The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1903-12-16

The following is an extract from
Miss Tarbelrs History of the Stand
ard Oil Company" in McClure's fol
December:
General Butler knew something OF
the oil business. -Four years before he
had been employed by the Pennsylva
MIA Transportation company to take
care of the legal side Of their great un
dertaking-a seaboard pipe line-and
he had had convincing experience
Of the Standards power. He reviewed
the history of the oil business, making
few minor mistakes in his historical
facts, but never missing the big facts
and leaving no doubt at all about his
opinion of the Standard Oil company
lie presented the committee with a
pretty full collection OF embarrassing
testimony. calling particular attention
to Mr.. Cassatts revelations in 1917,
and demanded an investigation. lie
had no backing in the oil regions, how
ever, and his appeal was the last made
to congress from the oil regions
The situation was saved at this crit
ical time by individuals scattered
solved to test the validity of Mr.. Rookie
fellers claim that the coal oil business
belonged to him. I'VE have right to
do an independent business, they said.
land we propose TO do it." They began
this effort by an attack on the weak
In .
The ten years just passed had
taught them that the realization of
Mr.. Rockefeller's great purpose had
been made possible by his remarkable
manipulation Of the railroads. 1t was
the rebate which had made the Stand
ard Oil trust, the rebate ampIified,
systematiZed. glorified into power
never equaled before or since by any
business of the country The rebate
had made the trust, and the rebate, in
spite of ten years of combination, pc
trOleum associations, producers I'M
ions. resolutions, suits in equity. suits
in quo warranto, appeals TO congress.
legislative investigations-the rebate
bill was Mr.. RockefelIer's most eff
fectiye weapon. If they could wrest
it from his hand they could do busi-
ness. They had learned something
else in this period-that the railroads
feared exposure OF discrimination and
could be made to settle rather than
have their practices made public. This
much the hated compromise OF 1880
had demonstrated. Therefore. said
these individuals, we propose 10 sue
for rebates and collect charges until
we make it so harassing and danger
Gus for the railroads that they will
shut down on Mr.. Rockefeller
The case of Scotield Shurmer and
Teagle. which was before the public
constantly during the six or seven
years following the breaking up Of the
Producers union. in which the oil re-
gions presented no united front TO Mr..
Rockefeller. served to keep public atten-
ton on the ruinous effect of the rebate
and to strengthen the feeling that dras-
tic legislation must be taken if Mr.
ROckefeller's exploit was TO be pre-
vented In other industries.
AnOtHeF case tdIIle out III llllS VIII VI
individuals on the rebate system, which
heightened the popular Indignation
against the Standard. 1T was case
showing that the Standard Oil com
pany had not yet abandoned that
unique feature OF its railroad contracts
by which portion OF the money which
other people paid for their freight was
handed over 10 them. This peculiar de
velopment Of the rebate system seems
to have belonged exclusively 10 Mr.
Rockefeller. Indeed a careful search of
all the tremendous mass OF materials
which the various investiga ions Of
railroads have produced shows no other
case. so far as the writer knows. OF this
nrn cfion LII Vas the Clauee OF the South