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AMERICAN CAPITALISM SERIES, Part II: CIO, SOCIALISTS, COMMUNISTS & FDR’s NEW DEAL! Political Solutions Without The Greedy Rich, The Mainstream Media, Democrats, Republicans Or The Supreme Court! That In Itself Is A New Concept! Richard Wolff Offers Viable, Innovative, Unconventional Solutions To Correct Capitalism’s Selfishness, Unfairness & Excesses. Politicians Either Can’t Or Won’t Solve Problems. And He Gives A History Lesson On FDR’s NEW DEAL And Why Corporations And Rich Financed It To Prevent Socialism And Communism From Replacing American Capitalism. New Thinking And New Approaches Are Needed To Achieve Results For Currently Insoluble Dilemmas & Future Crises Just As FDR Used During Great Depression. There Have Been 13 Depressions Or Recessions Since 1929. Every President Has Had At Least 1. Each Promises, “My Policies Will (1) End Current Crisis And (2) Ensure We Never Have A Crisis Like This Again!” Has Any President Succeeded In Keeping His Promise To Date? You Tell Me!


NARRATOR: John D. Rockefeller’s oil makes up nearly 40% of the cargo shipped on the rails. But, when Vanderbilt teams with his (own) biggest rival (Tom Scott, Pennsylvania RR) to push for a Rate Increase, Rockefeller takes it as a Declaration of War! He builds a Pipeline in response and begins to pull his shipments (from the railroads). And since the railroads have been drastically overbuilt, losing cargo means losing money.

Stocks plummet as Investors run scared! By the time the PANIC of 1873 is through, 1/3 of the country’s 360 Railroad Companies have gone bankrupt!

(NARRATOR: No one has capitalized more on the growth of the oil industry than John D. Rockefeller, who now controls 90% of the U.S. oil market. With the death of Cornelius Vanderbilt, only one man stands in the way of Rockefeller’s complete control of oil – Tom Scott!)
ROCKEFELLER: I’ve tried to be friendly to the Pennsylvania. I’ve given you plenty of business, have I not?
SCOTT: (Nods affirmatively)
ROCKEFELLER: And now I find that you’re invading my field, and that, my friend, is piracy!
SCOTT: (rising from his chair) We’ll take your feelings into account, Mr. Rockefeller.
ROCKEFELLER: (rising to shake hands) Two-thirds of the oil you carry comes from me. If you don’t retreat, I’ll take it to the other railroads.
SCOTT: As far as I’m aware, there isn’t another railroad that runs from Pittsburgh to New York. (He then walks out of the room, followed by his protégé, Andrew Carnegie)
ROCKEFELLER: I don’t want one drop of our oil traveling on the Pennsylvania!
ASSISTANT: But what about the Pittsburgh Refineries?
ROCKEFELLER: Shut them down!
(NARRATOR: Shutting down his refineries will cost Standard Oil a fortune in lost revenue! But for Rockefeller, crushing his Competition matters more than anything else!

Without Rockefeller’s oil, Scott loses nearly half of his business, forcing him to layoff tens of thousands of workers and drastically cut wages. Those workers take to the streets in protest. And, as darkness falls on Pittsburgh, they turn violent. A fire is set in Tom Scott’s train yards. Before the night is over, more than 39 buildings and over 1,200 train cars are destroyed. Tom Scott’s Company lays in ruin!

H. W. BRANDS, Historian: This is how Capitalism works!
(Transcribed by Tabacco from ‘All New – The Men Who Built America: More 2 Version’, Episode: A New War Begins) Continue reading

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