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
Most important was the simplification of the transportation problem by
the development of pipe-lines. By 1872 they were the one oil gatherer.
Several companies were carrying on the pipe-line business, and two of
them had acquired great power in the Oil Regions because of their
connection with trunk lines. These were the Empire Transportation
Company and the Pennsylvania Transportation Company. The former, which
had been the first business organisation to go into the pipe-line
business on a large scale, was a concern which had appeared in the Oil
Regions not over six months before Van Syckel began to pump oil. The
Empire Transportation Company had been organised in 1865 to build up an
east and west freight traffic _via_ the Philadelphia and Erie Railroad,
a new line which had just been leased by the Pennsylvania. Some ten
railroads connected in one way or another with the Philadelphia and
Erie, forming direct routes east and west. In spite of their evident
community of interest these various roads were kept apart by their
jealous fears of one another. Each insisted on its own time-table, its
own rates, its own way of doing things. The shipper _via_ this route
must make a separate bargain with each road and often submit to having
his freight changed at terminals from one car to another because of the
difference of gauge. The Empire Transportation Company undertook to act
as a mediator between the roads and the shipper, to make the route
cheap, fast, and reliable. It proposed to solicit freight, furnish its
own cars and terminal facilities, and collect money due. It did not make
rates, however; it only harmonised those made by the various branches in
the system. It was to receive a commission on the business secured, and
a rental for the cars and other facilities it furnished.
It was a difficult task the new company undertook, but it had at its
head a remarkable man to cope with difficulties. This man, Joseph D.
Potts, was in 1865 thirty-six years old. He had come of a long and
honourable line of iron-masters of the Schuylkill region of
Pennsylvania, but had left the great forge towns with which his
ancestors had been associated—Pottstown, Glasgow Forge, Valley Forge—to
become a civil engineer. His profession had led him to the service of
the Pennsylvania Railroad, where he had held important positions in
connection with which he now undertook the organisation of the Empire
Transportation Company. Colonel Potts—the title came from his service in
the Civil War—possessed a clear and vigorous mind; he was far-seeing,
forceful in execution, fair in his dealings. To marked ability and
integrity he joined a gentle and courteous nature.
Public-domain text, read in full here on John Shaqi.
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