The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1889-10-22

According to q very common pIac-
tice with them, they ran it in the
name of the alleged purchasers, under
the same management as before, re-
tanning the former owner and manager
at a salary which vas an acknowledge
ment of his capacity. For the two
Years before he sold it be had with
difficulty made it pay him Sic, 900.
For the first year OF his running it
under the ownership of the Standard,
there being no change except in the
name of its owners, its profits were
from $3.50, 900 to $3.50 600. In other
words, they paid for the refinery by
one years operations and had money
to spare.
THE TOUCH OF MIDAS.
Undoubtedly til Y had the touch
of Midas, and turood into gold every
business that passed under their own
ership. In five or six years time
they had reached almost absolute con-
troll of the refining business of the
country, which, in the same period,
had swollen to a mighty volume.
Many refineries had sought shelter
from the storm by a surrender to or
on amalgamation with the victor. It's
terms seem to have varied with its
power only. There could not longer
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 railroad
companies. The terms of its compact
with them were finally revealed in the
testimony of MIR. Cassatt, third vice
president of the Pennsylvania Rail
road Company, and in chage of its
transportation business, in a suit
brought against that company by the
State of Pennsylvania in 1879.
THE SECRET EXPOSED.
1t then appeared that the Standard
Oil Company was receiving over and
above the drawbacks allowed to other
shippers of oil by that road rebates
that amounted to forty nine cents per
barrel crude oil from the Bradford
field and -ffty-one and one half
Isl 1-2) cents per barrel crude oil
from the lower field to tidewater, and
sixty-four and one-half ga l-2) cents
per barrel on refined oil from Cleve-
land to tidewater.
Taking the average shipment of oil
for several years, and allowing to the
Standard four-ffths as it's share, it's
rebates, on this basis, would amount
to over fve million dollars a year, an
advantage before which the indepen-
dent refiners had necessarily fallen
PROSTATE, almost before realizing the
source of their ruin. Mr.. Cassatt
was not by any means a sinner be-
yond other railroad managers. When
brought to the stand he spoke out
frankly and without evasion. He dis
closed the rebates allowed by his own
company, and stated that he had seer
contracts made by the Erie and the
New York Central which were equal.
ly as partial to the Standard. Further
more, there came to light in his tes.
timony one of the most wonderful OF
those " thimblerig contrivances" for
diverting money from the treasures
of the railroad companies that has
ever been known. The American
Transfer Company, a subsidiary of the
Standard, had a capital of $500, 600
and no debt, and ewned a small ser
vice of local pipage, estimated by its
president on the witness stand at from
fifty to seventy-fve miles.
Mr.. Cassatt testified that his com.
pany was paying to this company
twenty two and a half cents per bar
rel on all oil carried owe it's road,
no matter by whom shipped, and his
order to the comptroller of his com
pany directing such rebate to be paid
gave as the reason, for the allowance
that it had been proved to his salts,
faction that a like or even greater
sum per barrel was paid to the Amer.
lean Transfer Company by the Erie
and New York Central Companies.
The earning capacity of the Ameri-
can Transfer Company may be shown
by taking the year 1878, the year
Immediately preceding Mr., Cassatt's
testimony. Thirteen million, seven
hundred and fifty thousand barrels of
oil were shipped over these three
trunk lines, Oh which, at the rate of
twenty-five and a half cents per bar
rel, the American Transfer Company
received from them the sum of
So, O93, 750.
1t is doubtful if the history of hui
man industry or enterprise can any
where show another hundred thou
sand dollars with such earning power
as that which made up the capital
| stock of the American Transfer Com.
pany. The "subsidiary corporation u
had reached the zenith of its develop.
ment in that company.
nowrn an wru er.-D-