Idaho semi-weekly world. [volume] (Idaho City, Idaho Territory) 1875-1908, 1890-05-23
STANDARD OIL METHODS.
How the Millions of the Great Monopol
Have Been Acquired.

How the Millions of the Great Monopoly
Have Been Acquired.
The Standard Oil Company is another
illustration showing the modern facil-
files of gigantic combinations, The
company began in partnership, during
the early days of the civil war, between
Samuel Andrews and John Rockefeller.
Andrews had invented new process by
which a greater percentage of kerosene
was extracted from petroleum than had
been possible under the old method, and
by virtue of this advantage the company
soon became prosperous. In time, as it
gained strength, it absorbed some rival
companies, crushed others, and finally
stood at the head of the business. Then
it extended its operations still further.
1t ran its own acid-works and glue fac
tories, made its own barrels, and con-
trolled the disposition of kerosene
through the country. Not satisfied with
this, it began to exercise a control over
the railroads, which finally enabled it
to crush out all effective opposition.
| Vanderbilt once said that there was
but one man in the country who could
dictate to him, and that was Rockefeller.
The Pennsylvania railroad entered into
written contract with the Standard
Oil Company, by which it agreed to
| charge double rates for all oil hauled by
other shippers. When this contract was
| exposed in the courts a new agreement
was made by which the Standard Com
pany was allowed a rebate not only on
! the oil shipped by it, but on all oil car
ried over the railroads. During 1878 re-
| bates to the amount of IS, $50, $40 were
paid to the company, and for the seven
teen months ending March 81, 1879, the
rebates amounted to SO, 15l,2ts. Similar
secret agreements were entered into
with the New York Central, the Erie
and the Atlantic and Great Western
roads. A barrel of oil weighing $50
pounds was carried 400 miles and the
empty cars returned for 50 cents while
( a 9O-pound can of milk was car
-ied 90 miles for 45 cents. On one
occasion an opposition oil company
had 10000 barrels of oil carried
by pipe line to the side Of the Erie track,
the company having agreed to ship the
oil, but an agent of the Standard Com
pany appeared on the scene, stopped the
shipment. and the oil was still waiting
to be shipped when the matter was in
vestigated in the New York courts some
months later. This was but another
illustration of another method by which
the Standard Oil Company used its in
fluence over the railroads to crush out
its rivals. 1t compelled the railroad
companies to refuse to ship oil for other
producers, and when complaint was
made to President Scott, of the Penn
sylyania railroad, he said that all he
could do was to ask the Standard Com
pany to allow him to carry the oil over
mis- own road. The passage of the inter
state commerce act has put an end &c
this despotism over the railroad com
panies. but the facts indicate the un-
limited power of this trust. BY the ex-
ercise of this absolute despotism the
Standard Oil Company was enabled te
crush out all effective opposition. Now
its power is not less-it is merely turned
into other directions.-San Franeiso Ar
| gonaut