The New York herald., 1878-08-19
THE OIL MONOPOLY.
Petroleum RefnerieS Said TO Be Con.
trOlled by the Standard Company.
HISTORY OF THE COMBINATION.
Merchants and Citizens Opposed
to It's Tyranny.

About 1865 small corporation was formed. under
the general laws OF OHIO, with capital Of $l0o 0O0
Cleveland was the headquarters OF this concern and
to the West their operations mainly confined.
Tho name OF the organic ttion the Standard Oh
Company To exclude rivals from any city-say Chi
caso-all profits should be temporarily driven from
that city's OIL trade by putting railway against lake
transportation Rebates II is said, were given 10 tho
Standard Company by the railway managers, who
interest in the concern, and tn US In
q short timo shrowd managers Of the STANDARD
had thrown up their nrst earhworks preparatory to
the grand contest. They controlled, after while, Il
Is claimed, tremendous traffic IN oil During the
progress OF their gradually acquired monopoly OF the
Western markets two features, II is said, became
prominent in their policy. VIZ. Tho subjection OF
railway capital and interests to their designs and the
beguing of leading compe alliance with
them which should neutraze thor luminosity or
make them nrm frleuds
GIGANTIC scnExEs.
1n order 10 give tho reader idea Of the scope
Of this plan TO swallow up and appropriate the pstro
ium product OF America stiii further resume OF
the compauy's alleged manipulations is necessary
second orporQtion formed called the South In
provement Company, which contrasted with all the
lines to the sea3oard 1t declared that this
corporation promised secret commission OF 81
per barrel upon not only ,her own shipments Of
petroleum, but upon every barrol which anybody
shipped IL about this time tlS72) that tho plans
ol this monopoly became public small renners were
getting frightened and were selling out their manu-.
iactorcs lho Bernh1i mers, ratlor extensve man
uiacturers, sold out their works to the Standard OIL
Company aud many others followed their example,
IS stated Uy experts tnat In 1872 so great had the
Standards interests become that II necessary 10
increase The capital STOCK OF the company 800 OO0
but u was never definitely known this large
In scrip 1as distributed Accord.ng however, TO
published statements which capable OF veri-
ncation. II was declared that the Standard Company
m dr.. khusk shalr .k....
mcnis OF oil which gave thom tho power beat all
competitors, and that tnis 500 900 potent In
wHoLEsALE AND RETAIL COMBINATIONS
To consolidate their power, III 1874 according TO the
house oi Charles Pratt Co.. Of this city, together
with various Pittsburg and Philadelphia refining In
tcrcsts represented by Warden, Lockhart ana Frew.
Tuese ne9otinuons ended Wy sort OF consolidation,
Pratt, Warden and Others, II Is declared, selling ou.
their various interests ior stock In The Standard Oil
Company, the scrip OF the latter being increased
81 0oD 0OO now amounting TO tho respectable figure
o S. $4,000 Now the grand results co,nmencea TO
manifest themselves. Pratt Il Co OF
large petroleum connections and all their interests
were thrown INTO tho new concern. u Is SAID War.
den Co., It is further alleged, had ultimate and
conhderiai relations with The Pcnnsylvans Rail.
road Company; tho Parkersburg Va) refining inter.
ests, under the management Of j. n Camden, OF the
Baltimore ana Ohio Raroad wore ahsor bed, and thug
In the latsr part vi 1874 hs monopoly ready to
charge for refined petroleum. no matter wna the cost
VI production, declared, just wnat they pleased
all over the world.
In order that no little quarreling among tho trunk
railway carriers should take place IL WAS resolved ~
apporlion the amount OF freight each road iol-
lows:-Pennsylvania Railroad, iorly-lvs por cent:
Balumore ami QUO. ninc per cent; New York Gem
traL twenty three per cont. and Erie, tapping the
bradford region, twsnty-threc per cent II was not
long before rebate was made 10 the Standard Com
pauy, and II was iound 80 the story goes, that the
railways were not getting exactly Tho amount oi ,ruto
agreed upon. The rchncries not bought up or owned
by the Standard Oh Company we're compelled to stop
work, and rumor has II (aitnougn ;his Is mentioned
with all reserve, ~ NO means o veriucation eau
DO hadl that tbis great monopoly within one year
cleared $lo.ooo.00o
50 s..s TIM KRIE ROAD
The Investigation anew OF this subject by the
HERALD has been caused by TIE excitement through
ine OIL country, ~ Buffalo ana other places IN refer
encc 10 the vceiike grip the Standard Company up.
parentiy has upon the trade. rumor prevailed q
day or two since In Buffalo that the Eric Railway
was determined 10 break wth the combination ana
take an pcndent ground; that II would no longer
bc bound by contracts made with tho standard Com
pany With the OLD road tnat IN Ane. II more Ia
vorbly situated Tor securing Bradford county oil than
either OF the other trunk nes aud that large quanti
OF oil, when should naturally 90 road,
went Philaoe pnis and Ere line 10 Ph,adsi-
phla ana Now YORK, whiie Erie cars were empty.
new order OF things, too, seemed 10 mako indspen.
necessary. A number OF oil we'll
started the Equitable Pipe Line Company, which has
now about eighteen miles OF limo n hckean county.
tho starting point beiug Frsby Staton. rhs oil
be sent to bunaio by pise lne, ana thence 10 New
York by watoL
Referring to all these facts yesterday Mr. George
X Blanchard, assistant vice president OF tho Ere
company, sad TO tue wrter:-"lt Is undoubtedly
true that good deaf OF dtssatsfaction has been
pressed regard to tho contracts msds ny tne old
Erie company with the Standard OIL Company a. we'll
road has been reconstructed, and tho new manage
msnt do not feel ike being bound w old contracts,
therefore tho Erie road and Erie cars viii In uurs he
open TO all shippersn
'But near,' said tho reporter, shat Mr. OhIep,
largo oil shipper. could not get 1900 barrels OF
petroleum from Carroton on your road ana there -
u Lawsuit pending in consequence"
Mr. blanchard declined TO converse this subject
STANDARD COMPANY.
Alter good oeal OF red tapo had been unwound st
the offices OF the Standard OIL Company, NJ Nos. 40
and i42 Pearl street. In this city the HEmALD reporter
Wasu 1 So vi
the principal oficors OF The company. This gentle-
man said he haa no xnowisaee OF any different ar.
rang gement than the Ordinary Que with the Erie Rail-
way Company, and attributed the rcports 10 connec-
ton with sucD TO tho Buffalo newspapers, which oc-
cuped themselves cu1y ~i.h thai sort OF busiuess.
He aavsod tho tho presidsnt sf the Erie
road and generally iism .ssd tho affair az unworthy Of
serious contradiction.
a MERCHANT SPEAKS.
Not Wiling however. 10 leave such an important
subject wtnOui lne fullest inycstis ation, Ar. r. B.
Thurbcr, member OF Tue large nrm OF grocers In
Wcsl Broadway, was waited lon Mr. 1hurbcr said
they were not ensivc dealers IA petroleum, but
IRON hts c1nneclion with the Board TRADE aud
Transportation ana his geaertl warm interest Ia
morciai matters he was In position 70 know some
thiug oil tho a.r uuder inquiry IL he thou ght,
undoubtedly truc tnat The company spoken of was
monopoly aud very dangerous one, too. he mad
been niormei, In or!er ~ moro cuectually control
the production OF refined oil, tnat small
rchnerics, wnen purchased, had Dcen rszod 10 abe
ground.
fn inclusion Mr. Thurosr gave the writer a letter
OF introduction TO gentleman cognxaut OF the facts
above SGT forth. who voucncs Tor thor truth. Upon
being asked Tor the remedy he said: :"Let the pro-
ducers combine well the capitalists; let them
control tho pipe system between tue wells and tank
age; win tho surplus stock collateral arrange With
mOucyed Institutions 10 iurnish banking cspiia for
members ol the association 10 carry business Let
tue press OF the country awake tho act that such
monopoly as tho oil company montoned 10 10 exist
cbce aud tell the people OF IT, and 40 not bciiovo 10
could hoid out for another yoar" Tho pipe men arc
organizing u ~ said, throughout the whole oil region
IN oppositioD, and n tue railroad com alton woak
ems as now seems possible through tho action OF the
Erie company, the monopoly must iaIi-