Of Rebates and Drawbacks: The Standard Oil (N.J.) Company and the Railroads

Of Rebates and Drawbacks: The Standard Oil (N.J.) Company and the Railroads Standard Oil formed the South Improvement Company in the fall of 1871, supposedly to negotiate “secret” discounts on published railroad tariffs and place independent refiners at a transportation cost disadvantage. We argue that discriminatory railway rates were common both before and after Standard Oil’s founding in 1870, played little or no part in its rise to prominence and were not necessarily even illegal. Rebates and drawbacks were in fact ways of sharing the efficiency gains that flowed from the dependable high-volume rail traffic Rockefeller was able to guarantee as well as from other investments that he undertook that lowered the railroads’ costs. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Of Rebates and Drawbacks: The Standard Oil (N.J.) Company and the Railroads

Loading next page...
Springer US
Copyright © 2011 by Springer Science+Business Media, LLC.
Economics; Industrial Organization; Microeconomics
Publisher site
See Article on Publisher Site


You’re reading a free preview. Subscribe to read the entire article.

DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

Monthly Plan

  • Read unlimited articles
  • Personalized recommendations
  • No expiration
  • Print 20 pages per month
  • 20% off on PDF purchases
  • Organize your research
  • Get updates on your journals and topic searches


Start Free Trial

14-day Free Trial

Best Deal — 39% off

Annual Plan

  • All the features of the Professional Plan, but for 39% off!
  • Billed annually
  • No expiration
  • For the normal price of 10 articles elsewhere, you get one full year of unlimited access to articles.



billed annually
Start Free Trial

14-day Free Trial