Industry Comes of Age

Industry Comes of Age 1865-1900 1. A Defense of Long-Haul Rates * Serious grievance against the “railroad rascals” was discrimination. * The money to keep up the road must be forth coming or it will go to decay * $600,000 was required to operate the road * Local shippers would benefit if the company took the cotton at dollar per bale because then they would have to pay less 2.
Railroad President Sidney Dillon Supports Stock Watering (1891) * Stock watering: the practice of issuing stocks and bonds grossly in excess of the value of the property. * more the stock was watered the higher the freight and passenger rates would have to be (supported by Sidney Dillon president of the union pacific RR) * Statutory enactments interfered with the railway business by saying it’s a public enemy that makes money out of common people 3. General James B.
Weaver Deplores Stock Watering (1892) * Won the presidential nomination of the peoples party in 1892. * Wrote book called Call to Action that condemned stock waterers * In 1887 congress passes the interstate commerce act – forbade unreasonable rates – discriminatory -payment of rebates B. The Trust and Monopoly 1. John D. Rockefeller Justifies Rebates (1909) * Founding Father of the standard oil company * reason of rebates was that such was the railroads method of business Standard Oil Company provided freights in large quantities and regular traffic for the best transportation 2. Oil Man Goes Bankrupt (1899) *Rockefellers refinery was shut for 3 years because of the standard oil trusts domination * he wanted to get equal with the Standard Oil Company 3. Weaver Attacks the Trusts * standard oil trust is created after Rockefellers Standard Oil of Ohio was not authorized to operate outside the state * the main weapons of the trust were threats, intimidation, bribery, fraud, wreck, and pilage

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