The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-06-06
UNCLE SANS "CROWN OF THORNS.'

Standard Oil Company Endowed with these
privileges, the favored company proceeded
to unite under its banner, by consolidation,
purchase lease, the leading reineries of
Cleveland.
The effect of the Determinations practiced
against Independent refineries soon became
| apparent. In less than two years there were
closed in Pitsburg 81 refineries that
represented an aggregate capital of 5000
600 and had given employment to over B.
900 people. A large number of the remain
ing refineres were forced to consolidate
with the Standard Oil Company.
The next step toward the entire suppress
sion of competition attack planned
against the independent pipe lines. The
Standard had early secured control of the
United Pipe Line. To exterminate compet-
ing lines, they again appealed to the rail
road companies, and on the 9th day of
| September, 1874, S. H. Rutter, general
freight agent of the New York Central,
issued a new oil tariff which disseminated
greatly In favor of the oil brought by the
United Pipe Line to the refineries. Up to
| that time this company had done from 70
! to 30 per cent of the total business of the
various pipe lines Within one year after
the adoption of the new tariff it did fully
80 per cent of the entire business rms
forced the Independent lines either to sell
out to the Standard or to suspend business,
for the latter's rebate was larger than their
toll. The oil tariff of the Pennsylvania
| Central compelled the Independent Pitts
burg refiners to ship their refined oil over
| that company's line, if they would avail
| themselves of the rebate which 1T granted
| on the rates for the transportation of crude
| oil to Pittsburg The evident purpose and
the effect of such a tariff was to prohibit
oil shipments over the Baltimore and Ohio.
| Had this road made so reasonable
tariff the combined charges for the trans
| portation of the crude petroleum from the
! oil regions to Pittsburg by the Pennsyl-
/ vania Central, and for that of the refined
| oil to the sea coast by the Baltimore ana
! Ohio would still have been prohlb1t1Ve IN
/ competition with the special transit rates
| granted to the Standard Oil Company AS
| q remedy it was proposed to organize a
! new pipe line, it being believed that the
crude oil could be brought to PittSburg by
| that line. refined there, shipped to the sea-
! board by the Baltimore and Ohio and SOLD
/ there at as good or even better pront imam
! the product of the Standard notwithstand-
! ing the favcrs received by the latter from
| the allied trunk lines. This movement re-
| suited in the crea ton of the Columbia Con-
| duit Company, which at once proceeded to
| lay it's pipes from the oil wells to Pitts
| burg. Under the laws Of the state OF
| Pennsylvania it became necessary for this
| company to obtain the permission of prop
| erty holders to lay the pipes through their
| lands. Consent was everywhere readily
| given, and the pipes were laid without any
! hindrance until the track Of the Pennsyi-
| yania railroad was reached, within Few
| miles of the Pittsburg refineries. The COM
pany peremptorily refused to let the pipes
| be laid under its track. The pipe line COM
pany after some delay contrlVed TO oDVlate
| the difficulty. 1t laid its pipes on each side
| Of the road as close to the track as it
| could without trespassing against the legal
/ rights Of the Pennsylvania Central and
| then conveyed the oil from one side of the
! track to the other by means of large Oil
| tanks on wheels, which could not be pre-
| vented from passing over the track at the
! public crossing. After several months the
! railroad company allowed the pipes to be
| laid under it's track, but it soon appeared
| that another combination had been effected
| to destroy the value of this concession A
| railroad war had given the three trunk
| lines an opportunity to force the Baltimore
| and Ohio into the pool. A uniform rate of
81 Is was established for shipments of re-
/ fined petroleum from any point to the sea-
! board. While this was in itself an unjust
| discrimination against Pittsburg, which is
| $50 miles nearer tidewater than Cleveland,
! the railroads in addition granted the Stand
! dar3 secret rebates which enabled 1t to sell
| it's oil on the coast for less than the sum
| of it's first cost at the refineries and the
| open rate of transportation to the points of
| export. The independent refiners of Pitts
/ burg found themselves again cut off from
| the market. but necessity made them
| discover another outlet. Shipping their oil
| down the Ohio river to Huntington w. Va
! they had it taken by the Chesapeake and
! Ohio railroad to- Richmond In spite of the
fact that this route was more than twice
| as long as the direct line from Pittsburg
| to the seaboard, and in spite of the further
| fact that it necessitated expensive trans
| fer, a rate equal to about two-thirds of the
! trunk line rate for the direct shipment
| proved remunerative to the Chesapeake and
| Ohio. The independent reflners kept up
| their competition for some time but the
| great disadvantage of river travel and the
insufficient export facilities of Richmond