The Age of Big Business: A Chronicle of the Captains of IndustryHendrick, Burton Jesse
History
The Age of Big Business: A Chronicle of the Captains of Industry
Hendrick, Burton Jesse
Big business -- United States -- History; Industries -- United States -- History
These capitulations left only one important refining headquarters in the
United States which the Standard had not absorbed. This was that section
of western Pennsylvania where the oil business had had its origin. The
mere fact that this area was the headquarters of the oil supply gave it
great advantages as a place for manufacturing the finished product.
The oil regions regarded these advantages as giving them the right to
dominate the growing industry, and they had frequently proclaimed the
doctrine that the business belonged to them. They hated Rockefeller
as much as they feared him, yet at the very moment when the Titusville
operators were hanging him in effigy and posting the hoardings with
cabalistic signs against his corporation, this mysterious, almost
uncanny power was encircling them: Men who one night were addressing
public meetings denouncing the Standard influence would suddenly sell
out their holdings the next day. In 1875 John D. Archbold, a brilliant
young refiner who had grown up in the oil regions and who had gained
much local fame as opponent of the Standard, appeared in Titusville
as the President of the Acme Oil Company. At that time there were
twenty-seven independent refineries in this section. Archbold began
buying and leasing these establishments for his Acme Company, and in
about four years practically every one had passed under his control. The
Acme Company was merely a subsidiary of the Standard Oil. These rapid
purchasing campaigns gave the Standard ninety per cent of all the
refineries in the United States, but Rockefeller's scheme comprehended
more than the acquisition of refineries. In the main the Rockefeller
group left the production of crude oil in the hands of the private
drillers, but practically every other branch of the business passed
ultimately into their hands. Both the New York Central and the Erie
railroads surrendered to the Standard the large oil terminal stations
which they had maintained for years in New York. As a consequence, the
Standard obtained complete supervision of all oil sent by railroad into
New York, and it also secured the machinery of a complete espionage
system over the business of competitors. The Standard acquired companies
which had built up a large business in marketing oil. Even more dramatic
was its success in gathering up, one after another, these pipe lines
which represented the circulatory system of the oil industry. In the
early days these pipe lines were small and comparatively simple affairs.
They merely carried the crude oil from the wells to railroad centers;
from these stations the railroads transported it to the refineries at
Cleveland, New York, and other places. At an early day the construction
and management of these pipe lines became a separate industry. And now,
in 1873, the Standard Oil Company secured possession of a one-third
interest in the largest of these privately owned companies, the American
Transfer Company.
Public-domain text, read in full here on John Shaqi.
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