etnplps froilhtel To the Sc