.

The railroad companies yielded and promised to give equal rates to all
shippers and to grant to no person either rebates or any other advantage
whatever. New rates were fixed for the transportation of both crude and
refined oil, and it was agreed on the part of the railroad companies
that at least ninety days' notice should be given of any change that
might be made in the rates. Steps were also taken to have the charter of
the South Improvement Company canceled because it had been found that it
was neither the owner of a refinery nor of an oil well, and could
therefore not comply with the legal requirements concerning the
organization of stock companies. While the South Improvement Company
thus came to a sudden and rather inglorious end, its founders soon
contrived other means to carry out their ingenious plans. They bought a
refinery, reorganized by taking the prepossessing title of Standard Oil
Company, and were now prepared to resume their operations under the
guise of legal authority.

The railroad companies seemed to have relished their novel business
connections, for, without paying the least attention to the agreement
into which they had entered with the other producers and refiners of
oil, they extended the privileges of the defunct South Improvement
Company to its successors. The new company received secret rebates
ranging from 50 cents to $1.32 per barrel. The agreement also contained
the stipulation that if lower rates should ever be granted to their
competitors, an additional rebate should be given to the Standard Oil
Company. Endowed with these privileges, the favored company proceeded to
unite under its banner, by consolidation, purchase or lease, the
leading refineries of Cleveland.

The effect of the discriminations practiced against independent
refineries soon became apparent. In less than two years there were
closed in Pittsburgh twenty-one refineries, that represented an
aggregate capital of $2,000,000 and had given employment to over 3,000
people. A large number of the remaining refineries were forced to
consolidate with the Standard Oil Company.

The next step toward the entire suppression of competition was an attack
planned against the independent pipe lines. The Standard had early
secured control of the United Pipe Line. To exterminate competing lines,
they again appealed to the railroad companies, and on the 9th day of
September, 1874, J. H. Rutter, general freight agent of the New York