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
it out of the producer.” The Bradford region demanded great investments,
therefore immediate shipment. “The producer pays.” The writer has no
documentary proof that this is Mr. Rockefeller’s policy, but there is no
question that the Oil Region believes it is, and this belief must be
taken into account if one attempts to explain the long warfare of the
oil country on him and his company. It is a common enough thing to-day,
indeed, to hear oil producers in Northwestern Pennsylvania remark
facetiously when a new endowment to Chicago University is reported:
“Yes, I contributed so much on such a day. Don’t you remember how the
market slumped without a cause? The university needed the money, and so
Mr. Rockefeller called on us to stand and deliver.”
A few months after “immediate shipment” was begun a new cause for
dissatisfaction arose. More or less private tankage leased to the lines
had always been in existence. It enabled a producer to carry his oil
without paying storage, and, of course, it was the business of the
company to empty this storage within a reasonable time after the owner
demanded it. But in the spring the lines, under the same plea of under
capacity, refused to carry out this duty to the tank owner; that is,
they refused to give him his tankage, although he had sold his oil. Thus
A owns 5,000 barrels of tankage. It is full. He sells a portion of it to
Mr. Bostwick and asks the United Pipe Lines to run the oil accumulated
at his wells. But the United Pipe Lines refuses on the ground that the
line is full. The loss to producers incident upon these orders was
terrible. All over the Bradford field men saw their oil running on the
ground, though they offered to sell it at ruinous prices, and though
they might have thousands of barrels of tankage leased to the United
Lines. Yet they did not riot; conscious that their own reckless drilling
had brought on the trouble, they cursed the Standard, and put down more
wells!
Public-domain text, read in full here on John Shaqi.
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