whether the Standard Oil Company would remain in Cleveland or remove
its works to the oil-producing country, and such question depended
mainly upon rates of transportation from Cleveland to market; that
prior thereto said Standard Company did ship large quantities of its
products by water to Chicago and other lake points, and from thence
distributed the same by rail to inland markets; that it then
represented to defendant the probability of such removal; that water
transportation was very low during the season of navigation; that
unless some arrangement was made for rates at which it could ship
the year round as an inducement, it would ship by water and store
for winter distribution; that it owned its tank-cars and had
tank-stations and switches or would have at Chicago, Toledo,
Detroit, and Grand Rapids, on and into which the cars and oil in
bulk could be delivered and unloaded without expense and annoyance
to defendant; that it had switches at Cleveland leading to its works
at which to load cars, and would load and unload all cars; that the
quantity of oil to be shipped by the company was very large, and
amounted to 90 per cent. or more of all the oil manufactured or
shipped from Cleveland, and that if satisfactory rates could be
agreed upon it would ship over defendant’s road all its oil products
for territory and markets west and northwest of Cleveland, and agree
that the quantity for each year should be equal to the amount
shipped the preceding year; that upon the faith of these
representations the defendant did enter into the contract and
arrangement substantially as set forth in defendant’s answer; that
the rates were not fixed rates, but depended upon the general card
tariff rates as charged from time to time, but substantially to be
carried from time to time for about ten cents per barrel less than
tariff rates, and, in consideration of such reduced rates as to bulk
oil, the Standard Company agreed to furnish its own cars and tanks,
load them on switches at distributing points, and unload them into
distributing tanks, and was also to load and unload oil shipped in
barrels, and without expense to defendant, and with, by reason
thereof, less risk to defendant, which entered into the
consideration, and was also to ship all its freight to points west
and northwest of Cleveland, except small quantities, to lake ports
not reached by rail, and to so manage the shipments, as to cars and
times, as would be most favourable to defendant; that defendant then
agreed to said terms; that said agreement so made in 1875 has
remained in force ever since.
13th. That at a cost exceeding $100,000 said Standard Company had
and constructed the terminal facilities promised and herein found;
that, in fact, the risk of danger from fire to defendant, the
expense of handling, in loading and unloading, and in the use of the
standard tank-cars is less (but how much the testimony does not
show) than upon oil shipped without the use of such or similar
terminal facilities; that said Standard Company commenced by
shipping about 450,000 barrels a year over defendant’s road, which
increased from year to year until, in 1882, the year before the
filing the petition in this action, the quantity so shipped on
defendant’s road amounted to 742,000 barrels, equal to 2,000 barrels
or one full train-load per day.
14th. That said arrangement was not exclusive, but was at all times
open to others shipping a like quantity and furnishing like service
and facilities; that it was not made or continued with any intention
on the part of the defendant to injure the plaintiffs in any manner;
that plaintiffs knew of an arrangement between defendant and
Standard Oil Company years before January 1, 1880, and on or about
July 20, 1876, contracted with the Standard Company to give it the
control of the shipments of plaintiffs’ oil and the plaintiffs the
benefit, if any, of any arrangements then existing or that might
thereafter exist with the Standard Oil Company upon shipment of oil,
and which plaintiffs received until about January 1, 1880, when they
ceased operating with the Standard Oil Company, and thereafter were
charged and paid the regular tariff rates published by defendant and
by it charged and collected from all the public except the Standard
Oil Company under the arrangement aforesaid.
15th. That the testimony on behalf of the plaintiffs fails to show
the quantity manufactured or shipped by them, and how much they
could or would ship by defendant’s road if the Standard Company were
charged tariff rates, does not appear in the testimony, although the
testimony does show that plaintiffs shipped many car-loads, but the
court find that the Standard Company have shipped and do ship over
defendant’s road more than 90/100 of all the oil manufactured at and
shipped from Cleveland.
16th. The court further find that at the time of filing the
petition, and at all times after November 29, 1882, the prices
charged the Standard Company from Cleveland to Chicago was fifty
cents per barrel on oil in barrels, and forty dollars for each
tank-car; that at the time of filing the petition, and from and
after May 19, 1883, the tariff rate between the points aforesaid was
sixty cents per barrel, while from November 20, 1882, to May 19,
1883, the tariff was seventy cents per barrel; that prior to the
dates aforesaid the tariff rates and rates to the Standard
frequently changed, and the difference was frequently greater than
after said dates; that sixty-one barrels constitute a car-load and
eighty barrels are estimated to the tank, but that some tanks hold
one hundred and some one hundred and twenty barrels, and that at no
time were tariff rates made or published for tank-cars carried by
defendant with refined oil except when furnished by said Standard
Company.
17th. That after said May 19th, 1883, about the same difference of
ten cents per barrel existed between tariff rates and the prices
charged to the Standard Oil Company to the different points along
the line and consignment points beyond the termini of defendant’s
road; that five barrels of oil make a ton, and that the prices
charged the Standard after November, 1882, from Cleveland to
Chicago, amounted to 70/100 of one cent per ton, per mile, and
tariff rates to 83/100 of one cent per ton per mile; that the
contract of arrangement made with defendant has been largely
profitable to defendant; that during the season of water navigation
the Standard Company could have shipped to said distributing points
on vessels by the lakes and river barreled oil for a less sum than
the rates charged to it by defendant—to plaintiffs and the public
were reasonable rates in themselves.
18th. That the defendant from time to time published and still does
publish and hold forth to the public a certain printed tariff of
rates of charge for the shipment and delivery of all classes of
freight, including the products of the plaintiffs’ refinery, between
Cleveland aforesaid and the various towns and cities upon its said
line, branches, and connecting lines, and has refused and still does
refuse to ship such products for the plaintiffs to any of such
points named in its tariff or schedule except for the prices therein
named; and that such schedule fixes the prices for oil shipment at
so much per barrel to the public, irrespective of their being
shipped in barrels by ordinary freight cars or in bulk by means of
tank-cars.
19th. That the plaintiffs have since December, 1879, frequently
applied to the defendant both for reduced rates upon such tariff
rates and for like rates with those made to such Standard Oil
Company, both upon their general shipments by the ordinary freight
cars of the defendant and also upon shipments to be by them made in
bulk by means of tank-cars owned by them, they proposing to load and
unload the same at terminal points, and to assume all risks by fire
or leakage; but that the defendant has and still does refuse to
allow them by either course of shipment rates less than such tariff
rates, the tariff charged and demanded upon such shipments in bulk
being on the basis of eighty barrels allowed to be shipped by each
tank-car.
20th. The defendant has received ever since the first day of
December, 1879, and still does receive from said Standard Oil
Company at Cleveland and ship for _him_, like products to those of
the plaintiffs at rates much less than such schedule rates, and
receives and ships for said Standard Oil Company oil for shipment in
bulk to such points by means of tank-cars of said Standard Company
at rates much less than said schedule rates and much less than the
rates allowed to said company for the shipment of oil by barrels in
ordinary freight cars, and that such reduced rates to said Standard
Oil Company by means of such tank-cars are allowed both by the
making to it a lower rate upon its shipments by the defendant’s cars
in barrels, and also by means of its being allowed to ship by means
of its said tank-cars to their full capacity, running from 80 to 120
barrels each, and averaging over 100 barrels each, and the reduced
rate being charged on a basis of 80 barrels per car. The defendant
charged the plaintiffs the switching charge, and omitted to charge
the same to the Standard Oil Company; that it was a further part of
such understanding, that should the defendant give to other shippers
like rates, said Standard Oil Company would as far as possible
withdraw from it its shipments; and that for the purpose of
effectually securing at least the greater part of said trade, the
defendant, on the completion of the New York, Cleveland and St.
Louis Railway, a competing line from Cleveland to the West, in the
year 1883 entered into a traffic arrangement with it, giving to it a
portion of the shipments of said Standard Oil Company west, on a
condition of its uniting with it in the carrying out of such
understanding as to reduced rates to said Standard Company, which
arrangements still exist.
21st. That upon the shipment made by the defendant for said Standard
Oil Company of such products the rates paid for shipment to points
of delivery upon the defendant’s connecting lines and beyond its
line have been and are less for the rateable amount of carriage
charged for the distance transported over its own line, than said
schedule rates or than the lower rates charged to said Standard Oil
Company for shipments to the terminal points at which said shipments
went from said road to its connecting line; how much less the
defendant has refused to state.
22nd. That the reduced rates charged to said Standard Oil Company
upon its shipments are arrived at by charging upon such shipments
full tariff rates, and afterward, in accordance with some
prearranged method agreed on with said Standard Oil Company,
refunding to it a portion of the freight so charged and collected,
the amount refunded being known as a “drawback” or “rebate.”
23rd. That the evidence does not establish the fact whether or not
all the various advantages claimed as secured to defendant by its
contract with the Standard Oil Company are the equivalent for the
discrimination made to it in freights.
NUMBER 46 (See page 2080)
LETTER OF EDWARD S. RAPALLO TO GENERAL PHINEAS PEASE, RECEIVER CLEVELAND
AND MARIETTA RAILROAD COMPANY
[Proceedings in Relation to Trusts, House of Representatives, 1888.
Report Number 3,112, pages 576–577.]
32 NASSAU STREET, NEW YORK, March 2, 1885.
GENERAL PHINEAS PEASE,
Receiver Cleveland and Marietta Railroad Company.
_Dear Sir_: My opinion is asked as to the legality of your making
such an arrangement with the Standard Oil Company as set forth
below.
The facts, as I understand them, are as follows:
The Standard Oil Company proposes to ship or control the shipping of
a large amount of oil over your road, say a quantity sufficient to
yield to you $3,000 freight per month. That company also owns the
pipes through which oil is conveyed from the wells owned by
individuals to your railroad, except those pipes leading from the
wells of George Rice, which pipes are his own. The company has, or
can acquire, facilities for storing all its oil until such time as
it can lay pipes to Marietta, and thus deprive your company of the
carriage of all its oil.
The amount of oil shipped by Mr. Rice is comparatively small, say a
quantity sufficient to yield $300 per month for freight.
The Standard Oil Company threatens to store, and afterward pipe all
oil under its control unless you make the following arrangements,
viz.: You shall make a uniform rate of thirty-five cents per barrel
for all persons excepting the Standard Oil Company; you shall charge
them ten cents per barrel for oil and also pay them twenty-five
cents per barrel out of the thirty-five cents collected from other
shippers.
It may render the subject less difficult of consideration to
determine, first, those acts which you cannot with propriety do as
receiver.
You are by the decree vested with all the powers of receiver,
according to the rules and practice of the court; are directed to
continue the operations of the railroad and can safely make
disbursements from such moneys as come into your hands for such
purposes only as the decree directs, viz.: wages, interest, taxes,
rents, freights, mileage on rolling stock, traffic balances and
certain debts for supplies.
In my opinion this would not protect you in collecting freight from
one shipper and paying it over to another.
All moneys received, therefore, from any person for freight over
your road, must pass into your hands and there remain to be
disbursed by proper authority. After an examination of your statute,
however, I find no prohibition against your allowing a discount, or
charging a rate less than a schedule rate to a shipper on account of
the large amount shipped by him.
As you are acting, therefore, in the interest of the company, and
endeavouring to increase its legitimate earnings as much as
possible, I find nothing in the statutes to prevent your making a
discrimination, especially where the circumstances are such that a
large shipper declines to give your road his freight unless you
allow him to ship at less than the schedule rates. Therefore, there
is no legal objection to the making of an arrangement which in
practical effect may be the same as that proposed, provided the
objections pointed out above are obviated.
You may with propriety allow the Standard Oil Company to charge
twenty-five cents per barrel for all oil transported through their
pipes to your road, and I understand from Mr. Terry that it is
practicable to so arrange the details that the company can, in
effect, collect this direct, without its passing through your hands.
You may agree to carry all such oil of the Standard Oil Company or
of others delivered to your road through their pipes, at ten cents
per barrel. You may also charge all other shippers thirty-five cents
per barrel freight, even though they delivered oil to your road
through their own pipes, and this I gather from your letter and from
Mr. Terry would include Mr. Rice.
You are at liberty, also, to arrange for the payment of a freight by
the Standard Oil Company calculated upon the following basis, viz.:
Such company to be charged an amount equal to ten cents per barrel,
less an amount equivalent to twenty-five cents per barrel upon all
oil shipped by Rice, the agreement between you and the company thus
being that the charge to be paid by them is a certain sum
ascertained by such a calculation. If it is impracticable so to
arrange the business that the Standard Oil Company shall, in effect,
collect the twenty-five cents per barrel from those persons using
the company’s pipes from the wells to the railroad without its
passing into your hands, you may properly also deduct from the price
to be paid by this company an amount equal to twenty-five cents per
barrel upon the oil shipped by such persons provided your accounts,
bills, vouchers, etc., are consistent with the real arrangement
actually made, you will incur no personal responsibility by carrying
out such an arrangement as I suggest. It is possible that by a
proper application to the court, some person may prevent you in the
future from permitting any discrimination. Even if Mr. Rice should
compel you, subsequently, to refund to him the excess charged over
the Standard Oil Company, the result would not be a loss to your
road, taking into consideration the receipts from the Standard Oil
Company, if I understand correctly the figures. There is no theory,
however, in my opinion under the decisions of the courts, relating
to this subject, upon which, for the purpose, an action could be
successfully maintained in this instance.
Yours truly,
EDWARD S. RAPALLO.
NUMBER 47 (See page 2084)
TESTIMONY OF F. G. CARREL, FREIGHT AGENT OF THE CLEVELAND AND MARIETTA
RAILROAD COMPANY
[In the case of Parker Handy and John Paton, Trustees, _vs._ The
Cleveland and Marietta Railroad Company _et al._, Circuit Court of
the United States, Southern District of Ohio, Eastern Division.]
_Q._ The auditor reports it (the $340) remitted on October 29, 1885.
Please state by whom it was held from the first of May to that time.
_A._ We might as well go back of that, and I will make a clean
sweep, so far as I am concerned. This overcharge of twenty-five
cents was held by the Macksburg Pipe Line Company. Whether this was
my fault or the fault of the general agent I am not able to say. I
know no difference between Mr. Rice’s oil and the Pipe Line
Company’s.
_Q._ The books of the company show from the 26th of March, 1885,
until April 28, 1885, Mr. Rice shipped from Macksburg to Marietta
1,360 barrels; that upon these shipments $340, or twenty-five cents
per barrel, were reported to the auditor of the Cleveland and
Marietta Railway upon the 29th of October. Who sent the
money—$340—to the railroad company, and who reported the amount of
money to the auditor?
_A._ If I understand correctly, if it is the amount I think it is,
that is the amount for overcharge. It came through my office.
_Q._ In whose hands had the $340 been from the time paid by Mr. Rice
until it was sent by you to the bank at Cambridge?
_A._ I received check from Pipe Line.
_Q._ How soon did you send money to Cambridge after receiving check?
_A._ I think the next day.
_Q._ How did you come to get that check?
_A._ I don’t understand.
_Q._ Did you go after it?
_A._ No, sir; it was sent to me by mail.
_Q._ Where was it mailed?
_A._ Oil City, I think.
_Q._ By whom was the check signed?
_A._ By the treasurer, J. R. Campbell, I think.
* * * * *
_Q._ If I understand the arrangement during the month of April,
1885, you collected thirty-five cents per barrel for all oil shipped
by George Rice, and paid ten cents to the receiver of the railroad
company and twenty-five cents to the Macksburg Pipe Line?
_A._ Yes, sir; as long as Mr. Rice shipped.
_Q._ Afterwards the Macksburg Pipe Line Company sent the money thus
paid to it to you, and you paid the money into the depository of the
railroad company on the 29th of October, 1885?
_A._ Yes, sir.
NUMBER 48 (See page 2084)
REPORT OF THE SPECIAL MASTER COMMISSIONER GEORGE K. NASH TO THE CIRCUIT
COURT
[In the case of Parker Handy and John Paton, Trustees, _vs._ The
Cleveland and Marietta Railroad Company _et al._, Circuit Court of
the United States, Southern District of Ohio, Eastern Division.]
TO THE HONOURED THE CIRCUIT COURT OF THE UNITED STATES,
Southern District of Ohio, Eastern Division.
By an order of your court made on the 18th day of December, 1885, in
the case of Parker Handy and John Paton, Trustees, _vs._ The
Cleveland and Marietta Railroad Company _et al._, I was appointed a
special master commissioner to investigate and report to the court
for its action what discriminations have been made in freights by
Receiver Pease, or during his administration by those under him, and
to this end I was authorised to summon and examine witnesses and to
cause their testimony to be reduced to writing so far as in my
discretion it might be necessary. I was also required to inquire
fully and particularly into the facts and report to the court what
discriminations had been made, under what arrangements and to what
extent, and to report fully all the facts and show to what extent
and under what circumstances discriminations have been made against
shippers as well as in favour of shippers, and by whom such
discriminations were authorised and by whom made. In compliance with
this order I proceeded to examine the matters therein referred to,
and in the course of such examination called the following-named
persons as witnesses:
T. D. Dale, C. C. Pickering (auditor of the Cleveland and Marietta
Railroad Company under Receiver Pease), F. G. Carrel, J. E. Terry,
Daniel O’Day, George Rice, H. L. Wilgus, W. H. Slack, W. J. Cramm,
George Best, Jr., and J. C. McCarty, whose evidence I caused to be
reduced to writing by A. C. Armstrong, a stenographer, and is
herewith submitted.
I find from the evidence that soon after General Pease was appointed
receiver of the Cleveland and Marietta Railroad, an arrangement was
entered into with Daniel O’Day and W. T. Scheide, by which it was
agreed that the rate to be charged by Receiver Pease and his
subordinates upon all crude oil shipped from Macksburg and vicinity
upon the line of the Cleveland and Marietta Railroad Company to
Marietta should be thirty-five cents per barrel; that the agent of
the receiver at Marietta should also pay the agent of the parties
represented by O’Day and Scheide; that his compensation was to be
$85 per month, $60 of which was to be paid by Receiver Pease and $25
by the parties represented by O’Day and Scheide; that it was the
duty of this joint agent (one F. G. Carrel) to collect from all
shippers the sum of thirty-five cents per barrel, and to account to
Receiver Pease for ten cents of this sum, and to the parties
represented by O’Day and Scheide for the balance. This arrangement
went into force on the 20th day of March, 1885, and continued in
force until September, 1885, at which time one George Rice made
complaint to your court that discriminations were being made by the
receiver against oil shippers.
Negotiations for this arrangement were opened in the City of Toledo
on the 8th day of February, 1885, at a meeting which was attended by
Daniel O’Day, W. T. Scheide, A. G. Blair (acting general freight and
passenger agent of the receiver of the Wheeling and Lake Erie
Railroad Company), and J. E. Terry (general freight and passenger
agent of Pease, the receiver of the Cleveland and Marietta Railroad
Company). The agreement above referred to was substantially reached
at this meeting. Mr. Terry reported the same to General Pease,
receiver of the Cleveland and Marietta Railroad Company, who
thereupon wrote a letter to his general counsel in New York, asking
advice in regard thereto, which letter was transmitted to said
counsel by J. E. Terry in person. E. S. Rapallo, an attorney in New
York City, replied to the letter of General Pease, and a copy of his
letter is now on file in your court and is a part of a report filed
by General Pease in November, 1885. This arrangement seems to have
been entered into with full knowledge of General Pease, the
receiver, and after consultation with his counsel, and with the full
knowledge of his general freight and passenger agent, J. E. Terry.
George Rice was the owner of certain oil wells in the Macksburg Oil
Region and he also purchased some oil from the owners of certain
other wells in the same district. The oil which he produced and also
the oil which he purchased he was in the habit of transporting to
his refinery at Marietta, Ohio, by means of the Cleveland and
Marietta Railroad. Before the arrangements to which I have referred
went into effect he had been charged upon the shipment made by him
the sum of seventeen and one-half cents per barrel. After the 20th
of March, 1885, he was charged thirty-five cents per barrel upon all
oil shipped by him. Between the 20th of March and the 30th of April
following, Mr. Rice shipped from Macksburg to Marietta over the
Cleveland and Marietta Railroad, 1,360 barrels of oil. Upon this oil
he was charged thirty-five cents per barrel, or the sum of $476.
This money was collected by F. G. Carrel, the agent of the receiver
and also the agent of the parties represented at Toledo by O’Day and
Scheide. This money was divided according to the agreement, and $136
was sent by Carrel to the bank of the receiver at Cambridge, Ohio,
and the remaining $340, or twenty-five cents for each barrel of oil
shipped by Rice, was sent by Carrel to the oil parties who had their
headquarters at Oil City, Pennsylvania. On or about the 29th of
October, 1885, this $340 was returned to Mr. Carrel at Marietta, by
a check from Oil City, which check was signed by one J. R. Campbell,
treasurer. This money was sent by Carrel to the bank in Cambridge in
which the receiver made his deposits. It will be observed that this
money was returned from Oil City some ten or twelve days after Judge
Baxter made his order directing the receiver to make a report
showing what discriminations, if any, had been made by him in the
shipments of oil, which order had been obtained upon the complaint
of George Rice. It was also returned after a consultation had by J.
E. Terry with Daniel O’Day in the City of Cleveland. Mr. Terry
states that the receiver was made acquainted with the steps taken by
him in connection with this transaction. The receiver did not submit
himself to an examination in regard to this matter, but filed an
affidavit with me which I attach to this report, in which he states
in substance that he did not know at the time he filed his reports
with your court that that part of the agreement between himself and
the oil parties which required that twenty-five cents per barrel of
the moneys collected by him should be paid to the oil parties had
been carried out, or that the money thus paid by Rice, and by Carrel
paid over to the oil parties, had been returned. The reason given by
Receiver Pease and by Mr. Terry for entering into this agreement was
that the parties represented by O’Day and Scheide were threatening
to put down a pipe-line from Macksburg to Parkersburg, through which
to transport the oil produced by them in this region to the latter
city, and that if this threat was carried out, the Railroad Company
would be prevented from carrying oil produced by them to Marietta.
They further stated that in consideration of the arrangement to
which I have referred, the parties represented by O’Day and Scheide
agreed not to put down a pipe-line, but to ship their oil over the
Cleveland and Marietta Railroad.
As soon as George Rice found that the rates on oil had been raised
from seventeen and one-half to thirty-five cents per barrel, and
that he could not get any better terms for his shipment from the
railroad, he commenced to lay a pipe-line from his wells in the
Macksburg field to Lowell, on the Muskingum River. This line was
completed about the first of May, 1885, and from that time he
transported all his oil through this pipe to Lowell, and thence
shipped it to Marietta by boat on the Muskingum River. As soon as
the parties represented by O’Day and Scheide ascertained that Rice
was putting down a pipe-line, they proceeded also to lay a pipe-line
from the Macksburg oil field to Parkersburg, in West Virginia. Since
the completion of their pipe-line all the oil sent to Parkersburg
and Marietta has been sent through this pipe-line. For several
months they continued to ship some of their oil North over the
Cleveland and Marietta Railroad to Cleveland, but during the last
two months these shipments have ceased, and all the oils now
produced by the parties represented by O’Day and Scheide are sent by
them through their pipe-line to Parkersburg.
Mr. Rice, since the completion of his pipe-line, has shipped through
it to Marietta more than forty-five thousand barrels of oil. The
shipments by Mr. Rice might have been retained for the benefit of
the railroad had the rate of seventeen and one-half cents per barrel
been continued. It is probable that had not the arrangement which we
have been considering been entered into, a line would have been put
down by the parties represented by O’Day and Scheide, but without
the arrangement the patronage of Mr. Rice could have been retained.
The result of the arrangement seems to be that the railroad has lost
the patronage not only of the parties represented by O’Day and
Scheide, but also of Mr. Rice, and it is not to-day carrying a
barrel of oil.
The Argand Oil Works and the Argand Refining Company, two
corporations located at Marietta, Ohio, have made complaint that
from the eighteenth day of February until the fourteenth day of
October, 1885, they were shippers of oil from the Macksburg Oil
Region, over the Cleveland and Marietta Railroad, and that they were
discriminated against by the receiver and his agents. I conceived
that the order of your court referring this subject to me was broad
enough to cover the complaint made by these corporations and I
accordingly called W. H. Slack, W. J. Cramm, C. C. Pickering, and F.
G. Carrel as witnesses in regard to this complaint, and their
testimony is herewith submitted, together with the account presented
by these two corporations and the receipted bills taken by them in
payment of freight. From the evidence of these witnesses it appears
that these corporations, during the time covered by the complaint,
were engaged in refining oil at Marietta, Ohio. They purchased their
crude oil of the parties represented by O’Day and Scheide at
Macksburg. Their purchases were made by ordering their oil when
needed by telegraph from a man by the name of Seep, located at Oil
City, Pennsylvania, and they were charged therefor the market price
of oil at Oil City on the day when the telegraphic order was given.
The oil was then shipped to them over the Cleveland and Marietta
Railroad and a bill for freight presented to them in the form
following: “The Argand Oil Works, Marietta, Ohio, To the Cleveland
and Marietta Railroad Company, Dr.”
In these bills they were charged for all oil shipped at the rate of
thirty-five cents per barrel. This amount was paid by them to
Carrel, the agent of the receiver, at Marietta, Ohio. Of this amount
Carrel paid to the receiver ten cents, and to the parties
represented by O’Day and Scheide, twenty-five cents. I am of the
opinion that these parties were in the same position as George Rice,
with the exception that Mr. Rice produced his oil from the ground
and shipped it over the Cleveland and Marietta Railroad, and these
parties bought their oil instead of producing it from the ground. I
cannot see as this difference modifies in any way the discrimination
made against them. They claim that from February 18, 1885, until
October 14, 1885, they shipped 3,679–6/10 barrels of oil, for which
they were charged $1,232.06 as freight, and that the discriminations
against them amounted to $888.70. From their bill certain reduction
should be made. All shipments made prior to March 20, 1885, should
be excluded for the reason that the discriminating arrangement
entered into between the receiver and the parties represented by
O’Day and Scheide did not go into effect until the 20th of March,
1885. Two shipments, one made on the 7th of August, and the other
made on the 21st of September, from Dexter City, should also be
excluded for the reason that all oils shipped from Dexter City were
charged for at the same rates as these complainants were taxed.
After making these deductions, I find that under the contract
complained of, the Argand Oil Works and the Argand Refining Company
shipped from the 20th of March until the 14th of October, 2,695
barrels of oil; that they were required to pay upon these shipments
the sum of $894.59, and that of this sum Carrel, the agent of the
receiver at Marietta, paid to the receiver the sum of $245.44, and
to the parties in Pennsylvania represented by O’Day and Scheide the
sum of $649.15.
A complaint of a similar character is made by the Marietta Oil
Works, a partnership engaged in the business of refining oils at
Marietta, Ohio. Upon their complaint, I examined George C. Best,
Jr., J. C. McCarty, W. H. Slack, C. C. Pickering, and F. G. Carrel
as witnesses, and their evidence is submitted herewith in full,
together with the account presented by this partnership and the
receipted bills presented by the Cleveland and Marietta Railroad and
paid by them. Their case in all respects seems to be precisely like
that of the Argand Oil Works and the Argand Refining Company. They
claim that from the 1st day of April until the 31st day of August,
1885, inclusive, they shipped 2,717 barrels of oil, for which they
were charged as freight $950.95, and that they were discriminated
against to the extent of $679.25. From their bill I think that there
should be excluded two shipments from Dexter City, one made on the
12th day of June, and the other on the 18th day of June, for the
reason that no discriminations were made in freights, by the
receiver, of oils shipped from Dexter City. After taking into
account these two shipments, I find that the Marietta Oil Works
shipped from Macksburg and Elba on their account 2,547 barrels of
oil; that the freights paid by them upon these shipments amounted to
the sum of $891.45, and that out of this sum Carrel, the agent at
Marietta, paid to the receiver the sum of $251.70, and to the
parties represented by O’Day and Scheide the sum of $639.75.
I find that during the receivership of General Pease, no oils were
shipped from Macksburg North over the Cleveland and Marietta
Railroad except such as were shipped by the parties represented by
Messrs. O’Day and Scheide.
I have purposely referred to the parties who entered into this
arrangement with Receiver Pease and his freight agent, J. E. Terry,
as “the parties represented by O’Day and Scheide,” for the reason
that I have not been able to ascertain who or what the parties are.
It appears from the evidence that during the time that M. D.
Woodford had control as manager of the Cleveland and Marietta
Railroad, one W. J. Brundred and T. D. Dale conceived the idea of
running pipes to all the wells in the Macksburg Oil Regions, and
then by concentrating them together convey all the oils thus
gathered through the main line to the Cleveland and Marietta
Railroad and deposit it in tanks, and with this end in view entered
into a contract in writing with said Woodford, a copy of which
contract is attached to the report of Receiver Pease, filed in your
court in November, 1885. After this contract was entered into, they
organised a corporation known as the Ohio Transit Company, with T.
D. Dale as president and W. J. Brundred as vice-president, to which
corporation this contract was assigned. This company continued in
the business until January, 1885. Mr. Dale, the president, states
that “We said we could not compete with the Standard Oil Company,
and for that reason we sold out at a fair price.” When asked to whom
his company sold their property, Mr. Dale answered, “I don’t know
what company, but my recollection is that it might have been the
National Transit Company.” “It was done in their office. I don’t
know whether the bill of sale was made to Mr. O’Day or to Mr.
Scheide.” Mr. Dale further states that “Mr. O’Day was vice-president
of the National Transit Company, and that Mr. Scheide was its
general manager; it, however, is conjecture on my part.” In another
place Mr. Dale states that the gentleman managing the National
Transit Company bought the property of the Ohio Transit Company, and
gives as their names Daniel O’Day, W. T. Scheide, and J. R.
Campbell. The corporation or partnership, or whatever it is which
now manages the pipe-line system in Macksburg oil fields, and
extending from there to Parkersburg, is known as the Macksburg Pipe
Line. One Daniel O’Day, now having his headquarters at Macksburg, is
the manager of this pipe-line. When O’Day was asked, “To whom does
the Macksburg Pipe Line belong?” he answered, “I do not believe I
can answer that; I do not know.” When asked, “Who has general
control of it?” he answered, “Mr. Scheide, Mr. O’Day, and J. R.
Campbell.” He stated that “Mr. Scheide lives in Titusville, Mr.
Campbell at Oil City, and Mr. O’Day at Buffalo.” He also stated that
these gentlemen were officers of the National Transit Company and
the United Pipe Line, a division of the National Transit Company;
that Mr. O’Day is general manager of the National Transit Company,
and when asked whether the Macksburg Pipe Line is also a branch of
the same system, he answered, “Really, I am not well enough posted
to know, but I presume it is.” Daniel O’Day also stated that the
National Transit Company is a corporation organised under the laws
of New York, and that its principal office is located in New York
City. He also stated that “its property is located throughout the
state of New York and the state of Pennsylvania, and some in Ohio.”
The line located in Ohio he described as running from Parker’s
Landing, in Pennsylvania, to Cleveland. He also stated that the
United Pipe Line is a division of the National Transit Company which
runs from wells to railroad points or pumping stations, and that the
wells to which he referred are located in Alleghany County, New
York, and throughout a large portion of Pennsylvania. He also stated
that the Macksburg Pipe Line controls, by lease and deed, sixty or
seventy acres of land in this state of the line of the Cleveland and
Marietta Railroad Company, and that the lease and deeds for this
land are in the name of one Benjamin Brewster, of New York City, and
that said Brewster is the vice-president of the National Transit
Company. When Mr. O’Day was asked, “What relation does the National
Transit Company and the United Pipe Line Company sustain to the
Standard Oil Company?” he answered, “I believe that people having
stock in the National Transit Company or the United Pipe Line can
hold stock, and do hold stock, in the Standard Oil Company, but I do
not know what further relations they have.”
* * * * *
I have attempted to summarise in a very brief manner the evidence
which has been taken by me under the order of your court, but in
order to obtain a full understanding of the situation, it will
perhaps be necessary to read all the evidence which is herewith
submitted in full, in connection with the reports and exhibits filed
by General Pease, in November, 1885.
Respectfully submitted,
(Signed) GEORGE K. NASH,
_Special Master Commissioner_.
NUMBER 49 (See page 2120)
A STATEMENT FROM AN OIL-PRODUCER’S STAND-POINT FOR 1886
[Circular used in the campaign against the Billingsley Bill.]
Total production for the year, 25,145,088 barrels.
Average price per barrel, .71½.
The gross income from the entire Oil Regions, based on these
figures, $17,978,237.
The cost of producing the above amount of oil was as follows:
Wells drilled, 3,525—at an average cost of
$3,000 each $10,575,000
Cost of pumping and raising the oil to the
surface and keeping rigs and wells in repair,
estimated at .25 per barrel of production 6,286,272
Add estimated cost of royalty, one-eighth 2,247,342
———————————
Total expenditures $19,108,614
Deduct total income of the entire Oil Regions 17,978,737
———————————
Net loss to oil producers during the year $1,129,877
If the estimated value of the one-eighth royalty be not added, then
the value of five acres of land should be added to the cost of each
well and the result would be practically the same.
The daily production January 1, 1886, was
59,603 barrels, valued at $750 per barrel $44,702,250
The daily production January 1, 1887, was
66,383 barrels, valued at $500 per barrel 33,191,500
———————————
Showing a shrinkage in value of the producing
territory for the year 1886 to be $11,510,750
NOTE.—To make it more clear to the uninitiated, the foregoing means
that producing territory was bought and sold in 1885 on the basis of
$750 to each barrel of production, and in 1886 on the basis of $500.
It is on this basis that the value of oil-producing territory is
estimated. A well producing one barrel a day at the present time is
valued at $500; one year ago it was worth $750.
The valuation of the stock of the Standard Oil Company at the
present time is $150,000,000, or nearly five times as great as the
entire Oil Region country valuation. The profits of the Standard Oil
Company for the year 1886 were over $26,000,000.
Strangers may ask, Why is there no competition in pipage and storage
of oil if the profits are so great? We answer, that with rebates,
drawbacks, discrimination, and conspiracies the Standard Oil Company
has been able to freeze out and suppress nearly every attempt at
competition.
Does not the foregoing array of figures, showing as it does the
terrible shrinkage which the property of the oil producers has
sustained, amounting to nearly twenty-five per cent. in one year,
demand such relief in pipage, storage, and shrinkage, as is
contemplated by the Billingsley Bill, now before the Senate of
Pennsylvania?
NUMBER 50 (See page 2121)
THE BILLINGSLEY BILL
[Legislature of Pennsylvania. File of the House of Representatives.
Number 104, session of 1887.]
An act to punish corporations, companies, firms, associations and
persons and each of them engaged in business of transporting by
pipe-lines or lines or storing petroleum in tank or tanks, under
certain restrictions and penalties from charging in excess of
certain fixed rates for receiving, transporting, storing, and
delivering petroleum, and to regulate deductions for losses caused
to petroleum in pipe-lines and storage tanks by lightning, fire,
storm, or other unavoidable causes.
SEC. 1. Be it enacted by the Senate and House of Representatives of
the Commonwealth of Pennsylvania in general assembly met, and it is
hereby enacted by authority of the same: That no corporation,
company, firm, association, person or persons who are now, or shall
hereafter engage in the business of transporting or storing crude or
refined petroleum by means of pipe-line or pipe-lines, or storage by
tank or tanks, shall demand or receive any rate of charge in excess
of ten cents per barrel, reckoning forty-two gallons for each
barrel, for all services performed within this commonwealth in
receiving petroleum from tank or tanks or other receptacle on the
lease or farm at the place of its production and transporting and
delivering the same, or petroleum of like kind and quantity in every
essential particular in the division of such pipe-line within which
the same shall have been received at any shipping point in said
division which may be designated by the holder, owner, or purchaser
of said petroleum, whether said petroleum is held by certificate,
voucher, receipt, credit balance, accepted order or otherwise. And
such corporation, company, firm, association, person or persons, and
each of them are hereby required immediately upon this act becoming
a law to erect and establish, if not already established, and
maintain thereafter at least one shipping point within each
pipe-line division within this commonwealth of sufficient
dimensions, capacity and equipment to accommodate the entire trade
within each such pipe-line division.
SEC. 2. No such corporation, company, firm, association, person or
persons shall demand or receive from any person or persons, firms,
association, company or corporation owning or holding a credit
balance for petroleum in line or tank within this commonwealth, any
rate of charge whatever for the tankage or storage of petroleum
owned or so held by credit balance for the first thirty days from
the date of said credit balance. And no corporation, company, firm,
association, person or persons who are now engaged or shall
hereafter engage in the business of transporting or storing crude or
refined petroleum by means of pipe-line or pipe-lines, or storage
tank or tanks, shall demand or receive, from any source whatever,
for the tankage of crude or refined petroleum within this
commonwealth any rate of charge in excess of one-sixtieth of one
cent per barrel of forty-two gallons a day or fractional part
thereof so long as said petroleum shall thereafter be held and
stored in tank.
SEC. 3. Such corporation, company, firm, association, person or
persons are hereby obliged and required, and it is hereby made the
duty of such corporation, company, firm, association, person or
persons, and each of them, to hold and store in tank any and all
petroleum offered for storage or transportation, or any and all
petroleum received and transported by them or either of them for the
owner thereof; or for the person or persons holding certificate,
voucher, receipt, credit balance or accepted order thereof, for a
period of one year or for any shorter period than one year from the
time when said petroleum was first received by such corporation,
company, firm, association, person or persons for storage, if
requested so to do by the owner thereof, or by the person or persons
holding certificate, voucher, receipt, credit balance or accepted
order therefor, at and for the rate of charge of one-sixtieth of one
cent per barrel of forty-two gallons for each day, or fractional
part thereof thereafter. Except that when said petroleum is held by
credit balance, no rate of charge whatever shall be made or charged
on said credit balance for the first thirty days from the date of
said credit balance.
SEC. 4. Such corporation, company, firm, association, person or
persons shall be allowed to make a deduction from the crude
petroleum received, transported or stored, not to exceed one-half of
one per cent. of said petroleum so received, transported or stored,
on account of water, sediment, evaporation, waste, and the like. The
deduction mentioned in this section shall be made when the petroleum
is first run or transported by such corporation, company, firm,
association, person or persons, from the tank or receptacle on the
lease or farm where produced, and it is hereby declared to be
unlawful for such corporation, company, firm, association, person or
persons to make the reduction in this section provided for at any
other time or place than as above provided.
SEC. 5. Any corporation, company, firm, association, officer or
officers, agent or agents, person or persons, engaged in the
business of transporting or storing crude or refined petroleum
within this commonwealth by means of pipe-line or pipe-lines or
storage tank or tanks shall, upon application of the owner of any
well or wells, lay pipe or pipes to any well or wells on any lease
or leases in any locality where there is any oil on any farm or
farms in this commonwealth, and receive the oil therefrom and
transport the same through their pipe-line or pipe-lines and store
the same in their storage tank or tanks, in any division or in any
place in any division designated by the owner or purchaser of said
petroleum, and hold the same subject to the owner or purchaser at
the rate or charge prescribed in the preceding sections.
SEC. 6. Such corporation, company, firm, association, person or
persons shall be liable for all loss caused by lightning, fire,
storm, or other unavoidable cause to the petroleum received,
transported or stored by them, and in the event of any such loss the
same shall be charged by said corporation, company, firm,
association, person or persons, _pro rata_, upon and deducted from
all petroleum in the custody of such corporation, company, firm,
association, person or persons, at the date of such loss.
SEC. 7. Any corporation, company, firm, association, officer or
officers, agent or agents thereof, person or persons engaged in the
business of transporting or storing crude or refined petroleum
within this commonwealth by means of pipe-line or pipe-lines or
storage tank or tanks, who shall demand or receive any rate of
charge in excess of ten cents per barrel, reckoning forty-two
gallons for each barrel, for all services performed within this
commonwealth for receiving petroleum from tank or tanks or other
receptacle on the lease or farm at the place of its production and
transporting and delivering the same or petroleum of like kind and
quality in every essential particular in the division of the
pipe-line within which the same shall have been received at the
shipping points designated by the holder, owner or purchaser of said
petroleum, or who shall fail or neglect to erect and establish
immediately upon this act becoming a law—if not already
established—and maintain thereafter at least one shipping point
within each pipe-line division within this commonwealth of
sufficient dimensions and capacity and properly equip the same to
accommodate the entire trade within each such district, or who shall
demand or receive for the storage of petroleum within this
commonwealth any rate of charge in excess of one-sixtieth of one
cent a barrel of forty-two gallons a day or a fractional part
thereof so long as said petroleum shall thereafter be held and
stored in tank, or who shall demand or receive from any person or
persons, firm, association, company, or corporation owning or
holding a credit balance for petroleum in line or tank within this
commonwealth, any rate of charge whatsoever for the tankage or
storage of petroleum so owned or held by credit balance for the
first thirty days commencing from the date of said credit balance,
or who shall refuse to hold and store in tank any and all petroleum
received and transported by them or either of them for the owner
thereof, or for the person or persons holding certificate, voucher,
receipt, credit balance or accepted order therefor for the period of
one year, or for any shorter period than one year from the time when
said petroleum was first received, by such corporation, company,
firm, association, person or persons for storage if requested so to
do by the owner thereof, or by the person or persons holding
certificate, voucher, receipt, credit balance or accepted order
therefor, at and for the rate of charge of one-sixtieth of one cent
per barrel of forty-two gallons for each day or fractional part
thereof thereafter—but no rate of charge whatever shall be had or
made for the first thirty days from date of credit balance when oil
is held by credit balance—or who shall make any deduction on account
of water, sediment, evaporation, waste, or the like, in excess of
one-half of one per cent. of the petroleum received, transported,
and stored, or who shall violate any or either of the provisions or
requirements of any or either of the first sections of this act,
shall be deemed guilty of a misdemeanour, and on conviction thereof
shall be sentenced to pay a fine of not less than one thousand
dollars nor more than two thousand dollars for the first offense,
and for the second and any subsequent offenses to pay a fine of not
less than two thousand dollars nor more than five thousand dollars,
and to undergo an imprisonment of not less than sixty days and not
exceeding one year, one-half of any such fine or fines to be paid to
the prosecutor and the other one-half to be for the use of the
county in which such offence or offences shall have been committed,
and in addition to the penalties hereinbefore provided shall be
liable in any action of debt to any person or persons, firm,
company, association, or corporation thereby aggrieved for double
the amount of the damage sustained by reason of the violation of any
of the provisions of this act.
SEC. 8. No contract heretofore made or now existing for receiving,
transporting, or storing petroleum within this commonwealth shall be
in any manner impaired or affected by the provisions of this act.
SEC. 9. All acts and parts of acts inconsistent herewith are hereby
repealed.
SEC. 10. This act shall take effect immediately upon its becoming a
law.
NUMBER 51 (See page 2130)
EXTRACTS FROM TESTIMONY OF H. H. ROGERS
[Report of Special Committee on Railroads, New York Assembly, 1879.
Volume III, pages 2613–2618.]
_Q._ Was your firm’s business sold out to the Standard Oil Company?
_A._ I would like to have the question explained.
_Q._ Was there a sale or transfer made of your business to the
Standard Oil Company, by which practically the Standard Oil Company
really controlled your business?
_A._ I will answer this much of the question, by saying that the
Standard Oil Company does not practically control our business.
_Q._ Do they control the rates at which your business gets the
transportation of oil?
_A._ That I don’t know anything about; I don’t know anything about
the rates of transportation.
By the Chairman.
_Q._ Was not your firm taken in with the Standard Oil Company upon
some agreed basis or arrangement, whether you regard it as a
purchase or transfer or not?
_A._ We worked in harmony with the Standard Oil Company for a number
of years.
_Q._ Upon an agreed basis of general business?
_A._ Our interest was in common, to a certain extent.
* * * * *
_Q._ Has your firm any contract with the Standard Oil Company?
_A._ That I cannot answer.
_Q._ What member of your firm would be able to answer that?
_A._ I think Mr. Pratt would, if he were here.
_Q._ When was it that your firm began to work in harmony with the
Standard Oil Company?
_A._ I cannot say exactly how long ago; seven or eight years ago we
got up a refining association here; that was the first, and then we
got up another, and we got up another, and we have always been
trying to get into some relations with all the refiners, so that we
might make some money out of the business.
_Q._ Had you difficulty before you entered into relations with the
Standard Oil Company to make money out of the business?
_A._ The competition was always very sharp, and there was always
some one that was willing to sell goods for less than they cost, and
that made the market price for everything; we got up an association,
and took in all the refiners until some of them went back on us, and
that would break up the association; we tried that two or three
times.
_Q._ Then finally you entered the Standard Oil arrangement?
_A._ Then we made an alliance or association with some of the
refiners about here, and it was more successful.
_Q._ What are the refiners about here with whom that alliance was
made, and are they or are they not all of them covered by the
Standard Oil arrangement?
_A._ They would come in and then they would go out; there is no
refiner that I know of, with one exception, about New York but what
has been in the association.
_Q._ What are the refiners that are now in association of the
Standard Oil?
_A._ The people that are working in harmony with us comprise about,
I should think, 90 or 95 per cent. of the refiners.
_Q._ Now tell us their names, the leading ones.
_A._ Some of the leading ones? The Standard Oil Company; Charles
Pratt and Company; the Sone and Fleming Manufacturing Company;
Warden, Frew and Company of Philadelphia; the Standard Oil Company
of Pittsburg; the Acme Oil Refining Company of Titusville; the
Imperial Refining Company of Oil City; the Baltimore United Oil
Company of Baltimore.
* * * * *
_Q._ You said that substantially 95 per cent. of the refiners were
in the Standard arrangement?
_A._ I said 90 to 95 per cent. I thought were in harmony.
_Q._ When you speak of their being in harmony with the Standard,
what do you mean by that?
_A._ I mean just what harmony implies.
_Q._ Do you mean that they have an arrangement with the Standard?
_A._ If I am in harmony with my wife, I presume I am at peace with
her, and am working with her.
_Q._ You are married to her, and you have a contract with her?
_A._ Yes, sir.
_Q._ Is that what you mean?
_A._ Well, some people live in harmony without being married.
_Q._ Without having a contract?
_A._ Yes; I have heard so.
_Q._ Now, which do you mean? Do you mean the people who are in the
Standard arrangement, and are in harmony with it, are married to the
Standard or in a state of freedom—celibacy?
_A._ Not necessarily, so long as they are happy.
_Q._ Is it the harmony that arises from a marriage contract?
_A._ Not necessarily, so long as they are happy.
_Q._ When you speak of their harmony, is it a relation of contract?
_A._ I mean by harmony that if you and I agree to go on Wall Street
and buy a hundred shares of Erie at 33, and we agree to sell it out
together at 40, that is harmony. I mean just the same that way—if I
go into the Standard Oil office and conclude to buy some oil of them
and agree on a fair price to sell it out at, that is harmony.
_Q._ Is that the harmony that you mean—that you gentlemen have
agreed between each other the rate at which you will buy and the
rate at which you will sell?
_A._ Well, not going too far into detail, I would say that the
relations are very pleasant.
_Q._ But we want the detail; we want precisely what that harmony is,
what it consists of, and what produces it.
_A._ Well, is it a railroad abuse, or is it an abuse to be in
harmony with people?
_Q._ No; it is not abuse to be in harmony; there are some kinds of
harmony that the law considers conspiracy.
_A._ Well, I have heard so.
By the Chairman.
_Q._ What we want to know is this: This Standard Oil Company in
itself is, as we understand it, a large organisation, not very
extensive, but is made so by contracts with various other
organisations, that are not a part of it, by their written contract
or verbal contract or understanding, or whatever you term it; we
want to know whether that is not the fact, and if that is not what
you refer to when you speak about working in harmony.
_A._ Mr. Chairman, I want to give you all the information that is
necessary in this matter for your purposes, but it is a question in
my mind whether it is a proper thing for me, even if there is no
harm done by it, to divulge my business secrets.
_Q._ We do not ask you for your secrets; we simply ask you the
general nature of this organisation.
_A._ I have explained it, I think, to you quite as fully as I can.
NUMBER 52 (See page 2136)
THE TRUST AGREEMENT OF 1882
[Proceedings in Relation to Trusts, House of Representatives, 1888.
Report Number 3,112, pages 307–313.]
This agreement, made and entered upon this second day of January,
A.D. 1882, by and between all the persons who shall now or may
hereafter execute the same as parties thereto:
_Witnesseth_: I. It is intended that the parties to this agreement
shall embrace three classes, to wit:
1st. All the stockholders and members of the following corporations
and limited partnerships, to wit:
Acme Oil Company, New York; Acme Oil Company, Pennsylvania; Atlantic
Refining Company of Philadelphia; Bush and Company (limited); Camden
Consolidated Oil Company; Elizabethport Acid Works; Imperial
Refining Company (limited); Charles Pratt and Company; Paine, Abbett
and Company; Standard Oil Company, Ohio; Standard Oil Company,
Pittsburg; Smith’s Ferry Oil Transportation Company; Solar Oil
Company (limited); Sone and Fleming Manufacturing Company (limited).
Also, all the stockholders and members of such other corporations
and limited partnerships as may hereafter join in this agreement, at
the request of the trustees herein provided for.
2d. The following individuals, to wit:
W. C. Andrews, John D. Archbold, Lide K. Arter, J. A. Bostwick,
Benjamin Brewster, D. Bushnell, Thomas C. Bushnell, J. N. Camden,
Henry L. Davis, H. M. Flagler, Mrs. H. M. Flagler, John Huntington,
H. A. Hutchins, Charles F. G. Heye, A. B. Jennings, Charles
Lockhart, A. M. McGregor, William H. Macy, William H. Macy, Jr.,
estate of Josiah Macy, William H. Macy, Jr., executor, O. H. Payne,
A. J. Pouch, John D. Rockefeller, William Rockefeller, Henry H.
Rogers, W. P. Thompson, J. J. Vandergrift, William T. Wardwell, W.
G. Warden, Joseph L. Warden, Warden, Frew and Company, Louise C.
Wheaton, H. M. Hanna and George W. Chapin, D. M. Harkness, D. M.
Harkness, trustee, S. V. Harkness, O. H. Payne, trustee; Charles
Pratt, Horace A. Pratt, C. M. Pratt, Julia H. York, George H. Vilas,
M. R. Keith, trustees, George F. Chester.
Also, all such individuals as may hereafter join in the agreement at
the request of the trustees herein provided for.
3d. A portion of the stockholders and members of the following
corporations and limited partnerships, to wit:
American Lubricating Oil Company; Baltimore United Oil Company;
Beacon Oil Company; Bush and Denslow Manufacturing Company; Central
Refining Company of Pittsburg; Cheesborough Manufacturing Company;
Chess, Carley Company; Consolidated Tank Line Company; Inland Oil
Company; Keystone Refining Company; Maverick Oil Company; National
Transit Company; Portland Kerosene Oil Company; Producers’
Consolidated Land and Petroleum Company; Signal Oil Works (limited);
Thompson and Bedford Company (limited); Devoe Manufacturing Company;
Eclipse Lubricating Oil Company (limited); Empire Refining Company
(limited); Franklin Pipe Company (limited); Galena Oil Works
(limited); Galena Farm Oil Company (limited); Germania Mining
Company; Vacuum Oil Company; H. C. Van Tine and Company (limited);
Waters-Pierce Oil Company.
Also, stockholders and members (not being all thereof) of other
corporations and limited partnerships who may hereafter join in this
agreement at the request of the trustees herein provided for.
II. The parties hereto do covenant and agree to and with each other,
each in consideration of the mutual covenants and agreements of the
others, as follows:
1st. As soon as practicable a corporation shall be formed in each of
the following states, under the laws thereof, to wit, Ohio, New
York, Pennsylvania, New Jersey; provided, however, that instead of
organising a new corporation any existing charter and organisation
may be used for the purpose when it can advantageously be done.
2d. The purposes and powers of said corporations shall be to mine
for, produce, manufacture, refine, and deal in petroleum and all its
products, and all the materials used in such businesses, and
transact other business collateral thereto. But other purposes and
powers shall be embraced in the several charters such as shall seem
expedient to the parties procuring the charter, or, if necessary to
comply with the law, the powers aforesaid may be restricted and
reduced.
3d. At any time hereafter, when it may seem advisable to the
trustees herein provided for, similar corporations may be formed in
other states and territories.
4th. Each of said corporations shall be known as the Standard Oil
Company of (and here shall follow the name of the state or territory
by virtue of the laws of which said corporation is organised).
5th. The capital stock of each of said corporations shall be fixed
at such an amount as may seem necessary and advisable to the parties
organising the same, in view of the purpose to be accomplished.
6th. The shares of stock of each of said corporations shall be
issued only for money, property, or assets equal at a fair valuation
to the par value of the stock delivered therefor.
7th. All of the property, real and personal, assets and business of
each and all of the corporations and limited partnerships mentioned
or embraced in class first, shall be transferred to and vested in
the said several Standard Oil companies. All of the property,
assets, and business in or of each particular state shall be
transferred to and vested in the Standard Oil Company of that
particular state, and in order to accomplish such purpose the
directors and managers of each and all of the several corporations
and limited partnerships mentioned in class first are hereby
authorised and directed by the stockholders and members thereof (all
of them being parties to this agreement) to sell, assign, transfer,
convey, and make over, for the consideration hereinafter mentioned,
to the Standard Oil Company or companies of the proper state or
states, as soon as said corporations are organised and ready to
receive the same, all the property, real and personal, assets and
business of said corporations and limited partnerships. Correct
schedules of such property, assets, and business shall accompany
each transfer.
8th. The individuals embraced in class second of this agreement do,
each for himself, agree for the consideration hereinafter mentioned
to sell, assign, transfer, convey, and set over all the property,
real and personal, assets and business mentioned and embraced in
schedules accompanying such sale, and transfer to the Standard Oil
Company or companies of the proper state or states, as soon as the
said corporations are organised and ready to receive the same.
9th. The parties embraced in class third of this agreement do
covenant and agree to assign and transfer all of the stock held by
them in the corporations or limited partnerships herein named, to
the trustees herein provided for, for the consideration and upon the
terms hereinafter set forth. It is understood and agreed that the
said trustees and their successors may hereafter take the assignment
of stocks in the same or similar companies upon the terms herein
provided, and that whenever and as often as all the stocks of any
corporations or limited partnerships are vested in said trustees,
the proper steps may then be taken to have all the moneys, property,
real and personal, of such corporation or partnership assigned or
conveyed to the Standard Oil Company, of the proper state, on the
terms and in the mode herein set forth, in which event the trustees
shall receive stocks of the Standard Oil companies, equal to the
value of the money, property, and business assigned, to be held in
place of the stocks of the company or companies assigning such
property.
10th. The consideration for the transfer and conveyance of the
money, property, and business aforesaid to each or any of the
Standard Oil companies shall be stock of the respective Standard Oil
Company to which said transfer or conveyance is made, equal at par
value to the appraised value of the money, property, and business so
transferred. Said stock shall be delivered to the trustees
hereinafter provided for, and their successors, and no stock of any
of said companies shall ever be issued except for money, property,
or business, equal, at least, to the par value of the stock so
issued, nor shall any stock be issued by any of said companies for
any purpose, except to the trustees herein provided for, to be held
subject to the trusts hereinafter specified. It is understood,
however, that this provision is not intended to restrict the
purchase, sale, and exchange of property by said Standard Oil
companies as fully as they may be authorised to do by their
respective charters; provided only that no stock be issued therefor
except to said trustees.
11th. The consideration for any stocks delivered to said trustees,
as above provided for, as well as for stocks delivered to said
trustees by persons mentioned or included in class third of this
agreement, shall be the delivery by said trustees, to the persons
entitled thereto, of trust certificates hereinafter provided for,
equal at par value to the par value of the stocks of the said
several Standard Oil companies so received by said trustees and
equal to the appraised value of the stocks of other companies or
partnerships delivered to said trustees.
The said appraised value shall be determined in a manner agreed upon
by the parties in interest and said trustees.
It is understood and agreed, however, that the said trustees may,
with any trust funds in their hands, in addition to the mode above
provided, purchase the bonds and stocks of other companies engaged
in business similar or collateral to the business of said Standard
Oil companies on such terms and in such mode as they may deem
advisable, and shall hold the same for the benefit of the owners of
said trust certificates, and may sell, assign, transfer, and pledge
such bonds and stocks whenever they may deem it advantageous to said
trust so to do.
III. The trusts upon which said stock shall be held, and the number,
powers, and duties of said trustees shall be as follows:
1st. The number of trustees shall be nine.
2d. J. D. Rockefeller, O. H. Payne and William Rockefeller are
hereby appointed trustees, to hold their office until the first
Wednesday of April, A.D. 1885.
3d. J. A. Bostwick, H. M. Flagler and W. G. Warden are hereby
appointed trustees, to hold their office until the first Wednesday
of April, A.D. 1884.
4th. Charles Pratt, Benjamin Brewster and John Archbold are hereby
appointed trustees, to hold their office until the first Wednesday
of April, A.D. 1883.
5th. Elections for trustees to succeed those herein appointed shall
be held annually, at which election a sufficient number of trustees
shall be elected to fill all vacancies occurring either from
expiration of the term of the office of trustee or from any other
cause. All trustees shall be elected to hold their office for three
years, except those elected to fill a vacancy arising from any cause
except expiration of term, who shall be elected for the balance of
the term of the trustee whose place they are elected to fill. Every
trustee shall hold his office until his successor is elected.
6th. Trustees shall be elected by ballot by the owners of trust
certificates or their proxies. At all meetings the owners of trust
certificates, who may be registered as such on the books of the
trustees, may vote in person or by proxy, and shall have one vote
for each and every share of trust certificates standing in their
names, but no such owner shall be entitled to vote upon any share
which has not stood in his name thirty days prior to the day
appointed for the election. The transfer books may be closed for
thirty days immediately preceding the annual election. A majority of
the shares represented at such election shall elect.
7th. The annual meeting of the owners of said trust certificates for
the election of trustees, and for other business, shall be held at
the office of the trustees in the City of New York, on the first
Wednesday of April of each year, unless the place of meeting be
changed by the trustees, and said meeting may be adjourned from day
to day until its business is completed. Special meetings of the
owners of said trust certificates may be called by a majority of the
trustees, at such times and places as they may appoint. It shall
also be the duty of the trustees to call a special meeting of
holders of trust certificates whenever requested to do so by a
petition signed by the holders of ten per cent. in value of such
certificates. The business of such special meetings shall be
confined to the object specified in the notice given therefor.
Notice of the time and place of all meetings of the owners of trust
certificates shall be given by personal notice so far as possible,
and by public notice in one of the principal newspapers of each
state in which a Standard Oil Company exists, at least ten days
before such meeting. At any meeting, a majority in value of the
holders of trust certificates represented consenting thereto,
by-laws may be made, amended, and repealed relative to the mode of
the election of trustees, and other business of the holders of trust
certificates; provided, however, that said by-laws shall be in
conformity with this agreement. By-laws may also be made, amended,
and repealed at any meeting, by and with the consent of a majority
in value of the holders of trust certificates, which alter this
agreement relative to the number, powers, and duties of the
trustees, and to other matters tending to the more efficient
accomplishment of the objects for which the trust is created;
provided only, that the essential intents and purposes of this
agreement be not thereby changed.
8th. Whenever a vacancy occurs in the board of trustees, more than
sixty days prior to the annual meeting for the election of trustees,
it shall be the duty of the remaining trustees to call a meeting of
the owners of Standard Oil Trust certificates for the purpose of
electing a trustee or trustees to fill the vacancy or vacancies. If
any vacancy occurs in the board of trustees, from any cause, within
sixty days of the date of the annual meeting for the election of
trustees, the vacancy may be filled by a majority of the remaining
trustees, or, at their option, may remain vacant until the annual
election.
9th. If for any reason at any time a trustee or trustees shall be
appointed by any court to fill any vacancy or vacancies in said
board of trustees, the trustee or trustees so appointed shall hold
his or their respective office or offices only until a successor or
successors shall be elected in the manner above provided for.
10th. Whenever any change shall occur in the board of trustees, the
legal title to the stock and other property held in trust shall pass
to and vest in the successors of said trustees without any formal
transfer thereof. But if at any such time formal transfer shall be
deemed necessary or advisable, it shall be the duty of the board of
trustees to obtain the same, and it shall be the duty of any
retiring trustee, or the administrator or executor of any deceased
trustee, to make said transfer.
11th. The trustees shall prepare certificates which shall show the
interest of each beneficiary in said trust and deliver them to the
persons properly entitled thereto. They shall be divided into shares
of the par value of $100 each, and shall be known as the Standard
Oil Trust certificates, and shall be issued subject to all the terms
and conditions of this agreement. The trustees shall have power to
agree upon and direct the form and contents of said certificates and
the mode in which they shall be signed, attested, and transferred.
The certificates shall contain an express stipulation that the
holders thereof shall be bound by the terms of this agreement and by
the by-laws herein provided for.
12th. No certificates shall be issued except for stocks and bonds
held in trust as herein provided for, and the par value of
certificates issued by said trustees shall be equal to the par value
of the stocks of said Standard Oil Company and the appraised value
of other bonds and stocks held in trust. The various bonds, stocks,
and moneys held under said trust shall be held for all parties in
interest jointly, and the trust certificates so issued shall be the
evidence of the interest held by the several parties in this trust.
No duplicate certificates shall be issued by the trustees, except
upon surrender of the original certificate or certificates for
cancellation, or upon satisfactory proof of the loss thereof, and in
the latter case they shall require a sufficient bond of indemnity.
13th. The stocks of the various Standard Oil companies, held in
trust by said trustees, shall not be sold, assigned, or transferred
by said trustees, or by the beneficiaries, or by both combined, so
long as this trust endures. The stocks and bonds of other
corporations held by said trustees may be by them exchanged or sold
and the proceeds thereof distributed _pro rata_ to the holders of
trust certificates, or said proceeds may be held and reinvested by
said trustees for the purposes and uses of the trust; provided,
however, that said trustees may, from time to time, assign such
shares of stock of said Standard Oil Company as may be necessary to
qualify any person or persons chosen or to be chosen as directors
and officers of any of said Standard Oil companies.
14th. It shall be the duty of said trustees to receive and safely to
keep all interest and dividends declared and paid upon any of the
said bonds, stocks, and moneys held by them in trust, and to
distribute all moneys received from such sources or from sales of
trust property or otherwise by declaring and paying dividends upon
the Standard Trust certificates as funds accumulate which in their
judgment are not needed for the use and expenses of said trust. The
trustees shall, however, keep separate accounts of receipts from
interest and dividends, and of receipts from sales or transfers of
trust property, and in making any distribution of trust funds, in
which moneys derived from sales or transfers shall be included,
shall render the holders of trust certificates a statement showing
what amount of the fund distributed has been derived from such sales
or transfers. The said trustees may be also authorised and empowered
by a vote of a majority in value of holders of trust certificates,
whenever stocks or bonds have accumulated in their hands from moneys
purchases thereof, or the stocks or bonds held by them have
increased in value, or stock dividends shall have been declared by
any of the companies whose stocks are held by said trustees, or
whenever, from any such cause, it is deemed advisable so to do, to
increase the amount of trust certificates to the extent of such
increase or accumulation of values and to divide the same among the
persons then owning trust certificates _pro rata_.
15th. It shall be the duty of said trustees to exercise general
supervision over the affairs of said several Standard Oil companies,
and, as far as practicable, over the other companies or
partnerships, any portion of whose stock is held in said trust. It
shall be their duty, as stockholders of said companies, to elect as
directors and officers thereof faithful and competent men. They may
elect themselves to such positions when they see fit so to do, and
shall endeavour to have the affairs of all of said companies managed
and directed in the manner they may deem most conducive to the best
interests of the holders of said trust certificates.
16th. All the powers of the trustees may be exercised by a majority
of their number. They may appoint from their own number an executive
and other committees. A majority of each committee shall exercise
all the powers which the trustees may confer upon such committee.
17th. The trustees may employ and pay all such agents and attorneys
as they deem necessary in the management of said trust.
18th. Each trustee shall be entitled to a salary for his services
not exceeding $25,000 per annum, except the president of the board,
who may be voted a salary not exceeding $30,000 per annum, which
salaries shall be fixed by said board of trustees. All salaries and
expenses connected with or growing out of the trust shall be paid by
the trustees from the trust fund.
19th. The board of trustees shall have its principal office in the
City of New York, unless changed by a vote of the trustees, at which
office, or in some place of safe deposit in said city, the bonds and
stocks shall be kept. The trustees shall have power to adopt rules
and regulations pertaining to the meetings of the board, the
election of officers, and the management of the trust.
20th. The trustees shall render at each annual meeting a statement
of the affairs of the trust. If a termination of the trust be agreed
upon, as hereinafter provided, or within a reasonable time prior to
its termination by a lapse of time, the trustees shall furnish to
the holders of trust certificates a true and perfect inventory and
appraisement of all stocks and other property held in trust, and a
statement of the financial affairs of the various companies whose
stocks are held in trust.
21st. This trust shall continue during the lives of the survivors
and survivor of the trustees in this agreement named, and for
twenty-one years thereafter: provided, however, that if, at anytime
after the expiration of ten years, two-thirds of all the holders in
value, or if, after the expiration of one year, ninety per cent. of
all the holders in value of trust certificates, shall, at a meeting
of holders of trust certificates called for that purpose, vote to
terminate this trust at some time to be by them then and there
fixed, the said trust shall terminate at the date so fixed. If the
holders of trust certificates shall vote to terminate the trust as
aforesaid, they may, at the same meeting, or at a subsequent meeting
called for that purpose, decide by a vote of two-thirds in value of
their number the mode in which the affairs of the trust shall be
wound up, and whether the trust property shall be distributed, or
whether it shall be sold and the values thereof distributed; or
whether part, and, if so, what part, shall be divided and what part
shall be sold, and whether such sales shall be public or private.
The trustees, who shall continue to hold their offices for that
purpose, shall make the distribution in the mode directed; or, if no
mode be agreed upon by two-thirds in value, as aforesaid, the
trustees shall make distribution of the trust property according to
law. But said distribution, however made, and whether it be of
property or values, or of both, shall be just and equitable, and
such as to insure to each owner of a trust certificate his due
proportion of the trust property, or the value thereof.
22d. If the trust shall be terminated by expiration of the time for
which it is created, the distribution of the trust property shall be
directed and made in the mode above provided.
23d. This agreement, together with the registry of certificates,
books of accounts, and other books and papers connected with the
business of said trust, shall be safely kept at the principal office
of said trustees.
BENJ. BREWSTER; JNO. D. ARCHBOLD; J. A. BOSTWICK; CHAS. PRATT;
HENRY H. ROGERS; H. A. PRATT; C. M. PRATT; D. M. HARKNESS,
_Trustee_, by H. M. FLAGLER, _Attorney_; THOMAS C. BUSHNELL; W.
C. ANDREWS; CHAS. F. G. HEYE; WILLIAM T. WARDWELL; WM. H. MACY;
Estate of JOSIAH MACY, JR., WM. H. MACY, JR., _Executor_; WM. H.
MACY, JR.; A. M. MCGREGOR; J. N. CAMDEN, by H. M. FLAGLER,
_Attorney_; O. H. PAYNE, by H. M. FLAGLER, _Attorney_; GEO. F.
CHESTER, _Trustee_; GEO. H. VILAS, _Trustee_; W. G. WARDEN; H.
M. FLAGLER; JOHN D. ROCKEFELLER; WM. ROCKEFELLER; J. J.
VANDERGRIFT; Mrs. H. M. FLAGLER, by H. M. FLAGLER; A. J. POUCH;
O. B. JENNINGS; D. M. HARKNESS, by H. M. FLAGLER, _Attorney_; W.
P. THOMPSON, by H. M. FLAGLER, _Attorney_; S. V. HARKNESS, by H.
M. FLAGLER, _Attorney_; JOHN HUNTINGTON, by H. M. FLAGLER,
_Attorney_; LIDE K. ARTER, by H. M. FLAGLER, _Attorney_; H. M.
HANNA and GEO. W. CHAPIN, by H. M. FLAGLER, _Attorney_; LOUISE
C. WHEATON, by H. M. FLAGLER, _Attorney_; O. H. PAYNE,
_Trustee_, by H. M. FLAGLER, _Attorney_; CHAS. LOCKHART; JOS. L.
WARDEN, by HENRY L. DAVIS, _Attorney_; JULIA H. YORK, by H. M.
FLAGLER, _Attorney_; H. A. HUTCHINS, by H. M. FLAGLER,
_Attorney_; M. R. KEITH, _Trustee_; D. BUSHNELL; WARDEN, FREW
and COMPANY; HENRY L. DAVIS.
_Whereas_, in and by an agreement dated January 2, 1882, and known
as the Standard Trust agreement, the parties thereto did mutually
covenant and agree _inter alia_ as follows, to wit: That
corporations to be known as Standard Oil companies of various states
should be formed, and that all of the property, real and personal,
assets, and business of each and all of the corporations and limited
partnerships mentioned or embraced in class first of said agreement
should be transferred to and vested in the said several Standard Oil
companies; that all of the property, assets, and business in or of
each particular state should be transferred to and vested in the
Standard Oil company of that particular state, and the directors and
managers of each and all of the several corporations and
associations mentioned in class first were authorised and directed
to sell, assign, transfer, and convey, and make over to the Standard
Oil Company or companies of the proper state or states, as soon as
said corporations were organised and ready to receive the same, all
the property, real and personal, assets, and business of said
corporations or associations; and
_Whereas_, it is not deemed expedient that all of the companies and
associations mentioned should transfer their property to the said
Standard Oil companies at the present time, and in case of some
companies and associations it may never be deemed expedient that the
said transfers should be made and said companies and associations go
out of existence; and
_Whereas_, it is deemed advisable that a discretionary power should
be vested in the trustees as to when such transfer or transfers
should take place, if at all. Now, it is hereby mutually agreed
between the parties to the said trust agreement, and as
supplementary thereto, that the trustees named in the said agreement
and their successors shall have the power and authority to decide
what companies shall convey their said property as in said agreement
contemplated, and when the said sales and transfers shall take
place, if at all; and until said trustees shall so decide, each of
said companies shall remain in existence and retain its property and
business, and the trustees shall hold the stocks thereof in trust as
in said agreement provided. In the exercise of said discretion, the
trustees shall act by a majority of their number as provided in said
trust agreement. All portions of said trust agreement relating to
this subject shall be considered so changed as to be in harmony with
this supplemental agreement.
_In Witness Whereof_, the said parties have subscribed this
agreement, this fourth day of January, 1882.
BENJAMIN BREWSTER; JOHN D. ARCHBOLD; J. A. BOSTWICK; CHARLES
PRATT; HENRY H. ROGERS; H. A. PRATT; C. M. PRATT; D. M.
HARKNESS, _Trustee_; D. M. HARKNESS; T. C. BUSHNELL; W. C.
ANDREWS; CHARLES F. G. HEYE; WILLIAM T. WARDWELL; WILLIAM H.
MACY; Estate of JOSIAH MACY, JR., WILLIAM H. MACY, JR.,
_Executor_; WILLIAM H. MACY, JR.; A. M. MCGREGOR; J. N. CAMDEN;
JULIA H. YORK, by B. H. Y.; O. H. PAYNE; GEORGE F. CHESTER,
_Trustee_; M. R. KEITH, _Trustee_; H. M. FLAGLER; JOHN D.
ROCKEFELLER; WILLIAM ROCKEFELLER; J. J. VANDERGRIFT; Mrs. H. M.
FLAGLER, by H. M. FLAGLER; A. J. POUCH; O. B. JENNINGS; W. O.
THOMPSON; S. V. HARKNESS; JOHN HUNTINGTON; LIDE K. ARTER; H. M.
HANNA; GEORGE W. CHAPIN, H. M. HANNA, _Attorney in Fact_; LOUISE
C. WHEATON, by H. M. FLAGLER; O. H. PAYNE, _Trustee_; CHARLES
LOCKHART; JOSEPH L. WARDEN; HENRY L. DAVIS; W. G. WARDEN;
WARDEN, FREW and COMPANY; D. BUSHNELL; H. A. HUTCHINS; GEORGE H.
VILAS, _Trustee_.
NUMBER 53 (See page 2153)
LIST OF CONSTITUENT COMPANIES OF THE STANDARD OIL TRUST, WITH ASSETS AND
CAPITALISATION IN 1892
[From History of Standard Oil Case in the Supreme Court of Ohio,
1897–1898. Part I, page 112.]
ASSETS CAPITALISATION
Anglo-American Oil Co., Limited $6,913,639.49 $5,000,000
Atlantic Refining Co. 8,631,376.67 5,000,000
Buckeye Pipe Line Co. 7,941,038.15 10,000,000
Eureka Pipe Line Co. 1,547,055.16 5,000,000
Forest Oil Co. 3,528,813.11 5,500,000
Indiana Pipe Line Co. 2,014,053.91 1,000,000
National Transit Co. 25,796,712.97 25,455,200
New York Transit Co. 4,999,300.00 5,000,000
Northern Pipe Line Co. 707,067.00 1,000,000
Northwestern Ohio Natural Gas Co. 1,396,760.00 3,278,500
Ohio Oil Co. 8,260,378.04 2,000,000
Solar Refining Co. 711,793.87 500,000
Southern Pipe Line Co. 3,279,018.28 5,000,000
South Penn. Oil Co. 3,021,654.87 2,500,000
Standard Oil Co., Indiana 1,038,518.61 1,000,000
Standard Oil Co., Kentucky 3,604,800.78 1,000,000
Standard Oil Co., New Jersey 14,983,943.30 10,000,000
Standard Oil Co., New York 16,772,186.29 7,000,000
Standard Oil Co., Ohio 3,426,014.72 3,500,000
Union Tank Line Co. 3,057,187.41 3,500,000
———————————————
$121,631,312.63
Capitalisation twenty corporations 102,233,700.00
———————————————
Excess of assets over capitalisation $19,397,612.63
NUMBER 54 (See page 2154)
FORMS OF MR. ROCKEFELLER’S CERTIFICATE OF HOLDINGS IN THE STANDARD OIL
TRUST, WITH ASSIGNMENT OF LEGAL TITLE WHICH TOOK ITS PLACE IN 1892
[From History of Standard Oil Case in the Supreme Court of Ohio,
1897–1898. Part II, pages 53–56.]
KNOW ALL MEN BY THESE PRESENTS
That we, John D. Rockefeller, Henry M. Flagler, William Rockefeller,
John D. Archbold, Benjamin Brewster, Henry H. Rogers, Wesley H.
Tilford, and O. B. Jennings, Trustees, for winding up the Standard
Oil Trust, by W. H. Tilford, our Attorney in Fact, and John D.
Rockefeller, of ...., do hereby constitute and appoint John
Bensinger, of New York City, our true and lawful attorney for the
purposes following, to wit:
_Whereas_, John D. Rockefeller has placed in the hands of said
attorney assignment Number A 365 for 256,854/972,500 of the amount
of corporate shares held by said trustees on the first day of July,
1892, in each of the companies whose stocks were so held.
Now the said attorney is hereby authorised to secure from each of
said companies transfer upon their corporate books of said stock and
stock certificates for whole shares, and scrip for fractional shares
thereof, and when the said certificates and scrip are received from
all the companies referred to, the said attorney shall deliver the
same to John D. Rockefeller, and the said assignment Number A 365
shall at the same time be delivered to the said trustees.
And the said attorney hereby agrees to obtain the said certificates
and scrip and to deliver the same and the said assignment as above
specified.
(Signed in print) JOHN D. ROCKEFELLER,
HENRY M. FLAGLER,
WILLIAM ROCKEFELLER,
JOHN D. ARCHBOLD,
BENJAMIN BREWSTER,
HENRY H. ROGERS,
O. B. JENNINGS,
WESLEY H. TILFORD.
(Signed in ink) W. H. TILFORD, _Attorney in Fact_,
JOHN D. ROCKEFELLER, _per_ GEO. D. ROGERS,
JOHN BENSINGER.
Received from John Bensinger, Attorney aforesaid, stock certificates
and scrip as follows, being in full satisfaction of Assignment
Certificate No. A 365 aforesaid:
NAMES OF COMPANIES SHARES SCRIP
Anglo-American Oil Co., Limited 6867 465–9725
The Atlantic Refining Co. 13205 8375–9725
The Buckeye Pipe Line Co. 52823 4325–9725
The Eureka Pipe Line Co. 13205 8375–9725
Forest Oil Co. 14526 4350–9725
Indiana Pipe Line Co. 5282 3350–9725
National Transit Co. 134463 131316–9725
New York Transit Co. 13205 8375–9725
Northern Pipe Line Co. 2641 1675–9725
Northwestern Ohio Natural Gas Co. 8659 80890–9725
The Ohio Oil Co. 21129 3675–9725
The Solar Refining Co. 1320 5700–9725
Southern Pipe Line Co. 13205 8375–9725
South Penn. Oil Co. 6602 9056–9725
Standard Oil Co., Indiana 2641 1675–9725
Standard Oil Co., Kentucky 2641 1675–9725
Standard Oil Co., New Jersey 26411 7025–9725
Standard Oil Co., New York 18488 2000–9725
Standard Oil Co., Ohio 9244 1000–9725
Union Tank Line Co. 9244 1000–9725
(Signed in ink) JOHN D. ROCKEFELLER,
_Per_ GEO. D. ROGERS.
Received of John Bensinger, Attorney, Assignment
Certificate, Number....
(Signed in ink) JOHN D. ROCKEFELLER,
WILLIAM ROCKEFELLER,
BENJAMIN BREWSTER,
WESLEY H. TILFORD,
HENRY M. FLAGLER,
JOHN D. ARCHBOLD,
HENRY H. ROGERS,
O. B. JENNINGS.
By ..., _Attorney in Fact_.
11–3–92.
Number A 365. JOHN D. ROCKEFELLER.
Received from trustees to liquidate the Standard Oil Trust
assignment of legal title to 256,854/972,500 of the amount of
corporate stocks held by them in each of the corporations whose
stocks were so held on July 1, 1892, and I do hereby authorise and
direct the said trustees, or the survivor or survivors of them, to
receive from the respective companies and to pay over to me or my
assigns the dividends upon the stocks so assigned, and actual
transfer thereof is recorded upon the books of the respective
corporations.
(Signed) JOHN D. ROCKEFELLER,
_Per_ GEO. D. ROGERS.
There is pasted to this stub the original assignment of legal title
for the transfer of Mr. Rockefeller’s trust certificates into
corporate stock of the respective companies. This has been returned
and marked “cancelled” and attached to the original stub, and is as
follows:
Number A 365.
STANDARD OIL TRUST COMPANY
Assignment of Legal Title to Stocks Heretofore Represented by
256,854 shares.
_Whereas_, John D. Rockefeller is the owner of the equitable
title to 256,854/972,500 of the amount of corporate stocks held
by the trustees of the Standard Oil Trust in each of the several
corporations whose stocks were held by said trust on the first
day of July, A.D. 1892, which equitable ownership was
represented by 256,854 shares of Standard Oil Trust surrendered
for cancellation. Now, we, the trustees in whose names the legal
title to said stock stands, do hereby assign and transfer to
John D. Rockefeller and his assigns the legal title to the
aforesaid amount of the said stocks and authorise the proper
officers of the several corporations to transfer upon their
books and to issue corporate certificates for the required
amount of their respective capital stocks upon presentation and
cancellation of this assignment. The several corporations will
issue stock certificates for whole shares and scrip for
fractions of shares and upon presentation of fractional share
scrip sufficient for the purpose, certificates for whole shares
will be issued. When transfer of stock upon the corporate books
is desired by virtue of this assignment, it must be placed in
the hands of an attorney in fact, both for the assignee and the
undersigned trustees, and said attorney shall first obtain the
proper certificates and scrip from all the several companies,
and thereupon shall deliver the certificates to the trustees and
the stock certificates and scrip to the party or parties
entitled thereto.
(Signed in print) JOHN D. ROCKEFELLER,
WILLIAM ROCKEFELLER,
HENRY M. FLAGLER,
JOHN D. ARCHBOLD,
BENJAMIN BREWSTER,
HENRY H. ROGERS,
WESLEY H. TILFORD,
O. B. JENNINGS, _Trustees_.
(Signed in writing) H. M. FLAGLER, _Secretary_.
W. H. TILFORD, _Attorney in Fact_.
On the left-hand corner of this same certificate this indorsement
appears:
Cancelled November 7, 1892. Transfer Number 4833. Certificate
issued.
There appears on the back of this assignment of legal title the
following:
For value received, I hereby assign the corporate stocks mentioned
or referred to in the within assignment, and authorise their
transfer upon the respective corporate books to myself or my heirs.
(Signed in writing) JOHN D. ROCKEFELLER.
NUMBER 55 (See page 2160)
AGREEMENT OF 1887 BETWEEN THE STANDARD OIL COMPANY AND PRODUCERS
[Proceedings in Relation to Trusts, House of Representatives, 1888.
Report Number 3,112, pages 69–70.]
Memorandum of agreement, made this first day of November, 1887,
between the Standard Oil Company of New York and the following-named
persons, partnerships, and corporations, producers of crude
petroleum, Thomas W. Phillips and others, whose names will be found
in the schedule hereto attached and made part of this agreement, as
follows:
_Whereas_, there has accumulated in past years an excessive stock of
crude petroleum, which is deteriorating in quality, and a portion of
which each year becomes sediment, valueless for any purpose, and the
carrying of which excessive stock requires the expenditure of vast
sums annually; and
_Whereas_, in consequence of the existence of said stock the price
of crude petroleum has for the past year been largely below the cost
at which the same was produced; now, in order as far as possible to
preserve the said stock from further waste, and to conserve the
public interest and our own, this agreement _witnesseth_:
That the Standard Oil Company of New York will set apart at
sixty-two cents per barrel, and hold for the use of the above-named
producers and those who shall hereafter become parties to this
agreement, as hereinafter provided, 5,000,000 barrels of
merchantable crude petroleum, of forty-two gallons each, to be sold
and disposed of in the manner hereinafter provided. The said
5,000,000 barrels of petroleum to be subject, until sold by the said
producers, to the usual assessments, storage charges, and interest
upon the same, as also interest on the price of said petroleum, at
sixty-two cents per barrel; said assessments, charges, and interest
to be added to the price aforesaid.
In consideration of which the above-named producers agree to limit
their production of petroleum, that for the year next ensuing from
this date, they or any number of them shall, for said year,
collectively produce at least 17,500 barrels of crude petroleum less
per day than they or any number of them collectively produced per
day for the months of July and August, 1887, and that they will use
every reasonable endeavour to control their production so that the
same shall be in the aggregate 30,000 barrels less per day than it
was during the said period of July and August, 1887.
If at the end of three months from the date hereof the said
reduction of 17,500 barrels per day shall be attained, to be
measured by taking the average production of the above-named
producers for the months of December and January next, and comparing
the same with their average production for the months of July and
August, 1887, a statement of the same being hereto attached and made
part of this agreement, then the said 5,000,000 barrels of petroleum
shall be delivered as fast as the same shall be sold by, upon the
order, and for the account of said producers through their executive
committee appointed by agreement between themselves, and hereinafter
named, to be paid for with interest and storage as delivered; that
the profits aforesaid upon said 5,000,000 barrels of petroleum as
sold, in accordance with the provisions of this agreement, shall, by
said Standard Oil Company and said producers’ executive committee,
be deposited with the United States Trust Company in New York City,
until the expiration of one year from the date hereof, in trust, in
accordance with and subject to the provisions of this agreement; and
in case the above-named producers or any number of them shall not
have lessened their production 17,500 barrels per day for said year
as aforesaid, then all of said profits upon said 5,000,000 barrels
of petroleum shall belong and be paid to the Standard Oil Company of
New York; and in case the said above-named producers or any number
of them collectively shall have lessened their production 17,500
barrels per day for the said year as aforesaid, then the entire
profits aforesaid upon the 5,000,000 barrels of petroleum shall be
paid to said producers’ executive committee, to be by it distributed
in accordance with agreements between themselves to such of said
producers as have fulfilled the terms of this agreement, and all
agreements between themselves relating to such distributions.
The said producers are guaranteed by said Standard Oil Company of
New York against loss within said year upon said 5,000,000 barrels
of petroleum. The lessening of 17,500 barrels per day above provided
shall embrace and include any reduction or lessening of production
by producers who shall sign contracts not to use means to increase
their production by drilling or otherwise.
Producers may become parties to this agreement within the year the
contract is to operate by signing the agreement between producers
authorising the executive committee to sign this contract on their
behalf, and having their names added hereto as parties by said
executive committee.
The following-named persons constitute the executive committee above
referred to, to wit:
(Names omitted by consent of the chairman.)
NUMBER 56 (See page 2187)
JOHN D. ARCHBOLD’S STATEMENT TO THE INDUSTRIAL COMMISSION CONCERNING THE
STANDARD’S OPPOSITION TO THE BUILDING OF THE UNITED STATES PIPE LINE
[Report of the Industrial Commission, 1900. Volume I, page 529.]
Mr. Lee makes a statement regarding the difficulty of his pipe-line,
the United States Pipe Line, in crossing railroads and securing
right of way to the seaboard, and makes a general statement implying
that we have instituted and carried out great obstruction to their
progress. I want to make general denial of this statement. We have
not at any time had any different relations with reference to any
obstruction or effort at obstruction of their line than would attach
to any competitor in a line of business engaging against another.
With reference to the special features referred to by Mr. Lee, and
which he attempts, by implication at any rate, to connect us with,
in the crossing of the Delaware and Lackawanna Railroad in New
Jersey, I want to say that the contention in that respect was
entirely at the hands of the railroad, and not at our hands in any
possible respect. They went there surreptitiously and endeavoured to
force their way, on a Sunday, over a line where they had no right,
either by private purchase or by public franchise. Having
accomplished the crossing of the road in that surreptitious way,
they stationed there an armed force to prevent the railroad company
from asserting its rights and taking out their lines, and kept that
force there for a long period. The railroad went about it in a
peaceful way, in the courts, and the final result is that the
decision is against the line, after the case has been carried up
finally to the supreme court of the state, and they must, of course,
remove their line. But any statement on Mr. Lee’s part, or any other
witness, that we had anything to do with that matter, or with
reference to any of the difficulties interposed in their progress to
the seaboard, is absolutely false.
By Mr. Phillips.
_Q._ Did your company own in fee simple the tract of ground, and was
a roadway reserved by the landholder? Was that purchased by them?
_A._ It was not my case, and I am not conversant with the details
regarding it. The fact that, after having been fought in the
newspapers and in the courts for a term of years, seeking the
sympathy of the judges as well as the public, the supreme court of
the state has ruled against them, is the best evidence, I think,
that the right was against them. I want to say with reference to our
pipe lines, that we never endeavoured to cross any man’s right of
way without first seeing him about it.
_Q._ Still, did they not go through the railroad on their own
ground, and was not this the final decision, that they had not the
right to lay a pipe line where a man had reserved a right of way
under the ground?
_A._ It was not only decided that they had no right there, but they
were ordered to remove.
NUMBER 57 (See page 2194)
TABLES OF YEARLY AVERAGE PRICES OF CRUDE AND REFINED
[All quotations up to 1899 are from the Oil City Derrick; all
quotations for 1900–1903 are from the New York Commercial.]
TABLE OF YEARLY AVERAGE PRICE OF CRUDE
In the following table is presented the highest and lowest price of
oil, the months in which these quotations occurred, and the general
average for each year. The “average” as estimated is usually the
mean price between the highest and lowest quotation of a given time.
It is sufficiently accurate for general purposes of comparison. It
would be an almost impossible task to determine a “true average”
from the reports of the daily sales that are now on record. Previous
to 1875 the quotations are given for points along Oil Creek, and
they hardly represent what the producer actually realised for oil at
the wells. From 1875 onward the trading in oil was placed on a more
satisfactory basis by the general adoption of pipe-line
certificates, and the exchange quotations show very closely the
value of the oil at the wells. When the certificate was finally
purchased by the refiner, it was subject to a uniform charge for
pipage of the oil from the wells to the nearest shipping point.
─────────┬─────────┬─────────┬─────────┬─────────┬─────────
YEAR │ Highest │ Price │ Lowest │ Price │ Average
│ Month │ │ Month │ │
─────────┼─────────┼─────────┼─────────┼─────────┼─────────
1859 │Sept. │ $20.00 │Dec. │ $20.00 │ $20.00
1860 │Jan. │ 20.00 │Dec. │ 2.00 │ 9.60
1861 │Jan. │ 1.75 │Dec. │ .10 │ .52
1862 │Dec. │ 2.50 │Jan. │ .10 │ 1.05
1863 │Dec. │ 4.00 │Jan. │ 2.00 │ 3.15
1864 │July │ 14.00 │Feb. │ 3.75 │ 8.15
1865 │Jan. │ 10.00 │Aug. │ 4.00 │ 6.59
1866 │Jan. │ 5.50 │Dec. │ 1.35 │ 3.75
1867 │Oct. │ 4.00 │June │ 1.50 │ 2.40
1868 │July │ 5.75 │Jan. │ 1.70 │ 3.62½
1869 │Jan. │ 7.00 │Dec. │ 4.25 │ 5.60
1870 │Jan. │ 4.90 │Aug. │ 2.75 │ 3.90
1871 │June │ 5.25 │Jan. │ 3.25 │ 4.40
1872 │Oct. │ 4.55 │Dec. │ 2.67½│ 3.75
1873 │Jan. │ 2.75 │Nov. │ .82½│ 1.80
1874 │Feb. │ 2.25 │Nov. │ .62½│ 1.15
1875 │Feb. │ 1.82½│Jan. │ .75 │ 1.24¾
1876 │Dec. │ 4.23¾│Jan. │ 1.47½│ 2.57⅝
1877 │Jan. │ 3.69⅜│June │ 1.53¾│ 2.39⅜
1878 │Feb. │ 1.87½│Sept. │ .78¾│ 1.17⅛
1879 │Dec. │ 1.28¾│June │ .63⅛│ .85⅝
1880 │June │ 1.24¾│April │ .71¼│ .94⅛
1881 │Sept. │ 1.01¼│July │ .72½│ .85¾
1882 │Nov. │ 1.37 │July │ 0.49¼│ 0.78½
1883 │June │ 1.24¾│Jan. │ .83¼│ 1.05⅞
1884 │Jan. │ 1.15⅝│June │ .51¼│ .83⅝
1885 │Oct. │ 1.12⅝│Jan. │ .68 │ .88⅜
1886 │Jan. │ .92¼│Aug. │ .59¾│ .71⅜
1887 │Dec. │ .90 │July │ .54 │ .66⅝
1888 │Mar. │ 1.00 │June │ .71⅜│ .87
1889 │Nov. │ 1.12½│April │ .79½│ .94⅛
1890 │Jan. │ 1.07⅝│Dec. │ .60¾│ .86⅝
1891 │Feb. │ .81⅜│Aug. │ .50 │ .66⅞
1892 │Jan. │ .64⅛│Oct. │ .50 │ .55½
1893 │Dec. │ .80 │Jan. │ .52⅞│ .64
1894 │Dec. │ .95¾│Jan. │ .78½│ .83¾
1895 │April │ 2.60 │Jan. │ .95¼│ 1.35¼
1896 │Jan. │ 1.50 │Dec. │ .90 │ 1.19
1897 │Mar. │ .96 │Oct. │ .65 │ .78⅜
1898 │Dec. │ 1.19 │Jan. │ .65 │ .91⅛
1899 │Dec. │ 1.66 │Feb. │ 1.13 │ 1.29⅜
1900 │Mar. │ 1.68 │Nov. │ 1.07 │ 1.35¼
1901 │Nov. │ 1.30 │June │ 1.05 │ 1.21½
1902 │Dec. │ 1.44½│Mar. │ 1.15 │ 1.23
1903 │Dec. │ 1.88 │Mar. │ 1.50 │ 1.58¾
─────────┴─────────┴─────────┴─────────┴─────────┴─────────
TABLE OF YEARLY AND MONTHLY AVERAGE PRICE OF REFINED
In the following table is given the average monthly and yearly
prices of refined oil per gallon, in barrels, in New York, from
January, 1863, to December, 1903. During the years when a tax was
levied on this article of domestic production the quotations do not
include the tax:
─────────┬────┬────┬────┬────┬────┬────┬────┬────┬────┬────
│1863│1864│1865│1866│1867│1868│1869│1870│1871│1872
─────────┼────┼────┼────┼────┼────┼────┼────┼────┼────┼────
Jan. │.40 │.46⅝│.70 │.57⅞│.31 │.24¾│.34⅛│.31⅜│.24⅝│.22⅝
Feb. │.38¼│.47⅛│.67¼│.48⅝│.28¼│.25 │.36⅜│.29⅞│.25⅛│.21¾
March │.34¾│.49⅛│.58¾│.41⅞│.27½│.25¾│.32⅛│.27 │.24⅛│.22⅝
April │.33¼│.54⅛│.52⅞│.40⅛│.27 │.26¼│.32¼│.26½│.23¼│.21¾
May │.39½│.59½│.51⅛│.43 │.26¾│.29⅝│.31½│.27½│.24⅝│.23⅜
June │.44½│.72 │.51½│.41⅞│.24¾│.31⅜│.31 │.27 │.25¾│.23
July │.49 │.86⅛│.52⅛│.39½│.30⅞│.34¼│.32¼│.26 │.25¾│.22⅜
Aug. │.53½│.84⅞│.52 │.44⅜│.29¼│.33 │.32½│.25 │.24⅜│.22⅜
Sept. │.58 │.75 │.58¼│.44⅝│.31¾│.31 │.32¼│.26⅛│.24⅛│.24⅛
Oct. │.52½│.63¾│.61¾│.40⅝│.34½│.30 │.32⅞│.24⅝│.23¾│.26
Nov. │.41½│.70 │.62⅝│.35¾│.27½│.30⅞│.34 │.23 │.22⅜│.27
Dec. │.46½│.72¾│.65¼│.31¼│.24¾│.32¼│.31⅛│.23 │.23 │.26
─────────┼────┼────┼────┼────┼────┼────┼────┼────┼────┼────
Yearly │ │ │ │ │ │ │ │ │ │
average│.44¾│.64¾│.58¾│.42½│.28⅜│.29⅛│.32¾│.26⅜│.24¼│.23⅝
─────────┴────┴────┴────┴────┴────┴────┴────┴────┴────┴────
─────────┬────┬────┬────┬────┬────┬────┬────┬────┬────┬────
│1873│1874│1875│1876│1877│1878│1879│1880│1881│1882
─────────┼────┼────┼────┼────┼────┼────┼────┼────┼────┼────
Jan. │.22⅛│.13½│.12⅜│.14⅛│.24 │.12⅛│ 9 │ 7⅞│ 9¼│ 7
Feb. │.19⅝│.15 │.14 │.14¼│.18⅝│ 12¼│ 9⅜│ 7⅞│ 9¼│ 7⅜
March │.19 │.14⅞│.15 │.14½│.16 │.11⅝│ 9¼│ 7¾│ 8½│ 7⅜
April │.20 │.15⅝│.13⅞│.14 │.15¾│.11⅜│ 9⅛│ 7⅝│ 7¾│ 7⅜
May │.19¾│.13⅞│.12¾│.14⅞│.14½│.11¼│ 8½│ 7⅝│ 8 │ 7½
June │.19 │.12⅞│.12⅝│.14¾│.13¾│.11¼│ 7½│ 9⅝│ 8⅛│ 7½
July │.18⅛│.12⅛│.11½│.16⅞│.13⅜│.10¾│ 6¾│ 9⅞│ 7⅞│ 6¾
Aug. │.16½│.11¾│.11¼│.19⅞│.13⅝│.10⅞│ 6⅝│ 9 │ 7¾│ 6⅞
Sept. │.16½│.12⅛│.12¾│.26 │.14½│.10¼│ 6⅞│ 10⅝│ 8 │ 7½
Oct. │.16¼│.11⅞│.14⅛│.26 │.14⅝│ 9⅝│ 7½│ 12 │ 7¾│ 8
Nov. │.14⅛│.10¾│.13 │.26¼│.13¼│ 9⅛│ 8 │ 10½│ 7½│ 8¼
Dec. │.13½│.11¼│.12¾│.29⅜│.13⅛│ 8⅝│ 8⅝│ 9½│ 7⅛│ 7⅝
─────────┼────┼────┼────┼────┼────┼────┼────┼────┼────┼────
Yearly │ │ │ │ │ │ │ │ │ │
average│.18¼│.13 │.13 │.19⅛│.15¾│.10¾│ 8⅛│ 9⅛│ 8 │ 7⅜
─────────┴────┴────┴────┴────┴────┴────┴────┴────┴────┴────
APPENDIX, NUMBER LVII
─────────┬────┬────┬────┬────┬────┬────┬────┬────┬────┬────┬────
│1883│1884│1885│1886│1887│1888│1889│1890│1891│1892│
─────────┼────┼────┼────┼────┼────┼────┼────┼────┼────┼────┼────
Jan. │ 7¾│ 9⅜│ 7¾│ 7¾│ 6¾│ 7¾│ 7 │ 7½│7.42│6.45│
Feb. │ 7⅞│ 9⅛│ 7¾│ 7⅝│ 6⅝│ 7¾│ 7⅛│ 7½│7.48│6.42│
March │ 8 │ 8½│ 8 │ 7⅜│ 6⅝│ 7¾│ 7 │ 7¼│7.31│6.32│
April │ 8¼│ 8⅝│ 7⅞│ 7⅜│ 6⅝│ 7⅜│ 6⅞│ 7⅛│7.18│6.10│
May │ 7⅞│ 8½│ 7¾│ 7¼│ 6¾│ 7½│ 6⅞│ 7¼│7.20│6.06│
June │ 8 │ 8⅛│ 8 │ 7⅛│ 6⅝│ 7⅛│ 6⅞│ 7⅛│7.13│6.00│
July │ 7⅝│ 7⅞│ 8¼│ 7 │ 6½│ 7¼│ 7¼│ 7⅛│7.02│6.00│
Aug. │ 7⅞│ 8 │ 8⅜│ 6¾│ 6½│ 7⅝│ 7¼│ 7¼│6.70│6.08│
Sept. │ 8⅛│ 7⅞│ 8⅜│ 6⅝│ 6¾│ 7¾│ 7⅛│ 7⅜│6.42│6.10│
Oct. │ 8⅜│ 7⅞│ 8½│ 6¾│ 6¾│ 7⅝│ 7⅛│ 7½│6.45│6.03│
Nov. │ 8¾│ 7⅞│ 8½│ 6⅞│ 7 │ 7¼│ 7½│ 7½│6.40│5.80│
Dec. │ 9⅛│ 7¾│ 8 │ 6⅞│ 7¼│ 7¼│ 7½│ 7¼│6.44│5.45│
─────────┼────┼────┼────┼────┼────┼────┼────┼────┼────┼────┼────
Yearly │ │ │ │ │ │ │ │ │ │ │
average│ 8⅛│ 8¼│ 8⅛│ 7⅛│ 6¾│ 7½│ 7⅛│ 7⅜│6.93│6.07│
─────────┴────┴────┴────┴────┴────┴────┴────┴────┴────┴────┴────
─────────┬────┬────┬────┬────┬────┬────┬────┬────┬────┬────┬────
│1893│1894│1895│1896│1897│1898│1899│1900│1901│1902│1903
─────────┼────┼────┼────┼────┼────┼────┼────┼────┼────┼────┼────
Jan. │5.33│5.15│5.87│7.85│6.13│5.40│7.43│9.90│7.58│7.20│8.27
Feb. │5.30│5.15│6.00│7.35│6.26│5.48│7.40│9.90│7.81│7.20│8.20
March │5.34│5.15│6.75│7.40│6.36│5.82│7.33│9.90│8.00│7.20│8.21
April │5.52│5.15│9.12│7.00│6.13│5.67│7.05│9.51│7.68│7.30│8.35
May │5.20│5.15│8.20│6.75│6.23│6.00│7.01│8.98│7.04│7.40│8.47
June │5.21│5.15│7.83│6.85│6.14│6.16│7.20│7.88│6.90│7.40│8.55
July │5.15│5.15│7.65│6.55│5.87│6.27│7.61│7.90│7.15│7.40│8.55
Aug. │5.18│5.15│7.10│6.65│5.75│6.44│7.82│8.05│7.50│7.21│8.55
Sept. │5.15│5.15│7.10│6.85│5.74│6.60│8.63│7.98│7.50│7.20│8.55
Oct. │5.15│5.15│7.10│6.90│5.55│7.21│9.00│7.48│7.65│7.26│9.01
Nov. │5.15│5.15│7.88│7.15│5.40│7.35│9.40│7.33│7.65│7.71│9.36
Dec. │5.15│5.61│7.77│6.35│5.40│7.40│9.85│7.28│7.43│8.12│9.45
─────────┼────┼────┼────┼────┼────┼────┼────┼────┼────┼────┼────
Yearly │ │ │ │ │ │ │ │ │ │ │
average│5.24│5.19│7.36│6.98│5.91│6.32│7.98│8.50│7.49│7.38│8.62
─────────┴────┴────┴────┴────┴────┴────┴────┴────┴────┴────┴────
NOTE.—In the above tables the quotations down to 1890, inclusive,
are noted in cents and fractional parts of a cent; from 1891 to 1903
the prices are given in cents and decimal parts of a cent, _i.e._,
7.42 signifies seven and forty-two hundredths cents, and 9⅜ means
nine and three eighths cents per gallon. The above are New York
quotations in barrels; bulk oil is generally 2.50c. below these
prices. Philadelphia and Baltimore quotations are five points below
New York; for instance, if New York price was 5.75c., the
Philadelphia and Baltimore price would be 5.70c.
NUMBER 58 (See page 2225)
JOHN D. ARCHBOLD’S STATEMENT ON THE PRICES THE STANDARD RECEIVES FOR
REFINED OIL
[Report of the Industrial Commission, 1900. Volume I, pages
569–570.]
_Q._ Now, the general result then is this: By virtue of your greater
power you are enabled to secure prices that on the whole could be
considered steadily somewhat above competitive rates?
_A._ Well, I hope so. I think we have better merchandising
facilities, better marketing facilities, better distributing
facilities, and better talent than a competitor can have.
_Q._ I am not asking with reference to your power of making profits,
but it is with reference to getting the prices from the consumer.
_A._ Prices are what make the profit. If we had a better average
price, we could get a better profit.