[Random Reminiscences of Men and Events by John D. Rockefeller]@TWC D-Link bookRandom Reminiscences of Men and Events CHAPTER IV 33/36
It furnished loading facilities and discharging facilities at great cost. It provided regular traffic, so that a railroad could conduct its transportation to the best advantage and use its equipment to the full extent of its hauling capacity without waiting for the refiner's convenience.
It exempted railroads from liability for fire and carried its own insurance.
It provided at its own expense terminal facilities which permitted economies in handling.
For these services it obtained contracts for special allowances on freights. But notwithstanding these special allowances, this traffic from the Standard Oil Company was far more profitable to the railroad companies than the smaller and irregular traffic, which might have paid a higher rate. To understand the situation which affected the giving and taking of rebates it must be remembered that the railroads were all eager to enlarge their freight traffic.
They were competing with the facilities and rates offered by the boats on lake and canal and by the pipe-lines.
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