The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-06-06
The Stan DARD Gil MONOPOLY
How Rival Companies and Railroads
Were Forced to Yield to the Over
mastering Power of Capital.
RAILROADS FORCED TO DISCRIMI-
NATE.
Railroad Terminals Bought Up to
Shut Out CompetitiOn-The Deeds
of the Standard Dark Page in
History.

QFrom Ex-Governor Larrabces The Rail-
road Question)
The Standard Oil monopoly may be said
to be the browning monument of corpora
ton conspiracy. 1t is, indeed, doubtful
whether the combined brotherhoods of
medieval knights ever were guilty of such
acts of plumber and oppression as the
Standard Oil Company and its railroad al
lies stand convicted. of before the Ameri-
can people. The facts that have been I'M
earthed by official Investigations show a
frightful prevalence of corporate lawless-
ness and official corruption and there can
be no doubt that, could certain high rail-
road dgnitaries have been compelled to
testify, and could the truth have been
fathomed it would have been found that
holders as well, were victimized by those
transactions.
The founder of the Standard Oil monopoly
was some twenty years ago part owner Of
a petroleum refinery at Cleveland, Ohio.
His fertile brain conceived the thought that
with the cooperation of the railroad com
panies few men of means could control
the petroleum business of the United States.
With this end in view he approached the
managers of the New York Central, the
Erie and the Pennsylvania Central rail-
road companies and on January 49, 1872,
entered with them into secret compact
by which they agreed to cooperate with
the South Improvement Company ian or
ganization formed by that gentleman to
aid in the accomplishment of his designs)
to grant to said companies certain rebates
to secure it against loss injury by COM
petition. The South Improvement Company,
in consideration of these favors, guar
anteed to the railroad companies a fair
division of it's freights. The existence Of
this contract soon became known and
caused a violent protest among the oil-pro-
Gucers. An Indignation meeting was held
and a committee was appointed to wait on
the railroad managers and demand fair
treatment for all.
The railroad companies yielded and prom
ised to give equal rates to all shippers and
to grant to no person either rebates or any
other advantage whatever. New rates
were fixed for the transportation OF both
crude and refined OIL and it was agreed on
the part of the railroad companies that at
least ninety days notice should be given
OF any change that might be made in the
rates. Steps were also taken to have the
charter of the South improvement Com
pany Cancelled because it had been found
that 1t was neither the owner of a refinery
nor of an oil well, and could therefore not
comply with the legal requirements con-
corning the organization of stock COM
panes. While the South Improvement
Company thus came to sudden aud in
glorious end, it's founders soon contrived
other means to carry out their ingenious
plans They bought a refinery, reorganized
by taking the prepossessing title Of Stand
ard OIL Company, and were now prepared te
resume their operations under the guise OF
legal authority.
The railroad companies seemed to have
relished their novel business connections
for without paying the least attention tc
the agreement into which they had entered
with the other producers and refiners OF
oil they extended the privileges of the de-
funct South Improvement Company to its
successors. The new company received
secret rebates ranging from so cents t.
1872 per barrel. The agreement also con
tanned the stipulation that If lower rates
should ever be granted to their competitors
an additional rebate should be given The