ida tarbell & unfair business practices
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THE HISTORY OF THE STANDARD OIL COMPANY 2

 

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...on which they had staked all, be a success? Without a hitch the oil flowed in a full stream into the pipe and began its long journey over the mountains. It travelled about as fast as a man could walk and, as the pipe lay on the ground, the head of the stream could be located by the sound. Patrolmen followed the pipe the entire length watching for leaks. There was now and then a delay from the stopping of the pumps; but the cause was trivial enough, never anything worse than chips under the valves or clogging in the pipe by stones and bits of wood which the workmen had carelessly left in when joining the pipe. When the oil reached the second station there was general rejoicing; nevertheless, the steepest incline, the summit of the Alleghanies, had yet to be overcome. The oil went up to the top of the mountain without difficulty, and on June 4, the seventh day after Mr. Benson opened the valve at Station One, oil flowed into the big receiving tank beyond Williamsport. A new era had come in the oil business. Oil could be pumped over the mountains. It was only a matter of time when the- Tidewater would pump to New York. Once at the seaboard, the Tidewater had a large and sure outlet for its oil in the group of independent refiners left at the mercy of the Standard in the fall of 1877 by the downfall of the Empire Line. These refiners had most of them run the entire gamut of experiences forced on the trade by the railroads and the Standard. Take, for instance, the experience of Ayres, Lombard and Company, related by Josiah Lombard in 1879 in the Pennsylvania suits. They had gone into the business in 1869 in West Sixty-sixth street. At the beginning they had shipped principally over the Erie, sometimes as high as 50,000 barrels a month ; but when that road came into the hands of Fisk and Gould those gentlemen began to try to build up a refining business in New York for their own friends. Edward Stokes was at that time hand in glove with Fisk; he had in the Oil Regions an able friend, Henry Harley. Harley bought [6] THE FIGHT FOR THE SEABOARD PIPE-LINE and shipped the oil over the Erie; special rates were given him, and the Stokes refinery soon began to flourish at the ex- pense of the former shippers of the Erie. Mr. Lombard find- ing, as he says, that there was no possibility of doing business with that road under the Fisk and Gould management, went over to the New York Central. Here he furnished his own cars...

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Breach of fiduciary duty jurisprudence of the New York State Court of Appeals in the current millennium

Breach of fiduciary duty jurisprudence of the New York State Court of Appeals in the current millennium | ida tarbell & unfair business practices | Scoop.it
New York attorney Victor M. Metsch discusses how the Court of Appeals has handled claims for breach of fiduciary duty in recent cases.
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Breach of Fiduciary Duty | Beneficiary Rights | FL Estate Litigation Lawyer

Breach of Fiduciary Duty | Beneficiary Rights | FL Estate Litigation Lawyer | ida tarbell & unfair business practices | Scoop.it
Attorneys at Adrian Philip Thomas, P.A. represent clients prosecuting and defending claims for breach of fiduciary duty against personal representatives and trustees.
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Tarbell, Ida (1957-1944) Summary

Tarbell, Ida (1957-1944) Summary | ida tarbell & unfair business practices | Scoop.it
This detailed study guide includes chapter summaries and analysis, important themes, significant quotes, and more - everything you need to ace your essay or test on Tarbell, Ida (1957-1944)!
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Ida Tarbell Biography

Ida Tarbell Biography | ida tarbell & unfair business practices | Scoop.it
Ida Tarbell was an American journalist whose investigative reporting led to the breakup of the Standard Oil Company’s monopoly. Learn more at Biography.com.
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the new idea was to lay a six-inch line from Rixford, in the Bradford field, to Williamsport, on the Reading Railroad, a distance of 109 miles. The Reading, not having had so far any oil freight, was happy to enter into a contract with them to run oil to both Philadelphia and New York until they could get through to the seaboard themselves. In November, 1878, a limited partnership, called the Tidewater Pipe Com- pany, was organised with a capital of $625,000 to carry out the scheme. Many of the best known producers of the Oil Regions took stock in the company, the largest stockholders being A. A. Sumner and B. D. Benson.* The first work was to get a right of way. The company went at the work with secrecy and despatch. Its first move was to buy from the Equitable Pipe Line, the second independent effort to which, as we have seen, the Producers' Union lent its support in 1878, a short line it had built, and a portion of a right of way eastward which Colonel Potts had been quietly trying to secure. This was a good start, and the chief engineer, B. F. Warren, pushed his way forward to Wil- liamsport near the line which Colonel Potts had projected. The Standard, intent on stopping them, and indeed on putting an end to all future ventures of this sort, set out at once to get what was called a "dead line" across the state. This was an ex- clusive right for pipe-line purposes from the northern to the southern boundary of Pennsylvania. As there was no free pipe- line bill in those days, this "dead line," if it had been complete, would have been an effectual barrier to the Tidewater. Much money was spent in this sordid business, but they never suc- ceeded in completing a line. The Tidewater, after a little delay, found a gap not far from where it wanted to cross, and soon had pushed itself through to Williamsport. With the actual laying of the pipe there was no interference which proved serious, though the railroads frequently held back

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ida tarbell stands up to big bussineses

Most of the independent oil producers in the Oil Region of west-central Pennsylvania were young, and they looked forward to the years ahead. They believed they would solve problems such as railroad discrimination. They would make their towns the most beautiful in the world. There was nothing they did not hope and dare. But suddenly, at the very heyday of this confidence, a big hand reached out from nobody knew where, to steal their conquest and throttle their future. The suddenness and the wickedness of the assault on their business stirred to the bottom their manhood and their sense of fair play, and the whole region arose in a revolt which is scarcely paralleled in the commercial history of the United States. In Cleveland, young John D. Rockefeller was also in the oil business, as a refiner. Young Rockefeller was a ruthless bargainer. Said one writer, "The only time I ever saw John Rockefeller enthusiastic was when a report came in from the [Oil Region] that his buyer had secured a cargo of oil at a figure much below the market price. He bounded from his chair with a shout of joy, danced up and down, hugged me, threw up his hat, acted so like a madman that I have never forgotten it." Gradually, Rockefeller's competitors began to suspect he was somehow getting better shipping rates from the railroads than they were. Because there was fierce competition between the railroads at the time, other large oil shippers insisted on and got their own special rates. But crafty John Rockefeller seemed to be getting the best rates of all. But the railroads were supposed to be COMMON CARRIERS, and had no right to discriminate between patrons. The railroads had also, as shown by Gustavus Myers in *History of the Great American Fortunes*, been built largely at the public's expense; huge land grants had been given to them under the premise that the railroads would be a benefit to the people of the United States. These land grants had not been merely narrow strips of land, but vast acreages filled with timber and valuable minerals. The railroad companies had already gulped down a vast fortune, courtesy of the American people via Congressional give-aways. Rockefeller had the advantage of a complete, far-flung organization, even in those early days: buyers in the Oil Region, an exporting agent in New York, refineries in Cleveland, and transportation favoritism. Mr. Rockefeller should have been satisfied in 1870. But Mr. Rockefeller was far from satisfied. Those twenty-five Cleveland rivals of his -- how could he at once and forever put them out of the game? He and his partners had somehow conceived a great idea -- the advantages of COMBINATION. What might they not do if they could buy out and absorb the big refineries now competing with them in Cleveland? The Rockefeller corporation, Standard Oil, began to sound out some of its Cleveland rivals. But there was still a problem: What about their rivals in the Oil Region of Pennsylvania? They could ship to refineries on the eastern sea-coast. And the Pennsylvania Railroad was helping them; they shipped in volume and the railroad gave them a discount. Aligned with the Cleveland crowd were the Lake Shore and New York Central Railroads. If the Oil Region won the developing competition, these railroads would lose business. All the competition was causing a problem for Rockefeller. The price of refined oil was steadily falling. This was *good* for the average American who bought the oil, but bad for these few wheeler-dealers. Mr. Rockefeller and friends looked with dismay on their decreasing profits. In the fall of 1871, certain refiners brought to Rockefeller and friends a scheme, the gist of which was to bring together secretly a large enough body of refiners and shippers -- a SECRET COMBINATION -- to persuade all the railroads handling oil to give to the company formed special rebates on oil shipped, and *drawbacks* (raised rates) on that of other people.

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