The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1889-08-24

under its contract with the railroad
company. Moreover, on March %,
1872, solemn convention in writ
ting was entered into by all parties.
the railroad companies, the produ-
GERS and the refiners, whereby it was
covenanted that all arrangements
thereafter for shipping oil should be
on basis of perfect equality to all
shippers, and no discrimination of
any kind whatsoever be allowed 1t
will be seen that the Standard man
ayers had learned the favorite device
of the railroad managers-that of
the subsidiary corporation-and had
resorted to it in daring and mas
terly movement, which, however,
had been quickly detected and foil
ed. The reader will naturally be
curious to know ON what grounds
from what motives the railroad com
panies could agree to make con
tract of the character / have desert
bed with single shipper, but |
must reserve my statement of the
reasons alleged by the parties to
this and like agreements to a later
stage in my articles.
The Pennsylvania refiners had
scored a great victory as they be-
lieved. They had not only stamped
out the Southern Improvement Com
pany before it could begin business,
bnt they had secured the contract of
March 20, which forbade special fa-
vors to any one thereafter. With a
free field and equal treatment from
the carriers they had no fears of
the future.
The refining business no longer
had the extraordinary profits that
were possible in its infancy, but
there was every promise of good
and stable profits for the indefinite
future. Both production and CON
sumption were rapidly increasing,
and there was as yet no competition
from foreign producers in the for
eign markets,
sHoRT-LIvED DREAM.
But their dream of prosperity was
short. With charging markets for
the product, the refining business
showed steadily dwindling profits;
in the course of few years vanish
ing profits and growing losses
They were at loss to know what
was hurting them. In vain they
subjected their ledgcrs to the most
minute scrutiny, stopped every waste
and grasped ct every economy.
Day by day the fact became more
assured that they were ON the road
to bankruptcy, and while they might
slacken speed by strenuous work at
the brakes. they could not reverse
their direction.
One of the fifty-two refners then
operating in Western Pennsylvania
gave to the House committee a gra-
phic account of his struggles against
the inevitable and his final sweep
into bankruptcy. He owned a pros
porous refinery, with capital of
100000, modern plant, with every
device for economical production and
for working up the by-products.
He had cheap barrels, cheap coal,
cheap labor and short hauls. He
was master of the business Yet
matters passed from bad to worse.
He knew something was wrong He
began to suspect the railroad com
panies. With delegation after dele
cation he visited Philadelphia and
implored the Pennsylvania Railroad
authorities for fair treatment and
living rates. Their answer was al
ways evasive. Finally the contin-
ued prosperity of the Standard Oil
Company caught his attention. It's
business increased so fast that he
became satisfied he had recognized
in it the element of danger. AS a
last desperate resort he went to see
the president of the Standard Oil
Company to learn if he could make
any arrangement with him whereby
to save his works. The answer was
brief and decisive: "There is no
hope for any of us, but the weakest
must go first" And thus he sank
into bankruptcy, and the lease of
his works passed to the Standard.
But amid the general wreck of the
Pennsylvania refiners there was
''hope' for the Standard. 1t moved
steadily, swiftly, resistlessly forward
over their ruins. 1t became pur-
chaser or lessee of the best works
and acquired refneries in Philadel-
phia and New York. Quite num-
Der of the properties it acquired
were closed up and dismantled;
others that were gasping in dissolu
ton needed but it's ownership to
spring up into unwonted vigor. A
Philadelphia refiner with good posi-
tion and command of capital, kept
his head above water until 1876. He
then succumbed, but managed, for
exceptional reasons doubtless. to sell
his refinery for cost, viz, $4,000,
to the agents of the Standard.
According to very common prac
tice with them, they ran it in the
name of the alleged purchasers, I'M
der the same management as before
retaining the former owner and man
ager at a salary which was an ac-
acknowledgement of his capacity. For
the two years before he sold it he
had with difficulty made it pay him
$4,000. For the first year of his
running it under the ownership of
the Standard, there being no change
except in the name of it's owners, its
profits were from $4,000 to $175,-
900. In other words, they paid for
the refinery by one years operations
and had money to spare
THE TOUCH OF MIDAS.
Undoubtedly they had the touch
of Midas, and turned into gold every
business that passed under their
ownership. In five or six years time
they had reached almost absolute
control of the refining business of
the country, which, in the same per-
iod, had swollen to mighty vol
ume.
Many refineries had sought shell
ter from the storm by surrender to
or an amalgamation with the victor.
It's terms seem to have varied with
it's power only. There could no lon
ger be any doubt as to the source of
that tremendous power. All knew
that it could not thus develop except
by secret combinations with the rail