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

| 6CIS Hn1CA LII bAO0O
quently obtained from the Pennsyi-
vania Legislature, not for use but o
sale. This charter had remained un-
used for several years until the
ayers of the Standard Oil Company
acquired it and organized under 1t for
the purpose above recited. In other
words, the Southern improvement
Company of Pennsylvania was really
the standard Oil Company OF Ohio,
and as that company was now the
largest shipper of oil, preferential
rates secured by it would apply to no
other refinery, hence the indignation
and outcry Of its competitors, who
saw in the success of its scheme their
own undoing. The Legislature of
Pennsylvania quickly repealed the
charter of the Southern Improvement
Company, and no business Was done
under it's contract with the railroad
company. Moreover, on March rs,
1872, a solemn convention in writing
was entered into by all parties, the
railroad companies, the producers and
the reiners, whereby it was coven-
anted that all arrangements thereafter
for shipping oil should be OF a basis
of perfect equality to all shippers, and
no discrimination of any kind whatSo-
ever be allowed. 1t will be seen that
the Standard managers had learned
the favorite device of the railroad
mansgers-that of the subsidiary cor
poration-and had resorted to it in a
daring and mastery movement, which,
however, had been quickly detected
and foiled. The reader will naturally
be curious to know on what grounds
or from what motives the railroad
companies could agree to make a con-
tract of the character I have described
with a single shipper, but l must re-
serve my statement of the reasons al
legged 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,
but they had secured the compact of
March Is, which forbade special favors
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 consumption were
rapidly increasing, and there was as
yet no competition from foreign pro-
ducers in the foreign markets.
ma A 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 a few years vanishing
profits and growing losses. They
were at a loss to know what was
hurting them. In vain they subjected
their ledgers to the most minute
scrutiny, stopped every waste and
grasped at 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 strenguous work at
the brakes, they could not reverse
their direction.
One of the ffty-two reineries then
operating in Western Pennsylvania
gave to the House committee a
graphic account of his struggles
against the inevitable and his final
sweep into bankruptcy. He owned a
prosperous refinery, with a capital of
$500, 900, a 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 mas.
ter of the business. Yet matters
passed from bad to worse. He knew
something was wrong. He began to
suspect the railroad companies. With
delegation after delegation he visited
Philadelphia and implored the Penn
sylvsnia Railroad authorities for fair
treatment and living rates. Their
answer was always evasive. Finally
the continued prosperity of the Stan
dard Oil Company caught his atten-
ton. Its business increased so fast
that he became satisfied he had recog-
nized 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 he