RISE OF THE STANDARD OIL COMPANY 193 



competes with the railways, were generally fixed upon as dis- 

 tributing centers. Accordingly, lower freight rates prevailed 

 at the large shipping points of the Standard than prevailed 

 at places where its competitors made most of their shipments. 

 The Standard Oil company located its refineries at points 

 nearer the place of consumption, and so economized in ship- 

 ping distance. Thus it transferred most of its business from 

 Cleveland to Whiting, Ind., in order to be nearer the south- 

 ern market and to the west, and began to supply the east- 

 ern market from its refineries at Bayonne, N. J. By wise 

 distribution of its refineries the Standard became largely 

 independent of the changing freight rates that distressed those 

 independent refiners who shipped their oil long distances. A 

 less honorable advantage, it has been alleged, accrued to the 

 Standard by the practice, among the railroads, of under billing 

 the weight of the contents of the tank car. 



With nothing more exciting than an occasional case before 

 the interstate commerce commission regarding shipments by 

 tank car, the Standard Oil trust continued from 1887 until 

 1892. Its growth and prosperity had been steady. The prop- 

 erty of the various companies that entered the trust in 1882 

 was valued at $75,000,000. In 1892 the value was estimated 

 at $121,631,312; and 50 per cent of this increase had come 

 from profits invested and the remainder from additional capi- 

 tal subscribed. The dividends meanwhile had risen from 5^ 

 per cent in 1882 to 12 per cent in 1891. During the ten years 

 following 1882 there had been a gentle decrease in the price 

 of refined oil, and a slight decrease in the difference between 

 the price of refined and the price of crude oil — a difference 

 which measures the charge for refining. The attitude of the 

 Standard Oil trust during these years was one of quiet domi- 

 nance. It was now to meet an unexpected difficulty in the 

 courts, which rendered necessary a complete change of organi- 

 zation. 



In 1891 the state of Ohio, by its attorney general, began 

 action to oust the Standard Oil company of its corporate 

 rights, on the ground that it had abused its corporate fran- 

 chises in becoming a party to an agreement against public 

 policy. The petition averred that in " violation of law and 



Vol. 3-13 



