Year: 1872

it Werlzs-Its Consequences.


From the Boston Advertiser


On Monday last was made the first
open movement of the great combina-
tion which, under the style of the South
troll the petroleum trade of the country.
A general and enormous advance was
made in the freight charges on oil to
the shipping ports. The following will
show the old and new charges per bar
rel of forty-five gallons on refined oil in
barrels and in bulk:


Oil in Barrels. Oil in Bulk.


Old New Old New


Tariff. Tariff. Tariff. Tariff.
To Boston $3.50 $299 $1.46 $2.63
To New York 1.65 2.84 1.31 2.4S


The charges to Philadelphia were
and are Is cents q barrel lower than
New York. The building Of certain
projected competing lines will of course
solve the problem, and should be en-
couraged. But meantime the trade is
at the mercy of the improvement
company" It should nevertheless be
fully understood by the community
what this combination means, how it
works, and what are likely to be the
consequences of it. The South I'm
provement Company is a union of th y
interests of the transporting railroads
and of the refners of Cleveland and
Pittsburg These two cities are in an
advantageous position for supply
ing the Western market,
but not contented with this
they have laid their plans for supply
ing the east and the export trade, But
lying further west than the oil regions,
they were compelled to transport crude
oil to their refneries, and thence east
ward over a longer route than the re-
fineries at the producing regions.
They would thus be placed ordinarily
at a disadvantage. This was overcome,
however, by a discriminating tariff


While the tariff from Titusville to Bos-
ton was $1.80 per barrel, the charge
from Cleveland, much greater dis
tance, was only $1.35. Either of these
charges would yield the railroad COM
panies a fair profit. Cleveland was en-
abled to make good terms by having q
choice of routes, while Titusville was
dependent upon one road. The COM
plants from the oil regions were few,
Notwithstanding the unfair position in
which the district was placed. It's
great natural advantages led to q large
increase in the refining business there.
Ibis new combination was therefore
resorted to in order to crush out the
refining interest in the producing re-
gion. The plan adopted has been
explained Refined oil from Iitusville
must now pay a freight charge of more
than two and half cents gallon. or
S1.17to 81 19 a barrel more than before
The refiners of Cleveland and Pitts
burg get drawback cf more than
dollar barrel-no one
knows exactly how much. The
railroad companies get an excellent
profit on the oil sent eastward from the
refneries of the ring, and they receive
extortionate rates on all the oil refined
in Titas4ilie, and It's vicinity The
ring refineries regulate the supply and
the price, and receive a profit which is
measured only by the rapacity they
may choose to display. The first indi-
cation of their disposition in that di-
rection is not one to inspire very
lively confidence in their generosity.
The advance IN freights was made in
manner perfectly regardless of the
rights and interests of any one not in
the ring. Dealers in the East had CON
tra cted to deliver q certain amount of
oil at q given price. Intimat1ons
that an advance was impend-
ing led them to make unusual
efforts to procure the transportation of
the oil purchased at the producing
points. No cars were forthcoming all
we're sent to Cleveland. Then, with
out the notice of an hour having been
given, the rates were advanced more
than so per cent, and the contracts to
deliver oil, which the railroad compan-
les would not forward. can only be filed
at great loss. A more reckless and
unfair advantage of the public was
never taken. Ii the scheme were open
to inspection, dealers might know how
to act. But they are not only at the
mercy of the ring, but they are work
ing wholly in the dark. We wish it
might be said that The scheme was too
vast to succeed. The boldness of the
operators, ana the helpless condition of
every person interested in the trade
who is not in the company, prove the
contrary. The trade Of Boston shares
equally with that of New York and
Philadelphia the burden of this ar
rangement. Assurances had been Civ
en- that in the change of the tariff we
should oe put on an equality with New
York. But the promise was not kept
The old difference OF. Is cents a barrel
bet the freights to the two cities is
retained, and is just enough to prevent
our engaging extensively in the busi-
ness. Whether the real difference is
not made greater -by a discrimination
in drawbacks also, is known only to
those who are in the secret of this
great conspiracy. The policy of Mr..
Vanderbilt, who is suspected of being
at the bottom of this business even
more than the Cleveland refners, would
undoubtedly be to contribute as large
ly as possible to the trade of New
York; and hence we may believe al
most any story as to the as yet undis-
covered facts regarding the monopoly.