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
85,000 barrels a year and neither jointly nor separately to engage in
any other form of oil business for ten years—the life of the contract.
Scofield, Shurmer and Teagle were guaranteed a profit of $35,000 a year.
Profits over $35,000 went to Mr. Rockefeller up to $70,000; any further
profits were divided.
The making of this contract and its execution were attended by all the
secret rites peculiar to Mr. Rockefeller’s business ventures. According
to the testimony of one of the firm given a few years later on the
witness stand in Cleveland the contract was signed at night at Mr.
Rockefeller’s house on Euclid Avenue in Cleveland, where he told the
gentlemen that they must not tell even their wives about the new
arrangement, that if they made money they must conceal it—they were not
to drive fast horses, “put on style,” or do anything to let people
suspect there were unusual profits in oil refining. That would invite
competition. They were told that all accounts were to be kept secret.
Fictitious names were to be used in corresponding, and a special box at
the post-office was employed for these fictitious characters. In fact,
smugglers and house-breakers never surrounded their operations with more
mystery.
But make his operations as thickly as he might in secrecy, the effect of
Mr. Rockefeller’s steady and united attack on the refining business was
daily becoming more apparent. Before the end of 1876 the alarm among oil
producers, the few independent refineries still in business, and even in
certain railroad circles was serious. On all sides talk of a united
effort to meet the consolidation was heard.
CHAPTER SIX
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—STANDARD,
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.
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