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

| this secret and exclusive rehnto. tie South
bought oil and shipped il on terms
! that nobody clso could compete with. he waited
| at last admitted that such would have been The
| case. He would not admit. however. that
bv such nm arrangement the Producers warc
| entirely at the mercy OF the South Improve
| ment Company, And yet the contracts showed
that the South Improyement Company had the
| advantage VI 40 cents barrel To- Cleveland and
| Pittsburgh. and sl.O6 to Now YORK. Philadcl.
phia. and Boston, ON deoil-whlr leon rcinol
| there was an advantage of 80 cents to Now York
| and other scahOard cities
1t was developed at this time that the Eric had
| been giving rebates, and that thcfe WIS no
| doubt that tho standard got them. and this cx-
planned why the standard had been able TO
| carry on winning fight with outside reilnorics.
| That was why, no refinery could liyc ~ Glove
| land; w, u; Doang. a large Cirveland dealgr
to fraction over 50 barrel. and without cor
responding advantage tQ consumers; md Tor
| this state Of affairs he held the standard Oil
| Company to blame. II had stagnated business
| and thrown thousands out OF employment He
said that the Standard had bought up or crushed
Alexander Of Cleveland told how his refinery
| had been crushed by the Standard. He knew
| that the Standard had been getting rebates. thus
giving them power. and when he tried to get
| the same the railroads told him they would
| give i whom ho shipped as much oil as did the
-" A pressure was brought to bear on us,"' he
added. " that Il we didn't sell out we'd 9e
IT, They said they had contract with the rail-
roads by which they could crush us II they
|
| My refinery cost tl50.Q00. and | had made
| money but was obliged TO accept $4,000. and
the concern passed into the hands OF John d.
1t was developed that the means by which all
S59eds mere 20 9ppebg bY Which eo
| were crushed. With the Erie road there was no
question but that the contract with the south
| Improvement Company would be carried out.
SO when tho officials OF other roads were
visited 1t is believed they were told: '' Gen;
| tlcmen, sign this contract or we ship nll
| our oil by the Erie: you won't get n barrel"
Several OF the newspapers have insisted that
ment. and have never 6oen called 10 account
for the assertion. At all events. President Wat
contracts with the Pennsylvania Railroad Com
pany. the New York Central. the Erie. and the
Atlantic and Great Western Tho contracts
provided that the secret rebate to the South Inn
provement Company Tor freights to New YORK,
Philadelphia. and Boston on crude oil should
be 81 .06 per barrel. and on refined from 80 cents
to sl.32. and that this rebate should also be
allowed to the South Improvement Company on
all oil shipped by any one esel
Tho fund that such n pool would have made
footed up TO about seven millions year. II is
aged by trustee, and the proceeds divided pro
rata In pennsylyania i was at The time openly
asserted that some OF tho officials OF the road
were to bo pecuniarily benefited by the arrange
mont.
and Relners found when they got TO Philadel-
phia that the railroad managers were decidedly
willing 20 treat with them. They had met first
who was so courteous as TO sock out tho Com
mtteo at their hotel. He was suaye and the
told Col. Scott that they wanted him
HT The Lowest oInS mHx@Tm rate at for
rSss"' one. and sa" he s"oS did "SS So New YORK
they met Commodore Vanderbilt, and no seemed
10 tako great interest in them. He told them in
his biuff way that they we're quite right. and II
all they asked was tariff without rebate that
would pay far Rr9s =, se0 to the r"rosSSs ne
them an offer from the South Improvement
Company looking toward eoop1er91',ion; p1a1'b NC; No;
with that concern or any one connected with it.
and we refuse to recognize It's existence"
Horace CLARK Of the Lake shore, and Gen. Nc,
Clcllan. then President OF the Atlantic and Great
Western. The New York and Boston rehners
, they left New York with what they regarded as
n fair contract with the roads signed 10y the Of
iicials and themselves. and they brought back
proof TO the oil regions. further. thht the con
, were cancelled by all the railroads, and that the
, great scheme WAS upset Therefore Congress
dropped the, Investigation, and tho Producers
J celebrated their first great victory over the
! Standard OIL Company.
! Looking back now over the history OF the oil
trade II ls easy to SEQ that. had tho south lm-
provemont contracts remained in force, the
company would not only have received some
I freight charges. but with this immense sum IT
: would have been enabled TO crush out every
l rival refinery at tho seaboard. because the
company could have sold oil at an apparent
. loss and yet be making princely profit aud
I because tho only user OF crude oil. and there
e fore tho only exporter Of an article whose ex-
= port value was In the neighborhood OF hun
| drcd millions year
THE SECOND GREAT FIGHT.
. Such is the history Of this great monopoly uE
o to its first rebuff. How 1t recovered itself aud
: why the Producers are now for the second time
arrayed against il IN n deadly struggle hay,
yet to ,ell you rhe story Is long 9pe inl
r a superb amount OF business tact ana ntrNe or
. the part OF this little company Of men. Brleii,
: l may sketch its outline. n,
a After his defeat President Rockefeller kep
= cool and things went on swmmingly fora while
: BY and by the standard oil again began to ap
q les aud to be sold way under market rates
i The company was selling. too, in open marke
Q possible chance for rproht Gt tho opGiI
4 was again getting rebates from the railroads
y but that no had been shrcwd enough this tint
r. 10 leave no loopholc for exposure. On ship
4 ment OF 10000 barrels n day. ut au open rate o
tl 40 and a rebate of 90 cents it was easy TO se
l. whero the Standards profit came from. II wa
o not long before every refinery in the country
N with one or two exceptions. gave up tho fight
- Many ofthem, 1t is qsserted.the STANDARD simp
~ charged they got the United Pipe Line undo
Il their control-a line that Producers hre abso
- from wells. Then they built and run all tn
tank cars used for carrying crude oil TO re
" inerles., Here Wns an3lher ehance lor llmll M
ii could run them with crude OIL TO tho senboar,
l. instead OF 70 Cleveland They were aga
10 tho railroads. Thus the company practi
ID cally got control Of the entire trade. Ther
W. was no other buyer to speak Of. although ther
,s is money enough in refining to flood the MAJ
ar ket with buyers were 1t not for tho seer,
- rebate. Given only one buyer. and he pay
ly pretty much what he pleases when there ar
m 5000 sellers.
M M Meanwhile the Standard is a second time con
ar frontcd with failure. If the result OF the fuur
10 hearing will be the enIoining Of the pennsy
l. vania Railroad from discriminating, and shOul
a. the chnrter of the United Pipe Limo be- hcreaftc
taken away. Rs is now threatened the Irodu
GERS will have gained thoir second victor
e. Failing that. do assure you that there are ole
n, threats that the Producers mean to tako tho la
!" into their own hands.
RS Mrs. sIoan's Suit for DRmAGss
.h Mrs. Rachel Sloan an aged lady, usin
"a ertrhes sat i'm the BronklNu City Court Yesterday