The History of the Standard Oil Company

Introduction
About the Editor
Note
Author's Preface
1. THE BIRTH OF AN INDUSTRY
Petroleum first a curiosity and then a medicine
Discovery of its real value
The story of how it came to be produced in large quantities
Great flow of oil
Swarm of problems to solve
Storage and transportation
Refining and marketing
Rapid extension of the field of operation
Workers in great numbers with plenty of capital
Costly blunders frequently made
But every difficulty being met and overcome
The normal unfolding of a new and wonderful opportunity for individual endeavour
2. THE RISE OF THE STANDARD OIL COMPANY
John D. Rockefeller's first connection with the oil business
Stories of his early life in Cleveland
His first partners
"Organisation of the Standard Oil Company in June, 1870"
Rockefeller's able associates
First evidence of railway discriminations in the oil business
Rebates found to be generally given to large shippers
First plan for a secret combination
The South Improvement Company
Secret contracts made with the railroads providing rebates and drawbacks
Rockefeller and associates force Cleveland refiners to join the new combination or sell
Rumour of the plan reaches the oil regions
3. THE OIL WAR OF 1872
Rising in the oil regions against the South Improvement Company
Petroleum Producers' Union organised
Oilblockade against members of South Improvement Company and against railroads implicated
Congressional investigation of 1872 and the documents it revealed
Public discussion and general condemnation of the South Improvement Company
Railroad officials confer with committee from Petroleum Producers' Union
Watson and Rockefeller refused admittance to conference
Railroads revoke contracts with South Improvement Company and make contract with Petroleum Producers' Union
Blockade against South Improvement Company lifted
Oil war officially ended
Rockefeller continues to get rebates
His great plan still a living purpose
4. "AN UNHOLY ALLIANCE"
Rockefeller and his party now propose an open instead of a secret combination
"The Pittsburg Plan"
The scheme is not approved by the oil regions because its chief strength is the rebate
Rockefeller not discouraged
Three months later becomes president of National Refiners' Association
Four-fifths of refining interest of United States with him
Oil regions aroused
Producers' Union order drillings stopped and a thirty day shut-down to counteract falling price of crude
Petroleum Producers' Agency formed to enable producers to control their own oil
Rockefeller outgenerals his opponents and forces a combination of refiners and producers
Producers' association and producers' agency snuffed out
National Refiners' Association disbands
Rockefeller steadily gaining ground
5. LAYING THE FOUNDATIONS OF A TRUST
Evidence of reappearance of rebates soon after agreement of March 25 is signed
Principle thoroughly established that large shippers shall have advantages over small shippers in spite of railroads' duty as common carriers
Agreement worked out by which three roads are to have fixed percentage of eastern shipments
Oil regions robbed of their geographical advantage
The Rutter circular
The Rockefeller circular
Rockefeller now secretly plans realisation of his dream of personal control of the refining of oil
Organisation of the Central Association
H. H. Rogers' defence of the plan
Rockefeller's quiet and successful canvass for alliances with refiners
The rebate his weapon
Consolidation by persuasion or force
More talk of a united effort to counteract the movement
6. STRENGTHENING THE FOUNDATIONS
First Interstate Commerce Bill
The bill pigeon-holed through efforts of Standard's friends
Independents seek relief by proposed construction of pipe-lines
Plans for the first Seaboard Pipe-line
Scheme fails on account of mismanagement and Standard and railroad opposition
Development of the Empire Transportation Company and its proposed connection with the refining business
"Stand, Erie and Central fight the Empire Transportation Company and its backer, the Pennsylvania Railroad"
The Pennsylvania finally quits after a bitter and costly war
Empire Line sold to the Standard
Entire pipe-line system of oil regions now in Rockefeller's hands
New railroad pool between four roads
Rockefeller puts into operation system of drawbacks on other people's shipments
He proceeds rapidly with the work of absorbing rivals
7. THE CRISIS OF 1878
A rise in oil
A blockade in exports
Producers do not get their share of the profits
They secretly organise the Petroleum Producers' Union and promise to support proposed independent pipe-lines
Another Interstate Commerce Bill defeated at Washington
"Immediate Shipment"
Independents have trouble getting cars
Riots threatened
Appeal to Governor Hartranft
"Suits brought against United Pipe-lines, Pennsylvania Railroad and others "
Investigations precipitated in other states
The Hepburn Commission and the Ohio investigation
Evidence that the Standard is a continuation of the South Improvement Company
Producers finally decide to proceed against Standard officials
Rockefeller and eight of his associates indicted for conspiracy
8. THE COMPROMISE OF 1880
The producers' suit against Rockefeller and his associates used by the Standard to protect itself
Suits against the transportation companies are delayed
Trial of Rockefeller and his associates for conspiracy postponed
All of the suits withdrawn in return for agreements of the Standard and the Pennsylvania to cease their practices against the producers
With this compromise the Second Petroleum Producers' Union comes to an end
Producers themselves to blame for not standing behind their leaders
Standard again enforces orders objectionable to producers
More outbreaks in the oil regions
Rockefeller having silenced organised opposition proceeds to silence individual complaint
9. THE FIGHT FOR THE SEABOARD PIPE-LINE
Project for Seaboard Pipe-line pushed by independents
Tidewater Pipe Company formed
Oil pumped over mountains for the first time
Independent refiners ready to unite with Tidewater because it promises to free them from railroads
The Standard face to face with a new problem
Day of the railroads over as long distance transporters of oil
National Transit Company formed
War on the Tidewater begun
Plan to wreck its credit and buy it in
Rockefeller buys a third of the Tidewater's stock
The Standard and Tidewater become allies
National Transit Company now controls all pipe-lines
Agreement entered into with Pennsylvania Railroad to divide the business of transporting oil
10. CUTTING TO KILL
Rockefeller now plans to organise oil marketing as he had already organised oil transporting and refining
Wonderfully efficient and economical system installed
Curious practices introduced
Reports of competitors' business secured from railway agents
Competitors' clerks sometimes secured as allies
In many instances full records of all oil shipped are given Standard by railway and steamship companies
This information is used by Standard to fight competitors
Competitors driven out by underselling
Evidence from all over the country
Pretended independent oil companies started by the Standard
Standard's explanation of these practices is not satisfactory
Public derives no benefit from temporary lowering of prices
Prices made abnormally high when competition is destroyed
11. THE WAR ON THE REBATE
Rockefeller's silence
Belief in the oil regions that combined opposition to him was useless
Individual opposition still conspicuous
"The Standard's suit against Scofield, Shurmer and Teagle"
Seeks to enforce an agreement with that firm to limit output of refined oil
"Scofield, Shurmer and Teagle attempt to do business independently of the Standard and its rebates"
Find their lot hard
They sue the Lake Shore and Michigan Southern Railway for discriminating against them
A famous case and one the railway loses
Another case in this war of individuals on the rebate shows the Standard still to be taking drawbacks
The case of George Rice against the Receiver of the Cincinnati and Marietta Railroad
12. THE BUFFALO CASE
The Standard buys three-fourths of the Vacuum Oil Works of Rochester
Two Vacuum employees establish Buffalo Lubricating Oil Company and take with them an experienced Stillman from the Vacuum
The Buffalo Lubricating Oil Company has an explosion and the Stillman suddenly leaves
The Buffalo Lubricating Oil Company is sued by Vacuum for infringement of patents
Matthews sues the Everests of the Vacuum for deliberately trying to ruin his business
Matthews wins his first civil suit
"He files a second suit for damages, and secures the indictment of several Standard officials for criminal conspiracy"
"Rogers, Archbold and McGregor acquitted"
The Everests fined
13. THE STANDARD OIL COMPANY AND POLITICS
Oil men charged Standard with intrenching itself in state and national politics
Election of Payne to Senate in Ohio in 1884 claimed to establish charge of bribery
Full investigation of Payne's election denied by United States Senate Committee on Elections
Payne himself does not demand investigation
Popular feeling against Standard is aggravated
The Billingsley Bill in the Pennsylvania Legislature
A force bill directed against the Standard
Oil men fight hard for it
The bill is defeated
Standard charged with using money against it
A growing demand for full knowledge of the Standard a result of these specific cases
14. THE BREAKING UP OF THE TRUST
Epidemic of trust investigation in 1888
Standard investigated by New York State Senate
Rockefeller's remarkable testimony
Inquiry into the nature of the mysterious Standard Oil Trust
Original Standard Oil Trust agreement revealed
Investigation of the Standard by Congress in 1888
As a result of the uncovering of the Standard Oil Trust agreement Attorney-General Watson of Ohio begins an action in quo warranto against the trust
Marcus A. Hanna and others try to persuade Watson not to press the suit
Watson persists
Court finally decides against Standard and trust is forced to make an apparent dissolution
15. A MODERN WAR FOR INDEPENDENCE
Producers' Protective Association formed
A secret independent organization intended to handle its own oil
Agreement made with Standard to cut down production
Results of agreements not as beneficial to producers as expected
"Producers proceed to organise Producers' Oil Company, limited"
Independent refiners agree to support movement
Producers and refiners' company formed
"Lewis Emery, Jr.'s, fight for Seaboard Pipe-line"
The United States Pipe line
Standard's desperate opposition
Independent refiners almost worn out
They are relieved by formation of Pure Oil Company
Pure Oil Company finally becomes head of Independent Consolidation
"Independence possible, but competition not restored"
16. THE PRICE OF OIL
Earliest designs for consolidation include plans to hold up the price of oil
South Improvement Company so intends
Combination of 1872-1873 makes oil dear
Scheme fails and prices drop
The Standard's great profits in 1876-1877 through its second successful consolidation
Return of competition and lower prices
Standard's futile attempt in 1880 to repeat raid of 1876-1877
Standard is convinced that making oil too dear weakens markets and stimulates competition
Great profits of 1879-1889
Lowering of the margin on export since 1889 by reason of competition
Manipulation of domestic prices even more marked
Home consumers pay cost of Standard's fights in foreign lands
Standard's various prices for the same goods at home
High prices where there is no competition and low prices where there is competition
17. THE LEGITIMATE GREATNESS OF THE STANDARD OIL COMPANY
Centralisation of authority
Rockefeller and eight other trustees managing things like partners in a business
Newsgathering organization for collecting all information of value to the trustees
Rockefeller gets picked men for every post and contrives to make them compete with each other
Plants wisely located
The smallest details in expense looked out for
Quick adaptability to new conditions as they arise
Economy introduced by the manufacture of supplies
A profit paid to nobody
Profitable extension of products and by-products
A general capacity for seeing big things and enough daring to lay hold of them
18. CONCLUSION
Contempt proceedings begun against the Standard in Ohio in 1897 for not obeying the courts order of 1892 to dissolve the trust
Suits begun to oust four of the Standard's constituent companies for violation of Ohio anti-trust laws
All suits dropped because of expiration of Attorney-General Monnett's term
Standard persuaded that its only corporate refuge is New Jersey
"Capital of the Standard Oil Company of New Jersey increased, and all Standard Oil business taken into new organisation "
Restriction of New Jersey law small
Profits are great and Standard's control of oil business is almost absolute
Standard Oil Company essentially a realisation of the South Improvement Company's plans
"The crucial question now, as always, is a transportation question"
The trust question will go unsolved so long as the transportation question goes unsolved
The ethical questions involved