The History of the Standard Oil CompanyTarbell, Ida M. (Ida Minerva)
History
The History of the Standard Oil Company
Tarbell, Ida M. (Ida Minerva)
Petroleum industry and trade -- United States -- History; Standard Oil Company -- History
A more adroit move could not have been made at this moment. This
purchase was a demonstration that the Refiners’ Association could and
would pay the price the producers asked; that they asked nothing better,
in fact, than to ally themselves with the agency. The events of the next
three weeks, on the contrary, showed the agency that it would be some
time before anybody else would pay them any such price as that Mr.
Rockefeller promised. The reason was evident enough. In spite of the
stopping of the drill, in spite of the thirty days’ shut-down,
production was increasing. Indeed, the runs[30] for November were
greater than they had ever been in any single month since the beginning
of the oil business. A large number of wells under way when the drill
was stopped had “come in big.” New territory had been opened up by
unexpected wildcats. The shut-down had done less than was expected to
decrease stocks. It was evident that the Producers’ Association had a
long and severe task before it to bring the crude output down to
anything like the demand. Could the great body of producers be depended
upon to take still further measures to lessen their production, and at
the same time would they hold their oil until the agency had the mastery
of the situation? Their tanks were overflowing. Many of them were in
debt and depending on their sales to meet their obligations—even to meet
their daily personal expenses. It was little wonder that they grew
restive as they began to realise that the agency in which they had seen
immediate salvation from all their ills could only be made effective by
months more of self-sacrifice, of agitation, of persistent effort from
every man of them. With every day they became more impatient of the
bonds the agency had set for them, and the leaders soon realised that
some immediate tangible results must be given the mass of oil men, or
there was danger of a stampede.
A strong feature of the genius of John D. Rockefeller has always been
his recognition of the critical moment for action in complicated
situations. He saw it now, and his representatives again came to the
creek seeking an alliance. Their arguments, as they found their way from
the private meetings into the press and the street, ran something like
this: “Our combination is the only big buyer. We are in the thing to
stay, and shall remain the only big buyer. You might erect refineries
and oppose us, but it would take months, and while you are waiting how
are you going to hold the producers? You cannot do it. We can easily get
all the oil we want to-day at our own price from the men who sell from
necessity, and yet your agency is in the first flush of enthusiasm. Sell
only to us and we will buy 15,000 barrels a day from you. Refuse an
alliance with us and you will fail.”
Public-domain text, read in full here on John Shaqi.
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