New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-09-04

Gilbert Holland Montague has condensed
z,i.bin the limits OF short and pocket slNee
volume the story Of remarkable corporation
-rbe Rise and Progress Of the Standard OH
,-or,nany'' Cthe Macmillan Company rs one OF
she shortest books which have appeared on Us
subject. Nj Montague undertook the STUDY
while holding the Ricardo scholarship al har-
ward. and presented his results in two articles
which anpeared IN The Quarterly Journal Of
Fconornics" These two articles are here re-
r-inted unchanged. The investigation rests on
reports Of committees OF Congress and other
bodies engaged in investigating the operations
OF trusts and corporate interests. such. for in
stance as the report a the Hepburn" COM
rnittee appointed in 1879 by the legislature OF
this State 70 investigate railway abuses the re-
ports Of a committee Of Congress in 1883. and
thar ~ the Industrial Commission appointed in
1895 ano reporting on trusts in 1900.
The account begins at the inception Of the
FIRST Rockefeller company started in $50. with
q capital stock OF 100000 The period from
1870 10 1874 is described as one Of struggle for
transportation facilities Until 1874 discriIninat-
ing freight rates were sought. From 1874 TO
1877 there was added TO this the attempt 10 or
eanize the bew1lderfng network OF pipe lines
which had been building since 1863. The prac-
tice n granting discriminating rates is defended
By the author as being the usual method Of
railroad management al the time and among
the essential consequences Of railway economy
IN fts development" He divides the discrimina-
lions into three kinds-special tariffs, group
rates and evening systems. There is no evidence.
that the author has been able 10 ind. Of corrup-
tion of the railroads by the corporation in its in
terests The railroads aided the strongest ship
pers with the idea OF stimulating traffic. Public
opinion however. forced the railroads 10 abro-
gate their contract with the South Improvement
Company. The freight rates accorded the Stand
ard OF Company IN 1872 set down as the re-
ward OF its predorninance in the industry. Econ
onnies IN refining also were fruitful in results
The sudden and furious war between the rail-
roads for oh traz5lc in 1877 was precipitated by
the refusal OF the Standard OH Company 10 send
freight over the Pennsylvania because with its
help the Empire transportation Company had
secured control OF encroaching refneries. Freight
charges from Chicago 10 the seabosrd fell from
81 20 10 cents. In the end the company outdid
the railroad and forced Il into a contract which
meant practically a monopoly OF the production
end transportation Of OIL Mr. NIontague's con-
ciusion FOR the early part OF his examination is
that the Standard OIL Company obtained its
monopoly because 81 was the most efficiently or
Fanized.
The later fortune OF the alliance" SIS devel-
opnent into trust and the breakup OF that
trust by the courts OF Ohio. without irnpairing
the predominant success OF its constituent com
panes together with the later struggles be-
tween the Standard and the Pure on companies.
are set forth with 5udicious weighing OF eyi-
cence that renders the account AT times almost
colorless. The tremendous power OF the corpora
ton still remaining irnpresses the Investigator
as the natural outcome OF conditions He steers
throughout between popular suspicion and sus-
tained apology.