fought so good a fight. The specific complaint of the oil producers at this time was that they were being "robbed" by the National Transit Company—the big Standard pipe-line consolidation, which had secured by the series of manoeuvres already outlined the monopoly of handling and transporting crude oil. If the oil producers had been making money at this time it is quite possible that they would have paid little attention to the profits of the National Transit Company. The service they got was about as perfect as any human machine could render, and they would probably have recognised this and been willing to pay high if they too had been prosperous. But the condition of the oil producer in these days was in glaring contrast to that of Mr. Rockefeller. They had piled up oil until there were in 1886 over 33,000,000 barrels on hand. Naturally this had driven prices down. The average price for the last years had been under a dollar a barrel. In 1886 it fell down to 71⅜, and everyone said it must go lower. Embittered and discouraged, the producers fell to comparing what they were getting out of the business with what Mr. Rockefeller was getting. It was not a consoling showing. The Standard Oil Trust had from its organisation in 1882 paid dividends on its $70,000,000 capital. In spite of the extraordinary outlay for tank-building and seaboard pipe-lines made from 1881 to 1884—$30,000,000 it is computed to have been—the trust paid 10½ per cent. in 1885, ten per cent, in 1886, and Standard Oil stock stood near 200! In contrast, the oil producer, in 1886, is estimated to have lost about six per cent. on his expenditures, and oil property depreciated one-third in value.[1]
Something was wrong. They could not charge the Standard with the price of oil. As long as over 33,000,000 barrels in stock lay on the market it could not rise. But they could
- ↑ See Appendix, Number 49. A statement from an oil-producer's stand-point for 1886.
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