Wealth against commonwealth

by Henry Demarest Lloyd

The merchants of Columbus, Mississippi, were buying their oil of the southern branch of the combination when they were offered a supply at cheaper prices by an independent refiner. They asked the combination to meet this competition of the market. This was refused. There were eleven firms there which sold oil in connection with other things. The combination "coolly informed us," wrote one of the firms to a journal of the trade, "that we were in their power, and could not buy oil from any one else, and that we should either pay such prices as they demanded or not sell oil. We immediately formed an association among ourselves and ordered from other parties. On receipt of our first car they immediately put the retail price below the cost per car lots, and for some time tried to whip us in that way, as we still declined to handle their oil. They then wrote offering to rebate to several of the larger firms if they would withdraw and leave the smaller ones to fight the battle alone. This proposition we declined, and they again tried the low-price dodge, their agent telling us that they would spend $10,000 to crush us out. This game they have now been trying for three years, and in that time we have not handled one gallon of their oil." As these devices, irresistible in more commercial civilizations, did not fool the brotherhood of Columbus, a special agent was sent to Columbus to carry on the war.

"You can tell the Columbus merchants if this does not succeed we will have it out on other lines," the agent was instructed, in the strain of the letter to the merchant of Nashville.[511] "The battle has not fairly opened yet; sharpen up your sword, we mean war to the knife." And again: "We want Columbus squelched," was the word sent the agent from the headquarters at Louisville.

He was ordered to start a grocery store in Columbus, to compete in their entire business with the "black-mailers." While the fight was on, and it was still hoped to conquer Columbus, the following was kept prominently before the people in the daily papers:

"We desire to state that we did not establish an agency in Columbus to force the wholesale grocers to handle our oil."

But seven years later the general in command of this department told Congress it was his practice to fight in that way. "Almost invariably I did that always."[512]

"To threaten the people elsewhere with Columbus," the agent at Columbus was told, "will make them scat, as it were, and take our oil at any price." But the people of Columbus did not "scat." The new store had a complete stock of groceries. Prices on everything, including oil, were put "down to the bone." But one essential feature of the enterprise all the ingenuity and power of the invader could not furnish—customers. Goods were advertised at cost; alluring signs were hung out with daily variations; but the people would not buy. A few citizens who bought at the beginning, without understanding the plan of campaign, came out in the newspapers with cards of apology, and pledges that they would not repeat the mistake. Local bankers refused to honor the drafts of the enemy, threw out its accounts, and gave notice that they would advance no money to persons who bought at its store. The public opinion of Columbus so bitterly resented the attack upon the livelihood of its merchants, because they had dared to buy where they thought best, and so clearly saw that the subjugation of the merchants would be but the preliminary of a conquest of themselves, that any one seen within the doors of the odious store fell into instant and deep disgrace. "Their store is regarded as a pest-house," wrote one of the leading business men, "and few respectable people ever darken their doors, their trade being confined mostly to negroes. Their oil trade has dwindled down to almost nothing, and we are selling now to merchants in other towns who heretofore bought exclusively from them."

At the first sign of aggression the merchants had given up competition, which they saw meant only mutual ruin, and had tied themselves together in an association. Now as the struggle widened the people did the same, and found a greater benefit and pleasure in co-operation than in keeping up the delusion of the "higgling of the market" where there was no market. The Index, of Columbus, printed an agreement signed by hundreds "of those who will sustain our home merchants in the struggle they are making.... It will receive many more signatures among our citizens.... The people have only to understand to properly decide in this matter between right and wrong."

"You ask if the feeling is bitter against them in our 'community,'" one of the merchants wrote. "I can only liken it to the spirit which prevailed when the people of Boston emptied King George's taxed tea into Boston Harbor."

Attempt was made to intimidate the press. Advertisements were discontinued because the papers supported the cause of the people. "If the agent," said the Index, of Columbus, "thought the cash that might be obtained for such advertisements could purchase the silence of this journal when it should speak, or its support in a wrong cause, he reckoned without his host." "The pledge" was signed by practically every man in the place. The country people about Columbus, when they came to town to sell produce and buy supplies, took back with them blanks of the agreement not to buy the obnoxious oil, and circulated them among their neighbors for signature. Agents were sent among these country people to win back their trade, but they could not be moved. The competition was made "war to the knife," and the knife "to the bone." It was a singular sight—this concentration of millions to "kill" these little men in this remote country town in far-off Mississippi. Nothing was too small to do. When one of the Columbus "rebels" bought oats for his trade, a competitive stock of the same kind of oats was hurried into Columbus, and these instructions sent with it: "Put your sign out. Rust-proof oats to arrive at 98 cents to $1 a bushel. This will kill him. The same signs should be posted about meats, sugar, coffee, etc."

The plan of action of the Merchants' Association was simple: they declined to handle the enemy's oil at any price. "Then to have a stock of our own always on hand, ready to sell whenever we could at a profit, and hold in reserve whenever they put prices below cost; and in this way we have made it a losing business to them for over three years, and will continue to do so as long as they remain in our town.... When our association buys a car of oil, each member pays for and takes charge of an equal share, but the oil remains the property of the association; and should any member sell out before the others, he has the right to buy from them at cost, and the next car is not ordered until all are nearly sold out."